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Originally published Monday, March 18, 2013 at 3:32 AM

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Cyprus proposes no charge on small account holders

Cypriot finance officials are revising a planned financial bailout to relieve small account holders from having to pay a charge on their savings in order to secure an international rescue of the country's troubled banks.

The Associated Press

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NICOSIA, Cyprus —

Cypriot finance officials are revising a planned financial bailout to relieve small account holders from having to pay a charge on their savings in order to secure an international rescue of the country's troubled banks.

Under a new draft bill discussed in Parliament's finance committee Tuesday, deposits below (EURO)20,000 ($25,900) would be exempt from any charge. Those between (EURO)20,000-(EURO)100,000 would have a 6.75 percent levy imposed, and those above (EURO)100,000 would have a 9.9 percent charge.

European officials have said (EURO)5.8 billion of the (EURO)15.8 billion rescue package must be raised by Cyprus.

The country's central bank governor recommended that no levy be imposed on accounts below (EURO)100,000 - the amount that is insured by the government.

THIS IS A BREAKING NEWS UPDATE. Check back soon for further information. AP's earlier story is below.

Cypriot financial officials are working on a revised plan to secure an international bailout that will ease the pain on small bank account holders of a plan to seize deposits.

An earlier plan to seize up to 10 percent of all savings in bank accounts to help pay for the (EURO)15.8 billion rescue package was met with outrage.

Parliament is to vote on the new measures, but it was unclear whether that would be held later Tuesday or delayed again while details are hammered out. Banks have been shut until Thursday to prevent a bank run.

Finance Minister Michalis Sarris is to fly to Moscow Tuesday afternoon to meet with his Russian counterpart. About a third of all deposits in Cypriot banks are believed to be held by Russians.

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