Details Of Bank Levy

Legislation was enacted in April requiring credit institutions operating in Cyprus to pay a levy of 0.095% on their customer deposits from 2011 onwards. For the first two years, seven-twelfths of the amounts raised by the levy will be used to reduce the government deficit and the remaining five-twelfths will be used to fund a financial stability fund. From 1 January 2013, the entire amount raised by the levy will be credited to the financial stability fund.

The amount payable in any year will be calculated on the basis of customer deposits as at 31 December of the preceding year. No levy will be imposed on inter-bank deposits. The levy will be payable by:

• Cyprus banks in respect of their banking activities in Cyprus (overseas branches and subsidiaries will not be subject to the levy);