Cyprus has rejected a bailout package worth 10 billion Euros (£8.6 billion) in rescue money from the International Monetary Fund, European Central Bank and the European Union. Cyprus would have to pay back 16 billion, 6 billion of which would come from a one off 9.9% tax on all bank accounts. Talks are going on to change this to 3% on deposits lower than 100,000 euro(£117,412), rising to 15% for those above 500,000 euro (£428,505) Russia has also made an offer to Cyprus to bail them out in exchange for part or full ownership of natural gas and oil resources in Cypriot.
Expat Britons with cypriot bank accounts will have their pension payments frozen until at least today. This is to ensure they receive them ahead of proposed bank deposit tax, treasury minister Greg Clark has said. Any UK pensioners is Cyprus can be assured that their future pension payments are being held safely and a normal payment service will resume as soon as the situation becomes clear.
Banks will remain closed until tomorrow Wednesday 27 March. Demonstrations are being held in parts of Cyprus as public anger increases.
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