Cyprus has reportedly agreed to a new scheme to tax deposits in order to raise the money to bail outs its banks.
According to Reuters, a 20% tax on deposits over 100K at the Bank of Cyprus would be levied. That would be coupled with a 4% tax across the board elsewhere.
Remember, on Tuesday the Cypriot parliament overwhelmingly rejected a tax deposit scheme that was agreed to exactly a week ago. In the first version of the plan, deposits over 100K were to be taxed at 9.9%, while those below that level would have been 6.5%.
This new version is more progressive.
This is not official, or a done deal by any means.
For one thing, at the moment, there's a planned Eurogroup meeting tomorrow night, and Olli Rehn has just put out a statement on the need to reach a deal this weekend.
Furthermore, any deal will need to be voted on and approved by the Cypriot parliament.
