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19Mar13

Cyprus parliament rejects deposit tax for bailout

Cypriot lawmakers overwhelmingly rejected a deeply unpopular tax on bank deposits on Tuesday, throwing into doubt an international bailout for the troubled euro zone member needed to avert default and a banking collapse.

The 56-seat parliament voted by 36 votes against and 19 abstentions to bury the bill, a condition of a 10 billion euro ($13 billion) European Union bailout for the Mediterranean island. One deputy was absent.

[Source: Reuters, Nicosia, 19Mar13]
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