Cypriots hit with one-off 20% tax on savings over $100k

A DEAL in Europe to bailout the Bank of Cyprus edged closer on Sunday, with the Cypriot Government agreeing to impose a one-off 20% tax of savers with more than 100,000 Euros.

The deal is part of tense negotiations between Cyprus and the European Union to save the bank, which holds vast amounts of German funds.

Under the plan, the one-off tax will be combined with a 4% levy on savers with smaller deposits at other banks on Cyprus.

The plan was due to be presented to Euro zone finance ministers on Sunday night, in a bid to avoid collapse of the nation's financial system.