Polish Embassy bank account blocked in Cyprus
PR dla Zagranicy
Peter Gentle
19.03.2013 15:30
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Ambassador Dobrowolski explains the mix-up over the blocked bank accounts...
Poland’s Embassy, alongside the people of Cyprus, cannot access its bank account, after the government in Nicosia declared a 'banking holiday' following a controversial EU bailout plan.
Nicosia, Monday after banks remained closed: photo - EPA/FILIP SINGER
Poland’s ambassador to Cyprus, Pawel Dobrowolski, has told Polish Radio that the blocking of the Embassy’s bank account must have been a mistake, as, like all diplomatic missions in Cyprus, they do not pay local taxes.
The Nicosia government declared a ‘bank holiday’ this week to stop account-holders withdrawing savings after the IMF, European Commission and European Central Bank tried to impose a one-off savings tax on the islanders in return for a 10 billion bail out.
Amid rising anger at the move, it was announced on Tuesday morning that a new plan would exempt savings under 20,000 euros from the planned 6.75 percent levy on deposits of less than 100,000 euros.
The government has not explained how it would fill the funding gap this would create, the Reuters news agency reports.
The Cypriot parliament is still expected to veto the deal, however. (pg)