Cyprus overwhelmingly reject tax on deposits to fund bailout

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Cyprus MPs on Tuesday overwhelmingly rejected a tax on bank deposits demanded by international lenders as a condition for a bailout deal, with a vote of 36 against, 19 abstentions and none in favour.

“The bill has been rejected,” said house speaker Yiannakis Omirou, as thousands of protesters outside the parliament building in Nicosia exploded in joy.

Local media said the government would now try to renegotiate the terms of the deal with the troika of lenders, and at the same time seek other ways of making up a 5.8 billion-euro ($7.47 billion) shortfall.

Options included issuing a national bond scheme, restructuring the island’s banks and trying to attract further investments from Russia, reports said.

[Updated from original with news of the bailout.]