Putin Says Cyprus Bank-Deposit Levy Is Dangerous, Unfair
By Ilya Arkhipov and Henry Meyer - Mar 18, 2013
Russian President Vladimir Putin criticized a proposed penalty on Cypriot bank deposits, imposed as part of an international bailout, saying it would set a dangerous precedent.
“Such a decision, if it’s adopted, will be unfair, unprofessional and dangerous,” Putin told a government meeting today, according to a statement posted on the Kremlin website.
The levy will probably provoke an outflow of Russian money toward other jurisdictions, according to Moody’s Investors Services and Monument Securities. Russian companies and individuals have $31 billion of deposits in Cyprus, according to Moody’s.
A double-tax avoidance treaty and low tax rates have made Cyprus the conduit of choice for Russians moving money into and out of their country. Including loans to companies registered in Cyprus, Russia’s exposure is about $60 billion, Moody’s estimates.
MORE...
http://www.bloomberg.com/news/2013-03-18/putin-says-cyprus-bank-levy-unfair-unprofessional-dangerous-.html