The Democratic Rally (DISY) party has today rejected a proposal by the opposition AKEL party to impose a solidarity levy on bank profits, despite earlier indicating it would announce its position during Thursday’s parliamentary debate.
In a statement, DISY warned that AKEL’s proposal for an extraordinary bank tax “would achieve the opposite of what we should be aiming for” and could ultimately harm borrowers and depositors.
The party argued that the goal should be to bring interest rates in line with the European average, noting that Cyprus currently has a significantly higher interest rate margin – the difference between lending and deposit rates.
“With AKEL’s proposal, the gradual convergence we observe today, for which we have exerted strong pressure, may be delayed rather than accelerated”, DISY said.
“In short, this tax will be paid for by borrowers and depositors”.
The announcement comes after DISY MP Harris Georgiades had said yesterday that the party would reveal its stance during Thursday’s parliamentary plenary session.
