NICOSIA, Cyprus: Moody's said Monday the proposed bank stability fund in Cyprus is too small to protect the island's banking system if it runs into trouble.
The Cyprus government has proposed a two-year, .05 percent tax on commercial bank deposits over 100,000 ($142,000), which is projected to raise 120 million ($170 million). Some 70 million ($99.3 million) would go into state coffers to shore up the island's fiscal deficit and the rest would be put into the stability fund. The proposal still needs legislative approval.