Thomson Reuters have developed their own design your own Cyprus bailout plan tool.
Keeping their promises to guarantee deposits up to €100,000 would have required politicians to impose a levy of around 15.3 per cent on deposits over that amount. The costs of not securing the savings of small depositors could be greater still. Allister Heath writes on the tax:
One explanation being given for why the tax is being levied on everybody, not just on uninsured deposits, is that Cyprus wants to protect its status as a financial centre – hitting large depositors and companies with a much bigger levy would have chased them away. Many of the larger depositors are Russian, and the Cypriot authorities didn’t want a row with Moscow. It seems too late to worry about this; Cyprus’ reputation is already toast. What is clear is that Germany would have never ratified the bailout in the absence of depositors being hammered in some way; and the European Central Bank threatened to pull the plug on Cypriot banks were the terms of the bailout not agreed.