MNI is reporting that a government official speaking outside Parliament said the Troika wants a 15% deposit levy on deposits in Cyprus. Asked if the government accepted the demand, the official said that government is still examining different numbers and scenarios — that’s not exactly a sound rejection.
The initial plan was for a vote at the top of the hour but that looks highly unlikely. At this point, a resolution before the market close looks like a longshot.
It looks as though a deal is coming together but you never know until the votes are counted. The risks for the euro go both ways; we could see selling on the lack of certainty headed into the weekend but speculators could also buy on the anticipation that a deal will get done before markets re-open Monday.
