Cyprus’ parliament may have voted to reject the terms of a $13 billion bailout deal that included a levy on all depositors, but it looks like New Zealand may be eying a similar depositor’s tax.
“The National Government are pushing a Cyprus-style solution to bank failure in New Zealand which will see small depositors lose some of their savings to fund big bank bailouts,” the country’s Green Party said in statement released Tuesday.
At the heart of the Green Party’s complaint is New Zealand Finance Minister Bill English’s support for the Open Bank Resolution (OBR), a Reserve Bank policy “that in extreme cases like insolvency would see a bank’s losses shouldered in part by its shareholders and creditors – including everyday depositors,” The New Zealand Herald Explains.
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