The Cypriot parliament rejected the planned levy on depositors. An overwhelming majority of the lawmakers refused to endorse an extremely unpopular tax as a condition for a much needed rescue package for the small island state. Cyprus is in dire need for funds in order to avoid financial default and banking collapse. The 56-member parliament rejected the bailout with 36 lawmakers against, zero for and 19 abstaining. The likely outcome of the vote is that the Troika will renegotiate the bailout terms with Cyprus in order to reach an agreement. Another, less likely outcome, would be for Cyprus to leave the euro. However, this is unlikely considering the ramifications Cyprus’s departure would have on the eurozone as a whole.

Sources: www.binaryoptionswire.com