U.S. stock markets were lower this morning after a bailout agreement reached over the weekend in Cyprus sparked outrage in the tiny nation that is viewed as a tax haven for foreign investors, CNNMoney reported.
The European Union (EU) unveiled a 10 billion euro (about $1.5 billion) plan early Saturday to rescue Cyprus' outsized banking sector and avoid a default. Though the bailout is relatively small, the EU has required a one-time tax of 6.75 percent on bank deposits of less than 100,000 euros and 9.9 percent for those over that amount.
Cypriots rushed to ATMs as the country tried to win parliamentary support for the plan. The worry is that investors and depositors in other financially weak European nations might fear similar bailout provisions in the future, which has the potential to destabilize global financial markets, CNNMoney said.
Early today, Cypriot leaders said a vote on the plan has been delayed until Tuesday. Read more.