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The finance ministers of the EU countries are ready to discuss with the Cyprus government new conditions for financial aid providing.

The Cayman Islands' Government announced that it has elected to adopt a Model 1 intergovernmental agreement with the United States to provide compliance with the US Foreign Account Tax Compliance Act (FATCA).

In the evening March 19 Cyprus Parliament has finally voted regarding bank deposits tax introduction as a condition for getting financial aid from the EU. This measure was rejected by the majority of parliamentarians.

On Monday the Cyprus Parliament postponed the voting regarding bank deposits tax introduction as a condition for getting financial aid from the EU again.

Last Friday the finance ministers of the EU member countries have made preliminary decision on financial aid for Cyprus in the amount up to EUR 10 bln.

We publish full official text  of the Address to the Nation by the President of the Republic of Cyprus Mr Nicos Anastasiades dated 17/03/2013 (from http://www.cyprus.gov.cy/moi/pio/pio.nsf/All/9B6CC88D6BE4D00FC2257B31006DBD5B?Opendocument)

The FATF has developed guidance aimed to assist countries in the conduct of money laundering and terrorism financing risk assessment at national level.

The Head of Cyprus's new Economic Policy Council reported that Cyprus would rise in corporation tax from 10% to 12.5% as part of a bailout deal.

Cyprus continues to negotiate the terms of a bailout from the EU and the IMF. Cyprus applied for a bailout in June 2012, becoming the fifth European country who did so, and it is seeking around EUR 17 bln to recapitalize its banks. The country has already implemented a number of tax rises, including a 2% rise in VAT (from 15% to 17%).

Recently the Netherlands’ Ministerial Council has approved a bill reducing the timeframe for the issuance of final tax assessments by the tax authorities.

After the recent EU Council of Economic and Finance Ministers meeting in Brussels, Luxembourg’s Finance Minister Luc Frieden and his Czech colleague Miroslav Kalousek signed a bilateral double taxation agreement.