The bill, which had been amended on Tuesday morning to shield small deposit holders from the deposit tax, was rejected with 36 votes against, 19 abstentions and zero votes in favour. One deputy was absent.
Hundreds of protesters outside parliament cheered in jubilation and sang the national anthem when they heard the bill had not passed.
Cyprus will now have to come up with an alternative plan to raise the money.
If it does not do so, it will not qualify for external rescue loans, the country’s banks face collapse and the country could go bankrupt.
Cyprus banks ‘may never reopen’
Germany’s finance minister has warned that it is unclear whether the banks in Cyprus will ever be able to open again.
Banks in Cyprus have been shut since Saturday to avoid a run while the tiny Mediterranean country tries to negotiate a rescue for its economy.
Wolfgang Schaeuble said two of Cyprus’s big banks are being propped up solely by emergency liquidity from the European Central Bank that is contingent on all sides agreeing on a rescue package.
“Someone needs to explain this to the Cypriots,” Mr Schaeuble told German public television ZDF.
Politicians in Cyprus have voted to reject a bailout deal that would have seized up to 10% of bank deposits to prevent a collapse of the country’s banks.
GERMANY and the EU has now resorted to extortion basically they are saying give us the money or we close your banks and the country goes completely bankrupt overnight ,loose a little or loose everything. This is Financial Blackmail but is this not what we have all come to expect from politicians who are nothing more than paid actor shill’s of the real puppet master bankster NWO illuminate luciferian’s behind the scenes.
All the world’s a stage, and all the men and women merely actors: they have their exits and their entrances; and one man in his time plays many parts, his acts being seven ages.