Stock markets throughout the world dropped Monday in the aftermath of a bailout for tiny Cyprus, which included a first-ever bank deposit tax that rattled investors.
Stocks in Asia plunged 2 percent or more, with European and U.S. indexes falling by smaller amounts.
Meanwhile, Cyprus moved to revamp terms of the bank deposit tax that its international lenders imposed as part of a $13 billion bailout to keep the Mediterranean island nation from going bankrupt.
Cypriot officials were working with the lenders to cut or eliminate the tax on small investors, while raising it on those with bigger accounts. Cyprus’s parliament, for the second day in a row, postponed a vote on a new plan and rescheduled it for Tuesday.
Cypriot banks were closed on Monday for a holiday and officials said they would remain closed until Thursday, to prevent a run on accounts.