Cyprus parliament rejects bills needed for more bailout cash

(NICOSIA) - The Cypriot parliament rejected two banking bills requested by the country's international lenders in order to secure another disbursement of the 10 billion euro ($13 billion) bailout agreement.

However, MPs pass 12 other bills required for a green light to be given at a September 13 Eurogroup meeting for the island's second tranche of 1.5 billion euros.

The rejected bills covered the supervision of the Cooperative Banks and the recapitalisation of Hellenic Bank. Supervision of the once autonomous coop network was to be transferred to the central bank.

With bailout cash on the line the government was looking for a quick fix to rectify the situation at the eleventh hour as Finance Minister Haris Georgiades rushed to parliament to negotiate a re-vote.

Among the bills approved was a 10 percent additional levy on delayed payment of property transfer tax.

Motorists were also hit hard as road tax fees went up based on levels of carbon dioxide emissions.

Earlier, around 500 people protested outside the parliament against austerity measures.

The demonstration was organised by opposition communist party Akel and other left-wing groups who held up placards declaring: "Tax the rich, not the poor" and "We are not beggars".

Cypriots have had to endure tax hikes and pay cuts to ensure the eurozone member secured a bailout deal worth 10 billion euros in March.

There was a strong police presence to ensure the protest did not get out of hand.

In return for the bailout, international creditors demanded the winding up of the island's second largest banker, Laiki, and a haircut on deposits over 100,000 euros in largest lender Bank of Cyprus.

The unprecedented eurozone haircut on deposits forced the government to close all the island's banks for nearly two weeks in March and impose draconian controls when they reopened.