Disy and Akel on Wednesday were predictably on the opposite sides of the argument over the contentious ‘bank tax’ bill set to go to plenum on Thursday.

Submitted by Akel, the bill aims to tax banks on their ‘windfall profits’ and has prompted harsh opposition from the central bank director who warned MPs last week that this would deter investments.

Akel nonetheless in a statement called Thursday’s parliamentary session critical “because all parties and each MP will be judged on whether they’re there to serve the people, or the banks.”

It argued that in the past two years, banks accumulated “millions of euros” in profits, benefitting from high interest rates.

While banks have been criticised for their delay in reducing the interest rates in line with the European Central Bank’s (ECB) decisions, the Association of Cyprus Banks on Tuesday expressed its readiness to adjust interest rates tied to the ECB base rate immediately after the ECB convenes again on Thursday.

Akel seeks to use the funds reaped from the bank tax to help vulnerable groups, by subsidising interest rates for housing loans and offer housing incentives for people who cannot purchase property.

Earlier in the day, cabinet approved a scheme subsidising interest rates for housing loans obtained between 2022-2023.

Disy on the other hand cautioned that Akel’s proposal would give banks an incentive to delay implementing lowered interest rates.

“This will only punish those with loans and depositors.”

As such, Disy stressed it was staunchly opposed to the bill and would vote against it. With Akel saying there were only two choices “with society or with banks”. Diko, Edek, Dipa and Elam will swing the outcome either way, as will the independents.

The Green Party has also expressed its support for the bill.