India’s Network 18 Media and Investments Ltd. said that its unit companies hold less than $260,000 in bank balances in Cyprus, as the media firm sought to allay investor concerns. The clarification made to the Indian stock exchanges by Network 18, as well as its television company TV18 Broadcast Ltd. comes after shares of both the firms fell.
Over the weekend, euro-zone finance ministers had decided to impose a special tax on deposits as part of a deal to reduce the cost of the island’s bailout. The deal marks the first time in the euro-zone crisis that depositors in the bloc’s banks will lose money, a move that has stoked fears of a deposit run–either in Cyprus or at other fragile euro-zone banks. However, Cyprus’s parliament voted against the proposed levy, sparking worries that Cyprus could face a complete collapse of its banks.
Network 18 Media and Investments runs web portal In.com and has partnerships that run India’s versions of CNBC, MTV, Nickelodeon and CNN. It also operates a Hindi entertainment channel and some e-commerce sites separately; TV18 Broadcast said its joint venture Viacom 18′s film unit–The Indian Film Company–doesn’t hold any bank balances in Cyprus.