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MoD flies emergency cash to Cyprus for British personnel | MoD flies emergency cash to Cyprus for British personnel |
(30 minutes later) | |
An RAF plane carrying 1m euros is flying to Cyprus from Britain as a "contingency measure" to provide military personnel with emergency loans, the Ministry of Defence says. | |
The move comes after a controversial one-off levy of up to almost 10% on savings in Cyprus was announced. | The move comes after a controversial one-off levy of up to almost 10% on savings in Cyprus was announced. |
The money will be used for British personnel and their families if cash machines and debit cards stop working. | The money will be used for British personnel and their families if cash machines and debit cards stop working. |
The tax is a condition for Cyprus to get a loan from the EU and IMF. | The tax is a condition for Cyprus to get a loan from the EU and IMF. |
Cyprus needs a 10bn euro (£8.7bn; $13bn) bailout to rescue its banks. | Cyprus needs a 10bn euro (£8.7bn; $13bn) bailout to rescue its banks. |
Salary needs | Salary needs |
A revised version of the tax, which has yet to pass through the Cypriot parliament, would mean a 6.75% levy on deposits over 20,000 euros, with those over 100,000 euros charged at 9.9%. | A revised version of the tax, which has yet to pass through the Cypriot parliament, would mean a 6.75% levy on deposits over 20,000 euros, with those over 100,000 euros charged at 9.9%. |
A debate on the bailout deal in the Cypriot parliament is now under way, but no MPs are expected to vote in favour. | |
The levy could affect many of the 3,000 UK military personnel in Cyprus, and up to an estimated 25,000 expatriates. | |
The cash - about £850,000 - is being flown out on one of the two weekly flights that travel between Britain and Cyprus. It is being carried on a Voyager aircraft, which left from RAF Brize Norton and is expected to arrive at RAF Akrotiri at about 20:00 GMT. | |
An MoD spokesman said the situation was being kept under review and that it would consider further shipments if required, but that the cash was a contingency and not currently due to be distributed. | |
"The MoD is proactively approaching personnel to ask if they want their March, and future months' salaries paid into UK bank accounts, rather than Cypriot accounts," they said. | |
"We're determined to do everything we can to minimise the impact of the Cyprus banking crisis on our people." | "We're determined to do everything we can to minimise the impact of the Cyprus banking crisis on our people." |
Chancellor George Osborne has already said the UK will compensate any British troops in Cyprus hit by plans to introduce the bank levy. | Chancellor George Osborne has already said the UK will compensate any British troops in Cyprus hit by plans to introduce the bank levy. |
And British government workers would also be protected, he said. | And British government workers would also be protected, he said. |