Cyprus Bailout: Cash Flown Out To British Troops

A plane has left Britain for Cyprus with one million euros onboard to ensure soldiers have access to cash.

Banks in Cyprus have been closed since before the weekend and will not reopen until Thursday in order to prevent a run on the banks as the government discusses taxing all savers in order to secure an EU bailout.

The Cypriot parliament went ahead with a session to vote on the levy and the bailout on Tuesday, despite the governing DISY party calling for a one-day delay while a solution that would prevent "the big dangers our country is facing" was sought.

British soldiers stationed on the island and their families would be able to borrow from the one million euros flown out of Brize Norton if cash machines and debit cards in Cyprus stop working completely, the Ministry of Defence said.

"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," it said in a statement.

"We're determined to do everything we can to minimise the impact of the Cyprus banking crisis on our people."

Protesters gathered outside parliament before the bailout vote

Around 2,500 to 3,000 British military personnel are currently stationed in Cyprus.

Chancellor George Osborne has already pledged that military personnel and civil servants would be protected from the levy, telling Cabinet they would be "compensated in full" for any losses.

Cyprus' finance minister Michael Sarris, meanwhile, has reportedly offered his resignation.

Reporting from outside parliament, Sky's Ashish Joshi said: "The situation here is deteriorating quite rapidly.

"Michael Sarris is one of the chief economists in Cyprus, he was one of the architects of this plan, he was in Brussels with the president and (Germamy's Angela Merkel last week talking about what they could do to rescue the country's economy."

The seizure of savers' deposits, in return for shares in the lenders, was meant to raise 5.8 billion euros (£4.96bn), towards the country's financial rescue.

But outrage from Cypriots and the impact on international markets had already apparently pushed politicians to consider an exemption for smaller savers. 

President Nicos Anastasiades told reporters earlier: "The feeling I'm having is that the house is going to reject the bill.

"Because they feel and they think that it is unjust and it's against the interests of Cyprus at large."

The draft Bill expected to be discussed in parliament would have imposed a 6.75% tax on all savings between 20,000 and 100,000 euros and 9.9% on all savings over 100,000 euros.

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