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Cyprus bank levy: UK to compensate troops and government workers | Cyprus bank levy: UK to compensate troops and government workers |
(35 minutes later) | |
The UK will compensate any British troops in Cyprus hit by plans to introduce a bank levy as part of a £9bn EU bailout, the chancellor has said. | |
British government workers would also be protected, George Osborne said. | |
Under the plans, people in Cyprus with up to 100,000 euros in the bank would have to pay a one-time tax of 6.75%; those with more than that 9.9%. | |
The move could affect many of the 3,000 UK military personnel in Cyprus, and tens of thousands of expatriates. | The move could affect many of the 3,000 UK military personnel in Cyprus, and tens of thousands of expatriates. |
An emergency session to discuss the 10bn-euro ($13bn; £9bn) deal agreed by the EU and IMF on Friday is to take place on Monday. | |
The debate and a presidential address were to happen on Sunday but was postponed, state media said. | |
'Disorderly bankruptcy' | |
Residents have been queuing outside banks to withdraw their savings from cash machines. | |
Mr Osborne told the BBC's Andrew Marr programme: "For people serving in our military and serving our government we are going to compensate anyone affected by this bank tax; people who are doing their duty for our country in Cyprus will be protected from this Cypriot bank tax." | |
He added: "Anyone who thinks that Britain is alone in having these challenges... should realise it's a very tough economic situation out there." | |
On Saturday President Nicos Anastasiades admitted the deal was "painful" but said it was necessary to avoid a "disorderly bankruptcy". | |
However, his Democratic Rally party - which has 20 seats in the 56-member assembly - needs support from other factions to ratify the bailout. | |
Sharon Bowles MEP, chair of the European Parliament's Economic and Monetary Affairs Committee, said she was appalled by the plans. | |
"This grabbing of ordinary depositors' money is billed as a tax, so as to try and circumvent the EU's deposit guarantee laws. It robs smaller investors of the protection they were promised." |