Cyprus Government Levy - British Government to compensate British Troops and Civil Servants

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images (10)The British Government has confirmed that it will protect the savings of British military personnel based in Cyprus who were facing the prospect of levy on their savings as part of the €10 billion bailout. The Chancellor, George Osborne, announced that Cypriot banks in the UK would be unaffected by the Levy. There is still uncertainty over the levy as officials in Cyprus have delayed the parliamentary vote until Tuesday in order to attempt to soften the impact of a levy on smaller savers. George Osborne confirmed that all military personnel in Cyprus will be compensated for if a levy is imposed and stated ‘People who are doing their duty for our company in Cyprus will be protected from this Cypriot Bank Tax.’ Approximately €2 billion of British deposit are estimated to be held in Cyprus, including military personnel, British ex-pats and holiday home owners. Cyprus is the fifth country to have asked for aid from the Eurozone but this is the first time that a deal has included a bank bail-in where savers have been asked to contribute.