Britain sends planeload of cash to Cyprus

Last updated 11:23 20/03/2013

Relevant offers

World

Trail of human blood mystery solved Victoria man in Western Australian custody over date-rape drug Gravity Payments founder Dan Price cuts his salary from $US1m to $US70k, doubles staff wages Mario Draghi showered with confetti by ECB 'dick-tatorship' protestor Woolworths could face a $50,000 fine over Anzac ad debacle Woolworths could face a $50,000 fine over Anzac ad debacle Plane wifi could facilitate terrorism Pepsi takes over NBA sponsorship rights from Coke Why China's stock market surge is too powerful to ignore Why Google pays staff 'unfairly'

Britain sent a military plane carrying €1 million ($1.6 million) in cash to Cyprus on Tuesday for its troops on the island in case cash machines and bank cards stop working, the defence ministry said.

About 3500 British military personnel are based in Cyprus, which has been granted a €10 billion bailout. But a tax on its banks' depositors as part of the deal sparked outrage and rattled financial markets.

"An RAF (Royal Air Force) flight left for Cyprus this afternoon with €1 million on board as a contingency measure to provide military personnel and their families with emergency loans in the event that cash machines and debit cards stop working completely," the Ministry of Defence said in a statement.

"We will keep this under review and consider further shipments if required."

British troops in Cyprus will be given the choice of having their monthly wages paid into British bank accounts rather than Cypriot ones in future, the statement added.

The European Union and International Monetary Fund are demanding Cyprus raise €5.8b from depositors to secure its bailout, needed to rescue its financial sector.

Cyprus's government is working on a new proposal that could spare smaller savers from the levy after the original plan drew an angry response.

Ad Feedback

- Reuters

Special offers

Featured Promotions

Sponsored Content