Cyprus - arrangements for Service Personnel, dependants, UKBC & War Pensioners

[ScarletPimpernel]

See below the text of a MoD press release on the situation in Cyprus:

 

Work is ongoing across Defence to address the potential impacts of the financial situation in Cyprus on our people and activities there.

 

The situation is developing, with the Cyprus Parliament last night voting against initial proposals for a programme of financial assistance from other Eurozone countries. But we have already taken a range of steps to prepare for potential ways ahead:

 

- Ministers have announced that Armed Forces personnel and UK-based civil servants posted to Cyprus will be compensated for losses they might suffer as a direct result of the situation, for example as a result of the proposed tax on deposits in Cypriot bank accounts. This commitment also covers the personal accounts of dependants accompanying personnel in Cyprus.

 

- Together with the Department for Work & Pensions and MyCSP, we have temporarily put on hold Armed Forces Pension Scheme, Armed Forces Compensation Scheme, and War Pensions payments into Cypriot bank accounts, until the situation is clearer. We have also publicised how recipients of these payments can redirect them for the future.

 

- We are giving our Armed Forces personnel and UK-based civil servants posted to Cyprus the opportunity to change where their March and future months’ salaries are paid, from Cypriot to UK bank accounts, if they so wish. (In line with our approach to pensions, salary payments into the Cypriot system are on hold because they will not be processed while the banks remain closed.)

 

- Should the need arise, we will be able to provide funds to UK personnel encountering financial difficulties or hardship, for example if cash flow in Cyprus becomes more difficult.

 

- We are examining support for our locally-engaged staff, Cypriot and UK dependant employees, if disruption to the banking system continues into next week. We will make further announcements in due course.