Britain to compensate military personnel hit by Cyprus bank levy

LONDON, March 17 | Sun Mar 17, 2013 6:22am EDT

LONDON, March 17 (Reuters) - Britain will compensate its military personnel based in Cyprus hit by a bank levy imposed on Cypriot accounts as part of a euro zone bailout, finance minister George Osborne said on Sunday.

"For people serving in our military, people serving our government out in Cyprus ... we are going to compensate anyone who is affected by this bank tax," he told BBC television.

Britain has about 3,500 military personnel based in Cyprus.

The euro zone agreed on Saturday to hand Cyprus a bailout worth 10 billion euros ($13 billion) but demanded depositors in its banks forfeit some money to stave off bankruptcy.

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