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British sun-seekers feel the heat of Cyprus bailout

18 March 2013, 18:39 CET
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(NICOSIA) - British expats who retired to Cyprus for a safe place in the Mediterranean sun are outraged that part of their life savings could now go toward bailing out their bankrupt adopted homeland.

After a morning of bowling with 15 fellow Brits in the mountain village of Peyia, a magnate for pensioners in the southwest corner of the island, retiree Michael Jarvis summed up the mood.

"People are not happy bunnies that's for sure," said the 61-year-old former estate caretaker who has resettled with his wife, Therese, protesting at the special treatment meted out to "little Cyprus."

"Some people brought all their money over. In any other country, this would be blooming criminal!" he said. "It's like going into the bank with a mask. It's daylight robbery."

Online forums have been abuzz since the news broke on Saturday that eurozone countries and international creditors are imposing an unprecedented levy on all deposits in banks in Cyprus in return for a desperately-needed bailout.

"Well who's happy about your hard earned savings being stolen by the government!?!" OwnBoss wrote on cyprus.angloinfo.com.

"This is outrageous. If some non-governmental organisation had done this they would be closed down by regulators," posted 'thass'.

"This must be rejected by the Cyprus government."

The former British colony, whose advertising promises 340 days of sunshine to escape the gloomy skies back home, has up to 70,000 British nationals living on the island, including thousands of dual citizens.

Many were left bewildered and confused, especially as the British high commission to which many expats turn for concrete information is closed until Tuesday for a long pre-Easter holiday weekend.

"England was wise to stay out of the euro and this is now proven by the actions of the E.U.," wrote elene.elizabeth.

Others took a more practical approach, worried that an expected rush on Cyprus banks once they reopen could leave what remains of their cash savings at the mercy of common criminals.

"Be extra vigilant about household security at these times, you can bet the criminals have figured out that people are hoarding large amounts of cash at home," commented Indomitable.

"Comes to something when the mattress is a safer option than the bank!"

Advertisers have stepped into the fray to offer fast home deliveries of safes to keep cash and valuables. "Keep your money safe! Banks don't have trust anymore," was the message from one online merchant.

Back home, the Daily Mail called it "The Great EU Bank Robbery."

Expatriate groups, such as the Russian and British communities, stand to lose millions under the bailout. According to the Daily Mail, British savers have 1.7 billion euros ($2.2 billion) in Cypriot banks.

London has said it will compensate any British government and military personnel, numbering around 3,500 people, whose bank accounts in Cyprus are subject to the EU bailout levy.

But the Treasury said the compensation will not apply to the wider British expatriate community.

Two military bases, covering 254 square kilometres (98 square miles) of the island, remain part of British sovereign territory, breeding resentment among locals and sporadic protests.

"I wonder if this will be the proverbial straw that finally breaks the backs of all the expats here and there will now be a mass exodus of those that are able to go?" asked irlanda on the forum.

A presenter on BFBS radio of the British military on Cyprus urged its listeners on Monday to spare a thought for low-paid foreign workers from Eastern Europe and Asia whose savings are also in the firing line.


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