UK flies cash to Cyprus for soldiers
March 19, 2013 -- Updated 2121 GMT (0521 HKT)
Cypriot members of parliament rejected a controversial bailout agreement.
- The UK is flying in money for British military families who may be affected by the bank chaos
- The banks have been shut since the Cypriot government initially agreed to impose a tax on deposits
- Without an international rescue, the banking system in Cyprus is at risk of collapse
- Britain, which has longstanding ties to Cyprus, maintains two military bases on the island
London (CNN) -- The UK is flying €1 million euros of cash into Cyprus for British soldiers and their families who might run short on money because of the bank chaos roiling the island nation.
In a statement, UK defense officials said Tuesday that the money would be used to provide emergency loans in case cash machines and debit cards stop working on the Mediterranean island.
Banks in Cyprus have been shut since the weekend, when the Cyprus government agreed to impose an unprecedented tax on deposits to secure a €10 billion bailout from the European Union. That move prompted a run on cash machines.
"We're determined to do everything we can to minimize the impact of the Cyprus banking crisis on our people," the British government said.
Lawmakers reject plan to tax savings
Parker: Cyprus crisis will not spread
Cyprus' parliament rejects bank levy
Without an international rescue, the banking system in Cyprus is at risk of collapse under the weight of its exposure to losses on Greek debt.
A chaotic default by Cyprus -- which accounts for just 0.2% of EU GDP -- could lead to its exit from the 17-nation eurozone and cause financial instability across the currency area.
Earlier this week, UK Finance Minister George Osborne said the government would compensate any of the 3,250 British troops and government workers in Cyprus hit by the levy.
The defense ministry is also offering to redirect service member's pay for March and future months' salaries into UK bank accounts, rather than Cypriot accounts.
While the proposed one-off tax would hit bank accounts in Cyprus, the levy would not apply to overseas branches of Cypriot banks.
Britain, which has longstanding ties to Cyprus, maintains two military bases on the island, a key strategic location in the eastern Mediterranean.
Today's five most popular stories
Part of complete coverage on
November 27, 2014 -- Updated 1521 GMT (2321 HKT)
The first human trial of an experimental Ebola vaccine has produced promising results, U.S. scientists said.
November 27, 2014 -- Updated 1415 GMT (2215 HKT)
Darren Wilson, the police officer who fatally shot unarmed black teen in August abandoned home after address made public.
November 25, 2014 -- Updated 2236 GMT (0636 HKT)
HBO -- backing a documentary based on "Going Clear," a book about Scientology and Hollywood -- isn't taking any chances with legal side.
November 26, 2014 -- Updated 1935 GMT (0335 HKT)
Grandmaster Nguyen Van Chieu has devoted his adult life to spreading the word about Vietnames martial art, Vovinam.
November 28, 2014 -- Updated 1847 GMT (0247 HKT)
England cricketer Nick Compton shares insight into "drive and courage" it takes to face fears as top batsman.
November 27, 2014 -- Updated 0059 GMT (0859 HKT)
Ferguson police officer Darren Wilson says he was just doing his "job right" when he shot and killed black teenager Michael Brown.
November 24, 2014 -- Updated 0118 GMT (0918 HKT)
Stunning stations where your first priority won't be finding the nearest exit.
November 25, 2014 -- Updated 2318 GMT (0718 HKT)
Turkish President Recep Tayyip Erdogan says women's "nature is different," sparking fury.
November 24, 2014 -- Updated 1043 GMT (1843 HKT)
A 30-year-old woman has been charged with attempting to kill a baby police say spent five days down a drain before being discovered by cyclists.
November 21, 2014 -- Updated 0121 GMT (0921 HKT)
If it wasn't for a comic's skit, Bill Cosby would still be America's favorite father, says expert.
November 24, 2014 -- Updated 0051 GMT (0851 HKT)
Where do hip young things hang out in Taiwan?
November 21, 2014 -- Updated 1550 GMT (2350 HKT)
Obama orders the most sweeping overhaul of U.S. immigration in decades, prioritizing the deportation of "felons, not families."
November 18, 2014 -- Updated 2106 GMT (0506 HKT)
Fighters loyal to ISIS are now in control of Derna, a city on Libya's Mediterranean coast.
November 21, 2014 -- Updated 2319 GMT (0719 HKT)
China and likely other countries have the capacity to shut down the U.S. power grid, says the NSA.
November 19, 2014 -- Updated 1945 GMT (0345 HKT)
The founder of a U.S. nonprofit that works with returning soldiers is named CNN's Hero of the Year.
November 28, 2014 -- Updated 1754 GMT (0154 HKT)
Each day, CNN brings you an image capturing a moment to remember, defining the present in our changing world.
Browse through images from CNN teams around the world that you don't always see on news reports.