In light of the recent events whereby the Cypriot government has announced a one-off fee on bank savings, the British Foreign and Commonwealth Office (FCO) is warning travellers about the potential risk of running short of funds while in the country.
Banks are currently closed today for a public holiday – although this may continue to be the case tomorrow amid fears of a run on savings – and it is expected that events may lead to a shortage of cash available at ATM’s. As a result, although there are no other restrictions on travel to the country, the FCO is advising those heading on holiday there to keep a varied amount of funding on hand. This includes pound sterling, euros, and credit/debit cards to account for any disruption.
Carrying large quantities of cash is always risky and should be avoided, and those that do so should check their travel insurance policy to make sure it covers individual items in the event of theft or loss.
British Nationals in Cyprus receiving pensions had earlier been advised to contact the International Pension Centre.
There are concerns from analysts that the unprecedented one-off tax on savers – made as part of a bailout deal with the European Union – could have a significant effect on the country, and could lead to an eventual exit from the Eurozone.
The FCO announced earlier on its website: ‘The Cypriot Government is implementing measures to protect its banking sector. You should check with your bank for further information’.