THOUSANDS of British servicemen and women in Cyprus will see their savings raided as part of a desperate EU bailout deal.
The Cypriot government is saddling residents with huge charges on their bank deposits in return for £8.7 billion from Brussels and the International Monetary Fund.

Up to 59,000 Brits may lose out. Anyone with more than £87,000 in a Cypriot bank will see 9.9 per cent of it seized. Everyone else will be forced to hand over 6.75 per cent of their cash.

People were last night scrambling to ATMs to withdraw cash before the levy — expected to raise £5 billion — takes effect on Tuesday.

But banks said removing funds won’t work as people can’t access the amount set by the levy. Britain has about 3,000 Forces personnel in Cyprus set to be out of pocket — and some Army wives there have husbands fighting in Afghanistan.

One Armed Forces member said yesterday: “If someone has £10,000 saved up they are going to lose £675 — which to most soldiers is a lot of money.”

Last night Shadow Armed Forces Minister Kevan Jones said: “There are thousands of UK service personnel who could be impacted by this. Our heroes should not lose out while serving their country.”