World Bulletin / News Desk

Britain will compensate its military personnel based in Greek Cyprus hit by a bank levy imposed on Greek 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 Greek 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 Greek Cyprus.

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