Several thousand expat Britons with Cypriot bank accounts have had their pension payments frozen to ensure they receive them ahead of a proposed bank deposit tax, Treasury minister Greg Clark has said.
Mr Clark told MPs the Government was putting pension payments on hold until "at least tomorrow" (Tuesday) to "ensure that any payments made by Her Majesty's Government to banks in Cyprus get to the intended recipient".
His statement came as the Cypriot government postponed a vote on the unprecedented one-off bank deposit tax, part of a wider bailout package, until Tuesday.
Cypriot banks will remain closed until Thursday, as Monday's bank holiday has been extended by two days, the nation's central bank said.
The Cypriot government wants time to amend the deal reached over the weekend, which will raid ordinary people's savings to partly fund a bailout package.