SYKALA demands full compensation for 2013 Cyprus bank bail-in losses

The Association of Depositors of the failed Laiki Bank (SYKALA) has renewed its demand for the Republic of Cyprus to fully compensate individuals and entities for losses incurred during the 2013 financial crisis. In the spring of 2013, depositors at Laiki Bank and Bank of Cyprus lost approximately 9.4 billion euros as part of a state-mandated bank recapitalization program, often referred to as a haircut. SYKALA argues that these funds were essential for stabilizing the national economy and the banking system, and therefore, the state has an moral and legal obligation to return them. The association has sharply criticized the National Solidarity Fund, which was established to manage partial compensation payouts. SYKALA reports that only about 10% of the requested funds have been distributed thirteen years after the event. Furthermore, the association noted that current disbursements are subject to strict limitations and primarily benefit natural persons rather than all affected parties. SYKALA characterizes the ongoing delay as a continuation of state-led expropriation and has issued an open letter urging officials to prioritize justice for those who financed the state's recovery.