Compensation talks held for 2013 bank depositors and bondholders in Cyprus

On August 5, 2026, President Nikos Christodoulides met with representatives from the Association of Bank Bondholders (SYKATA) and the Association of Laiki Bank Depositors (SYKALA) at the Presidential Palace in Nicosia to discuss the disbursement of a second round of compensation for those affected by the 2013 bank bail-in. While the associations demanded a new compensation plan for 2026, the government cited fiscal constraints as an obstacle to immediate payouts.

Despite the government's caution, the Ministry of Finance plans to reopen an application platform in September 2026 for approximately 1,800 affected individuals. This includes 1,200 people whose previous applications were incomplete and 600 who submitted handwritten files. The government intends to utilize the remaining €30 million from the initial €100 million fund to cover these claims. Former Bank of Cyprus shareholders remain excluded from the current phase of the National Solidarity Fund (TEA).

President Christodoulides committed to personally reviewing the request for further 2026 disbursements and promised to provide a follow-up response to the associations in the coming days. The previous compensation phase had distributed funds to 4,525 beneficiaries.