Cyprus government meets with affected depositors over compensation payouts

On August 5, 2026, President Nikos Christodoulides met with the leadership of SYKALA and SYKATA, the associations representing depositors and bondholders affected by the 2013 haircut. The meeting followed concerns raised by the National Solidarity Fund committee, which had initially suggested that a second round of compensation would be delayed until 2027 due to fiscal pressures. Representatives from the associations demanded that the government fulfill its commitment to release the second tranche of funds within 2026, citing the prior distribution of €70 million to approximately 4,525 beneficiaries.

The government, represented by Finance Minister Makis Keravnos, remains cautious regarding the immediate full disbursement of the second tranche. However, the Ministry of Finance proposed a plan to reopen the application platform in September 2026 to assist roughly 1,800 individuals who were previously excluded. This group includes 1,200 applicants whose initial submissions were incomplete and 600 who filed paper applications instead of digital ones. The initiative intends to utilize the remaining €30 million from the initial €100 million allocation. Legal deliberations continue regarding whether corporate entities and former Bank of Cyprus shareholders qualify for these compensation schemes, as they have been largely excluded from current proceedings.