Cyprus president to meet with groups affected by 2013 bank haircuts

Cypriot President Nikos Christodoulides is scheduled to meet with representatives of the Association of Bank Bondholders (SYKATA) and the Association of Laiki Bank Depositors (SYKALA) this coming Wednesday at 5:00 PM. The meeting follows a request from these groups after the National Solidarity Fund (TEA) management committee announced that no new disbursement for affected individuals would occur in 2026 due to fiscal constraints and pending legal opinions.

The government's previous decision to delay payments caused significant frustration among the affected parties. The administration is currently awaiting legal guidance to clarify whether legal entities and former Bank of Cyprus shareholders qualify for compensation. While previous disbursements have reached €70 million, the authorities expect to distribute the remaining €30 million allocated for the 2025 plan by the end of this year. Reports indicate that the Association of Former Bank of Cyprus Shareholders has not been invited to this specific meeting.

Going forward, the discussion will focus on the feasibility of a second payment installment. Any decisions made during the presidential meeting are expected to apply to the members of the participating associations, excluding the legacy shareholders of the Bank of Cyprus who were omitted from the first phase of the partial compensation scheme.