Cypriot depositors and bondholders protest against reduced 2026 compensation plan

Depositors and bondholders affected by the 2013 financial crisis in Cyprus have expressed significant dissatisfaction following the government's announcement regarding 2026 compensation payouts. While President Nikos Christodoulides had previously assured affected parties on August 9 that payments would be made, the emerging plan proposes a distribution of approximately 30 million euros, which corresponds to a compensation rate of only 2.5%. This amount is perceived as substantially lower than previous expectations and the roughly 100 million euros disbursed last year.

The National Solidarity Fund (ETA) management committee is scheduled to hold a critical meeting involving representatives from the SYKALA and SYKATA associations to discuss these developments. Adonis Papakonstantinou, president of the Laiki Bank Depositors Association (SYKALA), noted that the promised efforts to maximize compensation have fallen short, leaving many affected individuals frustrated. The situation remains fluid as stakeholders evaluate whether to accept the proposed 2.5% rate or seek further negotiations, as the government faces mounting pressure to address the financial losses suffered during the 2013 bank restructuring.