Cyprus National Solidarity Fund approves lower compensation payouts for 2026

On September 7, 2026, the Management Committee of the National Solidarity Fund (ETA) in Cyprus approved a compensation plan for 2026, triggering significant frustration among affected depositors and bondholders. Despite previous assurances from President Nikos Christodoulides regarding continued financial support, the new plan limits payouts to 2.5% of losses, a sharp decline compared to the 10% provided last year. The approved budget allocates approximately 28 million euros for the compensation of those who already received payments in 2025.

Representatives of the Laiki Bank Depositors Association (SYKALA) and the Association of Bank Bondholders (SYKATA), including Adonis Papakonstantinou and Stavros Giallouridis, formally rejected the budget during the meeting, arguing that it fails to meet government commitments. While the associations expressed strong disapproval and labeled the outcome inadequate fourteen years after the 2013 banking crisis, the budget was ultimately passed by the committee's majority.

Additionally, the Ministry of Finance is preparing a supplementary budget to distribute remaining funds from the 2025 allocation to applicants who were previously rejected. Meanwhile, former shareholders of the Bank of Cyprus continue to be excluded from the compensation scheme, pending a legal opinion from the Attorney General regarding their eligibility status.