Cyprus allocates €28.7 million for bank deposit haircut compensation

The Cypriot Ministry of Finance has presented a €28.7 million budget to the Parliamentary Committee on Finance for 2026, aimed at providing partial compensation to depositors and bondholders affected by the 2013 banking resolution. This funding represents the second phase of reimbursements following the initial 2025 payments, which utilized approximately €70 million of a allocated €100 million pool.

Andreas Zachariadis, General Director of the Ministry of Finance, stated that about €10 million of the new budget will address pending claims from the 2025 cycle, specifically for roughly 1,200 applicants who failed to provide their IBAN details, as well as those with successful appeals or technical payment issues. The remaining funds are intended for redistribution among already qualified beneficiaries. An electronic platform will reopen in the coming days for these specific applicants to update their information.

Additionally, the authorities announced plans to launch a new compensation scheme in 2027. To expand the pool of beneficiaries for this future initiative, the government intends to reopen the online application platform in November for those who have not yet submitted a claim. Meanwhile, the Parliamentary Finance Committee is also addressing concerns regarding potential collection of legal costs from individuals who previously sought judicial recourse after the 2013 crisis.