Cyprus allocates €28.7 million to compensate depositors affected by the 2013 bank resolution

The Cypriot Ministry of Finance has submitted the 2026 budget for the National Solidarity Fund to Parliament, earmarking €28.7 million for partial compensation of depositors and bondholders affected by the 2013 resolution of the Bank of Cyprus and Laiki Bank. This allocation represents the second phase of a repayment scheme initiated last year to address the losses suffered by individuals during the banking crisis.

In the previous year, the government disbursed approximately €70 million to 4,524 beneficiaries out of a total budget allocation of €100 million. While roughly 7,000 applications were initially submitted, many were deferred due to missing or incomplete information. The current phase aims to address those who were previously excluded. Parliament is scheduled to review the 2026 budget this Monday, with payments expected to be distributed in the coming weeks.

The 2026 allocation of €28.7 million is notably lower than the funds utilized in 2025. This process remains a critical effort by the state to mitigate the financial consequences of the 2013 measures, providing ongoing support to those whose savings and investments were significantly impacted by the collapse and restructuring of the country's systemic financial institutions.