Cyprus National Solidarity Fund allocates 28.7 million euros for 2013 haircut compensation

The Cypriot Ministry of Finance has presented the 2026 budget for the National Solidarity Fund, allocating 28.7 million euros to compensate individuals affected by the 2013 bank deposit haircut at the former Laiki Bank and the Bank of Cyprus. This allocation consists of unused funds from the previous year’s budget and will primarily support approximately 1,200 applicants who previously submitted claims but failed to provide their IBAN details or complete necessary documentation.

During a parliamentary session, officials confirmed that this payment represents a second installment, raising total coverage from 10% to 12.5% for eligible participants. The Ministry announced the reopening of the electronic platform from October 6 to November 6, 2026, specifically for those who missed previous verification steps. Furthermore, a new, broader compensation scheme is currently being developed for launch in 2027, which may include approximately 90,000 former shareholders, pending a final decision by the Fund's board.

The session also addressed persistent concerns regarding legal fees charged to citizens who pursued litigation after the 2013 crisis. While the government has not formally waived these costs, it has maintained a policy of tolerance regarding collection. Parliament continues to monitor these developments as they seek to address the financial grievances of those impacted by the systemic banking collapse.