Cyprus to release 28.7 million euros to 2013 bank haircut victims

The Cyprus government has submitted a budget of 28.7 million euros for 2026 to the Parliamentary Finance Committee, intended to provide partial compensation to individuals affected by the 2013 banking resolution of Bank of Cyprus and Laiki Bank. This allocation marks the second phase of a relief plan aimed at addressing remaining claims from depositors and bondholders who suffered losses during the financial crisis.

During the parliamentary review, Ministry of Finance General Director Andreas Zachariadis explained that the funds will prioritize approximately 1,200 applicants who previously failed to provide valid IBAN details, as well as those currently under review following objections. An online portal is scheduled to reopen within the next 48 hours to allow these claimants to submit necessary documentation. Officials estimate that addressing these pending categories will utilize roughly 10 million euros of the total budget.

This distribution follows the 2025 relief efforts, which saw 70 million euros paid to 4,500 beneficiaries out of an initial 100 million euro allocation. The government has also announced plans to launch a new, broader compensation scheme in 2027 to continue the mitigation of losses incurred during the 2013 haircut.