Cyprus has approved the structure of a compensation scheme for depositors who lost money in the 2013 banking crisis, with the Depositors and Bondholders Association (SYKALA) announcing that after more than 12 years, an acceptable result has been reached.
The National Solidarity Fund (ETA) committee decided on the scheme’s structure during a meeting on Friday 6 June 2025, SYKALA said, adding that whilst the outcome did not meet their absolute objectives, it was acceptable.
The scheme applies only to 2025 and only to individuals, with a ceiling of one million euros for losses. Each year will have its own separate scheme, SYKALA stated.
The plan provides for total disbursement of approximately €100 million for all first-payment beneficiaries and offers compensation of 10% of net loss, depreciation or haircut, with a maximum compensation ceiling of €100,000 per beneficiary.
Legal entities and companies are expected to be included in subsequent schemes once certain details requiring Attorney General opinion are clarified, SYKALA added.
The ETA committee’s decision will be sent to the Finance Minister, who will present it to the Council of Ministers for approval. Following approval, the matter will be referred to Parliament for budget approval.
Assuming approvals are secured before Parliament closes for summer recess, disbursements and account credits are expected within July, SYKALA said.
Simultaneously with the approval process, each applicant will receive an email at the address provided in their application, containing a link to an electronic platform created for this purpose. This is expected to occur within June.
Applicants will follow the link to confirm the amounts for which they applied for compensation. Upon confirmation, they will be asked to provide bank account details for the transfer of compensation funds.
The platform allows objections if amounts shown in the message differ from those in the original application, SYKALA noted.
The information applies to Popular Bank depositors, with the 2025 scheme also including other beneficiaries such as securities holders and Bank of Cyprus depositors.
SYKALA thanked the President of the Republic, Finance Minister, ETA committee chairman and Finance Ministry General Director, as well as relevant ministry officials, “for the time they devoted and their cooperation to reach the point of making the first disbursement”.
(information from CNA)
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