Cyprus will begin compensating depositors and bondholders affected by the 2013 Laiki Bank bail-in starting May 2024, Finance Minister Makis Keravnos said Wednesday.
The minister made statements to the press following a meeting with President Christodoulides and representatives of the Laiki Bank Depositors Association (SYKALA).
About 13,000 applications for compensation have been submitted through an electronic platform, though some applicants may have filed multiple claims, Keravnos told reporters. The total compensation amount will be determined once the evaluation of applications is completed by month-end.
The payouts will not be made in a single instalment due to current limitations of the solidarity fund, said SYKALA chairman Adonis Papaconstantinou, adding that compensation disbursements will likely occur annually.
“We’ve been through countless challenges, but we’re reaching the end,” Papaconstantinou said, noting that while the electronic platform was delayed by six months, “the previous delay was five years.”
The platform for processing claims was only implemented after President Christodoulides and the finance minister became personally involved in the process, according to Papaconstantinou. The compensation scheme was initially approved by parliament in mid-2018.
Keravnos said the government is committed to addressing “this long-standing and just demand” from depositors affected by the banking crisis.
Read more:
