Cypriots who lost their savings during the 2013 banking crisis will finally begin receiving compensation this May, according to the island’s Finance Minister Makis Keravnos. This follows a recent meeting between the minister, President Nikos Christodoulides, and the Depositors’ Association of former Laiki Bank (SYKALA).
A total of 13,000 applications for compensation have been submitted so far, marking a significant milestone for those affected by the crisis. In statements made after the meeting, Keravnos reassured the association that the government is fully committed to responding to this long-awaited and just request.
“The government’s intention is clear: to address this overdue issue and provide fair compensation to those who lost their savings,” Keravnos said, emphasizing that the compensation process has been a long time coming.
Applications were submitted through an electronic platform set up for the process, and their evaluation is already under way. The minister confirmed that the evaluation will be completed by the end of the month, after which a compensation plan will be finalized. This plan will be approved by the board of directors of the Solidarity Fund and the cabinet, with payouts expected to begin in May.
While the exact amount to be distributed remains unknown, the minister of finance assured that it would be revealed once the evaluation is completed.
Adonis Papaconstantinou, president of SYKALA, described the meeting as productive, adding that both parties reviewed what has been achieved so far and what still needs to be done. Papaconstantinou emphasized that the compensation process would not be a one-time event due to limitations in the current funds available in the Solidarity Fund. Instead, payouts will be made annually until the full compensation is disbursed.
“While it has been a long and challenging journey, we are now reaching the final stages,” said Papaconstantinou. He urged the members of the association to remain patient as the long-awaited disbursement begins in May, signaling the start of a process that has been years in the making.
Thousands of bank customers with deposits in excess of 100,000 euros each lost money due to the bail-in process employed in 2013 to save the Cypriot credit sector from complete collapse.