Groups representing those affected by Cyprus' 2013 haircut on bank deposits have reacted angrily to the government's decision not to proceed with a new compensation scheme in 2026, with only the remaining €30 million allocated for 2025 expected to be distributed.
Representatives of depositors, holders of bank securities and former Bank of Cyprus shareholders say they are preparing their next steps and have requested an urgent meeting with President Nikos Christodoulides.
Adonis Papaconstantinou, chairman of the Association of Laiki Bank Depositors (SYKALA), told Politis that Thursday's meeting of the management committee of the National Solidarity Fund ended without agreement due to what he described as serious differences over the stance adopted by the finance minister and the president.
“We will speak at the appropriate time, possibly through a press conference,” he said, adding that SYKALA's board would meet via teleconference on Thursday evening to decide on further action.
Stavros Yiallourides, chairman of the Association of Bank Securities Holders (SYKATA), described the development as a major disappointment.
“The first information we received was unexpectedly negative. It came like a bolt from the blue,” he told Politis.
According to Yiallourides, the Ministry of Finance's position is that no new compensation scheme will be introduced in 2026 pending a legal opinion from the Law Office on whether legal entities should also qualify for compensation.
“For us, these are merely excuses,” he said, arguing that concerns about the state's fiscal position were also being used to justify the decision.
Yiallourides said the association had already sought an urgent meeting with the president.
“We want to hear directly from President Christodoulides whether this is indeed the government's decision, and we reserve the right to decide our next steps,” he said.
Stelios Nicholson, chairman of the Association of Former Bank of Cyprus Shareholders, said participants at the meeting were informed that no new scheme would be launched in 2026 because two legal opinions remain outstanding.
One concerns whether legal entities are eligible for compensation, while the other relates to whether former Bank of Cyprus shareholders qualify as beneficiaries.
Nicholson said legal advice obtained by the association indicates that former shareholders are entitled to compensation under the relevant legislation and that this position has been communicated to the committee.
Finance Ministry Response
Finance Minister Makis Keravnos told Politis that the government's priority is to distribute the remaining funds before the end of the year.
“Our effort is to pay out the remaining amounts by the end of the year,” he said.
According to Keravnos, around 2,000 approved applications are still missing supporting information. The online platform will reopen to allow applicants to submit the required details so that the process can move forward.
