Depositors and bondholders who suffered losses during Cyprus' 2013 bank bail-in are awaiting the government's next steps regarding a possible new compensation scheme for 2026.
During a meeting at the Presidential Palace on Wednesday, representatives of the affected groups received assurances that President Nikos Christodoulides would personally examine the issue in the coming days.
According to Stavros Yiallourides, president of the Association of Bank Bondholders (SYKATA), the President committed to reconsidering their request for a new compensation plan in 2026 and to contacting them directly with an update.
Associations press for further payments
"The meeting with the President was very constructive, very genuine and very open," said Adonis Papaconstantinou, president of the Laiki Bank Depositors Association (SYKALA).
"We stressed our request that a new disbursement should proceed in 2026, and the President personally undertook to deal with the issue and inform us of the decisions," he added.
Senior officials attend meeting
In addition to President Christodoulides, the meeting was attended by:
- Finance Minister Makis Keravnos
- Deputy Minister to the President Irene Piki
- Director of the President's Press Office Victoras Papadopoulos
Government had ruled out new scheme
The meeting followed a recent session of the National Solidarity Fund's management committee, during which the three associations representing bail-in victims were informed of the government's decision not to proceed with a new compensation scheme in 2026.
The decision was attributed to fiscal pressures and the pending outcome of two legal opinions examining:
- Whether legal entities should also qualify for compensation.
- Whether former Bank of Cyprus shareholders should be considered beneficiaries.
Following the announcement, the associations expressed strong disappointment and requested a meeting with the President.
€70 million already disbursed
To date, compensation payments to affected depositors and bondholders have reached €70 million.
A further €30 million is expected to be distributed by the end of the year under the 2025 compensation scheme.
