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Twelve years after the 2013 banking crisis devastated thousands of depositors and investors, Cyprus’ Parliament has approved a long-awaited budget for the National Solidarity Fund, unlocking €100 million in compensation for those hardest hit.
The fund, aimed at partially restoring losses from the so-called "haircut" imposed on depositors and bondholders in the now-defunct Laiki Bank and Bank of Cyprus, received unanimous approval in the House of Representatives on Thursday.
The budget for 2025 includes €100,005,010 specifically allocated to begin payments under the Partial Replenishment Plan, which offers capped compensation to eligible individuals. Victims will be compensated based on their uninsured losses, with a maximum of €1 million per category and a €100,000 total cap per person.
“A matter of justice”
MPs from across the political spectrum voiced support for the fund but also raised concerns. Nicosia MP Alexandra Attalidou described the 2013 haircut as “the greatest economic injustice ever committed in Cyprus,” calling for priority to be given to the most vulnerable, including the elderly, disabled, and orphaned. She criticized the current compensation model as too general and potentially unfair.
Others echoed similar sentiments. DIKO MP Alekos Tryfonidis welcomed the fund’s activation but pressed for clarity on whether former Laiki Bank shareholders and provident funds would eventually be included. He also asked that the state cover legal costs for victims who unsuccessfully pursued compensation through the courts.
Stavros Papadouris of the Green Party urged the government not to leave out anyone due to missed deadlines or eligibility confusion, especially now that the online platform for claims is set to reopen.
What happens next?
The reopening of the online claims platform is expected soon, offering a new window for eligible individuals to apply or resubmit documentation. However, calls to clarify who qualifies, how much they will receive, and whether other affected groups will be added to future plans remain unresolved.
While the fund is seen as an important step toward justice, most MPs agreed that this is only a partial fix and that restoring public trust means addressing the larger, unanswered questions surrounding the 2013 crisis, including who was responsible, why no one was held accountable, and how to ensure it never happens again.
In the meantime, victims who lost their savings over a decade ago may finally see a measure of relief, but many say no amount of money can undo the damage already done.
*With information from CNA
