A new timeline has been confirmed for the long-awaited compensation of individuals who suffered financial losses during the 2013 banking crisis in Cyprus. Payments to 2013 depositors are now expected to begin within the coming days and be completed by the end of August, following direct intervention by President Nikos Christodoulides.
The announcement was made by the Laiki Bank Depositors’ Association (SYKALA), which has been in direct contact with the President. The Association stated that pressure from affected individuals had led to renewed political engagement, and a firm commitment was now in place to begin disbursements immediately—not at the end of August, as previously suggested by the Finance Ministry.
Last week, public comments by the Finance Minister indicating a late August start to the process had sparked fresh disappointment among impacted depositors and bondholders, who have already endured multiple delays.
In a public statement addressed to its members, SYKALA acknowledged widespread frustration:
“Many of you have contacted us expressing your disappointment that payments from the National Solidarity Fund have yet to begin. Some have even proposed drastic or extreme actions.”
The Association said that a direct phone call between President Christodoulides and SYKALA President Adonis Papaconstantinou resulted in assurances that payments would begin in the coming days and be finalised by month-end. According to SYKALA, the President has already coordinated with the Ministry of Finance to implement this new timeline.
While cautioning that previous deadlines had not been met, SYKALA expressed hope that the personal involvement of the President would ensure follow-through this time:
“We hope and expect there will be no more unpleasant surprises. The fact that the President himself is now involved in what is otherwise an administrative matter gives us encouragement. Let us be a bit more patient. The result is what counts. Our struggle continues.”
It is worth noting that initial payments were originally scheduled to begin in May, then postponed to June, then to July, and most recently to the end of August.
The current compensation scheme applies only to natural persons—individual depositors or holders of bank bonds—who submitted applications via the Ministry of Finance’s platform last year. For 2025, eligible individuals will receive 10% of their net loss, up to a maximum of €100,000 per claimant.
A total of €100 million has been allocated to the programme, approved by both the Cabinet and Parliament in June as part of the 2025 budget for the National Solidarity Fund. Future compensation rounds will depend on the health of public finances in the coming years.
Also read: Depositors grow anxious over Cyprus bailout delays
