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14 June, 2024
 
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Finance Ministry urges applicants for 2013 haircut compensation

Individuals and entities affected urged to submit electronic applications for compensation

Newsroom

The Cyprus Finance Ministry is calling on all individuals and entities affected by the 2013 Cyprus bailout to submit their electronic applications for participation in the "Replenishment Scheme of the National Solidarity Fund."

Following the 2013 financial crisis, Cyprus secured a €10 billion bailout from the European Union and the International Monetary Fund. The bailout included a "haircut," involving the conversion of 47.5% of deposits over €100,000 into equity in Bank of Cyprus, the island's largest lender. Laiki Bank, the second-largest lender at the time, was placed into liquidation, with its assets absorbed by Bank of Cyprus. Bondholders and shareholders were also wiped out as part of the bailout.

The Solidarity Fund was established by the government to partially compensate depositors and bondholders categorized as "retail clients" for their losses.

The Finance Ministry has set a deadline of April 30 for the submission of applications.

"Electronic applications are open to individuals and entities who were classified as 'retail clients' and suffered losses in 2013 due to resolution measures implemented in the two systemic banks, Bank of Cyprus and Popular Bank," the Finance Ministry stated.

Applicants are required to access the electronic service through the Cy Login Profile. Natural persons with a Cyprus identity card or residence permit, as well as legal entities registered in Cyprus, must register and authenticate their profiles on the Government Portal CY Login.

For those without a Cyprus identity card or residency, as well as legal entities without a registration number in Cyprus, registration on the Government Portal CY Login is necessary. Profile authentication requires additional details and documents to be listed and uploaded.

It is emphasized that participation in the Replenishment Scheme of the National Solidarity Fund is exclusively through electronic application submission.

The electronic service can be accessed through the following link: https://www.gov.cy/en/digital-services/business-activity/support-schemes-for-businesses/participation-in-the-national-solidarity-fund-scheme.

Source: CNA

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Cyprus  |  banks  |  CBC  |  Central Bank  |  economy

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