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16 June, 2024
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MP Neofytou proposes €11,000 immediate payout for solidarity fund recipients

Cypriot citizens face €2 billion loss, Neofytou advocates for financial restitution


Democratic Rally MP Averof Neofytou has unveiled a groundbreaking initiative aimed at alleviating financial burdens for beneficiaries of the Solidarity Fund. In a statement released today, Neofytou outlined the proposal, which entails the possibility of an immediate payout of €11,000 for every €100,000 loss suffered by fund recipients.

Under the proposed legislation, beneficiaries stand to benefit further in the years to come. In addition to the initial payout, they could receive an annual supplement of €3,000 for each €100,000 in damages, without factoring in any additional government subsidies.

The announcement comes on the heels of the looming deadline for Solidarity Fund beneficiaries to submit their applications. Today, April 30, 2024, marks the final day for eligible individuals and entities to apply for assistance. Once applications are processed, the Solidarity Fund aims to partially offset losses incurred by both natural and legal persons as a result of the implementation of memorandum measures within the banking sector.

Neofytou emphasized the importance of providing support to those hardest hit by the 2013 economic crisis. He stressed that it is the responsibility of the state to offer at least partial restitution to these individuals and entities.

Recent studies conducted by Neophytou's team shed light on the extent of the financial losses suffered by Cypriot citizens. The figures reveal staggering losses totaling approximately €2 billion, including both "haircut" amounts for individuals and the devaluation of securities.

The Solidarity Fund, established through collaborative efforts across political parties, currently boasts reserves of approximately €200 million. Additionally, it holds real estate assets valued at around €75 million, provided by the state to bolster its resources.

The proposed legislative amendments seek to ensure stable funding for the Solidarity Fund. By redirecting a portion of accumulated funds from the Recapitalization Fund, the initiative aims to bolster support for beneficiaries.

Key revisions include allocating €60 million from the Recapitalization Fund to the National Solidarity Fund, with the remaining balance retained in the General Fund. This reallocation strategy is designed to enhance the Fund's capacity to provide financial relief to eligible recipients.

While Neofytou acknowledges that these measures may not fully address the issue of social justice, he views them as a crucial step forward in acknowledging the sacrifices made by depositors, bondholders, and shareholders impacted by the economic downturn.

In conclusion, Neofytou calls on the government to carefully consider the proposed amendments and their implications, particularly with regard to equitable support for all affected parties.

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