Reopening of Compensation Platform for 2013 “Haircut” Victims
In a recent announcement by the finance ministry, a vital online compensation platform is set to reopen its virtual doors to depositors who were financially impacted by the 2013 banking crisis, often referred to as the “haircut”. Starting from Tuesday, individuals and legal entities can access the service through the ministry’s website to submit their claims to the National Solidarity Fund beginning at 10:30 am.
This initiative targets those private clients who experienced a reduction in their deposits and securities due to the consolidation measures at Bank of Cyprus and Laiki Bank. To facilitate the process, applicants are required to use their Cy Login profile. For those with a Cypriot identity card or residence permit, as well as companies registered in Cyprus, registration and identification on the CY Login Government Portal are necessary. Conversely, natural persons without a Cypriot identity card and non-resident legal entities must register on the portal and provide additional details upon application submission.
The ministry emphasizes that all applications for compensation must be submitted electronically, with the platform remaining open until May 25. During the last application window, which closed on April 30, there were 7,500 registrants. The solidarity fund, currently standing at €160 million, is expected to receive an annual boost of €50 million, as stated by Giorgos Panteli, the finance ministry director, in an interview with CyBC.
Preliminary estimates suggest that compensated applicants could receive approximately €8,000 for every €100,000 lost during the crisis. It is estimated that around 30,000 customers from the affected banks are eligible for this compensation scheme. This reopening offers a renewed opportunity for those who suffered losses during the 2013 financial turmoil to seek some form of restitution.
