The association of former shareholders of the Bank of Cyprus (BoC) has written to the House of Representatives urging that they be included in the 2025 budget of the national solidarity fund, according to a report by Politis.
The group is calling for equal treatment alongside other affected parties, as MPs prepare to vote this afternoon on legislation that will authorise compensation for depositors and bondholders impacted by the 2013 banking crisis.
In the letter, also addressed to the director general of the Finance Ministry, the association expressed disappointment over their exclusion from the draft budget.
鈥淒espite our interventions with the Ministry of Finance, the budget does not include any amount for the 鈥榖ailed-in鈥 shareholders of the Bank of Cyprus, who number more than 93,000鈥 the association said.
鈥淭his is contrary to the provisions of the national solidarity fund law passed by the House, under which the affected associations of Laiki depositors, bank bondholders and former Bank of Cyprus shareholders participate equally鈥 they added.
鈥淭o demonstrate your consistency with the laws you have passed, we request that you include a provision for the former Bank of Cyprus shareholders during the vote鈥 the association said.
鈥淥therwise, we believe you should reject the current budget until the Finance Ministry revises its position or postpone the matter at the next plenary so it may return to your committee for further discussion鈥 the letter continued.
The letter is signed by Stelios Nicholson, president of the association.
The bill titled 鈥楾he Budget Law of the National Solidarity Fund for 2025鈥 is scheduled to be brought before the full House later today.
According to the accompanying report from the House Finance Committee, the legislation seeks to approve the 2025 budget of the national solidarity fund, amounting to 鈧100,005,010, to be disbursed during the year ending December 31, 2025.
The Finance Ministry informed the committee that the fund鈥檚 budget for 2025 is in deficit, projecting revenues of 鈧50,000,020, entirely from a government grant, against expenses of 鈧100,005,010.
As of December 31, 2024, the fund held a reserve of 鈧210,460,019.
A ministry representative told MPs that the fund was originally established under the 2013 law to compensate those who suffered losses during the resolution measures applied that year to Laiki and the Bank of Cyprus.
The partial compensation for 2025 will be implemented through a specific scheme approved by the Council of Ministers on June 11, 2025.
This scheme sets out detailed provisions for 2025, including eligible recipients, compensation levels by category, how compensation amounts are calculated, and the payment process.
During the committee鈥檚 review, MPs raised several issues, including the treatment of affected provident funds, the reactivation of the electronic application portal for those who missed the previous round, and the method of compensation calculation.
They also addressed the unresolved matter of former shareholders of Laiki Bank.
The Finance Ministry clarified that provident funds are not covered under this particular scheme.
However, the losses of such funds are being reimbursed at a rate of 75 per cent under a separate arrangement.
Beneficiaries will be allowed to file appeals regarding compensation amounts if applications contain errors or require updated documentation.
The ministry also plans to reopen the online application platform after payments begin to existing recipients, enabling those who did not apply earlier to submit claims.
The compensation amount per recipient has been calculated based on the uninsured portion of losses.
The maximum uninsured amount considered for each loss category is 鈧1,000,000, with a total cumulative cap per individual of 鈧100,000 across all categories.
The issue regarding former shareholders of Laiki Bank, the ministry confirmed, is currently under discussion and review with the aim of finding a resolution.