legacy Laiki

Averof urges restitution for 2013 bank , ‘haircut’ victims

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Averof urges restitution for 2013 bank , ‘haircut’ victims

Disy MP Averof Neophytou proposed a legislative amendment to provide partial restitution to those who lost their bank savings in the 2013 ‘haircut’. The Solidarity Fund, which has cash reserves of about €200 million, could immediately pay out €8,000 for every €100,000 lost in the haircut. The Solidarity Fund was initially allocated €55 million in start-up funds and aims to provide relief to legacy Laiki depositors and bank bondholders affected by the 2013 bail-in.

Laiki depositors applaud action on solidarity fund

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Laiki depositors applaud action on solidarity fund

Laiki depositors who lost their money in the banking crisis and economic meltdown in Cyprus in 2013 may receive a tenth of their money back next year. The Depositors Association of the former Laiki Bank has approved the government’s plan to establish the Solidarity Fund for affected depositors. An online platform has been created for depositors to submit their information, and the deadline is April 2024. The fund currently holds reserves of €230 million and real estate assets valued at €90 million. The first disbursements from the fund are expected in 2024. The Attorney General’s office is appealing recent court decisions that awarded compensation to depositors affected by the 2013 deposit haircut. The court rulings blamed the Republic of Cyprus and the Central Bank of Cyprus for negligence in allowing the crisis to occur.