Nicosia, Cyprus. A proposal to create a national fund to compensate owners for the loss of use of properties in the north was discussed on Tuesday at the House refugee committee. Lawmakers raised concerns about the fund’s projected payouts, calculation dates, and eligibility.
Funding and expected payouts
Current legislation channels 0.4 per cent from each real estate transaction into the fund, generating €20-€25 million annually. Based on this, for four out of ten property owners benefits would only be €2 per month.
Questions over the compensation process
Committee chairman Nikos Kettiros questioned whether the compensation process had sufficient substance. “We talk about this amount for so many hours when we meet, and I wonder whether the salaries of the guests who take part in the Committee meetings are worth the amounts we are discussing ,” he said.
Start date and eligibility considerations
The committee debated whether the loss of use should be calculated from the Turkish invasion of 1974 or from the bill’s approval date, with the prevailing view favouring 1974 as the starting point. Officials also discussed whether compensation should extend beyond natural persons to companies or other organisations that owned property in the north.
Regulatory process and legislative timetable
The interior ministry’s Yiannos Sophocleous said draft regulations must pass the board of directors and legal review before finalisation. “There are differences, especially in interpretations and definitions. We have started the process,” he said, indicating further deliberation before the fund can be fully operational. The committee is seeking to finalise the legislation before parliament dissolves ahead of the May elections.
What changes, if any, do you think should be made to ensure the compensation fund provides meaningful support to property owners?