House of Representatives approves €28.7 million Solidarity Fund budget for 2027

Nicosia, Cyprus. The House of Representatives on Thursday approved the 2027 budget of the Solidarity Fund, a body created to repay people whose savings were lost in the 2013 financial collapse. The budget foresees €50 million in revenue and €28.7 million in expenditure.

Revenue, spending and reserves

The revenue comes in the form of a direct government grant. As of January 1 this year, the fund held cash reserves of €189 million.

Of the €28.7 million in planned spending, €10 million is earmarked for payments to people who applied under the 2025 scheme but, for various reasons, have not yet received their money.

New applications

The government restated its plan to bring back the online platform for reimbursement applications by the end of autumn. This would allow people who did not apply while the 2025 scheme was running to do so. Applications submitted through the platform will relate to a new scheme to be introduced for fiscal year 2027.

Results of the first scheme

Officials earlier told parliament that about 9,700 individuals applied under the initial scheme, which covered fiscal year 2025. Payments were made to 7,160 of them.

Background

Total losses suffered by depositors and bondholders in the 2013 bank bail-in are estimated at €2 billion. The Solidarity Fund was set up in 2018. The government describes it as a ‘partial replenishment scheme’ and avoids the word ‘compensation’.