Laiki Bank depositors promised further compensation in 2026

Nicosia, Cyprus. Former Laiki Bank depositors who lost savings during the 2013 financial crisis have been promised further compensation in 2026, the Laiki Bank Depositors Association (Sykala) said on Monday.

Planned disbursement

Sykala said President Nikos Christodoulides called the association on Sunday to announce the planned disbursement, without specifying amounts or percentages.

The association said the details would be decided and announced following necessary deliberations. Christodoulides also said he would intensify efforts to match the compensation provided in 2025, according to Sykala.

Previous compensation scheme

Under the 2025 scheme, around €100 million was distributed to beneficiaries in the first round of payments.

Compensation represented 10 per cent of each beneficiary’s verified net losses from the 2013 haircut, capped at €100,000 per beneficiary.

Association response

The call followed an announcement by the National Solidarity Fund committee that there would be no disbursement in 2026.

Sykala said it strongly reacted to the announcement and met Christodoulides last week to express its concerns.

There are around 13,000 beneficiaries under the compensation scheme, including former Laiki Bank and Bank of Cyprus depositors and bondholders.

2013 losses

According to figures presented to parliament last year, verified losses suffered by depositors and bondholders during the 2013 haircut total around €2 billion.

Under the bailout programme agreed between Cyprus and its international lenders in March 2013, large depositors contributed to the recapitalisation of the Bank of Cyprus, which was heavily exposed to debt-crippled Greece.

Bank of Cyprus depositors with uninsured deposits, defined as amounts above €100,000, had 47.5 per cent of those deposits converted into shares.