Compensation for former Laiki Bank depositors and bondholders to begin in May

Depositors and bondholders who lost their savings during the banking crisis in Cyprus in 2013, will start receiving compensation in May, Minister of Finance Makis Keravnos has said.

He was speaking on 15 January following a meeting with the Depositors Association of former Laiki Bank (SYKALA) and President of the Republic Nikos Christodoulides, at the Presidential Palace.

A total of 13,000 applications for compensations have been submitted.

In statements to journalists, the Minister of Finance said that the Government has informed the Association about the stage of the process, assuring that "the Government's intention is clear to respond to this long-pending request, which is a fair request."

The Minister noted that applications have been submitted through the electronic platform prepared for this purpose and that the evaluation of the applications has already begun, and is expected to be completed by the end of the month. "From there, a plan will be developed and it is expected that from May the compensation, the payment, will be based on the plan that will be drafted and approved by both the Board of Directors of the Solidarity Fund and the Cabinet," he added.

The Minister thanked the leaders of SYKALA for their constructive attitude and understanding.

Replying to questions, the Finance Minister said the amount that should be disbursed will be known once the evaluation of the applications is completed.

Adonis Papaconstantinou, President of the Association, in statements said the meeting had been very productive and a review of what has been done and what remains to be done was conducted.

"The goal is to start the disbursement in May," Papaconstantinou said, clarifying that it will not be a one-time process, as he explained, there are limitations due to the amount currently available in the Solidarity Fund. Consequently, he noted, the process of disbursing compensations will be repeated approximately on an annual basis.

Papaconstantinou said "we have gone through countless trials, but we are reaching the end," and urged the members of the Association to show patience, emphasising that the disbursement starting in May will mark the beginning of a process that has been awaited for years.

(Source: CNA)