The National Solidarity Fund in Cyprus, established to aid those affected by the 2013 banking crisis, has received an overwhelming response with around 7,500 applications submitted for financial relief. With plans to increase the fund by €50 million annually from state funds, the ongoing verification process aims to provide support to individuals who suffered significant losses from the banking resolution measures.
What is the purpose of the National Solidarity Fund in Cyprus?
The National Solidarity Fund in Cyprus was established to provide financial relief to those affected by the 2013 banking crisis. It stands at €160 million, with plans to increase by €50 million annually from state funds, and aims to support the economic recovery of individuals who suffered significant losses due to the banking resolution measures.
Thousands Seek Support After Bank Haircut
The financial landscape was forever altered in 2013 when depositors and bondholders were hit with a significant ‘haircut’ as part of Cyprus’ banking crisis resolution measures. In an update on the public response to this ongoing financial challenge, reports indicate that approximately 7,500 individuals have stepped forward to submit applications to the national solidarity fund. This high volume of submissions underscores the enduring impact of the financial crisis and the haircut on the lives of many Cypriots.
The finance ministry’s permanent secretary, George Panteli, in a statement to Cybc radio, highlighted the commencement of the application verification process. This task will be undertaken in cooperation with the Bank of Cyprus and the administrator of the now-defunct Laiki Bank. Panteli noted that the fund, designed to provide some financial relief to those affected, currently stands at €160 million, with plans to bolster it by an additional €50 million annually from state funds.
Uncertain Compensation Figures
While many are hoping for substantial compensation for their losses, Panteli emphasized that it’s too early to discuss specific figures. The conversation around whether each beneficiary would receive €8,000 for every €100,000 lost remains speculative at this stage. However, Panteli did shed light on the proposed payment structure, suggesting that smaller amounts are likely to be disbursed in full, whereas larger sums would be paid out in installments. This tiered approach indicates a structured and cautious disbursement plan, which aims to balance immediate financial support with long-term fund sustainability.
The Path Forward
As the verification process gets underway, affected individuals are watching closely to see how the fund will be distributed. While the financial assistance won’t completely rectify the losses incurred from the 2013 banking crisis, it does represent a step toward recovery and support for those still grappling with the economic fallout. The exact details of the compensation scheme will become clearer as the finance ministry continues to work through the logistics of managing and distributing the relief fund.
In the meantime, the community holds on to a cautious optimism, hoping that the solidarity fund will offer some respite from the financial hardships they have endured over the past decade. The coming months will be crucial in determining how this support will impact the lives of the thousands who have applied, and indeed, the broader economic recovery of the nation.
What is the purpose of the National Solidarity Fund in Cyprus?
The National Solidarity Fund in Cyprus was established to provide financial relief to those affected by the 2013 banking crisis. It stands at €160 million, with plans to increase by €50 million annually from state funds, and aims to support the economic recovery of individuals who suffered significant losses due to the banking resolution measures.
How many applications have been submitted to the National Solidarity Fund?
Approximately 7,500 applications have been submitted to the National Solidarity Fund in Cyprus by individuals seeking financial relief after being affected by the 2013 banking crisis.
What is the proposed payment structure for compensation from the fund?
While specific figures for compensation are uncertain at this stage, a tiered approach has been suggested. Smaller amounts are likely to be disbursed in full, whereas larger sums would be paid out in installments to balance immediate financial support with long-term fund sustainability.
What is the process for distributing funds to beneficiaries?
The verification process for applications is underway, with cooperation between the finance ministry, the Bank of Cyprus, and the administrator of the now-defunct Laiki Bank. The exact details of how funds will be distributed are still being worked out, but the aim is to provide some financial relief to those affected by the banking crisis.
