The House of Representatives unanimously approved the budget (100 million Euros) of the National Solidarity Fund for the year 2025. The amount will be used for the implementation of the Partial Replenishment Plan, which concerns persons affected by the resolution measures implemented in the two systemic banking institutions in 2013 (see previous update here).
The compensations concern 'haircut' depositors and holders of securities. The electronic service "Review Impairment Results of Replenishment Scheme" will be available from 19/6/2025 and time 11:00 a.m. to 30/9/2025 and can be accessed through the following link: https://national-solidarity-fund-results.service.gov.cy/
Using the same access credentials of Government Portal CY Login (former Ariadne), as those used during application submission during the period from 20/12/2023 to 25/5/2024, through the electronic service "Review Impairment Results of Replenishment Scheme", information is provided on the amounts that were impaired. The results are based on verified data obtained from the Liquidator of the former Popular Bank and the Bank of Cyprus, concerning deposits and securities that were impaired in 2013 due to the implementation of resolution measures applied to the two systemic banks (Bank of Cyprus and Popular Bank).
For the cases of affected Natural Persons for whom an impairment amount has been confirmed in at least one Category by the two systemic Banks, is requested to upload their bank account details (IBAN) for the purpose of receiving the replenishment amount, which will be determined based on the conditions of the Replenishment Scheme of the National Solidarity Fund which has been approved by the Council of Ministers. More specifically, based on the approved Scheme for the year 2025:
Basis for calculation of partial amount to Beneficiary Natural Persons under the Scheme for the year 2025:
- Impairment Categories: 4 categories
- Impairment of Deposits in Popular Bank,
- Impairment of Deposits in Bank of Cyprus,
- Impairment of Securities in Popular Bank and
- Impairment of Securities in Bank of Cyprus.
- Maximum Uninsured Amount taken into account per impairment category: €1.000.000.
- Value of Bank of Cyprus Shares due to impairment: Defined as the product of the number of Bank of Cyprus Shares received due to impairment multiplied by €0,24 which was the opening price of the Bank of Cyprus share on the Stock Exchange on 16/12/2014.
- Net Loss: Net Loss for the purposes of the Scheme of 2025, and in conjunction with the determination of a maximum uninsured amount taken into account per Impairment Category, is defined as the impairment due to the implementation of resolution measures in the two systemic Banks, less any value of Bank of Cyprus shares they have received due to the impairment, or any amount they have received from the liquidation of Popular Bank or any amount that has been awarded or paid or any other amount they have received as compensation.
Calculation of the Replenishment Amount for the Scheme of year 2025
The replenishment amount for the Scheme of year 2025 is calculated taking into account:
· Allocation of a replenishment percentage on the Net Loss per Impairment Category, as follows:
· Maximum Replenishment Amount per Impairment Category per beneficiary natural person:
- Impairment of Deposits in Popular Bank: €100.000
- Impairment of Deposits in Bank of Cyprus: €13.032
- Impairment of Securities in Popular Bank: €100.000
- Impairment of Securities in the Bank of Cyprus: €99.760
- Maximum cumulative total amount in all Impairment Categories per beneficiary natural person: €100.000
The bank account must be in the name of the affected Natural Person who will receive replenishment under the Scheme. A joint account will also be accepted, provided that the name of the affected Natural Person appears on the bank statement or on a certificate issued by the bank.
In the case of a deceased affected Natural Person, the upload of bank account details (IBAN), as well as the submission of the Legal Administrative Document, shall be carried out by the Legal Administrator/Inheritor of the deceased person’s property. The bank account to be provided must be the Legal Administrative Bank Account or Bank Account of Inheritor.
Furthermore, through the electronic service "Review Impairment Results of Replenishment Scheme", the affected Natural Persons will have the right to submit an objection in the case of a disagreement. This will allow for the examination of various requests, such as:
- disagreement with the amounts that were impaired,
- reassessment of the application due to incorrectly completed fields,
- submission of additional supporting evidence for the purpose of verifying the amount that was impaired,
- submission of revised information, etc.
Objections submitted will be examined at a later stage. Upon the examination of the objection and any adjustment of the partial replenishment amount to which is entitled, the resulting additional amount based on the revised impairment amounts will be deposited in the bank account provided by the affected Natural Person.
For affected Natural Persons who, through the electronic service "Review Impairment Results of Replenishment Scheme", have not been confirmed an impairment amount in any of the Categories, and proceeded to submit an objection/disagreement, and if their objection is accepted and an impairment amount is subsequently verified, will become beneficiaries of the Scheme and bank account details will be requested. The objection examination process will be determined under a separate procedure at a later stage.
The plan for 2025 is being implemented. We hope for an equally effective continuation as regards to legal entities.
In case you want us to assist with this procedure on your behalf, you should get in contact with your usual contact person in Totalserve or at [email protected].
