Filenews 17 June 2025 - by Eleftheria Paizanou
Within the summer, the new electronic platform for confirming the details of haircut depositors and holders of securities is expected to be operational.
During today's discussion in the Finance Committee on the budget of the National Solidarity Fund, amounting to €100 million, it was mentioned that the platform will concern the electronic service related to the control of the impairment results of a replacement plan.
During the discussion of the budget in the parliamentary Finance Committee, the representative of the Ministry of Finance said that a new service for the audit of results in relation to the rate of impairment is being prepared. As he said, the beneficiaries of the plan will be natural persons who held deposits and were holders of securities and submitted an application on the electronic platform that had operated from December 2023 to May 2024.
According to Mr. Karaolis, the applicant will gain entry to the new platform that will operate, he will see the portion of the compensation and the impairment. As he explained, the affected natural persons who have been confirmed for the write-down by Laiki Bank and the Bank of Cyprus and who meet the criterion of private customer will proceed to send the IBAN bank account details, for the purpose of paying the amount to be replenished the amount due to them based on the conditions of the plan for 2025.
At the same time, the bank account should belong to the name of the beneficiary natural person who will receive a replacement under the plan for 2025. As mentioned, an accepted account will also be made in the event that the beneficiary natural person holds a joint account with another natural person, provided that the bank account statement or the certificate from the bank, will show the name of the beneficiary who will receive the replacement.
In the case of a deceased beneficiary natural person, the data will be received by a legal administrator of the deceased's property and the relevant account to be declared must be a management bank account.
Those who do not agree with the amounts of the impairment, through the new platform, will be able to submit an objection. According to the representative of the Ministry of Finance, when the first payments to those affected begin, applications will be reopened for those who did not have time to do so with the existing plan.
Asked when the first payments will be made, the ministry spokesman said that they are expected within 2025. Earlier, he said, the budget will have to be approved and the new platform will work.
The amounts of compensation for haircuts
The amounts of the replacement for 2025 have also been determined. Depositors at the Bank of Cyprus will be covered by the impairment of 3.61%, while depositors of Laiki Bank as well as the holders of securities in the two banks will be compensated with 10% of the impairment, with a maximum amount of €100,000.
According to the provisions of the plan, based on the calculation of partial replacement for 2025, the categories of impairment, those who had suffered a haircut on deposits in Laiki and the Bank of Cyprus and those who received a write-down and held securities in the two banks. The maximum uninsured amount taken into account per impairment category is €1 million. According to the plan, the amount of replenishment of the plan for this year is calculated taking into account.
Concession of a replacement percentage on the net loss per impairment category as follows:
-Net loss of impairment of deposits in Laiki of 10%.
– Impairment of deposits at the Bank of Cyprus 3.61%
-Write-down of securities in the two banks by 10%.
The maximum amount of replenishment per category and beneficiary will be the following:
-Impairment of deposits and bank securities in Laiki Bank of €100,000
-Impairment of deposits at the Bank of Cyprus €13,032
-Impairment of bank securities at the Bank of Cyprus €99,760
The maximum cumulative total amount in all categories of impairment per natural person is €100,000.
