Treasury accepts fund members’ applications for extra recoupment

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By Stelios Orphanides

The Treasury has said that it is now accepting applications from provident fund members who wish to benefit from a compensation scheme for losses they suffered in the 2013 banking crisis.

Eligible are those who were members of affected private sector provident and pension funds on March 26, 2013, when deposits at Bank of Cyprus and Cyprus Popular Bank, widely known as Laiki, were impaired, the Treasury said in a statement on its website.

The “maximum increased recoupment ratio” will not exceed 22.5 per cent of the uninsured deposits of the funds in both systemic lenders on the said date, so that the overall recoupment ratio will be up to 75 per cent of deposits attributed to each provident fund member, the Treasury added.

The scheme will take into account deposits that have not been impaired or have already been recouped by the government, as was the case with deposits at Laiki, and accounts for 52.5 per cent, the Treasury said, adding that the maximum recoupment amount is €100,000 per member.

In the case of members who left their job between March 26, 2013 and July 19, 2017, the recoupment cap is set at €250,000, it added. Beneficiaries of the scheme will receive the recoupment when they retire at age 65.

The council of ministers passed the scheme in July prompting complaints by bank workers union Etyk that it was insufficient. The updated scheme, approved by the cabinet in December, also failed to fully satisfy Etyk, whose members are the main beneficiaries of the scheme.

The government already made available €300m for this purpose in 2013 and pledged a further €168m in last July. The additional recoupment announced in December will cost taxpayers an additional €20m.

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About Author

Stelios Orphanides is a journalist at CyprusBusinessMail.com. To contact Stelios Orphanides: [email protected]

  • almostbroke

    The last paragraph says it all ! Will cost the taxpayer an extra 20 million !

  • Douglas

    Fantasy Island continues 🙂

  • plexor

    Its buying votes for the upcomming presidency elections and a discrimination against foreigners.

    As one can see, just Cypriots get compensated and not only one Cent for foreigners. In my opinion, this compemsation is illegal, as it means a discrimination. Right would be, that if there is a compensation, all – Cypriots and foreigners – have to be compensated equal and proportional to their losses. Noticeable is also, that exactly the ones get compensated, who failed most.

  • clergham

    Just highlights the basic disgrace of taxing away people’s hard earned deposits

    Particularly when assurances were given that this would never happen

    Notwithstanding foreign websites were saying that it would definitely happen

    Who to trust?

    People running the country ?

    Or foreign websites?

  • European Citizen

    Disgraceful.

  • Neroli

    The main beneficiaries of the scheme were the cause!