The cabinet on Wednesday approved the amount of €100,005,000 for the national solidarity fund for the 2025 scheme to compensate losses for former Laiki bank depositors.

Finance Minister Makis Keravnos said the beneficiaries for 2025 were individuals whose deposits and securities had suffered a ‘haircut’ in 2013, due to the implementation of consolidation measures in the Bank of Cyprus and Laiki Bank.

“According to the terms and conditions of the proposed scheme, the amount of partial reimbursement to eligible individuals, based on the plan for 2025, is calculated as follows: the maximum uninsured amount taken into account in an impairment category is €1,000,000 and the maximum cumulative total amount in all impairment categories per eligible individual is €100,000,” Keravnos added.

He said there was a 10 per cent replacement rate for the net loss of deposits at Laiki Bank, the haircut of bonds at the Bank of Cyprus and a rate of 3.61 per cent for the haircut of deposits at the Bank of Cyprus.

Burned savers will have to apply online in June, confirming the amounts to be compensated.

There are around 13,000 beneficiaries of the scheme.

According to what was heard in parliament recently, verified losses for depositors and bondholders during the 2013 ‘haircut’ tally at €2 billion overall.

Under the bailout programme between Cyprus and its international lenders in March 2013, large depositors paid for the recapitalisation of the Bank of Cyprus, heavily exposed to debt-crippled Greece.

Big savers with the Bank of Cyprus had 47.5 per cent of their uninsured deposits (any amount over €100,000) converted into shares. As for Laiki Bank, all uninsured deposits there were wiped out, and the lender was wound down and its operations folded into the Bank of Cyprus.