Announcement of the Ministry of Finance regarding the Review Impairment Results of Replenishment Scheme of the National Solidarity Fund
From:
The Ministry of Finance announces the launch of the electronic service “Review Impairment Results of Replenishment Scheme of the National Solidarity Fund”, prepared in collaboration with the Deputy Ministry of Research, Innovation and Digital Policy. The service allows affected Natural Persons to be informed about the impairment amounts per Category, based on the information they submitted through the electronic application “Participation in the Replenishment Scheme of the National Solidarity Fund” during the period from 20/12/2023 to 25/5/2024.
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 relevant link. Through gov.cy, citizens will be able to find it in the service category “Citizens and day-to-day life – Aid schemes”.
Specifically, the affected Natural Persons who submitted an electronic application during the period from 20/12/2023 to 25/5/2024, using the same access credentials of Government Portal CY Login (former Ariadne) as those used during their application submission, will be notified by email and be able to access the electronic service “Review Impairment Results of Replenishment Scheme” to view information 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, they will be 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:
- Net Impairment Loss on Deposits in Popular Bank: 10%
- Impairment of Deposits in Bank of Cyprus: 3,61%
- Impairment of Securities in Popular Bank: 10%
- Impairment of Securities in Bank of Cyprus: 10%
- 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. While submitting the objection, there will be the possibility for submission of additional supporting evidence for the purpose of verifying the amount that was impaired.
Objections submitted will be examined at a later stage by the Ministry of Finance. Upon the examination of the objection and any adjustment of the partial replenishment amount to which they are 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.
For any assistance or guidance regarding the electronic service “Review Impairment Results of Replenishment Scheme”, affected Natural Persons can contact email address nsf@mof.gov.cy. In addition, for CY Login issues, affected Natural Persons may contact CyLoginSupport@dits.dmrid.gov.cy.
(AS/LY)