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Cyprus Parliament Reviews National Loss Fund Amid Asset Reforms

by THEFUTURE.TEAM

February 19, 2026

National Loss Fund And Confiscated Assets

In its recent session, the Parliamentary Committee on Refugees revisited the law proposal aimed at securing the National Loss Fund for the Use of Confiscated Assets. A representative from the Ministry of Finance affirmed that the accompanying regulations are under preparation and will be submitted once finalized, while also voicing opposition to the creation of an independent agency.

Legislative Proposals And Fiscal Perspectives

Originally introduced by DISY in September, the law is supported by two amendments tabled by AKEL and anticipates the incorporation of forthcoming regulations from the Ministry of Interior into legislation governing the Central Agency For Equitable Resource Distribution. Committee member Nikos Kettseros emphasized that with funding of €20 million, roughly four in ten confiscated property owners would receive about €2 per month, a figure that remains modest even under a €100 million scenario. The proposed amendments include reallocating unassigned funds from the Agency into a dedicated loss-of-use fund to bolster financial support.

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Housing Loan Subsidies And Transition Measures

Additional amendments under discussion involve the subsidization of housing loans at a 0% rate and the establishment of a six‐month transitional period starting January 1, 2027, to integrate older loans into the governing framework. The Ministry of Interior has stated that the regulations will focus on land valuation, clarifying that those who have sought refuge in the committee regarding confiscated assets will not be entitled to compensation. These measures indicate that the fund could operate effectively under the existing structure without necessitating a separate independent body. DISY legislator George Karoulas has advocated for a legally entrenched national fund with sustainable financing, while also expressing concerns about potential delays in finalizing the regulations.

KtiZó Initiative And Housing Regulations

The session also addressed the KtiZó initiative, designed to provide grants for existing multi-family buildings in government housing projects. Senior official Eirini Giannakou from the Department of Urban Planning and Housing announced the completion of a new guide spanning approximately 500 pages, which clearly defines procedures and responsibilities. Despite this progress, stakeholders noted ongoing challenges related to beneficiary contributions and property ownership classifications. Giannis Sofokleous, a senior official from the Ministry of Interior, confirmed that the guidelines are currently under review and will undergo legal scrutiny, with the expectation that minimal further revisions will be required thereafter.

Property Issues In The Industrial Zone

The committee also examined property disputes and delayed contracts affecting displaced residents in the Pane Polemidion Industrial Zone. The committee chair announced that a formal letter will be dispatched to the Minister of Interior, with the matter slated for further discussion on March 17. Local officials from the Municipality of Kato Polemidion and representatives of refugee organizations raised issues regarding access, parking, and property rights, calling for immediate remedial action.

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Lithuania And Cyprus Forge Enhanced Partnership In Tourism And Defence

Expanding Cooperation Beyond The Surface

Kristupas Vaitiekūnas highlighted opportunities for closer cooperation between Lithuania and Cyprus during his visit to Nicosia for the informal ECOFIN meeting. Speaking to the Cyprus News Agency, the Lithuanian finance minister said both countries share common challenges and could expand collaboration in areas including tourism, defence and financial services.

Addressing Shared Challenges

Finance Minister Kristupas Vaitiekūnas said Lithuania and Cyprus face similar security and economic pressures despite their geographic differences. Particular attention was given to emerging security threats, including drone-related risks, alongside the importance of maintaining resilient financial sectors. According to Vaitiekūnas, stronger coordination in those areas could deliver long-term economic and strategic benefits for both countries.

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Focus On Fiscal Stability And Energy Security

Discussions at the ECOFIN meeting are expected to focus on Europe’s economic outlook, energy market volatility and fiscal stability. Kristupas Vaitiekūnas warned that instability in the Middle East could continue affecting oil markets and broader economic performance across Europe. Housing affordability was also identified as a growing challenge, with rising property prices in cities such as Vilnius reflecting broader pressures seen across European markets.

Coordinated Energy Strategy And Future Investments

The Lithuanian finance minister also called for a more coordinated European approach to energy and economic resilience. Vaitiekūnas suggested that targeted and temporary policy measures could prove more effective than large-scale structural reforms in addressing short-term pressures. Lithuania continues to increase investment in renewable energy generation and storage infrastructure as part of efforts to strengthen energy independence and begin producing surplus electricity by 2028.

Support For Ukraine And Enhancing Defence Funding

Finance Minister Kristupas Vaitiekūnas reaffirmed Lithuania’s support for Ukraine, describing the war as a broader struggle tied to European security and democratic values. He also backed accelerating Ukraine’s accession process to the European Union, arguing that deeper integration would strengthen regional stability and economic prosperity. Vaitiekūnas welcomed the EU’s SAFE programme, which is expected to support Lithuania’s defence capabilities while contributing additional assistance to Ukraine.

Looking Ahead To A More Unified Europe

Addressing the European Union’s future budget framework, Kristupas Vaitiekūnas said increased funding for security and defence represented a positive development. At the same time, he warned that reductions in cohesion funding and agricultural support could negatively affect purchasing power and long-term European unity. Lithuania is expected to place continued emphasis on Ukraine and regional security ahead of its upcoming EU Council Presidency in early 2027.