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Former Bank Of Cyprus Shareholders Demand Inclusion In 2025 Solidarity Fund Budget

Former BoC Shareholders Call For Equal Treatment

The association representing former Bank of Cyprus shareholders has formally appealed to the House of Representatives to include them in the 2025 national solidarity fund budget. In a strongly worded letter addressed to both parliament and the Finance Ministry, the group underscored its disappointment at being excluded from the current draft budget, despite their historical grievances dating back to the 2013 banking crisis.

Legislative Scrutiny And Budgetary Framework

As legislators prepare to vote on the proposed legislation authorizing compensation for depositors and bondholders affected by the 2013 crisis, the association argues that over 93,000 ‘bailed-in’ former shareholders deserve equal recognition under the national solidarity fund law. The bill, titled ‘The Budget Law Of The National Solidarity Fund For 2025’, proposes a comprehensive budget of €100,005,010 for the coming year, even as the Finance Ministry projects a significant shortfall, with revenues capped at €50,000,020 sourced entirely from a government grant.

Compensation Scheme Details And Administrative Measures

The fund, originally established to redress losses incurred during the resolution measures for Laiki Bank and the Bank of Cyprus, is set to enact a tailored compensation scheme for 2025. This new initiative, approved by the Council of Ministers, specifies eligibility criteria, compensation levels, and a clear payment process. Key administrative concerns—including the reactivation of the online application portal for late applicants and precise compensation calculations based on uninsured losses—remain central to ongoing deliberations.

Call For Immediate Legislative Action

In its letter, the association urged lawmakers to either amend the current budget or delay its passage until the Finance Ministry revisits the provision for former BoC shareholders. The group insists that honoring the laws passed by the House is essential, thereby ensuring that all affected parties, including Laiki depositors and bank bondholders, are treated equitably within the national solidarity fund.

Middle East Tensions Cast Uncertainty Over Cyprus Tourism Sector

Cyprus’ tourism sector is entering a period of heightened uncertainty as regional tensions in the Middle East begin to affect travel sentiment. Although the country is not directly involved in the conflict, industry stakeholders report growing caution among travelers, tour operators and hospitality businesses.

Heightened Concern Across The Sector

Tourism officials and industry representatives are closely monitoring developments. While maintaining a measured public stance, they remain in contact with international partners and travel operators to assess potential changes in travel programs. Despite the uncertainty, many industry figures believe that once tensions ease, targeted marketing campaigns and competitive pricing could help restore Cyprus’ position as a preferred Mediterranean destination.

Operational Adaptations And Labour Considerations

According to reports by Philenews, hotel operators recently met with representatives of the Deputy Ministry of Tourism to discuss the operational challenges emerging from the situation. Labour issues were a central focus of the discussions. Many hotel businesses had originally planned to reopen in March to align with travel agents’ seasonal programs and extend the tourism season. Other establishments had scheduled openings in early April to capitalize on the Easter holiday period for both Catholic and Orthodox travelers.

Revised Timelines Amid Uncertainty

These plans are now being reassessed. Some hotel operators have proposed extending the full suspension of staff employment for up to two additional months, potentially until the end of April, while awaiting clearer developments in the region.

Such a decision would prolong the current period of unemployment for many tourism workers, highlighting the economic impact the crisis could have on the sector. An alternative proposal involves partial reopening, allowing hotels to operate with only essential personnel based on confirmed bookings. Industry representatives also discussed the possibility of requesting financial assistance from the European Union to offset potential losses.

Mixed Signals For The Summer Season

Despite the uncertainty, travel agents have so far maintained their scheduled flight programs to Cyprus for the summer period, including charter flights between May and October. This suggests that confidence in the destination remains relatively stable among some market segments.

At the same time, hotel operators report cancellations not only for the March–April period but also for certain summer bookings, while demand for new reservations has slowed. Industry stakeholders nevertheless remain hopeful that an easing of regional tensions would quickly restore traveler confidence.

Air Connectivity Gradually Restored

Air connectivity with key markets is also beginning to stabilize. Hermes Airports recently confirmed that several routes between Cyprus and European destinations have resumed. Emirates has restarted flights to Larnaca, strengthening connections with international markets. Haris Papacharalambous, president of the Association of Cyprus Travel and Tourism Agents (ACTTA), noted that the return of routes from the United Kingdom and airlines within the Lufthansa Group is gradually restoring Cyprus’ connectivity with major tourism markets.

While the tourism industry braces for continued volatility, the consensus remains that a swift end to the hostilities in the Middle East is essential for Cyprus to regain its historical vibrancy as a top tourist destination.

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