Financial Compensation for Depositors Affected by Haircut Secured; Threat to Tax Reform Bilk

In a recent interview with Brief, Finance Minister Makis Keravnos reiterated his stance on two pressing issues: the payment of compensation to haircut depositors and bondholders, and the upcoming tax reform.

Keravnos emphasized that he is open to constructive, evidence-based proposals regarding the tax reform. However, he made it clear that he will not accept a diluted tax reform in Parliament. The minister stated that the reform is designed to benefit the middle class, employees, and businesses, and must remain progressive.

The tax reform, which is currently under discussion and facing opposition from political parties and professional associations, is aimed at modernizing Cyprus's tax system and making it more efficient. Keravnos reiterated his openness to adopting positive solutions for the tax reform, but warned that if MPs introduce extensive changes, he may withdraw the reform bills.

The compensation process for haircut depositors and bondholders, which has been excessively delayed since March 2013, according to a report in Alithia newspaper, is continuing without interruption, as stipulated by the Cabinet's decision. The minister confirmed the existence of funds in the state budget for compensating these affected individuals.

Associations representing haircut depositors and bondholders are raising concerns over understaffing in the department handling the compensation process. They are calling on the Finance Minister to strengthen the unit, even with temporary staff, to accelerate compensation. Individuals who have not yet registered on the platform are urged to do so to validate the sums lost due to the haircut.

The responsibility for implementing the tax reform in Cyprus currently lies with the Office of the Law Commissioner, led by Law Commissioner Louiza Zannetou. The office plays a key role in drafting laws, ensuring legal precision, and harmonizing Cypriot tax laws with EU regulations. However, no detailed public announcements specifically addressing the protection of middle class, taxpayers, and businesses' interests in the reform have been reported yet.

The tax reform in Cyprus remains a contentious issue. The Finance Minister has warned he may withdraw tax reform bills if Parliament waters them down. The first compensation installment was paid to 200 depositors on August 14.

Despite the challenges, Keravnos remains committed to addressing these issues and moving Cyprus forward. His latest statements on the tax reform and compensation for haircut depositors and bondholders serve as a reminder of his dedication to the welfare of the Cypriot people.

Financial Compensation for Depositors Affected by Haircut Secured; Threat to Tax Reform Bilk