Cyprus to Start Compensating Failed Bank’s Depositors

FILE - In this Oct. 30, 2013, file photo. a man uses an ATM machine outside of a branch of Bank of Cyprus in capital Nicosia, Cyprus. (AP Photo/Petros Karadjias, File)

NICOSIA (AP) — Cyprus’ government is setting up a fund that aims to partly compensate depositors who lost uninsured savings during the country’s 2013 financial crisis.

Finance Minister Harris Georgiades says the first 25 million euros ($29 million) earmarked from the 2017 state budget will be deposited in a Cabinet-approved fund, with a second installment set for the second half of next year.

Georgiades said more deposits will be made in the future depending on state finances. Thursday’s announcement comes 10 weeks before presidential elections.

The crisis forced the island to strike a three-year, multibillion euro rescue deal with its eurozone partners and the International Monetary Fund. It also resulted in the seizure of hundreds of millions in uninsured savings in Cyprus’ largest bank and the closure of its second-largest lender.