Deposit Protection Scheme of Cooperative Societies


The “Deposits Protection of Cooperative Societies Fund” was established in accordance with the provisions of Article 36 of the Cooperative Societies (Establishment and Operation of Deposits Protection Scheme) Regulations of 2000. The fund constitutes a separate legal entity and is managed by the Administrative Committee. A similar fund functions for the Commercial Banks as well.

The aim of the Scheme is the protection of the depositors and the payment of compensation in case  a Cooperative Credit Institution or Savings Bank is unable to repay the deposits of its customers.

The participation in the Scheme is compulsory for all the Cooperative Societies of which their special regulations foresee the acceptance of deposits. The Limassol Co-operative Savings Bank participates in the Scheme by contributing the relevant amount to the fund, thus the deposits of its customers in Euro are covered by the Scheme.

The following information constitutes a summary of the main provisions of the abovementioned laws:

1. The Deposits Protection Scheme is activated if a Cooperative Society is unable to repay the deposits to its customers.

2. The maximum level of compensation, per depositor and per bank, under this Scheme is €100.000.  This limit applies to the aggregate of a depositor’s deposits with the Cooperative Credit Institution or Cooperative Savings Bank irrespective of the number of accounts (personal or joined) that a customer holders in the Cooperative Credit Institution or Cooperative Savings Bank. This amount shall include compensation for the principal amount and accrued interest up to the date of maturity of the deposit, or the date on which the deposit fell due and payable but was not repaid, or the date on which the Cooperative Credit Institution or Cooperative Savings Bank was determined as unable to repay its depositors, whichever comes first. 

3. For the purposes of calculating the compensation paid to a depositor, the amounts of deposits will be set-off against any loans or other credit facilities granted by the depositor’s Cooperative Credit Institution or Savings Bank as well as any other counterclaim that the Cooperative Credit Institution or Savings Bank concerned may have against the depositor in respect of which a right of set-off exists, unless the Management Committee of the Fund decides differently.

4. The following categories of deposits shall be exempted from the payment of compensation:

i. Deposits held for own account.

ii. Deposits by banking institutions established in other countries and which are licensed to carry out banking business under the relevant legislation of a country other than the Republic of Cyprus.

iii. Deposits by persons against which criminal proceedings have been instigated or for which a confiscation order has been made, under the Prevention and Suppression of Money Laundering Activities Law or of a corresponding law of another country.

iv. Deposits by government departments, semi-government organizations and local authorities.

v. Deposits by provident and pension funds.

vi. Deposits by insurance companies either in their own name or in the name of trustees.

vii. Deposits by collective investment companies.

viii. Deposits belonging to persons who, in the opinion of the Committee, are responsible for the bank’s bankruptcy or have profited out  of circumstances which led to the bankruptcy of the Cooperative Credit Institution or Savings Bank or any other similar situation so as to be unable to repay its deposits. 

5. In the event of the need for activation of the Deposits Protection Scheme, an announcement shall be published in the Official Gazette of the Republic and the daily press concerning the inability of the Cooperative Credit Institution or Savings Bank to repay its deposits and shall determine the way in which claims shall be submitted and shall explain other actions that must be followed by the depositors.

6. The Limassol Cooperative Savings Bank Ltd is able to provide its customers with further information in relation to the operation of the Scheme and the process of payment of compensation. For this purpose our depositors can contact:

Our partners Atrium Business Solutions

Limassol Co-operative Savings Bank Ltd
97, Gladstonos Street, 3032 Limassol
P.O. Box 50188, 3601 Limassol
Tel: 25 856000
Fax: 25 346718
Email: [email protected]