The cost of deadly wildfires in mountainous Limassol is estimated at €70-100 million, including compensation for damage to homes, commercial buildings, agricultural crops, and vehicles.
Damage has been recorded to 250 homes, 97 other buildings including commercial properties, crops, and 128 vehicles.
The largest residential destruction occurred in Souni, Agios Therapon, Lofou, Vouni, and Vasa Koilaniou, with smaller damage recorded in other wine-producing communities in Limassol.
The initial €100 million estimate may change once damage assessment is completed by district administration officials and when the exact number of beneficiaries receiving lump-sum support and three-month income loss assistance is determined.
Damage assessment is expected to be completed Wednesday.
Most funds will be spent on repairing or rebuilding homes. Relevant ministries are calculating damage costs and financial support for victims.
Government surplus covers costs
The damage and support measures will be covered by state reserves. Strong economic performance has allowed the state to accumulate surpluses, part of which will be allocated for wildfire victim support.
Finance Minister Makis Keravnos has informed President Nikos Christodoulides that state coffers have sufficient resources to cover expenses. No supplementary budget for 2025 is expected at this stage.
The Cabinet will approve support measures and final damage costs tomorrow.
The government will prioritise complete restoration of permanent residence damage to enable swift construction work and allow citizens to return home quickly. Both full restoration and repairs will be funded at current market prices.
For insured homes, the deductible amount will be paid immediately. The state will also subsidise rental costs for temporary accommodation until homes become habitable again.
Immediate lump-sum support
After Cabinet approval, lump-sum support payments will begin immediately. Families whose primary residence was completely destroyed will receive €10,000 plus €2,000 per dependant child.
Families with partially damaged primary residences will receive €5,000 plus €1,000 per dependant child. Vulnerable citizens will receive additional individualised support.
Worker compensation
Monthly compensation for three months is expected by end-August for employees and self-employed individuals whose businesses are not operating. The Labour Ministry scheme will be approved tomorrow for immediate implementation.
The first payment will cover the period from 23 July, when fires broke out, until the end of August.
For salaried employees, the state will pay employers monthly amounts to cover wages, which employers will forward to employees.
The state will also pay social insurance contributions to the Social Insurance Fund on behalf of workers. Self-employed individuals will receive direct payments.
Monthly salary amounts will be based on previous months’ social insurance contributions. The scheme aims to ensure businesses retain existing staff when operations resume.
Agricultural support
The Cabinet will approve two Agriculture Ministry schemes covering 1,167 farmers and livestock breeders. The first involves a de minimis scheme providing income loss compensation for one year to all farmers in the fire-affected area.
The second scheme involves an Agriculture Department programme for affected producers’ reactivation.
Agriculture Department Director Dr Artemis Antoniades said 985 people who applied for area subsidies for 2025 need not submit new applications. Applications from unregistered individuals will be accepted until Friday.
By Sunday, 182 people had submitted applications for processing. For the reactivation scheme, those wishing to resume operations can apply within 15 days of the announcement and will receive a 30% advance payment corresponding to total eligible support.
Social welfare support
The Social Welfare Ministry continues providing targeted support to affected area residents. Special teams of Social Welfare Services officials have been established to address individualised needs.
Social Welfare Services have assisted 87 people representing 32 families, securing accommodation for 20 families whilst 18 received financial support for immediate needs. The Interior Ministry has provided funds to community councils for emergency needs.
The Cabinet will also approve schemes for reactivating professional and non-professional farmers and livestock breeders, restoring infrastructure and mechanical equipment for small businesses.
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