State to continue covering Okypy deficits until end of 2026

MPs on Thursday handed the state health services organisation (Okypy) another lifeline, making the organisation eligible for direct state funding up until the end of 2026.

Under the law voted through at the House of Representatives, where Okypy posts a deficit it will be replenished by state funds until December 31, 2026. Previously, the cutoff for such direct state support had been set at the end of May of this year.

Okypy, which runs state hospitals, was supposed to become financially self-sufficient – but has received one extension after another.

Disy MP Efthymios Diplaros argued the new extension granted is crucial to ensure the state healthcare system runs smoothly.

But he warned that Okypy now faces “a race against time” to set its affairs in order.

The decision to continue financing Okypy’s deficits was taken by the cabinet in late May of this year.

At the time, Health Minister Michalis Damianos stated that the organisation’s deficit for 2025 was estimated at €40 million, and another €30 million for 2026.

Part of this funding was being covered from the Recovery and Resilience Fund.