The Central Bank of Cyprus is planning to launch an appeal against a court ruling that sided with a depositor’s claim regarding losses during the collapse of Laiki Bank in 2013. The appeal is based on the belief that previous cases support a different outcome and contest the court’s findings of crisis mismanagement.
What is the reason for the Central Bank of Cyprus’ upcoming legal appeal?
The Central Bank of Cyprus is appealing a court ruling that favored a depositor’s claim regarding losses during Laiki Bank’s collapse in 2013. The appeal is based on the belief that previous cases support a different outcome, contesting the court’s findings of crisis mismanagement.
Legal Battle Over Bank’s Crisis Management
The financial saga continues with the Central Bank of Cyprus gearing up for a legal counter. In an unexpected twist, a Limassol district court sided with a depositor who fought against the losses suffered during Laiki Bank’s downfall in 2013. The Central Bank, after careful consideration with legal advisors, is setting the stage for an appeal. This decision stems from a firm belief that precedents exist, favoring a different outcome.
The Court’s Stance and the Upcoming Appeal
On a chilly November day, the court declared that both the CBC and the Republic of Cyprus bungled the management of the unfolding crisis back in 2009. This mismanagement led to a depositor, hailing from Russia, winning a substantial sum as a result of the lawsuit. A sum of €780,833 is no small change, certainly not for the individual awarded it.
The charges of negligence are not taken lightly. Accusations fly about the government’s delayed response in seeking European assistance and the hasty decision-making that followed. Even President Nicos Anastasiades has been caught in the crossfire for his reassurances against a deposit haircut—a promise which, in hindsight, couldn’t be kept.
A First Victory for Depositors
Historical, to say the least, this ruling marks a departure from the string of unsuccessful court battles fought by depositors in the past. The legal service is already on the move, with the attorney-general preparing an appeal on behalf of the Republic.
Government Response and Depositor Compensation
A spokesperson for the government, Konstantinos Letymbiotis, has implied that the wheels of compensation were already in motion, independent of the court’s decisions. Meetings with depositor representatives were not held in secret, and the government’s pre-election promises are set to materialize by year’s end.
A Glimpse into Cyprus’ Health Concerns
Over 12% of Cyprus population has diabetes
In unrelated news, a significant portion of the Cypriot populace is grappling with diabetes. This statistic underscores a health challenge of considerable proportions.
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Please note, this article intends to inform readers of recent legal events in Cyprus and does not contain any personal reflections or conclusions.
Quick Recap:
- The Central Bank of Cyprus is planning to launch an appeal against a court ruling that sided with a depositor’s claim regarding losses during the collapse of Laiki Bank in 2013.
- The appeal is based on the belief that previous cases support a different outcome and contest the court’s findings of crisis mismanagement.
- The court declared that both the Central Bank of Cyprus and the Republic of Cyprus mismanaged the crisis, leading to a depositor winning a substantial sum in a lawsuit.
- This ruling marks a departure from previous unsuccessful court battles fought by depositors.
- The government has implied that depositor compensation was already in motion, independent of the court’s decisions, and promises to materialize by the end of the year.
