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- Ελληνικά
With reference to: "Failure to take remedial measures would put Cyprus in a dire financial situation, as the financial system would destabilize and collapse with devastating consequences for the country's economy and society [... AND THAT] the circumstances prevailing in March 2013 can only lead to the conclusion that there were reasons of public interest and the resolution measures were in the public interest", the Larnaca District Court today dismissed a claim against the Republic of Cyprus in relation to a case concerning the impairment of deposits in Laiki Bank in 2013.
The action was brought against the Central Bank of Cyprus in its capacity as the Resolution Authority under the Resolution of Credit and Other Institutions Law 17(I)/2013, Laiki Bank, the Bank of Cyprus and the Republic of Cyprus. In the course of the case, the plaintiffs withdrew the action against all defendants except the Republic of Cyprus and the Central Bank of Cyprus.
In its Judgment, the Court held that the Republic of Cyprus and the Central Bank of Cyprus cannot be held liable for matters of supervision and liability for the collapse of the banks, and therefore dismissed the plaintiffs' claims. The Court also held that neither can the Republic be held liable for its acceptance and consent to the impairment of the Greek Bonds of the Cypriot banks, in particular Laiki Bank, as the State, as accepted by a witness for the plaintiffs during his cross-examination by the Legal Service, could not intervene in the business decision of the banks to purchase Greek Bonds.
The Court, having dismissed the plaintiffs' claims and action, awarded costs in favour of the Republic.
On behalf of the Advocate General of the Republic, the case was handled by Ms Elli Florentzou, Senior Advocate of the Republic, and Ms Zina Charalambous, First Advocate of the Republic.
(BL)
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