[PIO] The Court of Justice dismissed a claim by depositors of the former People's Bank against the Republic in relation to the write-down of deposits

The Nicosia District Court issued a judgment dismissing a claim for the impairment of the plaintiffs' deposits in the former Laiki Bank in 2013 on 10 August 2023. The plaintiffs challenged the constitutionality of the resolution measures taken by the State under the "Resolution of Credit and Other Institutions Law of 2013".

Characteristically, the Court states, inter alia, in the text of its multi-page judgment:

"Consequently, if and when the specific reorganisation measures taken in relation to Laiki Bank were not taken, it would be placed in liquidation and its depositors would be in a worse position than they were in when the reorganisation measures were taken. In particular, for the reasons explained above, the insured depositors could not be compensated, and further social unrest, economic destabilisation and financial instability, disorderly bankruptcy of the financial system and ultimately of the Republic of Cyprus itself would be created."

The Court rejected all of the Claimants' claims and awarded costs in favour of the Defendants.

The case was handled on behalf of the Attorney General of the Republic by Ms Penelope Charalambous, Attorney at Law of the Republic.

(ML)

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