Court dismisses depositors' claims in controversial Laiki bank case

On August 10, 2023, the Nicosia District Court rendered a judgment dismissing a claim pertaining to the impairment of plaintiffs' deposits in the former Laiki Bank back in 2013. The plaintiffs had brought the case to challenge the constitutionality of the resolution measures implemented by the State in accordance with the "Resolution of Credit and Other Institutions Law of 2013."

In the court's detailed and extensive multi-page judgment, it notably expressed:

"Consequently, if and when the specific resolution measures taken in relation to Laiki Bank were not enacted, it would have faced liquidation, placing its depositors in a worse situation compared to when the resolution measures were implemented. Specifically, as outlined above, insured depositors would have been unable to receive compensation, potentially leading to heightened social unrest, economic instability, financial turmoil, disorderly failure of the financial system, and ultimately jeopardizing the Republic of Cyprus itself."

The Court ruled to dismiss all claims put forth by the plaintiffs and granted costs in favor of the defendants.

The legal proceedings were conducted on behalf of the Attorney General of the Republic by Ms. Penelope Charalambous, Attorney at Law of the Republic.