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16 June, 2024
 
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Cyprus Central Bank challenges court ruling on Laiki Bank 'haircuts'

Central Bank of Cyprus takes a stand against Limassol court's decision on 2013 deposit 'haircuts'

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The Central Bank of Cyprus (CBC) declared on Tuesday its intention to appeal the Limassol District Court's decision favoring the claimant in the Laiki Bank deposit 'haircut' case from 2013.

In an official statement, the CBC stated that, following the November 8, 2023 decision in Lawsuit No. 5617/13, it thoroughly examined the ruling with legal advisors and plans to file an appeal. The decision to appeal is motivated by the existence of numerous first-instance rulings on similar matters supporting the opposite stance.

To recall, the Limassol District Court ruled in favor of the plaintiff, citing the 'haircut' of his deposits by Laiki Bank in 2013. The Republic of Cyprus was instructed to compensate the plaintiff with a sum of €780,832.

The court explicitly noted in its judgment that the deposit 'haircut' resulted from the negligent actions of the Republic of Cyprus and the gross negligence of the CBC, not due to reasons related to market rules.

On November 9, the Legal Service announced that the Attorney General would file an appeal on behalf of the Republic of Cyprus, highlighting that the decision "deviates from all previous rulings issued to date."

[Information sourced from CNA]

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