Filenews 10 August 2023
A decision rejecting a lawsuit for the impairment of the plaintiffs' deposits in the former Laiki Bank in 2013 was issued by the Nicosia District Court on August 10.
The applicants 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 as long as the specific resolution measures taken in relation to Laiki Bank were not taken, Laiki Bank would be wound up and its depositors would be in a worse position than they found themselves with the adoption of the resolution measures.
In particular, for the reasons explained above, insured depositors could not be compensated, and further social unrest, economic destabilization and financial instability, disorderly bankruptcy of the financial system and ultimately of the Republic of Cyprus itself would be created."
The Court dismissed all of the Plaintiffs' claims and awarded costs for the benefit of the Defendants.
The case on behalf of the Attorney General of the Republic was handled by the Lawyer of the Republic Mrs. Penelope Charalambous.
