Greek investment group Marfin (MIG) is to turn to international arbitrators in an attempt to recover €824 million from Cyprus over the winding down of Laiki Bank.
MIG lost its stake in the bank after it was shut down under the terms of a €10 billion bailout deal for Cyprus, which was agreed with international lenders in March.
The Greek group’s investment in Laiki had already been diluted when the bank was nationalised in mid-2012 after its capital base was hit by a write-down in Greek government debt, to which it was heavily exposed.
Athens-based MIG said on Tuesday that it would submit a request for arbitration against the Republic of Cyprus at an international tribunal operating under the auspices of the World Bank.
MIG put the value of its investment in Laiki at €824 million and said that another 20 legal entities and individuals would join the action, seeking an additional €229 million.
The action is being launched after the lapsing of a six-month window to seek an amicable settlement with Cyprus, MIG said.
Laiki has ceased operations and some of its assets have been assumed by Bank of Cyprus. (Reuters)