Cyprus Mail

Paphos court says ex-Laiki bondholder’s plea insufficient

Andreas Vgennopoulos

By George Psyllides
THE Paphos district court on Friday ordered a plaintiff in a bank bond case against former Laiki Bank strongman Andreas Vgenopoulos to provide more details, describing as insufficient the information provided so far.
Vgenopoulos and former Laiki CEO Efthimios Bouloutas have been sued by a Paphos investor who accused the now defunct bank’s brass of miss-selling the bonds and deceiving him.
The pair’s defence lawyers argued that the details provided by the plaintiff’s lawyer were insufficient for them to mount a defence, a position upheld by the court in an interim decision issued yesterday.
The court said it will hear the case from October 7 to 16.
A number of bondholders in the island’s major banks claim they were duped into investing high-yield bonds without being informed of the risks, and some have sued the banks because they were allegedly not properly informed of the risks.
Laiki stopped paying interest on the bonds after incurring losses from a Greek sovereign debt write-down in 2011. The bonds offered an attractive return of 7.0 per cent in some cases.
The total amount placed in securities across Cyprus’ banks is said to be about €1.4bn.
It was decided to shut down Laiki as part of the terms of the island’s €10bn bailout.

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