Cyprus Mail
Cyprus

Paphos court receives defence objections in Laiki case

Andreas Vgenopoulos

By Constantinos Psillides

The Paphos District Court said on Tuesday it would issue a ruling on the pre-trial objections of now-defunct Laiki bank strongmen Andreas Vgenopoulos and Efthimios Bouloutas on October 30.

The two former Laiki bosses have been sued by a Paphos investor who accused the bank’s brass of mis-selling bonds.

The court denied a request to postpone the trial for a period of two months, arguing that the public interest was not served by a delay.

Lawyers for both Vgenopoulos and Bouloutas filed their objections with the court on Tuesday. The court also received the legal argument from the plaintiff. The judge decided to study both arguments and issue a ruling on October 30.

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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