Cyprus Mail

House turns down restitution of Laiki depositors

By Elias Hazou

THE House on Thursday rejected a proposal for a parliamentary resolution calling on the government to fully restore the burned depositors of now-defunct Laiki Bank.

The proposal – tabled jointly by socialists EDEK and the Green party – was put to the vote and was soundly defeated by 33 votes against, with just ten in favour.

Speaking on the House floor, AKEL MP Yiannos Lamaris said it would be inappropriate for the legislature to pass resolutions that concerned a specific section of the population.

DISY’s Averof Neophytou agreed that the proposed resolution was a bad idea, as it was unfeasible.

“If we had €12bn on tap, then yes parliament might have helped restore these depositors,” he noted.

Parts of the failed lender, including guaranteed deposits up to €100,000, were folded into the Bank of Cyprus following the March 2013 Eurogroup decisions to wind down Laiki and recapitalise the Bank of Cyprus via the forced conversion of uninsured deposits – over €100,000 – into low-tier bank equity.

Under the EDEK-Greens proposed resolution, the House of Representatives would call on the government to immediately follow through on its earlier promises and devise and implement a plan to ensure the full restitution of affected depositors within a stated timeframe, with a view to restoring their pre-conversion status.

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