Cyprus Mail

Bondholders bemoan ’empty promises’ over their plight

Fivos Mavrovouniotis (left)

Bank bondholders on Sunday promised more protests to push their cause given the indifference of the government in resolving their issues, they said.

At an extraordinary general meeting in Limassol, their leader Fivos Mavrovouniotis said that despite promises given in April neither the attorney-general, nor the president had intervened with the banks on their behalf.

They had also been given “vague promises” by two political parties, he said. These has also come to nothing despite several reminders.

The private holders of convertible enhanced capital securities issued by the Bank of Cyprus and now-defunct Laiki Bank claim they were mis-sold financial products, which were essentially wiped out following the March 2013 events, and they demand to be compensated. Many had also drawn loans using the securities as collateral, which they are now being asked to repay.

“We have seen the same stonewalling when it comes to the issue of free legal aid after the government disagreed with the legal service about who would bear the costs,” Mavrovouniotis said.

He said after it emerged that the entire cost would not be covered and that what was being offered was minimal, it would cost the bondholders so much to cover the remainder of the costs in cases against the banks that it would not be worthwhile pursuing any legal action.

Another issue of concern to them were the constant postponements and delays in proceedings against former bankers. The five or six years it was supposed to take now seemed likely to double, he added.

Mavrovouniotis said he had written a letter to the Bank of Cyprus on behalf of members with various options for restructuring of their loans. He told members that before entering any deals with the bank to consult their lawyers.


He asked members to authorise the board to take any protest action deemed necessary for the near future, a motion which was approved.


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