Cyprus Mail
Cyprus

‘Cheated’ bondholders seeking psychological support

Demonstration by Laiki and BoC bondholders

The bondholders’ association has reported Health Minister Giorgos Pamboridis to President Nicos Anastasiades for not replying to earlier requests for free psychological support for its members, it emerged on Friday.

In a letter to Anastasiades, dated April 17, 2017, the association claimed it had been forced to take the matter to him because repeated letters to Pamboridis over the last two years have gone unanswered.

“Let us remind you that, according to article 29 of the constitution, the minister should have replied to us by now,” the association said.

“Sadly, he hasn’t.”

The bondholders told the president that, had “they” not seized “all our money down to zero”, they would have been able to afford a lawyer to sue the health minister for violating the constitution.

“We sadly cannot afford one, which is why we came to you, so that you could remind your minister of his constitutional obligations,” the letter said.

In their initial letters to the health minister, the bondholders claimed that their members had been duped by banks into turning their deposits into bank bonds, which later lost their value.

“Many of our members have been facing, over the last three years, serious psychological problems,” the association said.

“We suggest that your ministry appoints one psychologist and one psychiatrist in each city, so that they can see our members for free. Any medical treatments should also be free,” the letter said.

The group represents thousands of investors who lost around €700m when Bank of Cyprus and Laiki Bank bonds were wiped out in March 2013.

The bondholders have protested for years they are being strung along by the president, the ministers of finance and justice, the Central Bank, and Bank of Cyprus and neither the attorney-general nor the president have intervened with the banks on their behalf.

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.

Many had also drawn loans using the securities as collateral, which they are now being asked to repay.

 

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