The administrative court this week ruled in favour of Bank of Cyprus, voiding a €4,000 fine slapped on the lender by the Central Bank of Cyprus (CBC) for alleged violations of proper investment practices.
The case concerned bonds issued by Bank of Cyprus itself in 2009. In June 2012 the lender announced that interest payments on the bonds would be postponed. The CBC subsequently investigated whether the bank had tried to upsell customers on its bonds.
In 2013 the CBC imposed a €4,000 fine on the bank, which immediately appealed the decision with the administrative court.
In its findings, the court said the CBC, prior to imposing the fine, withheld access to files and information that might have allowed Bank of Cyprus to better make its case to the banking regulator.
The court also said that on the balance of evidence, Bank of Cyprus did not breach proper investment practices.