Another case against 2013 haircut dismissed

The District Court of Famagusta rejected another citizen lawsuit against the state for losses incurred through the 2013 haircut on bank deposits.

According to a statement from the Legal Service, the case had initially been filed against the Bank of Cyprus, the Laiki Popular Bank, the Central Bank of Cyprus and the Republic of Cyprus. As the case progressed, the plaintiffs chose to pursue their claim against only the Republic of Cyprus, unreservedly withdrawing the action against all other defendants.

The court, according to a decision it issued on October 18, quoted previous relevant jurisprudence on the matter and accepted the position that the disputed consolidation measures taken by the Republic pursuant to the “Consolidation of Credit and Other Institutions Law of 2013” were absolutely necessary and unavoidable.

The court concluded that the specific measure was necessary, hence, it ruled that no reprehensible act or omission on the part of the Republic was proven.

Accordingly, the court dismissed all the claims of the plaintiffs, dismissed the suit, and awarded costs in favour of the Republic.

The case was handled by state prosecutor Theano Mavromoustakis on behalf of the attorney-general, the attorney of the Republic Theano Koumis and attorney Markos Economou.