The Nicosia District Court issued a decision rejecting a claim for the impairment of the plaintiffs’ deposits in the former Laiki Bank in 2013 on 10 August.
The plaintiffs challenged the constitutionality of the resolution measures taken by the State under the “Resolution of Credit and Other Institutions Law of 2013”.
Indicatively, the Court states, inter alia, in the text of its multi-page judgment:
“Consequently, if and when the specific restructuring measures taken in relation to Laiki Bank were not taken, the bank would have been placed in liquidation and its depositors would have been in a worse position than they were in when the restructuring measures were taken.
In particular, for the reasons explained above, the insured depositors could not have been compensated, and further, there would have been social unrest, economic destabilization and financial instability, and disorderly bankruptcy of the financial system and ultimately of the Republic of Cyprus itself.”
The Court dismissed all of the Plaintiffs’ claims and awarded costs in favor of the Defendants.