Insider Business Last hope for Laiki Bank depositors who lost all their money

Last hope for Laiki Bank depositors who lost all their money

The law suit by Laiki Bank against Marfin Investment Group (MIG), late Andreas Vgenopoulos, Efthymios Bouloutas and Kyriacos Magiras is the last hope for the now defunct lender’s depositors whose money was lost overnight in 2013 to get a decent compensation.

In March 2013, following tortuous negotiations between the Cyprus government and the Eurogroup, all deposits in Laiki over €100,000 underwent a haircut. Together with 47.5 per cent of deposits over €100,000 in the Bank of Cyprus, as part of the county’s bailout agreement with the EU and IMF.

Laiki Bank, once Cyprus’ second-largest lender, collapsed years after Vgenopoulos became its head man. Bouloutas was the CEO at the time and Magiras a senior executive. MIG was Vgenopoulos’ investment vehicle.

The lawsuit goes on since 2013, following an initial decree for the freezing of assets of the defendants amounting to €3.8 billion. That amount was equivalent to the total deposits lost in the haircut.

The lawsuit has gone through daunting legal proceedings when it comes to the freezing of assets with objections, trials within trials, disputes over the jurisdiction of the Cypriot courts and the involvement of judicial authorities in Greece and the United Kingdom.

The procedure seems to still have a long way to go before the final judgment, and it is unclear whether another defendant has been added to the list following the death of Vgenopoulos three years ago or if the trial continues with the remaining ones only.

In its annual report, MIG noted that they “still consider that action taken against them was clearly intended to be a fefense tool for the Republic of Cyprus in the international arbitration process.” MIG’s appeal against the first court’s decision ultimately turned in favour of the Republic of Cyprus.

Read more:

Top Stories

A gravedigger opens new graves in Sao Paulo

A gravedigger opens new graves with an excavator as the number of dead people rose after the coronavirus disease (COVID-19) outbreak, at Vila Formosa...

Aradippou begins Covid-19 sample taking

Sample taking for coronavirus tests started at 8 am in Aradippou, Mayor Evangelos Evangelides said. Aradippou has recorded a disproportionately high number of Covid -19...

Kiosks association issues list of products they can sell on Sundays

The Association of Continuous Services Shops issued on Friday a list of products that kiosks are allowed to sell, as they are the only...

Paphos Hospital dialysis patients test negative

Paphos Hospital dialysis patients have tested negative for coronavirus, the head of the nephrology clinic Dr Lakis Yioukas told CNA on Friday. He said that...

Coronavirus speeds up electronic banking use in Cyprus

Remote electronic bank transactions are on the rise in Cyprus due to the coronavirus outbreak with less and less clients opting to have physical...


Village olive pie

Mix the yeast with the lukewarm water and put it aside for about 12-15 minutes to settle.  Sift the flour with the salt into...

Skordalia (Garlic paste)

Rinse the potatoes and place, unpeeled, in a saucepan. Cover with water, add salt and allow to simmer for 20-30 minutes until soft. Drain,...

Village salad

A must-have with every meal is a village salad. You will find it in every tavern or greek restaurant you visit in Cyprus. Make...

Courgettes with eggs

Heat the oil in a frying pan and fry the courgettes at a medium heat until they soften. Add salt and add the eggs....