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Limassol Court dismisses depositor claims over 2013 haircut

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Limassol Court dismisses depositor claims over 2013 haircut

    The Limassol District Court on Thursday dismissed consolidated lawsuits filed by depositors against Cyprus Popular Bank (Laiki), the Central Bank of Cyprus, and the Republic of Cyprus, regarding the 2013 haircut.

    The four claimants sought compensation for losses incurred due to a haircut on their deposits at Cyprus Popular Bank. They alleged negligence and breaches of human rights by the defendants.

    The Court ruled that the Republic of Cyprus and its officials did not act negligently or breach any institutional duty. It stated that the “foreseeability” of the haircut was not established.

    Furthermore, the Court found that the resolution measures ultimately did not place depositors in a worse position than a bank liquidation scenario.

    The constitutionality of the measures and alleged human rights violations were deemed non-essential to the case and unsubstantiated, respectively.

    The Court dismissed all four consolidated claims and awarded costs to the defendants.

    The Attorney General’s Office represented the Republic of Cyprus.

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