{"id":12877,"date":"2024-05-23T14:00:26","date_gmt":"2024-05-23T11:00:26","guid":{"rendered":"https:\/\/ch.jfdi.cc\/?p=12877"},"modified":"2024-05-23T14:00:26","modified_gmt":"2024-05-23T11:00:26","slug":"government-wins-landmark-international-arbitration-case-against-laiki-bank-of-cyprus-depositors","status":"publish","type":"post","link":"https:\/\/ch.jfdi.cc\/?p=12877","title":{"rendered":"Government wins landmark international arbitration case against Laiki, Bank of Cyprus depositors"},"content":{"rendered":"<p>In a landmark decision, the World Bank\u2019s International Centre for Settlement of Investment Disputes (ICSID) tribunal unanimously rejected a USD 600 million claim by depositors and bondholders of Laiki Bank and the Bank of Cyprus.<br \/>\nThe arbitration case, <em>Theodoros Adamakopoulos and Others v. Republic of Cyprus<\/em> included 968 natural persons, primarily Greek nationals, and six entities (one based in Luxembourg).<br \/>\nThe claimants argued that 2013 bail-in measures implemented during the financial crisis amounted to unlawful expropriation.<br \/>\nThe arbitration was based on the bilateral investment agreements of the Republic of Cyprus with Greece and Luxembourg.<br \/>\nTheir position was that the Republic should be held responsible for the losses they suffered in connection with the bail-in measures, arguing that it caused the banks\u2019 financial problems, failed to adopt available alternative measures that would have prevented or significantly mitigated their losses, and applied the bail-in measures in a discriminatory manner amounting to expropriation.<br \/>\nHowever, the tribunal ruled in favour of Cyprus, finding the measures a \u201clegitimate exercise of the State\u2019s regulatory power\u201d and not discriminatory.<br \/>\nThe decision vindicates the government\u2019s position, which emphasised the necessity of the bail-in to prevent a wider economic collapse.<br \/>\n\u201cThe Arbitral Tribunal confirmed that the decision to impose the bail-in measures was taken after first assessing that there were no other available options,\u201d a Cypriot government statement said.<br \/>\nThe tribunal did find a violation in the case of one claimant due to \u201cexceptional circumstances\u201d related to the subsequent handling by the state, but not regarding the legality of the bail-in itself.<br \/>\nThe Republic of Cyprus was represented before the ICSID by the law firm Curtis, Mallet-Prevost, Colt &amp; Mosle LLP, along with the Attorney General of the Republic, a team of lawyers from the Law Office, and officials from the Central Bank and the Ministry of Finance.<\/p>\n<blockquote class=\"twitter-tweet\"><p>\u2696\ufe0fThe International Arbitral Tribunal of the #World #Bank dismissed unprecedented mass claim of depositors and bondholders affected by #Cyprus\u2019 bank resolution measures amounting to \ud83c\uddfa\ud83c\uddf8\ud83d\udcb26\u20e30\u20e30\u20e3 #million pic.twitter.com\/ARajPoONDT\u2014 Attorney General&#8217;s Office CY (@LawOfficeCY) May 23, 2024<\/p><\/blockquote>\n<p>Read more:<\/p>\n<figure class=\"wp-block-embed is-type-wp-embed is-provider-in-cyprus-com wp-block-embed-in-cyprus-com\"><\/figure>\n<p>bail-in measures. World Bank, International Centre for Settlement of Investment Disputes, arbitration case<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The World Bank&#8217;s ICSID tribunal rejected a 0 million claim by depositors and bondholders of Laiki Bank and the Bank of Cyprus, finding the bail-in measures implemented during the financial crisis to be a legitimate exercise of Cyprus&#8217; regulatory power.<\/p>\n","protected":false},"author":5,"featured_media":12878,"comment_status":"open","ping_status":"closed","sticky":false,"template":"Default","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[1],"tags":[10988,580,1902,39,611,8677,4601,4369,2458,5255,2950,3,274,26,3355,569,6027,1231,415,747,6028,613,187,10987,2753,6029,276,5679,3903,7922,591,6693,3933,4593,1004,8240,10778,3225,1538,2173,6928,7967,1827,114,169,170,18,846],"class_list":["post-12877","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-other","tag-arbitration-case","tag-attorney-general","tag-bank","tag-bank-of-cyprus","tag-banks","tag-bondholders","tag-central-bank","tag-collapse","tag-connection","tag-crisis","tag-cypriot-government","tag-cyprus","tag-depositors","tag-economy","tag-exercise","tag-finance","tag-financial-crisis","tag-financial-problems","tag-government","tag-greece","tag-haircut","tag-insider-economy","tag-international","tag-international-centre-for-settlement-of-investment-disputes","tag-investment","tag-laiki","tag-laiki-bank","tag-law","tag-law-firm","tag-law-office","tag-lawyers","tag-legality","tag-ministry-of-finance","tag-office","tag-power","tag-problems","tag-republic","tag-republic-of-cyprus","tag-resolution","tag-settlement","tag-six","tag-state","tag-statement","tag-top-news","tag-twitter","tag-violation","tag-world","tag-world-bank"],"acf":{"keyphrase":"","keywords":"","sourceimg":"","country-category":""},"yoast_head":"<!-- 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