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EU being sued by South’s bank depositors

20 December 2013

The EU and its associated instutions are being sued by 50 depositors and shareholders of Cypriot banks for losses sustained when their deposits were seized in order to recapitalise lenders.

The plaintiffs are looking for over 20 million euros in damages, said lawyer Kypros Chrysostomides whose company, in conjunction with foreign legal experts, will bring the case to court.

“Cyprus is the only EU member-state to date, to have been provided with financial assistance on the precondition of a ‘bail-in’ and other coercive measures,” the legal firm said.

It said it was the first time in the history of EU jurisprudence that the Luxembourg Court has been asked to decide whether the acts of the Eurogroup are attributable to the EU, thus rendering them liable to pay compensation.

The Eurogroup decided to close down Laiki Bank in this March and seize deposits over 100,000 euros to recapitalise the Bank of Cyprus (BoC). 47.5% of the deposits were used.

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