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Eurogroup’s bank decisions face court challenge

7 April 2013

Over fifty petitions against the Eurogroup’s bailout conditions affecting banks in the South will be filed in the next 10 days. The plenary of the Supreme Court ordered that all appeals against the implementation of a Eurogroup decision on South Cyprus banks were to be filed within that time frame.

However, two interim orders suspending the implementation of the Eurogroup decisions for the Bank of Cyprus and the Cyprus Popular bank have been annulled.

A number of people have appealed against the implementation of provisions included in an agreement for a Cyprus bailout, reached between Eurozone Finance Ministers and the South Cyprus  government on March 26.

The 10 billion euro deal included the measure that Laiki Bank, the island’s second largest bank, splits into a “good” and a “bad” bank. The bank’s “good” assets are being transferred to Bank of Cyprus, where a massive haircut is being imposed on uninsured deposits of more than 100,000 euro.

Two judges excluded themselves from the process, due to their relationship to plaintiffs. Supreme Court President Petros Artemi, although related to former Bank of Cyprus Board Chairman Andreas Artemi, said he had no problem with hearing the case, with those present agreeing with him.

The Supreme Court plenary decided that the hearings would continue on April 23.

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