Bond hold­ers ap­peal

Financial Mirror (Cyprus) - - FRONT PAGE -

The As­so­ci­a­tion of Bank Bond Hold­ers, some of whom staged a civil protest out­side the Bank of Cyprus head­quar­ters in Ni­cosia, ap­pealed to the bank’s Chair­man and board for com­pen­sa­tion for their losses, as pre­scribed by the mem­o­ran­dum of the bailin and ab­sorp­tion of the now-de­funct Laiki Pop­u­lar Bank.

“A con­se­quence of the bonds crime is the loans which were ad­vanced, se­cured by bonds and the loans which - af­ter prompt­ing by the banks - were used for the pur­chase of new bonds. Th­ese loans - which in­clude many fidu­ciary ones - are il­le­gal and there­fore void,” the res­o­lu­tion said, signed by Phivos Mavrovouni­o­tis and Stavros Yial­lourides who were present at the AGM

“We sim­ply ask that Bank of Cyprus per­forms its part re­gard­ing the di­rec­tives of the Pres­i­dent of the Repub­lic dated 4.9.14, which are as fol­lows:

• All pri­vate in­di­vid­ual bond hold­ers, who bought the bonds from the pri­mary mar­ket, will be com­pen­sated.

• This will be pre­ceded by the

off­set of bonds with the bonds.

• Any set­tle­ment will be in­de­pen­dent from the bail-in of un­se­cured de­posits which took place in March 2013, fol­low­ing a de­ci­sion by Eurogroup. • Guar­an­tee of the first 100,000 eu­ros. • Bail-in of 47.5% of the re­main­ing amount in ex­cess of 100,000 Eu­ros and the grant­ing of Bank of Cyprus shares at their nom­i­nal value and the re­main­ing 52.5% in gov­ern­ment bonds of 5-year du­ra­tion af­ter our exit from the Mem­o­ran­dum prob­a­bly in 2017, with rea­son­able in­ter­est of 3%.”

“We ap­peal to you to adopt the di­rec­tives of the Pres­i­dent. This will trans­late to the large num­ber of de­posits that our rel­a­tives and friends will repa­tri­ate to Bank of Cyprus. Un­for­tu­nately we have vir­tu­ally noth­ing, since our de­posits were ‘in­vested’ by the banks in the best way for them.”

“We have en­gaged in di­a­logue but the le­gal frame­work in Cyprus does not al­low a dif­fer­ent ap­proach. There is no le­gal back­ground [for resti­tu­tion], and quite frankly we don’t have the lux­ury, [as] the bank re­mains vul­ner­a­ble,” said Board Chair­man Josef Ack­er­mann.

loans se­cured by pledged

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