Bond holders appeal
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