Court of Appeal rejects appeals against the orders to haircut

The Court of Appeal has today reject as inadmissible the appeals against the orders to haircut unsecured depositors in the resulting consolidated banking institutions describing them as falling under private law and not administrative law. Furthermore the such cases do not fall within the jurisdicition of the Court of Appeal acting as a firtst instance court.

The Plenum of the Supreme Court of Cyprus (composed of 9 judges) handed down today their decision on the 53 recourses filed by aggrieved depositors of Laiki and Bank of Cyprus challenging the legality of the Decrees issued by the Central Bank of Cyprus as Resolution Authority.

The majority of the Court (7 out of 9 Judges) ruled that the said recourses are outside the revisional jurisdiction of the Supreme Court as the rights of the depositors do not fall within the sphere of Public Law so as to allow the Supreme Court to exercise its judicial review in this matter. It ruled that they fall within the sphere of Private Law in the context of which depositors may institute civil actions before the District Courts against the banks involved and/or organs or authorities of the Republic and/or others.

As a result the Court dismissed all the recourses.