In statements after the meeting, Mr. Omirou stated that he had submitted a Draft Law according to which credit loans given by securing securities or for the purchase of securities issued by financial institutions will be offset against the current amount of the loan or other credit facility for purposes restructuring. The regulation, he said, will concern only non-professional investors and the amount that will be offset will be the nominal value of the securities, deducting any interest paid. The aim of the Bill, he said, is to remove a blatant injustice.
"The provision of loans for the purchase of financial instruments of the financial institution that grants them is legally examined. "In addition, financial institutions have already largely recorded bad debts for these loans," he said.
The President of the Association of Securities Holders, Foivos Mavrovouniotis, after thanking the Speaker of Parliament, said that now the ball is in the feet of the Parliamentary Finance Committee, which will decide whether or not to pass the proposal.
The Association, he said, feels that the proposal must be passed because the prefecture prohibits banks from attaching loans to sell their own products.
He also said that if they go to court, the bank will definitely lose because it was illegal and eventually the costs will increase greatly, without restoring investor confidence.
Mr. Mavrovouniotis said that he expects that the Finance Committee, which they have already started informing, will be very concerned, because it is likely that it is not fully informed and they have the impression that it is about 800 million euros. On the contrary, he said, it is 180 million euros for Laiki and around 20 million for the Bank of Cyprus.
These cases, he said, will be taken to court. "Why not prevent evil," he wondered.
Referring to a recent resolution of the Parliament which referred to the justification of the holders of securities, Mr. Mavrovouniotis said that it is not only the issue of netting, which covers "only 5% of the requested.
For the remaining 95% we have nothing to do but we are fighting for everyone and we expect a bill to be submitted at some point to justify the holders of securities, the depositors of Laiki Bank, etc., who have paid the lion's share for the non-bankruptcy of the state " . He called on the Speaker of Parliament to raise the issue on the table in order to prevent court proceedings which, as he said, are both time consuming and harmful for everyone.
Finally, when asked if lawsuits have been filed in the courts, Mr. Mavrovouniotis replied that thousands of lawsuits have already been filed, but stressed that no hearing has been held yet.
Mr. Homer's proposal concerns 1850 non-professional investors and concerns approximately 200 million euros.