It seems that the depositors of Laiki Bank will get crumbs, who in March 2013, suffered a haircut of deposits amounting to € 4 billion. Then the value of Laiki Bank assets was valued at € 663 million. Now the net income from the sale of various assets amount to € 192 million. To the total assets is added a package of 4,8% of the share capital of Bank of Cyprus, which is valued at € 34 million.
In fact, Laiki's depositors are expected to receive 0.5 to 0.6 cents for every euro they lose due to the haircut. Before the Parliamentary Committee on Institutions, the special administrator Kleovoulos Alexandrou, stated that if the assets were sold faster, the incomes would be higher. He admitted that the revenues of € 223 million are crumbs with the losses suffered by the cut depositors. As he said, Mr. Alexandrou, from the € 223 million collected from sales, an amount of € 31,4 million has been paid to various law firms.
According to Mr. Alexandrou, an amount of € 18,9 million has been paid to various lawyers. Of this, an amount of € 6 million was paid to lawyers for the case of Laiki v. Republic of Cyprus, another approximately € 3,6 million to court case against Andreas Vgenopoulos. An amount of € 4,9 million was given for payments to lawyers for lawsuits against Laiki Bank and € 736 thousand to lawyers in Cyprus for consulting services. An amount of € 1,5 million was also paid to lawyers for lawsuits against Laiki in Britain, € 1 million to lawyers in Greece and € 194 thousand in Ukraine. Lawyers in Russia were paid € 576 thousand, in Moscow another € 115 thousand and € 49 thousand was given to other law firms.
The Governor of the Central Bank (CB) Konstantinos Herodotou stated that the CB will soon proceed with a competition for the appointment of a liquidator. They will propose, as he said, to the court, the termination of the consolidation process and the appointment of a liquidator by November.
During the discussion, Laiki depositors demanded that the package of shares of Bank of Cyprus amounting to € 34 million not be sold and that they be given shares of Bank of Cyprus. They should, as they noted, amend the law, because today legislation provides only for the liquidation of Laiki's assets. The Commander of the Central Bank, noted that if a legal solution is found, the issue will be discussed in the Resolution Authority.
Source: Philenews / Eleftheria Paizanou
