Judicial Review against the haircut on Laiki’s and BoC’s Depositors
The judicial proceedings against the haircut on Laiki and Bank of Cyprus’ depositors are ongoing. The objective of the applications filed for judicial review is to annul the governmental decrees by which deposits in excess of €100.000 in Laiki and BoC were subjected to massive reductions. There have been six consecutive sittings at the Supreme Court. The hearings for the preliminary objections...
Supreme Court of Cyprus – Update on legal actions against Bank of Cyprus & Laiki Bank “haircut”
Supreme Court of Cyprus – Update on legal actions against Bank of Cyprus & Laiki Bank,“haircut”
The Cyprus’ Supreme Court on April 23, 2013 began reviewing appeals filed against the March 29, 2013 Eurogroup’s decision to wind down Laiki bank and impose massive losses on all deposits in excess of €100.000 at both Laiki and the BoC (Bank of Cyprus). The appeals were submitted by local and...
Suffering Depositors Taking Legal Actions against Banks
The main condition for Cyprus to get the €10 billion loan package, as agreed between the government and the Eurogroup, is the restructuring of the country’s two leading banking institutions, through the resolution of Laiki Bank and the recapitalisation of Bank of Cyprus (BoC). The plan provides for transferring Laiki’s deposits under €100,000, its loans and its €9 billion liabilities from the...
Cyprus Developments on Banking Sector – Overcoming the Difficulties
Cyprus is struggling with the worst crisis in its history since the 1974 invasion by Turkish military forces that divided the country in two. The island’s banking sector, holding assets more than eight times the size of the national economy, has been dangerously impaired by exposure to Greek banks, where individual bondholders underwent a 75% ‘haircut’ during 2012. The European Union and...
Protecting Your Assets Through Trust Formation
High-net-worth individuals with valuable possessions around the globe need effective asset protection tools to manage and safeguard their wealth, as a respond to the differing legislations and tax regulations of the various jurisdictions. A trust is one of the most effective legal tools available for anyone who requires maximum protection of their funds. It is a legal structure that allows...
Pledges
What is a Pledge
A pledge is a form of real security giving the creditor (“pledgee”) proprietary rights over named property belonging to the debtor (“pledgor”). The pledgee has the right to retain those proprietary rights over the pledged property until an obligation (for instance payment of a debt) is discharged and the property is then restored back to the pledgor or alternatively, if the...
Compensating for Lost Property in TRNC
The aftermath of the 1974 occupation by Turkey of the northern part of Cyprus and subsequent division of the island is still keenly felt by citizens of both the Republic of Cyprus in the south and the Turkish Republic of Northern Cyprus (TRNC) in the North. Property abandoned on both sides by those fleeing conflict has been the subject of emotional debate and has been a considerable hindrance...
Standard Terms and Conditions of Business
Any business that regularly enters into terms (for example for the sale or purchase of goods) that are often the same or similar can benefit from creating its own standard terms of business. Standard terms are a set of terms that a business can use to govern its relationship with all of its clients.
The Benefits of Standard Terms
The benefits of having a standard set of terms are:
Lower costs...
New Limitation Provisions Enacted
New limitation provisions came into effect on 1st July 2012. After a succession of laws passed since 1964 to extend the suspension of the Limitation of Actions Law, Cap 15, the new Limitations Law 66 (I) 2012 will bring into effect time limits within which civil claims must be filed.
The new law makes the following limitations periods applicable:
TYPE OF CIVIL CLAIM
TIME LIMIT
NOTES...
New VAT Rules Encourage First Time Buyers in Cyprus
New VAT provisions were brought into effect on 8th June 2012 designed to encourage first time buyers in the Republic of Cyprus. Law N73 (I)/2012 amends the VAT Law by offering first time buyers a reduced rate of VAT.
VAT is currently charged on all properties for which the building permission was granted after May 2004. The current full rate of VAT is 17%.
The new law introduces a reduced rate...