Cabinet approves legal aid for bondholders

The Cabinet on Tuesday approved a proposal for free legal aid to bondholders who wish to file lawsuits against the banks.

Private holders of convertible enhanced capital securities issued by the Bank of Cyprus and now-defunct Laiki Bank claim they were mis-sold the financial products, which were essentially wiped out following the March 2013 events, and demand to be compensated.

Many had also drawn loans using the securities as collateral, which they are now being asked to repay.

Last month six judges – two each in Nicosia and Limassol, and one each in Paphos and Larnaca – were tasked with dealing with cases involving the bondholders who were denied the option of securing out-of court settlements with the Bank of Cyprus.

They were urged to filed lawsuits immediately and apply for legal aid from the state.
The move to offer legal aid provides for a maximum fee for lawyers handling the cases. The justice minister has been tasked with submitting the relevant bill to amend the Legal Aid Act, a Cabinet announcement said.

The Cyprus Mail is the only English-language daily newspaper published in Cyprus. It was established in 1945 and today, with its popular and widely-read website, the Cyprus Mail is among the most trusted news sites in Cyprus. The newspaper is not affiliated with any political parties and has always striven to maintain its independence. Over the past 70-plus years, the Cyprus Mail, with a small dedicated team, has covered momentous events in Cyprus’ modern history, chronicling the last gasps of British colonial rule, Cyprus’ truncated independence, the coup and Turkish invasion, and the decades of negotiations to stitch the divided island back together, plus a myriad of scandals, murders, and human interests stories that capture the island and its -people. Observers describe it as politically conservative.