More Sites

Greece's Marfin seeks $US1bn from Laiki

Reported by AAP
Wednesday, September 4, 2013
Topics in this article:
Macquarie Infrastructure
World's kookiest billionairesBillionaires and their eccentric and outlandish publicity stunts.

Greece's Marfin Investment Group has instigated international arbitration to claw back more than $US1 billion ($A1.1 billion) it lost when the Cypriot bank Laiki was wound up under an EU deal.

"MIG is seeking to recover approximately 824 million euros of its investment in Laiki, while another 20 individuals and legal entities want to recover around 229 million euros," the firm said in a statement on Tuesday.

It was taking the action after six months had elapsed without "any amicable" solution, and MIG had filed a request for arbitration against Cyprus at an international tribunal "under the auspices of the World Bank".

MIG says it has called on Greece's justice system to probe how Laiki did business from 2006 to 2013, especially the acquisition of toxic Greek bonds, lending policy and the 2006 merger between Laiki and Marfin Egnatia bank.

In return for a 10-billion-euro bailout, international creditors demanded the winding up of Cyprus's second largest bank, Laiki, and a "haircut" on deposits over 100,000 euros in largest lender Bank of Cyprus.

The Bank of Cyprus has absorbed a "good part" of Laiki and is undergoing a post-bailout restructuring programme.

The unprecedented eurozone haircut on deposits forced the government to close all the island's banks for nearly two weeks in March and impose draconian controls when they reopened.

23/10/2014 09:25Sydney, Australia. 23 October,2014
advertisement