Cypriot banks face a difficult choice: or without much hope to seek justice in court, or to resort to expensive intermediaries have servants.

alarm bell, warning that the money from Cyprus time to withdraw, there were many. More February 10 Financial Times article "Cyprus proposed radical help» (Radical rescue proposed for Cyprus) wrote on the option of "saving" Cyprus by depositors. But the findings were made.

Now The Ministry of Finance of the Republic of Cyprus and the Central Bank of Cyprus is actually running the country. Minister of Finance in consultation with the Central Bank publishes weekly resolution for interim restrictive measures in accordance with the law "On the State of Emergency" 12 (I) 2013 (see Cyprus Ministry of Finance on April 20, 2013). VTB even while unable to help his daughter Cypriot Russian Commercial Bank , the question had to endure on the government level of discussion.

Private investors by and large there are two ways: with the Cypriot authorities to negotiate or litigate.

Find partners

More fortunate

all those holders of accounts in bank Laiki and Bank of Cyprus , which can prove to the bank that the funds in the account belong to several persons, as in this case, you can save a minimum guaranteed amount of € 100 000 multiplied by the number of holders of a joint account. At least this many hope.

Central Bank of Cyprus

courtesy explained rules for the application of the law "On the recovery of credit institutions and other institutions." Honest debtors Laiki Bank left an interesting loophole. According to see paragraph 2 , the debtor may offset funds on deposit in excess of € 100 000, to repay the loan and interest thereon.

This creates opportunities for intermediaries.

They are a company that has a bank loan Laiki comparable to the size of funds blocked in the account. In order to settle, or are invited to become a beneficiary, or shareholder of the company at the date earlier than the restrictive measures have been adopted in Cyprus, that is, until 15 March 2013. Some offer to the beneficiary or shareholder and after this date, referring to the fact that they have a serious communication problem with the management of the bank.

What was the main risk? It is known that in hindsight can become a shareholder or participant in a legal entity only if it alone is such a list. Another problem may be the inability to follow the implementation of stocks, shares or assets acquired for the purpose of offsetting, at least at a price close to the cost.

Buy Land

Another way - real estate. Central Bank of Cyprus allows withdraw money from troubled bank Laiki through the acquisition of any property located in Cyprus (not including, of course, the area Turkish Republic of Northern Cyprus), which, according to intermediaries, there is a potential buyer, has already made a decision about its purchase.

worth remembering that in recent years, property prices have been significantly inflated and the Russians, and local speculators have participated in this and banks in Cyprus. Prices have risen by 50-60%. By some estimates, due to the collapse of the banking system of Cyprus, respectively, and must roll back prices for local real estate.

In this case, the main task of the mediator is to prove the need to pay for the purchase of real estate from a bank account to the account of Laiki another person in trouble-free credit institution, for example, Hellenic Bank (it is associated with the Orthodox Church of Cyprus), Piraeus Bank or Alpha Bank , which "Cypriot haircut" touches.


"lucky", which withdrew money from or Laiki Bank of Cyprus, should be able to reach the cache, that is to implement them immovable property acquired final buyer, who, of course, would like to purchase it at a substantial discount. Do not forget about the commission broker on the transaction which amounted to 40% depending on the amount withdrawn in this way means.

Another option "O" of money from the account in this scenario is when the moment for performance of the obligation to pay for goods, services rendered or actual securities. This is the most expensive option, as it is tied to the legal support large Cypriot lawyers with serious administrative capacity.

And in the case of Cyprus Real Estate, in the case of withdrawal of money in transactions with non-cash transactions in Cyprus the main risk to the holder cash in troubled banks is the inability to reach the cache, when he, for example, refuse to buy real estate (if it market value plummet) or refuse to buy goods or securities or to refuse to return the money derived by services.

Therefore all such schemes require significant legal study all documentation. The biggest advantage is that English law applicable in Cyprus, permits a number of such operations. What you need, so just support at the bank administration.


Protected foreigner

Unfortunately , Terms between Russia and Cyprus on the promotion and reciprocal protection of investments, although it was signed April 11, 1997, but never ratified due to arise in this case, Russia risks, such as on the "Yukos case».

According to the International Centre for Settlement of Investment Disputes (ICSID), in Cyprus only 16 existing agreements on mutual encouragement and protection of investments.


enterprising residents of these countries, as well as some of our compatriots are currently looking for an opportunity to combine their claims to the Cypriot problem banks. In this case, the amount of loss by means of holders CY accounts may be from 50% to 90%. Clearly, the initiation of arbitration proceedings with Cyprus - a very expensive game, including time and cost, and the results are unknown.

If you go to court

Litigation in Cyprus now booming. There are two kinds of proceedings.

first involves challenging in Supreme Court of the Republic of Cyprus the constitutionality of provisions of the Law "On the recovery of credit institutions and other institutions." A second appeal to the actions of banks, the Central Bank, Ministry of Finance for the purpose of going through all the courts for further appeal to the European Court of Human Rights.

Passage of these judicial

"circles of hell" Cypriot advocates disadvantaged estimated at a modest € 30 000-100 000. Without any guarantees.

At least

already know of one case adopting interim injunction at the request of a citizen of China, in which its funds can not be made any "manipulation" to the Supreme Court's decision on the merits.

From Russia with Love

in Russian courts as the first attempts to force the Cypriot banks to unlock cash. Yet known about the two calls to the Bank of Cyprus in the Russian arbitration courts (LLC" Algeba » and LSP International Limited), as well as the handling of Mr. Borisov Yu D. the bank Laiki in Presnensky District Court of Moscow (case number 2 - 3872/2013 ~ M-2624/2013), which had already taken interim measures against the Russian subsidiary structure Rosprombank . Consideration of the first applications scheduled for the end of April. Probably the cheapest way to protect their rights in this situation. However, the prospects are dim.

Currently, all measures to improve sanitation and credit institutions suspended, said that while until the autumn. But who knows when to end such "restrictions" and Cyprus "burn" finally depositors' money. In May, expected to arrive in Cyprus from the European Central Bank's € 10 billion of liquidity. Can Cyprus cheat after this and the EU, he cheated customers Laiki Bank and Bank of Cyprus? Answer is no.

All international agreements with the Republic of Cyprus on the official website of the Russian Foreign Ministry

23.04.2013 Forbes