Speculation of an imminent transfer of voting rights of collapsed Laiki’s stake in the Bank of Cyprus to the European Bank of Reconstruction and Development yesterday angered the defunct lender’s depositors.
“We are the owners of that 18% stake and we are objecting to any action that we consider unwise and against our best interests,” Adonis Papaconstantinou of Laiki Bank Depositors Association (SYKALA) told The Cyprus Daily last night.
“The Resolution Authority may think that they can do whatever they want to with our money and our property, but they are wrong. We will take legal action against any decision we don’t approve ourselves.”
Finance Minister Haris Georgiades is in Warsaw for an EBRD meeting where funding to Cyprus is expected to be approved.
Cyprus will become the first of the eurozone bailout countries to get EBRD aid, with up to €700 million of funding over the next six years expected to be agreed.
There could also be another deal with EBRD taking management of Laiki’s 18% share in BoC.
An investment from EBRD would boost confidence in BoC and bring expertise to the troubled lender.