The Deposit Guarantee Scheme (DGS) in Cyprus protects qualified bank account holders up to a maximum limit of 100.000 Euro. The Cyprus bail-in in 2013 of Laiki Bank and Bank of Cyprus revealed one of the weaknesses of the financial system; exposure to extensive debt and limited business models triggered the collapse of the financial system with severe consequences for depositors. The DGS had in 2013 far from sufficient assets to cover the insured deposits at the two troubled banks. The government applied for European Emergency Liquidity Assistance (ELA) and the country was saved from bankruptcy. In 2014 a new tragedy commenced; FBME Bank was placed under resolution by the authorities in Cyprus and Tanzania.
The DGS for FBME Bank Cyprus was activated in April 2016, two and a half years after the initial resolution decree was issued. Under the DGS, businesses and individuals with a bank account at FBME Bank in Cyprus can file a claim with the Central Bank, handling all the applications and pays out to qualified depositors. More information about the claim filing process can be found here: FBME Bank Cyprus.
Between April 2016 and halfway June 2016, a little under 450 claims were submitted to the DGS. FBME Bank staff was on strike and claims could not be verified. An agreement between the new administrator, Chris Iacovides, and the lawyers of the staff of the bank changed the parameters under which a claim must be filed.
Still numerous of the bank’s customers wait in vain for a solution and payment of their insured balance. Is your claim handpicked and are you waiting for a response from the Committee, follow this link for further information to get your DGS claim reinspected.
In May 2017, over 1200 claims were submitted with the DGS in Cyprus. The Court in Cyprus rejected the request from the Central Bank of Cyprus (CBC) to liquidate the complete bank. The governor of the Central Bank, Chrystalla Georghadji, confirmed that an appeal was filed.
The 12th of June, FBME and the CBC meet each other again in the Supreme Court. This is the most probable reason that the Committee that supervises DGS payments has not approved any DGS claims for payment for several weeks. More on the future of the bank can be found here.
The Legal Floris Group currently offers fund recovery solutions and services for the following customer groups. Click on one of the links below for more detailed information:
CONTACT US NOW TO START THE RECOVERY PROCEEDINGS: You can call us at +357 25 030 666, send an e-mail at firstname.lastname@example.org or complete the contact form below. We will get back to you at the shortest notice.