FBME Bank Ltd v Central Bank of Cyprus, Administrative Court of Cyprus, Case No. 580/2015
It was filed on May 5, 2015 by FBME Bank Ltd ('FBME') against the Central Bank of Cyprus ('CBC'), requesting the annulment of CBC's decision to appoint an additional Special Administrator at FBME's branch in Cyprus ('the Branch') on the ground that the decision was taken by an organ that had not been lawfully constituted. One decision that was issued, is publicly available: the interim order on security for costs of June 9, 2015. It is unclear, whether these proceedings are still pending or a final judgment has been issued.
(June 9, 2015) CBC requested security for costs for the present proceedings. The Court took into consideration the applicable law, which sets out that a plaintiff ordinarily resident out of Cyprus may be ordered to give security for costs, while noting that it had to consider two further factors: (i) whether property, especially immovable property, was held in Cyprus, and (ii) the chances of success. It then stated that FBME has its seat in Tanzania and its financial situation was unknown. The Branch's net assets amounted to almost EUR 1.4 mln, as per the estimation of the Reorganization Committee made a year ago, and were under the control of the Special Administrator. Thereafter, the Court stated that FBME and its shareholders failed to pay costs awarded by the Court in two previous occations. In considering the chances of success, the Court cited the applicable law, as well as the fact that the challenged CBC's decision was still in force. With reference to the letter of Cyprus' lawyers addressed to the ICC tribunal in the Saab v. Cyprus case, allegedly admitting to CBC's failure to implement the reorganization measures, the Court noted that its contents and significance were disputed by CBC. It was therefore an issue of interpretation and appraisal by the Court. For these seasons, the Court ordered FBME to pay security for costs of EUR 2,500. [document]
Note: Document(s) and English introduction(s) kindly provided by Natalia Charalampidou.