22 August 2014

The continued barring of transactions at the Cyprus branch of FBME Bank has attracted over 1,000 written and verbal complaints to the Central Bank of Cyprus’ Special Administrator. What started as a trickle, turned into a flood and has now become a tsunami. Suggestions have been made that the Administrator may have exceeded his powers under the Special Resolution Decree since his appointment on 21 July. He is also said to have become the focus for proposed court action by complainants.

On appointment the Special Administrator said his aim was to protect depositors. One month on, it is difficult to see a single thing that has been done has achieved this aim!
The problem is not just action – or inaction in the case of granting approvals – but also the very damaging refusal to engage in any meaningful form of communication. This is helping no one – not the depositors, not customers, not correspondents, not FBME staff, and certainly not the image of the Republic of Cyprus. How long can the authorities allow this to continue? It is hard to see how this is helping the Central Bank of Cyprus either.
Surely the time has come when wiser heads prevail and those concerned work on a viable solution.