13 March 2015

Despite facing a sea of troubles of its own making, the Central Bank of Cyprus (CBC) is flailing around with more desperate measures to prove it remains a dangerous entity. As the Governor and the CBC’s Executive Directors, one of whom resigned yesterday, face questions in Parliament and the risk of compensatory payouts grows stronger by the day, the CBC is focused only on furthering its own dubious ends.

Now, after nearly eight months of having all its actions regarding FBME Bank sale come to nothing, there are suggestions being made that CBC could resort to a withdrawal of the branch’s licence, the result of which will have the effect of returning control of the Bank to its Head Office in Tanzania.

As we have shown repeatedly on this website, FBME Bank remains in a healthy and solid position regarding its ability to meet depositors’ requirements once the resolution measures relating to its Cyprus branch are decided upon by the Arbitral Tribunal at the International Chamber of Commerce in Paris.