The Court of Arbitration of the International Chamber of Commerce in Paris ordered the Central Bank of Cyprus (CBC) to enable shareholders and directors of FBME Bank to access the bank, according to an FBME press release.
Access to the bank for the shareholders and directors had been banned since March 31, 2016, when the CBC had fired 140 FBME employees.
The ban of access to the owners of the bank, and the mass firing of FBME staff were conducted under Chris Iacovides, who was hired by the CBC to manage operations at FBME.
“In reality, Mr. Iacovides has no experience in the banking sector, and is rarely found within the store of FBME, in spite of the fact that he is paid by FBME funds and the depositors’ money,” said the press release.
In addition, while knowing of Iacovides’ lack of experience in the banking sector, the CBC hired Marios Christodoulides as his deputy.
This move did not improve the situation at FBME, as Christodoulides has no experience in the international banking sector, having been regional manager of a Hellenic Bank branch in Limassol.
Arbitration has been under way in the Court since the second half of 2014, examining claims of FBME owners for damages against the Republic of Cyprus, under the terms of the 2003 International Agreement between Cyprus and Lebanon, which protects the rights of investors in each country. FBME argues that the treaty was ignored by the CBC, with the claims for compensation reaching hundreds of millions of euros.