The liquidation process of Cyprus Laiki Bank was launched on 3 March after the country’s central bank sent a request to the Nicosia court on 8 January, Brief reported. The court is expected to appoint an official liquidator after reviewing the materials.

Background: The bank was founded in Cyprus in 1901 under the original name of Popular Savings Bank of Limassol. In March 2013, the Central Bank announced a “haircut” on deposits at Laiki Bank in excess of €100,000. The bank was then split into two parts, one merged with the Bank of Cyprus, with the fate of the second to be decided by a court.

In July 2019, Investment Bank of Greece, a subsidiary of Laiki Bank, was sold, after which the credit institution’s assets increased to 232 million euros. The total amount of claims and claims for compensation is about €5bn, of which €3.8bn are the “pruned” deposits.