28 November 2014
Arbitration papers in the case filed at the International Chamber of Commerce (ICC) by the owners of FBME Limited, the holding company of FBME Bank, reveal that the damages claim against the Republic of Cyprus is currently estimated at half a billion US dollars … “but well may exceed this sum by the time the arbitration is completed”. The ICC is empowered to decide on the final damages claim. A copy of the summary of the arbitration papers is available here.
21 November 2014
Four months of mismanagement have really shown up the incompetence of the Central Bank of Cyprus’s attempts at banking. Whatever is felt about its skill at operating as a banking supervisor, it is evident that it can’t successfully run a bank. What else can you expect when auditors, accountants, economists and entrepreneurs – not a professional banker among them – are in charge?
20 November 2014
Further to our story this morning, it is good to report that significant sums from FBME Bank accounts have arrived at the Central Bank of Cyprus. So, for now, there is no liquidity issue and transactions should be renewed. It is good to bring welcome news to our customers, staff, correspondents, associates and friends.
20 November 2014
Working in close cooperation with the Bank of Tanzania and FBME Bank’s Statutory Manager in Dar Es Salaam, FBME Limited is putting in place measures to create additional liquidity in the Cyprus branch of FBME Bank. This is being done to ensure depositors can escape the tyranny of the maximum daily transaction levels imposed by the Administrator appointed by the Central Bank of Cyprus.
14 November 2014
It is now nearly four months since FBME’s Cyprus branch was expropriated under Resolution by the Central Bank of Cyprus. It is worthwhile reminding ourselves of what we mean by the health of the Bank and its conservative financial management.
12 November 2014
The shareholders of FBME Limited have made it clear that they are holding the Central Bank of Cyprus and individuals within the Central Bank personally liable for damage and loss suffered by FBME Bank, its depositors and owners. The persons considered responsible include but are not limited to the Special Administrator appointed by the Central Bank of Cyprus to control the operations of the Cyprus branch of FBME Bank.
12 November 2014
Bad luck for Mr. Christofides to miss out on the exciting journey of launching a new bank in Cyprus now that his former employer, Ancoria Holdings, has been granted a banking license by the Central Bank. It will be recalled that he stepped down from Ancoria on the last day of July 2014 in a resignation letter backdated to 28 July. We presume this was because he recognised the potential for a conflict of interest between his role as Administrator of FBME’s Cyprus branch to which he was appointed on 22 July and his position as ‘project leader’ for Ancoria in its quest for a banking license.
7 November 2014
Credit where credit is due: the Central Bank of Cyprus has granted an extension to the license of FBME Card Services thereby increasing the chances of an eventual resumption of the Company’s business. So, our thanks go to the Central Bank, who responded to Card Services’ application for the extension. The Company remains suspended but while the licenses are still current, there is a chance that once the restrictions are lifted a resumption of business can be made.
It is important that this is done for the good of the market and for the reputation of the authorities.
7 November 2014
A glossary of terminology used on this website has been drafted to help readers follow developments in the FBME Bank case:
Resolution Decree: The Cyprus Resolution of Credit and Other Institutions Law of 2013. The purpose of this Decree is to restore the capital adequacy of insolvent banks.
Misuse of this Decree: When you invent a use for this Decree to commandeer some other bank’s branch and behave as if it now belongs to you.
6 November 2014
Today, 6 November 2014, all of the remaining accounts held frozen at the Cyprus branch of FBME Bank since the start of September have been unfrozen on the order of the Central Bank of Cyprus. On behalf of all associated with FBME Bank and FBME Limited – and no doubt the account holders too – we would like to express our thanks to the Central Bank and its Administrator for taking this decision.
