Court verdict sends shockwaves to Nicosia

In a potentially precedent-setting decision in Cyprus, the Limassol District Court has upheld its initial ruling in favor of a Russian depositor at now-defunct Laiki Bank, potentially exposing the state to financial implications of up to 2-3 billion euros. The court's decision, which awarded €780,000 in compensation to the depositor, could have far-reaching consequences for Cyprus.

The verdict has sparked concerns about the state's financial burden if the Court of Appeal upholds the District Court's decision. The fear is that this move could open the floodgates to billions in lawsuits from other depositors affected by the 2013 haircut, not only from Laiki Bank but potentially extending to Bank of Cyprus, the island's largest as well.

The attorney general of the Republic of Cyprus is set to appeal the Limassol District Court's decision, emphasizing the significant...