How Stressed Will North Cyprus Banks Be When K5 Wins Case?

How Stressed Will North Cyprus Banks Be When K5 Wins Case?WITHOUT PREJUDICE

How very interesting that the Finance Minister in the ROC has intimated that ‘stress tests’ should be carried out on the banks in north Cyprus.

Well with the Kulaksiz 5 v Akfinans Bank Limited possibly on the brink of creating a precedent in north Cyprus, many banks and their owners may well find themselves feeling very stressed.

Dominic’s recent blog on this very subject must add more stress to these bankers.

This further article in Cyprus Mail gives details of the Minister’s suggestion.

What I find interesting about this is how little they seem to know about how the banks in the north are run….I hope the comment put by one of the readers is read by someone in authority there. This was in response to another reader’s comment asking what sort of state the banks in the north were in.

“Out of control. So much corruption. Many waiting for the outcome of the Kulaksiz 5 v Akfinans Bank Limited case.

The District Court found the mortgages ergo the auction that followed were fraudulent in a decision in the Kyrenia courts on the 4th December 2014. The bank appealed this decision and the Appeal will be heard on the 13th June 2016 at the Lefkosia High Court.

Many banks, including the Government run bank are awaiting the outcome as they too have many such mortgages. In fact it is the identical situation that existed in the ROC until the new law was passed.

The Central Bank in the north must be pooping itself. Bank Law 39/2001 has been used to gag the press, which is why very little is known about this situation.

I do not believe any of the banks, many of which are privately owned, would fair well in ‘stress’ tests.”

It will be interesting to see what happens next. Of course first there needs to be a solution. So don’t hold your breath.

I heard a rumour that Nelson will get his eye back before anyone received JUSTICE in north Cyprus.

Pauline Read

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