ECONOMY

Greece’s MIG launches 824-mln-euro action over lost Laiki stake

Greek investment group Marfin (MIG) is to turn to international arbitrators in an attempt to recover 824 million euros ($1.09 billion) from Cyprus over the winding down of Laiki Bank.

MIG lost its stake in the Cypriot bank after it was shut down under the terms of a 10-billion-euro bailout deal for Cyprus, which was agreed with international lenders in March.

The Greek group’s investment in Laiki had already been diluted when the bank was nationalized in mid-2012 after its capital base was hit by a writedown in Greek government debt, to which it was heavily exposed.

Athens-based MIG said on Tuesday that it would submit a request for arbitration against the Republic of Cyprus at an international tribunal operating under the auspices of the World Bank.

MIG put the value of its investment in Laiki at 824 million euros and said that another 20 legal entities and individuals would join the action, seeking an additional 229 million euros.

The action is being launched after the lapsing of a six-month window to seek an amicable settlement with Cyprus, MIG said.

Laiki has ceased operations and some of its assets have been assumed by Bank of Cyprus. [Reuters]