Cyprus Committee to Examine Responsibility for Economic Crisis

Cypriot President Nicos Anastasiades today officially established a commission to investigate the reasons that led to Cyprus’s economic crisis, especially in its banking industry, and identify those responsible.

“A series of acts or omissions by individuals authorized to manage the economy and its banking system led the country to the brink of bankruptcy and to the dissolution of one of its largest banks” and the loss of billions of euros from deposit losses at another, Anastasiades said today at a ceremony to swear in the commission’s members, according to a statement from the government’s press office.

Cyprus agreed last month to impose losses on uninsured depositors at the country’s two biggest banks, Bank of Cyprus Plc and Cyprus Popular Bank Pcl (BOCY), in return for 10 billion euros ($12.8 billion) in international aid from the International Monetary Fund, the European Central Bank and the European Union. Cyprus Popular was closed down as part of the deal.

The president and the government would be equally responsible if they didn’t respond to demands from ordinary citizens for justice and for those responsible to be punished, Anastasiades said, according to the statement.

The president called on commission members, comprised of three former supreme court judges, to prioritize investigation of any accusations relating to him, his family members as well as at the law office where he was previously a partner.

To contact the reporters on this story: Paul Tugwell in Athens at ptugwell1@bloomberg.net; Georgios Georgiou in Athens at ggeorgiou5@bloomberg.net

To contact the editors responsible for this story: Jerrold Colten at jcolten@bloomberg.net; Maria Petrakis at mpetrakis@bloomberg.net

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