Cyprus Investigation Committee on the economy to probe banking sector

The Committee came under heavy criticism after announcing it cannot probe issues that will be subject to court procedures, such as the Cyprus Popular Bank, whose administrator has already filed law suits against the bank`s former senior management.

However in a press release, the Committee clarified that the investigation in the banking sector will be in the context defined by its interim decision.

The Committee said that it sent a letter to the Council of Ministers on June 26 notifying it of its interim decision and requested the Council`s view on whether the Committee should continue its work in the context of its decision, or whether the Council would amend its mandate in the light of its interim decision, adding however that no reply has been received yet.

"The time left for the Committee to conclude its work is limited. Under the circumstances the Committee has no other choice but to continue its work investigating – having examined the public finances – the banking sector always in the framework defined by the Committee`s decision," the Committee said, clarifying that this will not be an obstacle to the Government should it see fit to terminate the operation of the Committee prior to the issuing of its findings.