Aspis demands EUR 65 mln compensation from Cyprus government

Aspis Holdings Public Company Ltd (ASP) announced that the five-member Court of Appeal ratified on November 24, 2008 the decision of the Supreme Court in favour of the Company against the Insurance Superintendent’s denial to provide a permit for a special participation in the share capital of Universal Life Insurance Public Company Ltd. As a result, the Company will demand from the Republic of Cyprus compensations of more than EUR65 mln.
In February 2007, Aspis had requested a permit for a special participation from 33% to 50% in the share capital of Universal Life Insurance Public Company Ltd, which was rejected by the Insurance Superintendent, Victoria Natar.
The Company believed that the Insurance Superintendent’s decision was unfair and prejudiced against the Company and its members. As a result, the Company appealed to the Minister of Finance, Michalis Sarris, who had to examine the request with impartiality. The Minister agreed with the Insurance Superintend and rejected the appeal.
As a result, the Company filed an appeal to the Supreme Court against the Finance Minister’s decision.
On January 11, 2008, the Supreme Court vindicated Aspis Holdings since it emerged that the Insurance Superintendent affected the Finance Minister’s decision illegally, submitting information against the Company. The Supreme Court concluded that the communication between the Finance Minister and the Insurance Superintendent “was illegal and inadmissible since there was a communication with the organ whose decision was questioned by the applicant with its appeal”.
The Supreme Court’s decision was appealed and the Court of Appeal rejected the Republic’s appeal and decided that there was information that led to the conclusion that there was indeed a communication between the Minister and the Insurance Superintendent and concluded that the conclusion of the Court of First Instance, that is, the illegal and inadmissible communication between the two parties “was correct under the circumstances so that there is no room for an intervention by the Court of Appeal”.
In view of the Company’s vindication by the Court of Appeal and the loss that it suffered from the coercion to sell its investment, since it was not allowed to register the shares of Universal Life in its name for more than 18 months, and the libel to the Greek, Cypriot and Swedish authorities, the Company decided to ask the Republic of Cyprus compensations of more than EUR65 mln for violations and illegal actions on behalf of the Insurance Superintendent and the Finance Minister.