Banking Litigation in CyprusUpdated on Tuesday 12th January 2016
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Litigation on financial matters in Cyprus
Cyprus has attracted a large number of foreign investors opening companies, as well as simple citizens relocating to the country during the last few years. This has led to certain difficulties when it came to understanding the financial legislation of the country. Certain times, companies and individuals find themselves in the position of dealing with unpleasant situations related to financial difficulties which often imply litigation. Among these, banking litigation are the most common. Banking litigation in Cyprus often has to do with:
- - insolvency in the case of companies;
- - unpaid debts in the case of natural persons.
Before starting a lawsuit, it is advisable to verify all the options available with a law firm in Cyprus.
Banking litigations handled by Cypriot courts
Cyprus has a very modern judicial system comprised of specialized courts. Litigations on banking matters are usually handled by the district courts unless one of the parties is unsatisfied with the outcome of the process. In this case, the Supreme Court will grant a definitive resolution. Banking litigation procedures are conducted like any other actions and imply several phases. These are:
- - the starting proceedings in which one of the parties submits a petition with the Cypriot court,
- - the notification of the defendant,
- - the defendant’s acceptance,
- - the presentation of the evidence by both parties,
- - the hearings.
Based on the hearings and the evidence submitted by both parties, the court will make a decision. It must also be noted that in case of banking disputes there are certain limitations of periods for filing lawsuits. Our Cypriot lawyers can guide you through litigation procedures with banks.
Other means of resolving banking litigation in Cyprus
As all other EU countries, Cyprus also offer alternative dispute resolution (ADR) solutions when it comes to litigation. ADR is also applicable in banking litigation cases in Cyprus under the form of arbitration and mediation. However, the most employed type of ADR is arbitration because is less expensive and usually provides a satisfactory solution for both parties.
If you need assistance in any type of litigation cases, do not hesitate to contact our attorneys in Cyprus.