The Court of Appeal of Cyprus has issued a significant correction to a first-instance judgment concerning old banking facilities, increasing by hundreds of thousands of euros the amounts owed to a loan management company.
In a decision dated 19 May 2026, the Court found that the original ruling had incorrectly calculated the debt in euros instead of Cyprus pounds, the currency in use at the time the agreements were terminated in 2005.
Case involves pre-euro banking facilities
The case concerns two banking facilities granted in 2000 and terminated in 2005.
The original court ruling had been issued in favour of the bank and against the borrowers, awarding two amounts in euros with interest at 8% from 2005 until repayment.
Following the ruling, the bank transferred its claims to a loan management company, which became the new rights holder and filed the appeal.
Currency error identified by court
The Court of Appeal noted that all underlying financial data referred to Cyprus pounds, as the euro had not yet been adopted in Cyprus at the time of the transactions.
It ruled that the first-instance court had made an “inadvertent” error by issuing the judgment in euros without proper conversion.
The court stated that the decision should have reflected equivalent euro amounts based on Cyprus pound values.
Revised debt amounts increased
As a result, the Court recalculated the amounts owed:
- €562,602.68 (previously €329,277) for the loan
- €63,710.27 (previously €37,288) for the current account
The increase reflects the correct conversion from Cyprus pounds to euros.
Interest arguments rejected
The Court also examined additional appeal grounds related to interest calculations.
The appellants argued that the lower court applied the wrong legislation regarding interest rates and misinterpreted contractual terms on rate adjustments.
However, the Court of Appeal found no error in the first-instance court’s reasoning on these issues.
Partial success of appeal
The appeal was therefore only partially successful, with the Court adjusting the monetary amounts but upholding the rest of the original judgment.
The ruling confirmed that the remaining aspects of the initial decision stand, while the corrected sums replace the original figures.
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