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Cartel: ‘Mitigating factors’ for banks

18/06/2004 14:11
The legal advisors of the Cyprus’ three largest banks will plead to the Court on Tuesday to mitigate the penalty, while the Court will issue its decision”, Competition Protection Committee sources told StockWatch on Friday after the action filed to the Bank of Cyprus, the Popular Bank and the Hellenic Bank for a cartel. Same sources, however, denied confirming that the banks pleaded guilty. “The Committee did not say anything concerning today’s publications”, they said.

Other sources revealed that BOC, CPB and HB pleaded guilty at the hearing and their legal advisors will plead to Court on Tuesday for mitigation in their penalties.

The fine will be based on the share that each bank holds, while the Competition Protection Committee will take into account a) their tough economic condition and their efforts for recovery, b) the fine not to affect the shareholders’ interests, c) the factors that the EU adopts in similar cases.

Meanwhile, StockWatch sources confirm the latest publications that banks will seek for a mitigation of the penalty, supporting that the cartel did not aim at deceiving their customers, but it was a result of the transitional period towards the market liberalization. Besides, the size of the Cyprus economy does not allow huge differences.

The Banks will also support that the cartels in the “transitional period” did not rig competition.