At a request on behalf of the Cyprus’ three largest banks for reasons of “principles of the rule of law”, the Competition Protection Committee agreed on Wednesday to suspend temporarily the hearing process against BOC – CPB – HB, accused for a banking ‘cartel’.

According to StockWatch sources, on the first meeting between the Committee and the banks’ legal advisors, the latter requested the temporary suspension of the case in the light of two significant developments affecting the operation of CPC:

1. The fact that the Supreme Court reserved its judgment as to whether the participation of Mr. Costas Efstathiou, Mayor of Latsia, in the CPC board is legal, given his political profile.

2. The fact that the Supreme Court reserved its judgment as to whether regulatory authorities have the right to impose large fines, after CYTA’s appeal.

CPC in view of Supreme Court’s decision

According to StockWatch sources, if the Supreme Court accepts CYTA’s appeal and decides that the participation of Mr. Efstathiou in the CPC is illegal, then the CPC will request 1) either the appointment of a new member, or b) the amendment of the legislation.

As regards to the second possibility, this will affect Cyprus' accession in the EU, since it will raise concerns over the validity of the regulatory authorities, such as the CPC, the Securities and Exchange Commission, the TV regulatory authorities, and the Telecoms and Energy Regulators.