Decision of the Arbitration Tribunal concerning access of FBME Bank Ltd’s shareholders to the premises of the branch in Cyprus

Friday, 5 August 2016

In relation to a recent announcement of FBME Ltd under the title "ICC’s Arbitral Tribunal orders the CBC to permit access to FBME’s Premises to the Bank’s Owners and Directors", the CBC wishes to clarify, for the purpose of correcting the record, the following:

  1. Messrs Farid and Fadi Saab applied to the Arbitration Tribunal of Paris on 25/4/2016 requesting the issuance of an interim order calling on the CBC to (a) stop all actions leading to the liquidation of the Branch until a final decision is issued by the Cypriot courts on the application filed for the issuance of a liquidation decree, and (b) permit full access of the shareholders to the premises, records and employees of the branch of FBME.
  2. By its decisions issued on 27 May 2016 and 26 July 2016, the Arbitral Tribunal dismissed the application for an order stopping actions of the CBC in relation to the liquidation of the Branch. With regard to the issue of the access to the premises, records and employees of the Βranch, the Arbitral Tribunal ordered only that Messrs Farid and Fadi Saab be permitted to access the Branch premises in the presence of their counsel and subject to practical arrangements to be agreed to by the lawyers for the parties in the ICC arbitration. As yet no agreement has been reached on those arrangements. It is noted that the Arbitral Tribunal reached the above decision after ascertaining that the presence of the above persons at the premises of FBME branch may influence the proper functioning of the Βranch, which is under the management of the Special Administrator appointed by the CBC.
  3. Consequently, the decision of the Arbitration Tribunal does not invalidate the decision of the Special Administrator to terminate, after the withdrawal of the banking license of FBME, the employment of Messrs Farid and Fadi Saab or give them any right to direct or intervene in the operations and management of the Βranch.