The Polish-Cyprus case | FT Alphaville

The Polish-Cyprus case

Some might remember this banner from last year’s Russia vs Poland Group A match at the Euro 2012 tournament:

It was, to say the least, a little bit antagonistic.

One year on, however, it may be the Poles who end up having the last laugh — at least when it comes to their Cyprus-based deposits.

As Poland’s Puls Biznesu reported on April 17:

Thanks to the foresight of the Polish government Poles, as well as Polish companies who have invested money in Cyprus or hold shares in Cypriot companies, can rest easy. Investors have a strong weapon against the threat of deposits being confiscated. It’s the Polish-Cypriot agreement on mutual protection of investments, which was signed in Warsaw on June 4, 1992.

Through this agreement Polish those holding deposits in Cypriot banks will be able to obtain full compensation for any amounts, if any, taken from them. The benefits of Polish-Cypriot agreement would also benefit those Polish investors who purchased these investments from entrepreneurs from countries that have not signed such agreements with Cyprus, e.g. from the Russians, Germans, British, Americans, French and Italians – says Wojciech Kozlowski, head of litigation at a law firm Dentons (formerly Salans).

(H/T Mr Kaminski.)