The inquiry into the activities of the Bank of Cyprus and Cyprus Popular Bank (Laiki) has revealed that the information about the actions of the top officials, which might provoke the banking crisis or somehow pertained to it, was destroyed.
The documents were found to be obliterated by Alvarez & Marsa, a leading independent global professional services firm. The company prepared a 4-part report describing the purchase of Greek obligations and Russia's Uniastrum Bank by the Bank of Cyprus. It also tells about the Bank of Cyprus Romanian subsidiary and a merger of Banking Groups Marfin, Egnatia and Laiki.
As Alvarez & Marsal puts it, the data was derezzed by those concerned to avoid prosecution over careless risk assessment at buying Greek bonds. Devaluation of the bonds with subsequent recapitalization could have become one of the reasons for the Cyprus banking crisis.
The authorities of Cyprus are set to verify the facts reported by Alvarez & Marsal.
