The Malta Independent 20 July 2019, Saturday

Updated: €363m of BOV’s assets to be frozen after bank loses appeal; ruling 'expected' - MFSA

Friday, 20 July 2018, 13:27 Last update: about 13 months ago

A precautionary warrant of €363 million issued against the Bank of Valletta after the bank lost its appeal in an Italian court.

The case began after liquidators of the Deiulemar shipping company, together with representatives of 13,000 Italian bondholders from Torre del Greco filed the court application against BOV after they lost their life-savings over the scheme dating back to 2014.


The €363 million was held in trusts at BOV by owners of the now defunct shipping giant, Deiulemar, registering losses of more than €800 million. The company went bankrupt in 2012.

In the wake of the collapse, seven people were imprisoned with the highest prison sentence reaching 17 years.

Liquidators alleged that BOV allowed Deiulemar owners to set up three trusts, a vehicle for them to illicitly funnel money into. BOV became a trustee for all three: Capital Trust, Trust Gaino and Trust Gilda.

In a statement the bank said:

“The Board of Directors, while remaining convinced of the strength of its defences on the merits, will keep the litigation in question under constant review and will be keeping the supervisory authorities and the market updated with any material developments. “

In reply to questions sent by The Malta Independent, the Malta Financial Services Authority said that, in consultation with the ECB and the Central Bank of Malta, will continue to follow the BOV case, after a precautionary warrant of €363 million issued against the bank was upheld by an Italian Court of Appeal.


“The court ruling was expected even though the final outcome of the case on its merit is yet to be seen. This ruling doesn’t change anything from what has already been disclosed and reported by BOV earlier this year.,” the MFSA said.

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