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Nicos Pavlides

Abstract

For many an ancient Greek tragedy, a precondition for the arrival of the effect of catharsis (renewal and restoration), is the attribution of nemesis, the just punishment for wrongdoings, arrogance and hubris before the Gods. Wrongdoings, arrogance and hubris were palpably present in the Cypriot economic crisis, in the banking as well as the fiscal sectors of the economy, but catharsis has yet to arrive.


As the people and the society slowly come to grips with the effects and consequences of the catastrophe, a number of burning questions are on every sufferer’s mind which this article will discuss and strive to provide meaningful answers from a legal practitioner’s perspective: Why did the legal and regulatory system prove unable to prevent such a catastrophe by allowing the banks to fail in so many respects? Is the arsenal of the legal and regulatory system strong enough to enable it to rise to the challenge of doling out just punishment? Are people’s expectations for the punishment of those who are to blame, fanned by politicians’ rhetoric, too high? What changes and improvements to the legal and regulatory system are necessary so as to substantially reduce the likelihood that similar failings will occur in the future?

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Keywords

Cyprus economic crisis, corporate governance, legal system, punishment, personal responsibility, corruption

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