Government will appeal court decision awarding €111 million compensation to NBM shareholders

The government will appeal the court decision to award €111 million compensation to the shareholders of the National Bank of Malta, nationalised in 1973.

A spokesperson for the Office of the Prime Minister told MaltaToday the government will appeal the ruling over the coming days.

Compensation was awarded last week in two separate cases filed by several shareholders, most of whom have passed away and were represented by their heirs.

Shareholders of the National Bank were not compensated when government took over their shares in 1973 in the wake of a run on the bank’s deposits.

In its ruling, the court did say the government’s takeover of the NBM was “necessary in the circumstances and served to relieve the bank of the repercussions the run would have had on Maltese banking and the economy, not least in the interest of depositors and employees.”

However, it still found that the shareholders’ human rights were breached when the shares were taken over without any compensation. Judge Joseph R. Micallef then proceeded to award compensation to the tune of €111 million for the breach of human rights.