Bank of Cyprus shares to remain suspended until January

Bank of Cyprus shares will remain suspended until January 31, according to the island’s stock exchange, after its shareholder structure was revamped by imposing losses on depositors.

The shares have been suspended since March, after which the bank converted large deposits into stock to recapitalise as well as taking on some assets from defunct Laiki Bank. Both banks were heavily exposed to Greece and ballooning bad loans, and the restructuring was a condition for Cyprus receiving cash from international lenders six months ago.

The suspension would give Bank of Cyprus time to fully comply with financial reporting regulations and possibly submit a prospectus for listing new shares, the exchange said. In a separate announcement, the bourse said it suspended trade in Hellenic Bank shares for a day to clarify the bank’s attempts to raise capital for regulatory purposes.

Source: Cyrpus Mail

Cyprus Profile

articles | 31 October 2013