Trading on the Cyprus Stock Exchange (CSE) has been suspended to safeguard the interest of investors and until such time as banks remain closed due to negotiations of a 10 bln euro bail-out and 5.8 bln euro bail-in programme to be taxed from savings in order to rescue the Cyprus economy.
The CSE announced that the decision was taken because banks remain closed after it was decided that Tuesday and Wednesday were declared bank holidays and that “the clearing and settlement of stock exchange transactions which have been executed on the CSE cannot be effected.”
The CSE added in its announcement that a decising factor for the bourse to close was “the current very serious developments in the Cyprus economy due to recent decisions of the Eurogroup which affect the banking sector in Cyprus and the economy in general which affects banks whose securities are listed on the Stock Exchange.”
Bank of Cyprus and Popular Laiki Bank require bailout funds in order to recapitalise and remain liquid, while Hellenic Bank, unaffected by bailout needs, would be affected by a systemic failure of the island’s banking system.
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