ECONOMY

Cyprus bourse scraps banking index after bailout

Cyprus’s bourse will stop compiling a separate index for banking shares from October 31 after the number of listings in the sector was impacted by Cyprus’s recent bailout, it said on Tuesday.

Two of the largest listings in the index, Cyprus Popular (Laiki) Bank and Bank of Cyprus, stopped being traded on the island’s stock exchange in March.

It left only one bank, Hellenic.

Under terms of Cyprus’s 10-billion-euro bailout from international lenders, Laiki was wound down and Bank of Cyprus recapitalized with deposits from its larger clients, overhauling its ownership structure.

It is unclear when trading in Bank of Cyprus will resume.

Trading in Hellenic Bank shares would continue to be reflected in the general index, a stock exchange official said.

[Reuters]