06/06/2014 11:55
Cyprus Securities and Exchange Commission (CySec) imposed huge administrative fines on two Cypriot banks, Bank of Cyprus and defunct Cyprus Popular Bank, members of their Boards and executive officials for providing misleading information and manipulation through misleading fainancial figures over their investment in Greek bonds.
Administrative fines to Bank of Cyprus, members of its Board and senior executive officials, which resigned following the request for state support, amount to €3.52 million. Fines to defunct Cyprus Popular Bank, key member of its Board and senior executives reach €4,06 million.
The bonds were impaired in 2012 as part of a EU/IMF package to rescue the Greek economy resulting to a loss of €4.5 billion for the Cypriot banks which corresponded to 25% of the island`s GDP. These losses and the bank`s failure to raise capital from private sources ultimately prompted Cyprus itself to request financial assistance.
On March 2013, Cyprus and the Troika of the EC, the ECB and the IMF agreed on a €10 billion package which included an unprecedented haircut of deposits over €100,000 to recapitalise Bank of Cyprus, while Cyprus Popular Bank was wound down with a part of its operations (deposits below €100,000 and loans) absorbed by Bank of Cyprus.
Administrative fines to Bank of Cyprus, members of its Board and senior executive officials, which resigned following the request for state support, amount to €3.52 million. Fines to defunct Cyprus Popular Bank, key member of its Board and senior executives reach €4,06 million.
The bonds were impaired in 2012 as part of a EU/IMF package to rescue the Greek economy resulting to a loss of €4.5 billion for the Cypriot banks which corresponded to 25% of the island`s GDP. These losses and the bank`s failure to raise capital from private sources ultimately prompted Cyprus itself to request financial assistance.
On March 2013, Cyprus and the Troika of the EC, the ECB and the IMF agreed on a €10 billion package which included an unprecedented haircut of deposits over €100,000 to recapitalise Bank of Cyprus, while Cyprus Popular Bank was wound down with a part of its operations (deposits below €100,000 and loans) absorbed by Bank of Cyprus.
Related Articles
