THE Cyprus Securities and Exchange Commission (CYSEC) has started an investigation to determine why the Bank of Cyprus asked the state for €500 million in temporary state support instead of €200 million as it had initially announced, according to state broadcaster CyBC.
The Commission received a number of complaints from Bank of Cyprus investors and shareholders following this announcement.
The aim of CYSEC’s probe is to confirm whether and to what extent the Bank of Cyprus management withheld confidential information from the start, with the aim of misleading its shareholders.
The reasoning behind this is because there was no specific mention of the €500 million by the management during the general meeting of shareholders that was held on 19th June.
The state broadcaster also reported that CYSEC is conducting a probe into bank prices on the stock market and issues of possible price manipulation.
They should investigate all of the banks in Cyprus! imo
If BoC is now admitting to a €500m hole, it is likely to be a tad bigger than that in reality. What about all those NPLs on developer loans and mortgages, which keep avoiding NPL status as a result of ‘administrative engagement’ within the bank? Has BoC included this within the ‘new’ €300m? And, does it sound anywhere near enough e.g. what is BoC’s share of the €6bn-€12bn estimated developer debt bubble?
Doubtful whether the CYSEC will uncover the ‘further extras’ as it is only looking at the €300m. Perhaps the EU/Troika’s forensic accountants will ferret it out.