The Greatest Collapse in History?
April 3, 2013
he Cyprus Disaster Zone Reopens
After having been sent on an involuntary two week long ‘holiday’, the stock market in Cyprus reopened on Tuesday. We were surprised to read that it actually declined less than 3% on that occasion, although shares in Hellenic Bank apparently tanked by 20%. Shares of Popular Bank and Bank of Cyprus remained suspended, so traders didn’t have an opportunity to learn whether the strong technical support at zero would hold. Below is a rather terse statement on the market’s reopening which seems to indicate that nothing special has happened. In fact, there is apparently so little to talk about in connection with the stock market, that it repeats that Cyprus has now been ‘rescued’, whatever that is supposed to mean these days:
“Cyprus General Index traded 2.4% lower at 99.67 on Tuesday, on its first trading day after trading was suspended for two weeks, as lawmakers negotiated bailout terms for the country. Trading in shares of Cyprus Popular Bank PCL and Bank of Cyprus PCL remained suspended amid measures to consolidate the two banks. Cypriot lawmakers agreed last week on a 10 billion euro ($12.9 billion) rescue package with international creditors, including a haircut on large bank deposits. Officials from Cyprus are expected to finalize the bailout conditions this week, with government spokesman Christos Stylianides expressing that he wants to negotiate easier terms, according to The Wall Street Journal. The international lenders have already softened the terms by giving the nation an extra year to meet budget targets, the newspaper said, citing a draft copy of the loan agreement.”