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FinancialNews


  • 01-11-20

    Lebanon: Lenders delist GDSs

    (MENAFN) Lenders in Lebanon have started delisting global depositary shares (GDS) from international stock exchanges because of the economic crisis the country is currently suffering through.

    The decision was made in an attempt to reduce uncalled-for expenses outside Lebanon that might enable the country to fulfill its goal of increasing capital by February 2021.

    Director of Lebanon's central bank, Riad Salameh, announced that if they can't increase capital by 20 percent they will be as risk of no longer being part of the global market.

    BLOM Bank has submitted an application, which is planned to be put into effect from the 24th of November, for the extraction of its GDSs from trading on the EUROMTF and the Official List of Luxembourg Stock Exchange, in addition to pulling out trading on the London Stock Exchange.

    Before reaching this conclusion, the traded GDSs saw low volumes and restricted liquidity this year, which made administrative expenses in comparison with the benefits, not worth the effort.

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