Finance Minister Eugene Cox is overdue to announce his decision on possible relaxation of the 60/40 ownership rule, restricting Bermuda's banks to no more than 40 percent foreign ownership.

And the Minsiter has failed to respond to repeated calls over the past two days to clear up the issue.

The Bank of Bermuda said the delay has put it "in a difficult position'' in trying to respond to queries from its shareholders, staff and other interested parties.

Andrew Brimmer, Government's economic policy advisor said earlier this summer that Mr. Cox was "hoping to make a final decision by the end of October'' or sooner.

"We still await a response from the Ministry of Finance on our application for an exemption from the 60/40 Bermuda ownership laws,'' a Bank of Bermuda spokesperson said yesterday.

"It was our understanding that a final decision would be made by the end of October and, quite understandably, we are disappointed that this date has passed without comment.'' Both the Bank of Bermuda and the Bank of Butterfield have applied for exemption in bid to attract new financing. In fact, a legal filing by the Bank of Butterfield to further their application appeared in legal notices published yesterday.

Mr. Cox's silence further delays the Bank of Bermuda's efforts to gain a secondary listing on the US NASDAQ stock exchange.

The Bank of Bermuda has been campaigning for exemption for over two years. An initial effort failed in July, 1998 when the Progressive Labour Party, then in Opposition, blocked a private member's bill tabled in the House of Assembly for the exemption, because it dealt with only one bank and not all three.

Banks await word on 60/40 rule Last September, the Bank of Bermuda applied to the Ministry of Finance for the exemption and the Bank of Butterfield followed suit this summer.

Shares of both Banks hit record highs after speculation arose in July that Mr.

Cox would be relaxing the rule.

Bank of Bermuda shares have risen from around $28 to $40.50 while Bank of Butterfield shares have moved from $15 to $20.50. But even at the new highs both banks feel their shares are undervalued.

The Bank of Bermuda said: "We continue to have every confidence that the Ministry (of Finance) understands the critical importance of an overseas listing to the Bank's future and is aware that a considerable amount of time has passed since we submitted our application.

"In the meantime, we hope to work with the Ministry in order to move this forward on a prompt basis.'' GOVERNMENT GVT