FRIDAY, 18 JAN 2019

 

CONNECT

Facebook Linked In Twitter
PwC_TFF
Invest Cyprus 30/04-30/03/2019
IMH LTD

Syllouris Travels to Dublin for Event on Dail's 100th Year Celebration

Christodoulides: Interim Solution for British Bases in Cyprus in Case of Hard Brexit

IMH LTD
PwC_TFF_09/01-20/01_scroll

ECONOMY

Cyprus’ Comeback

Cyprus’ Comeback

After weeks of speculation that a return to international markets was imminent, Cyprus formally issued a €750 million 5-year bond on Wednesday, three years after its exclusion from the international markets in May 2011.

 

The issue was oversubscribed by four times, garnering offers of up to €2 billion, thus enabling Cyprus to issue a €750 million bond, instead of the intended €500 million.

 

The coupon rate has been set at 4.75% with a 4.85% yield.

 

Commenting on the occasion, Finance Minister Harris Georgiades said: “Cyprus, as of today, is in the markets. The months-long effort was an absolute success.”

 

Clarifying how the capital will be allocated, Georgiades assured that it will not be utilised to exit the island’s adjustment programme early, but rather allocated to domestic debt that matures shortly, thus helping to restore liquidity and the capital adequacy of the economy and the banking sector.

 

The Finance Minister made clear: “This issue in no way means that the difficult consolidation and reform programme has been terminated or completed.

 

“On the contrary, due to this effort we regained the investor confidence one and a half year earlier that the initial target,” he stressed.

 

Georgiades also noted that yesterday’s issue was not a one-off action.

 

“It was another step towards the consistent presence of Cyprus in the capital markets and its consistent capability to finance its needs. Therefore, our aim is, when the conditions allow it, to have even better terms,” he explained.

 

Having been excluded from the international capital markets since May 2011, Cyprus received a €10 billion bailout from its Troika of international lenders to help restore its troubled banks and to cover its financing needs. 

 

On March 2013, the Cypriot authorities agreed with the Troika of the European Commission, the European Central Bank and the International Monetary Fund on a financial adjustment programme, which featured a haircut on banking deposits, to recapitalise its largest lender, the Bank of Cyprus, which absorbed part of the Laiki Bank, which in turn has been wound down. The programme will cover financing needs up to the first quarter of 2016. 

 

The Finance Ministry’s initial target was to tap the internatioanl markets on the last quarter of 2015 or early 2016.

MORE ON ECONOMY

Card Payments in Cyprus Increase Significantly in 2018

The use of cards in Cyprus, both local and foreign, recorded a significant increase in ...

Production in Construction increases in 2018

Production in Construction for the third quarter of 2018 increased significantly, over ...

NPLs Drop By €5.6 Billion Due to Sale of Cyprus Cooperative Bank

Non-performing exposures (NPEs) in the Cyprus banking system dropped to €11.02 ...

FROM AROUND GOLDNEWS

   

Third Place for Cyprus in Europe's Most Family Friendly Beach Destinations

According to a new Family Beach Index conducted by the company, On the Beach, Cyprus has ranked third out of a total of 50 family beach destinations. The index ...
   

Regus Ordered by the High Court to Pay €74,000 in Costs over EASY Branding Dispute

Sir Stelios Haji-Ioannou’s easyGroup, owner of the easy family of brands (www.easy.com), has today claimed a second important victory in its long running ...
   

PwC: Global Economic Growth Expected to Slow in 2019

The global economy as a whole is expected to slow in 2019 as G7 countries return to long-run average growth rates, according to new projections from PwC in its ...
   

Mann Vergan Appointed Director of Legal and Corporate Services at Woodbrook

Woodbrook Group, a Cyrpus-based independent financial advisory and corporate services company with offices across Europe, Asia and the Middle-East, has ...
   

Cypriots Travelling Abroad Increase in December 2018

On the basis of the results of the Passengers Survey, 122,149 residents of Cyprus returned from a trip abroad in December 2018 compared to 110,849 in the ...
   

Christodoulides: Interim Solution for British Bases in Cyprus in Case of Hard Brexit

Cyprus Foreign Minister Nikos Christodoulides has said that in case the UK leaves the EU without an agreement, an interim solution will be applied for the ...
   

Inflation Increases by 0.8% in 2018

In December 2018 the Harmonized Index of Consumer Prices increased by 1.0% compared to December 2017, while compared to November 2018 the HICP decreased by 0. ...
   

GOLD Magazine - The Human Component of Foreign Investment

Cyprus prides itself – rightly so – on its hospitality and positive attitudes towards all foreigners but what it the island like for those ...
 

YOUR COMMENTS

HEADLINES

MOST POPULAR

Deloitte_2016_300x250px
Martin_Lindstrom_01/11-30/01_300x250px

IMH LTD