FRIDAY, 20 APR 2018

 

CONNECT

Facebook Linked In Twitter
PwC_12/04-25/04_728x90px
GloriaJeans_266x90px
IMH LTD

Prodromou: CHOGM Communiqué to Include Reference to Cyprus Issue

ImpacTech Appoints Anthony Papaevagorou as Sales Director

IMH LTD
PwC_12/04-25/04_468x60px

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

Industrial Turnover Index Increases by 10.8%

The Industrial Turnover Index for January 2018 reached 82.8 units (base 2010=100), ...

CFA: Top Names to Give Their Views and Projections on the Economy and Markets

Leading figures from the financial sector of Cyprus and from abroad will participate in ...

IMF: Cyprus to Generate Fiscal Surpluses Until 2023

Cyprus will generate fiscal surpluses until 2023 according to the IMF’s fiscal ...

FROM AROUND GOLDNEWS

   

Industrial Turnover Index Increases by 10.8%

The Industrial Turnover Index for January 2018 reached 82.8 units (base 2010=100), recording an increase of 10.8% compared to January 2017.  For ...
   

Barclays Boss Faces Penalty for 'Conduct Breach'

Barclays boss Jes Staley is facing a fine by UK regulators for breaching rules when he tried to identify a whistleblower at the bank. The Financial Conduct ...
   

Celebrating International Dance Day with The Mall of Cyprus and G3 Great Games

On the occasion of International Dance Day, The Mall of Cyprus and G3 Great Games, official representatives of the video game Just Dance in Cyprus, are ...
   

Limassol Cruise Terminal Inauguration Ceremony by DP World Limassol

DP World, a leading enabler of global trade and an integral part of the supply chain, has been awarded a 25-year concession to exclusively operate the ...
   

PwC: Need for More Human Contact in Customer Service

Two thirds of consumers surveyed in a new international survey by PwC feel companies have lost touch with the human element of the customer experience. Three ...
   

Lakkotrypis: EU Energy Efficiency Targets Should Be Feasible and Financially Viable

Cyprus Energy Minister Yiorgos Lakkotrypis called for balance EU targets concerning the share of renewables and energy efficiency.   “These ...
   

Cyprus and Italy Forwarders in the Creation of the Group of Friends for the Protection of Cultural Heritage

The Permanent Representation of Cyprus to the United Nations, in cooperation with the Permanent Representation of Italy to the United Nations, created the ...
   

CFA: Top Names to Give Their Views and Projections on the Economy and Markets

Leading figures from the financial sector of Cyprus and from abroad will participate in the 14th annual CFA Forecasting Event organised by CFA Society Cyprus ...
 

YOUR COMMENTS

HEADLINES

MOST POPULAR

Invest Career 19/04-26/08
Gold_Issue_300x250px

IMH LTD