MONDAY, 23 JUL 2018

 

CONNECT

Facebook Linked In Twitter
MTN_07/07-10/04_728x90px
Invest Cyprus 30/04-30/03/2019
IMH LTD

Eurofast Appoints New Director

Georgiades: Credit Rating Agencies Reports In Line With Government Estimates

IMH LTD
GAP_Group_2018_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

Cyprus Records Largest Annual Decrease in Public Debt

Public debt in Cyprus recorded the largest annual decrease in the EU, with -11.3 points, ...

Georgiades: Credit Rating Agencies Reports In Line With Government Estimates

Finance Minister Harris Georgiades said Thursday 19 July that the latest reports of ...

Moody's: Cyprus Broadens Capital-Gains Tax Waiver, a Credit Positive for Banks

Rating agency Moody’s says in its weekly “Credit Outlook” that ...

FROM AROUND GOLDNEWS

   

Syllouris – Varemenos Discuss the Cyprus Problem, the Economy and Current Affairs

Acting Cyprus President and House Speaker Demetris Syllouris and 2nd Deputy Speaker of the Hellenic Parliament Georgios Varemenos had a meeting in Nicosia ...
   

Cyprus Records Largest Annual Decrease in Public Debt

Public debt in Cyprus recorded the largest annual decrease in the EU, with -11.3 points, moving from 106% of GDP a year ago to 94.7% in Q1 2018, according to ...
   

Signing of Agreement for the Operation of a ‘Satellite Casino’ at Larnaka International Airport

Hermes Airports Ltd and Integrated Casino Resorts Cyprus Ltd (ICR Cyprus) announce the signing of a commercial agreement with which the airport operating ...
   

Pound Drops below $1.30 as June Retail Sales Fall

The pound has fallen under $1.30 after a surprise fall in retail sales in June, confounding expectations of an increase. The Office for National Statistics ...
   

Ryanair Flight Cancellations Affect 4,000 People

Ryanair pilots have gone on strike, resulting in 4,000 people having their flights between the Republic of Ireland and the UK cancelled. It is the second of ...
   

Burberry Burns Bags, Clothes and Perfume worth Millions

Burberry, the upmarket British fashion label, destroyed unsold clothes, accessories and perfume worth £28.6m last year to protect its brand. It takes ...
   

Trump Slams EU over $5 Billion Fine On Google

U.S. President Donald Trump on Thursday 19 July criticized the European Union over a record $5 billion fine EU antitrust regulators imposed on Google, saying ...
   

Georgiades: Credit Rating Agencies Reports In Line With Government Estimates

Finance Minister Harris Georgiades said Thursday 19 July that the latest reports of credit rating agencies about Cyprus were in line with the ...
 

YOUR COMMENTS

HEADLINES

MOST POPULAR

Invest Career 19/04-26/08
GloriaJeans_300x250px

IMH LTD