By Elias Hazou
THE government will initiate a savings bond programme for retail investors every month starting in June, the finance ministry said on Thursday.
The six-year bonds will bear a 5.75 per cent coupon until maturity but can be redeemable with a lower interest rate starting at 2.75 per cent two years after acquisition. The minimum subscription for the issue is €1,000, the finance ministry said.
The bonds will be available only to natural persons (not legal entities), both Cypriots and foreign nationals.
The instruments will not be listed on the stock exchange; their transfer is permitted, but subject to certain conditions. The first issue will take place on June 2, and subsequently on July 1.
The bonds will be issued by the finance ministry’s Public Debt Management Office and made available to the public through the Cyprus Stock Exchange.
For further information, visit the Public Debt Management Office website (http://www.mof.gov.cy) and the stock exchange website (http://www.cse.com.cy). You may also send an email to: [email protected].
Cyprus has been shut out of international financial markets since May 2011, necessitating a bailout from the EU and the IMF in early 2013.