Cyprus Mail

Cyprus raises €1.75bn though issuing bonds

Cyprus raised €1.75bn through a seven-year and 30-year bond issuance on Tuesday, boosting liquidity as it seeks to buffer the fallout out of the coronavirus crisis.

Finance Minister Constantinos Petrides said €1.25bn was raised through the seven-year bond at a yield of 1.55 per cent and €0.5bn through the 30-year issue at 2.33 per cent.

Total bids reached €2.6bn — €1.8bn και € respectively — proving that amid the uncertainty international markets continued to place confidence on the Cypriot economy, the minister said.

“The issuance of the two bonds boosts liquidity to tackle the economic effects of the pandemic at a time when the crisis has paralysed a large section of economic activity with subsequent effects on public financesm,” the minister said.

He said the government’s main concern was to secure the necessary resources and follow prudent policies to be able to support people’s welfare, the health system, workers, and vulnerable groups until recovery.

The ministry said Monday it expected a GDP to decline by between 5 to 9.7 per cent and a rise in unemployment of 9 per cent compared with 7.1 per cent in 2019.

The ministry did not rule out the situation turning out to be worse citing the significant uncertainty.


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