articles | 08 April 2020

Cyprus raises €1.75bn though issuing bonds

Cyprus raised €1.75 billion 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 €1.25 billion was raised through the seven-year bond at a yield of 1.55% and €0.5 billion through the 30-year issue at 2.33%.

Total bids reached €2.6 billion — €1.8 billion and €0.8. billion 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% and a rise in unemployment of 9% compared with 7.1% in 2019.

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

Source: Cyprus Mail

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