The bonds will carry an initial rate of 2.75% for the first two years and rising to 5.75% upon maturity, for an average 4.125% over six years. But they will also enjoy a low tax rate of only 3% a year, far from the 30% levy imposed on commercial interest rates at present, resulting in a final average rate of 4.00% over the six-year period.
The savings bonds will be listed on the Cyprus Stock Exchange http://www.cse.com.cy and first bids for the June bonds will be accepted for minimum investments of €1,000 from May 2 to 20.
The ministry did not disclose the ceiling on the bonds, but said these would be issued monthly and redeemable with 30 days notice.
It added that the bond issue is one of the steps towards a return to the markets before the end of the bailout programme with the Troika of international investors on March 31, 2016.
Source: Financial Mirror