The security is expected to cover up to two-thirds of the government’s financing needs next year, estimated to reach up to €1.5bn, the PDMO said in a statement on its website.

Treasury bills will cover up to one-quarter of the financing needs while retail bonds and bilateral loans will cover up to 8 per cent of the government’s financing each, the PDMO said.

According to the PDMO’s debt repayment timetable, published in September 2017, debt maturities next year will reach €903m. The amount includes two instalments of €312.5m each towards repayment of the €2.5bn loan negotiated with Russia six years ago.

The government is expected to generate a fiscal surplus of around 1% of economic output next year.

The last time the government issued an EMTN was in June, with a €850m 7-year bond at an average yield of 2.8%, now traded on the secondary market for 2.75%.

The total nominal value of outstanding Eurobonds at the end of September was €4.5bn, against a total government debt of €19.1bn. In November, the government paid back €614.9m to the Central Bank of Cyprus.

On Tuesday, the government said it had appointed Barclays Bank. Citi, Goldman Sachs International, HSBC, J. P. Morgan, Morgan Stanley and Société Générale Corporate & Investment Banking to help develop an “efficient” secondary market for Cypriot government securities.

Source: Cyprus Mail