Written statement by the Minister of Finance, Mr. Constantinos Petrides
Subject: Issuance of European Government Bonds
I would like to welcome the completion of the issuance of the two bonds, the 10-year €1.0 bn and the 20-year €750 mn at low interest rates, with indicative yields so far at 0.73% for 10-year and 1.33% for the 20-year.
The total bid has exceeded 13 billion, the largest bid in the history of these issues, as over 7 times the amount requested by the Republic of Cyprus has been reached. This fact demonstrates the strong confidence in the Cyprus economy from the international markets.
With the issuance of the two bonds, most of the 2020 financing needs are secured at low interest rates.
At the same time, the IMF bailout loan will be repaid, proving that Cyprus can meet its financial needs from the markets.
It is also important to note that the repayment saves interest beyond 15 million while avoiding exchange rate risk.
In addition, the Republic of Cyprus's strategy for maintaining cash available to meet the financing needs of the next 12 months is achieved at any time during the year.
The repayment of the IMF loan is expected to have a positive impact on capital markets, enhancing investor credibility towards the Republic of Cyprus while sealing its ability to finance its needs directly from the markets.
Our goal has been and remains the safeguarding of the stability and growth prospects of our country.