Cyprus returns to International Markets with a EUR 1 billion Bond Issue
On 28 April 2015 the Public Debt Management Office of Cyprus announced the issue of EUR1 billion seven-year government bonds at a coupon rate of 3.875%. The yield of the bond issue stood at 4%. There were offers of about €1,9 billion of which €1 billion were accepted. This is the first bond issue addressed to foreign investors since June 2014, and it is an encouraging sign of the recovery of the Cypriot economy.
According to the Cyprus Finance Minister Mr Harris Georgiades, ‘the issue affirms that confidence has been restored in the Cypriot economy which will help the country emerge from recession. The money will be used to pay off older, more expensive debt and inject fresh liquidity in the economy.’
In the same announcement by the Cyprus Associated Press, Georgiades said that ‘the country won't need all of its 10 billion euro ($10.93 billion) rescue loan because Cypriot banks won't need further state support and budget deficits have been reined in’.
Please click here for Cyprus Ministry of Finance Press Release.
Successful completion of periodic review of Cyprus economic reform program
Following the recent visit to Nicosia by teams from the International Monetary Fund (IMF) and the European Commission (EC), in liaison with the European Central Bank (ECB), to review Cyprus's economic reform program, staff-level agreement has been reached on policies that could serve as a basis for completion of the reviews.
According to the statement issued by the European Commission, the ECB and the IMF on May 20 2015, ‘A key policy reform of the program has been the adoption of modernized insolvency and foreclosure frameworks, which are needed to reduce the high level of non-performing loans, an essential step to restoring growth and job creation in Cyprus. The main elements of these frameworks are now in place, which has allowed for the finalization of the staff-level agreement’.
‘The authorities should maintain the structural reform momentum. The reform of the public sector administration is key in this respect. Timely implementation of the privatization plan is necessary to increase economic efficiency, attract investment, and reduce public debt’.
Conclusion of the reviews is subject to the approval process of both the European Union and the IMF, which will be initiated shortly.
Please click here for the Statement by the European Commission, the ECB and the IMF on Cyprus.
Lifting of all restrictions on capital movement
On April 3 2015, the President of the Republic of Cyprus announced the lifting / abolishment of the last restrictions on capital outflows.
According to President Nicos Anastasiades, ‘The lifting of the restrictions represent the full restoration of confidence in the country’s banking sector’.
Please click here for the press report in New York Times.
The Government spokesman, N. Christodoulides, also commented to Bloomberg: “The lifting of the restrictions confirms the full restoration of confidence in the banking system, the significantly improved business climate and essentially marks the return of the economy to normal conditions’.
Please click here for the press report.
Cyprus: The Recovery Story
Please click here to view a film prepared by the Cyprus Investment Promotion Agency (CIPA), that highlights the positive developments occurring in the Country as well as the current and emerging investment opportunities.