The government will inject new liquidity in the market via the issue of €1 billion to foreign investors. In his statements to CyBC, Finance Minister, Charilaos Stavrakis noted that the bonds will have a stable rate of 3.25% for four years.
According to the Minister, at least four presentations will be carried out to non-Cypriot investors in June, possibly in Frankfurt, London, Paris and Amsterdam. The government aims to refinance part of the public debt expiring in the next few months, while the possible fiscal deficits will be refinanced too. The deficits will emerge from the slowdown of economy and the need to cover the €220 million that sill be submitted to the SSF.
The three banks that will be selected in cooperation with Central Bank will help the government to find foreign capital. The bonds will be issued by the CB in the week.
source: www.stockwatch.com (published 28/04/2009)