bonds Archives - LoveCyprus | We Love Cyprus and you will Love it too. https://www.lovecyprus.com.cy/tag/bonds/ Wed, 07 Jul 2021 07:30:12 +0000 en-US hourly 1 https://wordpress.org/?v=6.8.6 https://www.lovecyprus.com.cy/wp-content/uploads/2020/07/cropped-LoveCyprus_Favicon-32x32.png bonds Archives - LoveCyprus | We Love Cyprus and you will Love it too. https://www.lovecyprus.com.cy/tag/bonds/ 32 32 Ministry of Finance gives further clarifications and details on recent bonds issue https://www.lovecyprus.com.cy/cyprus-bonds/ Fri, 10 Apr 2020 06:08:05 +0000 https://www.lovecyprus.com.cy/?p=14680 The recent issue of bonds by the Republic was solely intended to offset the reversal of the fiscal balance and to decisively strengthen the precautionary reserve of the state, because […]

The post Ministry of Finance gives further clarifications and details on recent bonds issue appeared first on LoveCyprus | We Love Cyprus and you will Love it too..

]]> The recent issue of bonds by the Republic was solely intended to offset the reversal of the fiscal balance and to decisively strengthen the precautionary reserve of the state, because of the uncertainty and consequences of Covid-19 in the Cypriot economy, the Public Debt management Office says in a statement.

According to the announcement of the Republic of Cyprus, the issuance of the 7-year and 30-year European bonds on April 7, took place within the framework of the Annual Financial Program 2020, as recently revised to cover mainly the loss of fiscal revenue due to the economic implications of the pandemic.

It is added that the sole purpose of this bond issuance was to offset the reversal of the fiscal balance, from a fiscal surplus to a fiscal deficit mainly due to the reduction in tax revenues, resulting from the declining course of GDP due to the effects of Covid-19, but also because of the supportive measures in the approved supplementary budget. On the other hand, the bond issue aims to decisively strengthen the precautionary reserve maintained under the Public Debt Management, given the international economic uncertainty and as a result of the unknown duration of the pandemic.  

 Seven-year bond
—————
 The 7-year bond allowed the Republic of Cyprus to raise an amount of 1.25 billion euros from a total of 1.8 billion euros offered. The bond effective date is 16 April 2020 and the maturity date is 16 April 2027. The bond yield was 1.564%. The annual interest rate was set at 1.50%.

Thirty-year bond
————–
  With the 30-year bond, an amount of 0.5 billion euros was raised from a total of 0.8 billion euros offered. Its effective date is April 16, 2020 and its maturity date is April 16, 2050. The bond yield was 2.339%. The annual interest rate was set at 2.25%.

For the above two bonds, more than 240 bids were submitted, with more than 98% of the bidders coming from the international market.

Additionally, the Ministry of Finance clarifies that above bond issues, as well as any new issues, are not related to the recent proposals for the issuance of a bond in order to support the private sector of the economy.

 At this stage, it is added, private sector support could only be sought indirectly through mechanisms that would make it possible to use -with due diligence- the available banking liquidity.

Source: CNA

The post Ministry of Finance gives further clarifications and details on recent bonds issue appeared first on LoveCyprus | We Love Cyprus and you will Love it too..

]]> Cypriot bonds yields return on downward path following volatility due to COVID19 https://www.lovecyprus.com.cy/cypriot-bonds-yields-return-on-downward-path-following-volatility-due-to-covid19/ Mon, 30 Mar 2020 06:04:30 +0000 https://www.lovecyprus.com.cy/?p=14492 Cypriot bond yields in secondary markets returned on a downward path, following the recent market volatility due to investor fears as a result of the coronavirus pandemic. The decline is mainly […]

The post Cypriot bonds yields return on downward path following volatility due to COVID19 appeared first on LoveCyprus | We Love Cyprus and you will Love it too..

]]> Cypriot bond yields in secondary markets returned on a downward path, following the recent market volatility due to investor fears as a result of the coronavirus pandemic.
 
The decline is mainly attributed to the ECB’s decision to remove issuer limits from its bond-buying programmes as well as the start of purchases in the context of the Pandemic Emergency Purchases Programme (PEPP) amounting to €750 billion.
 
The PEPP’s will enable the Central Bank of Cyprus to engage in increased purchases of Cypriot bonds from the secondary markets, pushing Cyprus’ borrowing costs lower.
 
According to data obtained by CNA, the Cypriot benchmark’s yields is following a downward trajectory and dropped earlier today at 1.097% from the high point of 1.932% last Wednesday marking a reduction of almost 90 percentage points. The previous high was recorded in November 20 2018 reaching 2.449%.
 
The coronavirus pandemic has had a severe impact the yields of bonds of the EU’s periphery such as Italy and Greece which also returned on a downward spiral following the ECB’s announcements. Although Greek bonds are still classified as junk the ECB decided to include them in its PEPP, while Italy’s bond yields benefited from the ECB’s decision to waiver all issuer limits from its bond purchasing programmes.
 
According to latest data by the ECB, net monthly purchases of Cypriot bonds by March 20 amounted to €41 billion with total Cypriot bonds purchased by the ECB amounting to €2.09 billion.

Source: CNA

The post Cypriot bonds yields return on downward path following volatility due to COVID19 appeared first on LoveCyprus | We Love Cyprus and you will Love it too..

]]>