He noted that an important part of the existing debt has a high cost and a short-term duration. This for example is true in the case of the bond that was issued to Laiki Bank in 2012, he said, adding that: “The particular bond, amounting today to approximately €2 billion, has 2017 as a repayment date and is not included in the Troika’s financial plan.”

In total, "the expirations of debts the first 18 months after the completion of the programme surpass €3 billion.

Therefore, with the timely extraction of additional lending, the Republic of Cyprus will be able to manage and slowly repay the existing debt,” he said in a statement issued in Brussels.

“It must be noted that through the public debt management policy that has been implemented in the last year, both the reduction of the median cost of borrowing has been achieved as well as the elongation of the repayment period with a major benefit for public finances,” Georgiades said.

He noted that the lending agreement remains a basic funding tool for the next two years, “but it is an obligation of the Republic of Cyprus, in parallel to the effective implementation of the memorandum, to timely prepare the ground for the restoration of its ability to autonomously fund its needs.”

Georgiades expressed hope that “everyone, and especially those responsible for Cyprus’ exclusion from the markets, will understand and support this national effort.”

The Ministry of Finance announced on April 30 the successful issuance via private placement of a six-year international bond for a nominal value of €100 million at a coupon rate of 6.50% p.a. The said bonds will be listed on the London Stock Exchange and be settled via Euroclear.

This access to the Eurobond market is taking place under its newly updated EMTN programme. The proceeds of the EMTN transaction will be used for public debt management purposes, including government financing, in compliance with Cyprus’ economic adjustment programme.

Source: Famagusta Gazette