Cyprus raised €1.75bn through a seven-year and 30-year bond issuance on Tuesday, boosting liquidity as it seeks to buffer the fallout out of the coronavirus crisis.
Finance Minister Constantinos Petrides said €1.25bn was raised through the seven-year bond at a yield of 1.55 percent and €0.5bn through the 30-year issue at 2.33 percent.
Total bids reached €2.6bn — €1.8bn και €0.8.bn respectively — proving that amid the uncertainty international markets continued to place confidence on the Cypriot economy, the minister said.
“The issuance of the two bonds boosts liquidity to tackle the economic effects of the pandemic at a time when the crisis has paralyzed a large section of economic activity with subsequent effects on public finances,” the minister said.
He said the government’s main concern was to secure the necessary resources and follow prudent policies to be able to support people’s welfare, the health system, workers, and vulnerable groups until recovery.
The ministry said Monday it expected a GDP to decline by between 5 to 9.7 percent and a rise in unemployment of 9 percent compared with 7.1 percent in 2019.
The ministry did not rule out the situation turning out to be worse citing the significant uncertainty.