Thursday, June 27, 2013

Cyprus to roll over 1b euros in local bonds

Cyprus announced on Thursday that it plans to exchange one billion euros ($1.3 billion) in local government bonds for new ones with longer maturities under its bailout deal with international lenders....

NICOSIA: Cyprus announced on Thursday that it plans to exchange one billion euros ($1.3 billion) in local government bonds for new ones with longer maturities under its bailout deal with international lenders.
The finance ministry said the existing bonds, which mature during the bailout period (2013 through the first quarter of 2016), will be replaced with five new issues holding the same coupon rate and at five-10 year maturities.
"This debt management exercise is in accordance with Cyprus's commitments under the programme agreed with international partners," the finance ministry said.

In exchange for a 10 billion euro loan from the EU and the IMF, Cyprus agreed in March on 13 billion euros in measures to cut its budget deficit and to restructure its bloated banking system.
The ministry said the transaction is intended to facilitate the cash-flow management of the government and to ensure adequate funding with terms that do not compromise achieving the long-term public debt target.
The debt exchange was "welcomed" by the European Commission and IMF on Thursday.
"The objective of this liability management operation is to facilitate cash-flow management for the government and to ensure adequate funding at terms that support long-term public debt sustainability, an essential step towards Cyprus's economic recovery," said a European Commission statement on their behalf.
"Once this transaction is completed, the refinancing commitment undertaken by the Cypriot authorities in support of the adjustment programme would be fulfilled," said the Commission.
"We reiterate our commitment to stand by Cyprus in partnership and to support its return to growth and prosperity," it added.
 http://www.channelnewsasia.com/news/business/international/cyprus-to-roll-over-1b/727242.html
28/6/13: local time 
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