Minister of Finance Makis Keravnos said on Thursday that the 16.5 billion euro offer for the issuance of a 10-year 1 billion euro bond by the Republic of Cyprus is a historic event, noting that the 3.25% interest rate that was secured, is the lowest of all recent issuances.
‘The Republic of Cyprus requested bids for 1 billion euro and there was an offer for 16.5 billion. This is a historic event” he said.
The Minister noted that this is the first time that there is such a willingness for investment in a bond of the Republic of Cyprus.
“It was a very successful issue, with a very low interest rate, 3.25%, the lowest of all recent issuances of countries,’ he said, noting the recent issues of Greece, Portugal, and other countries.
This confirms, Keravnos went to say, “the recognition by foreign investors of the sound economic policy implemented by our government, which creates conditions of economic stability and conditions of security for investors.’
The government, he pointed out, is determined to continue this policy, which ensures the future growth course of the economy and also enables us “to transfer these positive results to our society’.
‘It is not additional debt, it is the replacement of one that expires’, he clarified, replying to questions.
He recalled that the government has already managed to reduce the public debt to approximately 55%, while the target was 60% at the end of this year.
“We achieved this in 2025. It is an important development, because it opens up possibilities for increasing spending on development projects and social policy’, the Minister concluded.