Getting out of markets next time it is reviewed by the Ministry of Finance Cyprus take advantage of continuous credit upgrades.
The Cypriot government wants to take advantage of the positive dynamics created for the Cypriot economy, after repeated upgrades of the country’s credit rating, as reported by the Cyprus News Agency and reproduced by ERT.
The target is a ten-year bond, but these issues, as well as the final amount to be raised, are determined, in consultation, with advisors on the issue and depending on the market situation.
Recall that the Public Debt Management Office (PDM) of the country has already announced that the annual financing program for this year, which will amount to 1.3 billion euros, of which 1 billion euros will be covered by issuing a European Medium – Term Bond (EMTN).
As mentioned in the GDDX, in the annual report for 2023, the objective in the coming years is to issue at least one reference bond (EMTN) per year, with a value between 1-1.5 billion euros for the purpose of financial coverage. needs of the Government of Cyprus.
It was also pointed out that the permanent objective of FGDC is to flatten the debt maturity curve with an emphasis on issuing longer duration bonds, because the market conditions and the new around the interest rate, as stated by the FGDC.
However, KPE sources consider the environment favorable following the upgrades by rating agencies Fitch and Standard and Poor’s, which upgraded Cyprus’ long-term credit rating to BBB+, in fact the positive outlook continues, while the positive outlook also set by Moody’s maintained the ‘BBB’ rating in a rating act at the end of last month.
The positive conditions are also created by the constant downward trend of the debt-to-GDP ratio, leading to the growth rate, which in the first quarter of the year was the second highest in the EU behind Malta , on a quarterly basis (1.2). %) , and third highest year-on-year (3.4% seasonally adjusted) after Malta and Croatia.