Cyprus taps markets for 1st time after bailout
Apr. 30, 2014
NICOSIA, Cyprus (AP) — Cyprus has raised 100 million euros ($137 million) through its first bond issue since international lenders rescued the country from near-bankruptcy a little over a year ago.
The six-year bonds were issued through a private placement at an interest rate of 6.5 percent and will be listed on the London Stock Exchange. The money will be used to manage Cyprus' debt.
The ministry said in a statement Wednesday that the success of the transaction was indicative of a "gradual rebuilding of trust" in the Cypriot economy.
Cyprus' 10 billion-euro bailout deal with other eurozone countries and the International Monetary Fund crushed the banking sector as it also involved the seizure of uninsured deposits in the two largest banks.