Coming up on six years since seeking a 10-billion euro ($11.3 billion) international bailout to prop up its banks and economy, Cyprus has come back so well – thanks mostly to record tourism – that it’s due to issue its first ever 15-year government bond at a rate between 2.90 percent – 3 percent.
The Finance Ministry expects the Euro Medium Term Note (EMTN) to attract 1 billion euros ($1.13 billion) from investors, a rate higher than other European Union countries but still expecting keen interest.
Speaking to Kathimerini officials said the investment roadshow in London, Frankfurt, Milan and Paris was mostly successful although there were some holdouts but with large investment firms considering taking a shot on Cyprus.
“Investors may have become familiar with Cyprus for the wrong reasons in 2013, but what is happening is that investment opportunities arise when there is a calculated and reduced risk,” said one who wasn’t identified.
When Nicos Anastasiades became President in 2013, he reneged on promises and allowed banks who had made bad investments to confiscate 47.5 percent of bank account deposits over 100,000 euros ($113,033) and didn’t hold accountable the bankers.