Cyprus to discuss financing strategy with foreign investors, finance of ministry says (Update)


By Stelios Orphanides

Cyprus asked Barclays, HSBC, Morgan Stanley and Societe Generale Corporate and Investment Banking to facilitate communication with investors in Europe in meetings or via teleconferences as of December 9, the finance ministry said.

“The republic aims at informing investors about recent developments and discuss the financing strategy,” the finance ministry said in an emailed statement today.
A finance ministry official with knowledge of the situation said on condition of anonymity that Cyprus wants “to see what investors would like to see in a future debt issue,” which may happen at the beginning of 2015.

On November 13, finance minister Harris Georgiades said that the government would test international markets without specifying any amount, adding that the key parameters will be determined at the time depending on market conditions. Cyprus successfully issued 750 million euros in new debt at a 4.75 per cent average yield in June, after it remained shut out of markets since May 2011. In May this year, the government borrowed 100 million euros at an interest rate of 6.5 per cent via private placement.

Cyprus saw its sovereign rating upgraded in recent weeks by Fitch Ratings to B-, Standard and Poor’s to B+ and Moody’s to B3.


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Stelios Orphanides is a journalist at To contact Stelios Orphanides: [email protected]

  • alexander reutersward

    Another “test” 🙂 the government had a surplus, the 1 billion earmarked for coop can be used to roll over debt and still you want more money….

    I have a feeling the government has boosted it’s books and is in desperate need of more money, just like the local bank’s.

    • Себастьян Returns

      No, it can’t be so – we’ll be bailed-out of the bail-in next year !

    • Salomi

      I think so too.

  • Grungemonkey

    Cyprus wants “to see what investors would like to see in a future debt issue” That’s easy they would like Cyprus not to default so they can be repaid. There you go and I didn’t charge a penny, unlike Barclays etc

  • Khandos

    Make all title deeds available right now (even if an amnesty for build irregularities is required), give a large discount for immediate payment (at least 20% minimum) of title deed transfer tax – and hey presto, the coffers would swell by a cool 1 billion +.

  • GSP

    What investors want is a return on their investments. I.e. a loan is generally made against collateral and the loan is repaid with interest. This seems to be the sticking point in Cyprus. Loan figures exceed the value of the collateral, loans are not repaid and neither is any interest.
    Does it take a team of international advisors to explain that simple failure of the existing system to the bankers here?