Government makes early partial repayment to IMF

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By Stelios Orphanides

The Public Debt Management Office (PDMO) said that the government made a partial debt repayment earlier this month to the International Monetary Fund (IMF).

“The prepayment of the order of €0.3bn reduced the outstanding balance of the loan to €0.7bn,” the PDMO said in a statement on its website. “The prepayment (is) related to tranches carrying a higher interest rate than the current market rates”.

The government issued an €850m seven-year bond less than a month ago at an average yield of 2.8 per cent to refinance more expensive debt, including an amount of €280 to the IMF which, on June 8, welcomed the government’s intention.

Finance minister Harris Georgiades said in May that the government could save up to 0.5 percentage in interest with the repayment.

As part of Cyprus’s bailout agreed in March 2013, the IMF extended a €1bn loan.

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About Author

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

  • Adele

    Hope they didn’t accept a check!!!

    • Arty

      I bet you wished you had an education.
      *cheque

      • Adele

        Arty I didn’t need a great education my common sense and diversity… done me fine.

        • SuzieQ

          And you can certainly spot an @rsehole –it’s where Farty lives.

          • Adele

            That comment cheered me up x

          • Adele

            Farty was deported from the UK so hate and vengeance is his nature Suzie…. But I love winding him up.

          • SuzieQ

            I can see that!

          • Adele

            It’s easy with a moron Suzie…

      • Adele

        Arty… are you ever going to give up? I think a couple of your stupid “brothers” have joined you on CM … Life is to short.

        • Arty

          *too

  • Easy does it

    More reasons fro British OAPs living in Cyprus to get upset about. Keep them coming Haris!

    • Adele

      What is that suppose to mean?

      • Easy does it

        Use that …sense of yours to figure it out!

  • Kevin Ingham

    Let me get this straight- they “raised” (ie borrowed) Euro 850 million from the international money markets and took Euro 280 million of that to repay part of a loan to the International Monetary Fund

    If they money they “raised” costs less in interest than the money they had previously “borrowed” then it’s good business (in a bankrupt sort of way) but what they plan to do with the other Euro 570 million is what we need to be asking ?

    • Barry White

      Elections coming and money going, Kevin.

      • Kevin Ingham

        Just noticed that the cabinet have approved compensation to provident fund members hit by the haircut (which totals just about Euro 500 million to date)