By Stelios Orphanides
The finance ministry is planning to offer foreign investors a European Medium-Term Note (EMTN) or Eurobond, in the range of €750 million to €1 billion this year, to cover part of its financing needs.
Total financing needs are estimated at €3.3bn broken down to the €2.35bn aid to the Cyprus Cooperative Bank already covered with the issue of government bonds of an equal amount a month ago, €0.2bn in treasury bills, €0.9bn in long-term loans minus €0.2bn expected to be covered from a fiscal surplus, it said. In addition to the EMTN and the Co-op bonds other sources include the rollover of up to €0.3bn of treasury bills and retail loans from various sources, such as the European Investment Bank or the Council of Europe Development Bank.
The EMTN issue is subject to market conditions, the ministry said.
“Depending on the size, any over-financing in 2018 will be used to enhance the liquidity position of the state to a level sufficient to prefund a substantial share of the 2019 financing needs”.