New Issue of 4,25% bonds

The Central Bank of Cyprus announced a new issue of up to CYP 12 mln Government Registered Development Stock with three years maturity and interest at 4,25% p.a. The interest, which is payable every six months, is exempted from income tax without any limitation but is subject to 3% Defence Tax Contribution.

The new stock issue has a two-fold purpose: the encouragement of savings and the raising of funds for financing Government development projects. The funds raised are deposited in the Development Fund of the Republic.

Application Forms and Terms of Issue are available at the Central Bank of Cyprus, Banks, Post Offices and Stockbrokers. Applications are accepted from 20 July, 2005 to 26 July, 2005.