3-year bonds for individuals

The Central Bank of Cyprus announced the issue of up to CYP 8 mln Government Registered Development Stock (GRDS) with three years duration and interest of 3.75%, which is open to individuals and natural persons only.

Interest earned, which is paid 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 the Series’ Terms of Issue are available at the Central Bank of Cyprus, Banks, Post Offices and Stockbrokers. Applications will be accepted from July 12 until July 17, 2006.