New bond issues by Cyprus government

Τhe Central Bank of Cyprus announced the issue of up to CYP15 mln Government Registered Development Stock (GRDS) with three years duration and interest of 3,75% p.a. payable every six months. Applications will be accepted from 25 September, 2007 and not later than 1:30 p.m. on 28 September, 2007.

The aforesaid GRDS can be acquired by natural persons only.  Interest earned  on GRDS is exempted from income tax without any limitation but is subject to 3% Defence Tax Contribution.

The Central Bank of Cyprus also announced the offer by auction on a bid-price basis of up to CYP 30 mln 4,50% Government Registered Development Stock with date of issue 28 September, 2007 and repayment at par in  ten years.  Details about the auction are published in the form of an Announcement in the Official Gazette of the Republic on 21 September, 2007.The auction will take place on Wednesday 26 September, 2007. Bids on the prescribed form for 10-year stock will be accepted from 24 September, 2007 and not later than 9:00 a.m. on 26 September, 2007.