Cyprus in EUR1 bln bond issue

The Republic of Cyprus will tap international markets to raise EUR 1 bln through a bond issue, which will be made during the first half of 2009, Finance Minister Charilaos Stavrakis said.
''We are at the final stage of preparations for a one billion euro bond issue, which will be addressed to foreign investors,'' after a working lunch he had with Central Bank Governor Athanasios Orphanides.
This bond, he added, ''will help in the better planning of the financing needs of the government over the next five years.''
Stavrakis acknowledged that ''this is the worst possible period for a government to raise capital in this unprecedented climate of uncertainty,'' adding ''we feel that Cyprus has excellent financial indices both regarding public debt and growth rate.''
''We monitor the course of the markets daily and our aim in cooperation with the Central Bank is to make this move in the right moment,'' he said.
Regarding the Cyprus banking market, Stavrakis said that both he and Orphanides observed that there is a downward trend as regards the lending rates, which is expected to continue in the coming months.
He added that during the meeting they examined ''alternative proposals'' in a bid to draw liquidity from abroad mainly from European Central Bank. ''Officials from the Finance Ministry and the Central Bank will look into these ideas in detail,'' he said.