Cyprus FINMIN auctions three – year GRDS

The issuance of the GRDS is January 4, 2012 and maturity date January 2015.

The GRDS’s nominal rate will reach 6%. The Cypriot Finance Ministry aims to raise 50 million euro from the internal market to pay a debt, maturing on January 4th, 2012.

Moreover, the Ministry of Finance will proceed Thursday to an auction of Treasury Bills. The issuance date will be January 4, 2012 and maturing date February 3, 2012. The Ministry aims to raise 250 million euro from the internal market.

In statements on December 8th to the Cyprus News Agency, Head of Public Debt Management Office at the Ministry of Finance Phaedon Kalozois, said that one of the main reasons for the debt issuance this year is the political consensus reached in relation to fiscal measures, which “sends positive messages to the market”.

Another reason for the debt issuance this year, he added, is a debt that matures on January 4, 2012. He explained that on January 4th a debt of 427 million euro expires, held mainly by banks.

''The challenges we face are enormous but the political consensus reached on fiscal measures has given many messages of optimism and the outlook is very positive'', he said.

This year, the Ministry of Finance has sold to domestic investors GRDS of 10-year bonds reaching 23.1 million euro with an interest rate 7%. It has also sold 2-year bonds with interest rate 5%, raising 714.56 million euro.