Cyprus sees 2010 growth, eyes foreign borrowing

Cyprus expects its economy to expand 0.8% in 2010 and almost double growth to 1.5% in 2011 provided the global economy continues to recover and there is no domestic fiscal slippage, Finance Minister Charilaos Stavrakis said on Wednesday.
Cyprus may also tap international markets for its financing requirements towards the end of next year, Stavrakis told a news conference. Financing requirements of the Republic were expected to reach 1.3 bln euros in 2011, he said.
"The basic plan at the moment is to cover financing with short-term domestic borrowing for the first eight to nine months of the year. We may possibly go to the international markets for longer term financing towards the end of the year," Stavrakis said.
He said the financing requirements of the Republic in 2011 were expected to reach 1.3 bln euros.
Cyprus tapped international markets on two occasions in 2010, for 1.0 bln euros in a 10 year euro bond in February, and for another 1.0 bln in a 5 year euro bond in October.
Public debt was expected to reach 61% in 2010, and 61.6% next year, he said.
The island nation, which represents 0.2% of the euro zone economy, emerged from recession in the first quarter of 2010.