Cyprus financing needs for 2020 to be covered by bond issuances in the international capital markets amount to €1.25 billion, the Finance Ministry’s Public Debt Management Office (PDMO) has said.
In an investor presentation, PDMO said that Cyprus` total financing needs for 2020 amount to €1.7 billion and will be covered by an EMTN issuance amounting to €1.25 billion, €0.3 bln in domestic treasury bills, €0.1 in loans and €0.1 in retail bonds.
Cyprus’ financing needs include the early repayment of the loan Cyprus obtained from the International Monetary Fund during the 2013 financial crisis amounting to €0.7 billion.
The PDMO did not clarify whether the €1.25 billion will be garnered in one or two EMTN issuances, noting however that “the majority of financing is expected to be completed in the first quarter of 2020.”
According to PDMO data, Cyprus general government debt declined to €21.3 billion or 99% of GDP in end-September, and it is estimated to decline to 97.4% by the end of 2019 and will continue its downward trajectory in the coming years and fall to 81% in 2022.
The PDMO added cash buffers at year end to cover the financing needs of the first nine months of 2020 and respectively of 2021.
Furthermore, PDMO announced that the central government’s debt which correspond to 99% of Cyprus’ debt declined to €21.10 billion in the end of September, marking a reduction of €1.7 billion compared to the end of June, mainly due the early repayment of the loan Cyprus obtained from the Russian Federation in 2011.
A percentage of 40% or €8.4 billion of Cyprus’ debt are loans, of which €6.3 billion granted by ESM during the crisis, while EMNT bonds amounted to €8 billion or 38% of Cyprus’ debt, followed by domestic bonds with €3.48 billion or 16.5% of total debt.