04/12/2014 08:44
The Ministry of Finance is organizing road shows to brief bond investors about the improved fiscal performance of Cyprus and ease fears about reform fatigue in the implementation of the adjustment program.
As announced today by the Ministry of Finance, the Republic of Cyprus asked Barclays, HSBC, Morgan Stanley and SG CIB to organize meetings and teleconferences with investors in Europe as of December 9.
The Republic aims at updating investors on recent developments and discussing the financing strategy.
The minister, Harris Georgiades, told StockWatch in November that the government is seeking to tap bond markets in January 2015.
Cyprus recently enjoyed upgradings of its sovereign rating by Standard and Poor’s, Moody’s and Fitch to B+, B3 and B- respectively.
Meanwhile, the yield to maturity for Cyprus 10-year bonds continued its general downward path reaching 5,207% on December 1 from 5,523% one month ago.
The YTM was at 8,233% at the beginning of the year and continued to decline as a result of the stabilization of the financial conditions in Cyprus.
It reached a low of 4,502% at the beginning of September reflecting the better than expected public fiscal indicators but increased during the period of October – November when doubts on the smooth implementation of the rescue plan became apparent due to the delay in passing the foreclosures law.
In June 2014, Cyprus borrowed €750 mln at 4.75% - its first attempt to gauge investor sentiment after being shunned out of international markets for three years.
The improved fiscal situation in the country, which is expected to record a primary surplus in 2014, has helped push yields down but concerns about reform fatigue remain.
The foreclosure law, which is considered by foreign investors and creditors as critical for the recovery of the financial sector, is yet to be implemented, three months after having passed from the Cypriot parliament.
The same general trend in bond yields is evident in all of the other European countries that are or were under Troika’s supervision.
10-year yields in Greece fell to 7,819% in December from 8,269% at the beginning of the year while Portugal exhibited the biggest decline (2,711% from 6,009%).
The overall trend points to a more optimistic view from investors towards Europe’s prospects.
As announced today by the Ministry of Finance, the Republic of Cyprus asked Barclays, HSBC, Morgan Stanley and SG CIB to organize meetings and teleconferences with investors in Europe as of December 9.
The Republic aims at updating investors on recent developments and discussing the financing strategy.
The minister, Harris Georgiades, told StockWatch in November that the government is seeking to tap bond markets in January 2015.
Cyprus recently enjoyed upgradings of its sovereign rating by Standard and Poor’s, Moody’s and Fitch to B+, B3 and B- respectively.
Meanwhile, the yield to maturity for Cyprus 10-year bonds continued its general downward path reaching 5,207% on December 1 from 5,523% one month ago.
The YTM was at 8,233% at the beginning of the year and continued to decline as a result of the stabilization of the financial conditions in Cyprus.
It reached a low of 4,502% at the beginning of September reflecting the better than expected public fiscal indicators but increased during the period of October – November when doubts on the smooth implementation of the rescue plan became apparent due to the delay in passing the foreclosures law.
In June 2014, Cyprus borrowed €750 mln at 4.75% - its first attempt to gauge investor sentiment after being shunned out of international markets for three years.
The improved fiscal situation in the country, which is expected to record a primary surplus in 2014, has helped push yields down but concerns about reform fatigue remain.
The foreclosure law, which is considered by foreign investors and creditors as critical for the recovery of the financial sector, is yet to be implemented, three months after having passed from the Cypriot parliament.The same general trend in bond yields is evident in all of the other European countries that are or were under Troika’s supervision.
10-year yields in Greece fell to 7,819% in December from 8,269% at the beginning of the year while Portugal exhibited the biggest decline (2,711% from 6,009%).
The overall trend points to a more optimistic view from investors towards Europe’s prospects.
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