The upcoming conclusion of the Policy Framework for the sustainable financing of Cyprus paves the way for sustainable financing, thus allowing the Republic of Cyprus to have access to additional sources of financing beyond the traditional ones, Minister of Finance Constantinos Petrides says in a written statement.
In his written statement on the progress of the preparation of the Framework for the issuance of a Green/Social/Sustainable Bond (Project Mouflon), he says that the Council of Ministers was informed today about the progress of the project and the preparation of the necessary Framework for the sustainable financing and for the planned issuance of the first Sustainability Bond of the Republic of Cyprus.
The Framework, he points out, can be used by the Republic to issue sustainable bonds and loans for financing government initiatives that cover a wide range of green and social projects.
The Minister says that the Sustainability Financing Framework defines sectors of environmental and social spending that can be financed through the issuance of sustainable bonds in accordance with current international standards. He adds that the Framework includes among other things government projects, plans, expenses that could be financed by issuing a sustainable bond.
The Minister notes that the international ESG (Environmental – Social – Governance) bond market has a growing dynamic adding that bond issuances in 2022 amounted to almost 1 trillion euro.
Furthermore, he says that an increasing number of European Union member states are issuing or preparing to issue such bonds.
"The participation of the Republic of Cyprus in this market is expected to offer significant advantages both in terms of liquidity and in terms of evaluation by international rating agencies," he stresses.
Petrides underlines that the upcoming finalisation of the Framework paves the way for sustainable financing, allowing the Republic of Cyprus to have access to additional sources of financing beyond the traditional ones, thus demonstrating Cyprus' commitment to promoting environmental and social actions through the state budget. the Minister.