09/10/2015 09:59
The upcoming reviews by rating agencies Fitch and Moody's are expected to determine the timing of the new debt issuance for Cyprus.
The ministry hopes that a possible upgrade from the agencies will boost efforts to raise cheap borrowing from international markets.
According to information leaking from the government, October 23 is a milestone in taking the final decision as regards the time of issuance of the bond, as this is when the report of Fitch for Cyprus is expected to be published.
The Moody's report is expected to be published on 13 November.
The Ministry of Finance already has in hand the recent upgrade of Cyprus’ long-term rating to BB- from B + by the rating agency Standard and Poor's.
With this upgrade Cyprus is just three notches away from S & P investment grade. Fitch and Moody's currently assess Cyprus’ creditworthiness six steps below investment grade.
The Cypriot government hopes that a possible positive assessment by Fitch as well, may further improve yields on Cypriot bonds.
Finance Minister Haris Georgiades stressed yesterday that the restoration of the sovereign rating of Cyprus requires moves that inspire confidence and reliability.
He referred to the upcoming bond issuance without specifying a timeframe about Cyprus’ new exit to the markets.
"The government is proceeding to a new taping of international markets at a time that will be determined at a later stage," the minister noted.
The finance ministry is concerned both about the amount of the issuance and for the duration of the bond, according to information.
Mr. Georgiades however, avoided until now, to confirm whether the duration of the bond will be 10 years, or if the total amount of the issue be € 1,5 bn.
Initial thoughts by technocrats of the finance ministry seem to be oriented towards a bond issuance of less than € 1,5 bn.
Within the next days a preliminary report is expected by the four international consultants hired by the Cypriot government to organize meetings with potential investors, in order to allow for a new debt issuance.
The ministry hopes that a possible upgrade from the agencies will boost efforts to raise cheap borrowing from international markets.
According to information leaking from the government, October 23 is a milestone in taking the final decision as regards the time of issuance of the bond, as this is when the report of Fitch for Cyprus is expected to be published.
The Moody's report is expected to be published on 13 November.
The Ministry of Finance already has in hand the recent upgrade of Cyprus’ long-term rating to BB- from B + by the rating agency Standard and Poor's.
With this upgrade Cyprus is just three notches away from S & P investment grade. Fitch and Moody's currently assess Cyprus’ creditworthiness six steps below investment grade.
The Cypriot government hopes that a possible positive assessment by Fitch as well, may further improve yields on Cypriot bonds.
Finance Minister Haris Georgiades stressed yesterday that the restoration of the sovereign rating of Cyprus requires moves that inspire confidence and reliability.
He referred to the upcoming bond issuance without specifying a timeframe about Cyprus’ new exit to the markets.
"The government is proceeding to a new taping of international markets at a time that will be determined at a later stage," the minister noted.
The finance ministry is concerned both about the amount of the issuance and for the duration of the bond, according to information.
Mr. Georgiades however, avoided until now, to confirm whether the duration of the bond will be 10 years, or if the total amount of the issue be € 1,5 bn.
Initial thoughts by technocrats of the finance ministry seem to be oriented towards a bond issuance of less than € 1,5 bn.
Within the next days a preliminary report is expected by the four international consultants hired by the Cypriot government to organize meetings with potential investors, in order to allow for a new debt issuance.
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