Cyprus raises 1 bln euros with second public bond issue since financial rescue

NICOSIA, Cyprus – Cyprus’ finance minister says the country has raised 1 billion euros ($1.09 billion) from international markets with its second public bond issue since its painful bailout two years ago.

Harris Georgiades says the seven-year bonds were nearly twice oversubscribed and carried a 4 per cent interest rate.

Georgiades said Tuesday the issue affirms that confidence has been restored in the Cypriot economy which will help the country emerge from recession.

He says the money will be used to pay off older, more expensive debt and inject fresh liquidity in the economy.

Georgiades said the country won’t need all of its 10 billion euro ($10.93 billion) rescue loan because Cypriot banks won’t need further state support and budget deficits have been reined in.