Insider Economy Russian loan to be repaid in early September

Russian loan to be repaid in early September

The next and last installment of Cyprus’ Russian loan will be paid in September.

The outstanding amount stood at €1.5b at the end of June and the government has already informed the Russian authorities.

The option for an early repayment of the loan was included in the initial agreement and carries no penalty.

Though repayment of the full amount will bring a reduction in cash available to the government, it will mean that a significant part of the debt with a relatively high cost at 2.5% interest paid will have been paid.

The public debt will drop to €21.2b – at about 100% of GDP.

The government aims to bring the public debt to 96% of GDP by the end of the year.

According to the public debt management office,  Cyprus’ net financing needs for 2019 are €2.3b. Cyprus has raised €2.3b from the three EMTN issues at the beginning of the year and smaller sums from domestic bonds.

About €700m from the budget surplus will be used to pay down the debt.

If all goes well, liquidity at the end of the year will cover financing needs for the first nine months of 2020.

In 2020, another €1.4b in debt will mature, mostly local bonds while €1b matures is due to be repaid in 2021.

The amount of debt due for repayment jumps to €2b in 2022 and €1.5b in 2023.

The biggest sum in 2028 when €2.5b of debt is due to be repaid.

Top Stories

379 booked in past 24 hours for breaking decree

Police booked 379 drivers and pedestrians in the past 24 hours for breaking a stay at home decree that allows people to leave the...

Police intensify Paphos restriction checks following violations

Police will be intensifying restriction violation checks in Paphos, as yesterday saw an increase in the number of people not adhering to the restriction...

Cypriot, UK FMs discuss issues concerning respective nationals amid coronavirus pandemic

Cyprus Foreign Minister Nikos Christodoulides had on Saturday evening a telephone conversation with his British counterpart, Dominic Raab, to discuss developments regarding the coronavirus...

Windy with possibility of showers, dust from this evening

Weak low pressure is affecting the area while there will be dust in the atmosphere from Sunday evening until Wednesday, the Met Office said. Today...

Army in the streets of Johannesburg

Members of the South African National Defence Force (SANDF) patrol the steets on the first day of a nationwide lockdown for 21 days to...

Taste

Village salad

A must-have with every meal is a village salad. You will find it in every tavern or greek restaurant you visit in Cyprus. Make...

Courgettes with eggs

Heat the oil in a frying pan and fry the courgettes at a medium heat until they soften. Add salt and add the eggs....

Classic Pastitsio

Prepare the mince sauce: heat the butter in a pan and sauté the mince with the onion and garlic until nicely browned, mixing well....

Grilled vegetable and goat cheese rolls

Brush the vegetables with olive oil and season. Heat a pan/griddle and cook them carefully until golden on both sides, making sure their shape...