Insider Economy Russian loan’s early repayment could lead to new Cyprus bond

Russian loan’s early repayment could lead to new Cyprus bond

Cyprus is weighing an early repayment for part of a 2.5 billion-euro Russian loan that dates back to the low point of the Mediterranean island’s financial crisis, after yields on the country’s 10-year debt hit a record low last week.

A Bloomberg report, citing reliable sources, said the government is seriously considering early repayment of the Russian loan. And this means that a new Cyprus bond will probably be issued within 2019. In addition to the 15th one, issued in February.

Cyprus agreed to the Russian loan in 2011, at a time when it was losing access to financial markets. The outstanding amount is currently at 1.57 billion euros, with its repayment period extended to 2021.

Nicosia is obliged to pay back a total of €715 million to the Russian government within 2019. In addition, another €1.4 billion of debt, concerning domestic bonds, must also be repaid within this year. Along with a five-year European loan which was issued in 2014 with an interest rate of 4.75%.

This would not be the first time that Cyprus opts for early repayment on debt. In July 2017 the government repaid almost one third of its loan from the IMF.

The loan from Russia was restructured in 2013 under the current administration of President Nicos Anastasiades, after the country secured a bail-out from international lenders and depositors at its two biggest lenders took a bail-in on their deposits.

 

Read more

https://in-cyprus.com/cyprus-to-pay-778m-second-installment-of-russian-loan/

 

 

 

 

 

 

 

 

Top Stories

Cyprus President gets second dose of vaccine on Monday

As vaccination against the coronavirus continues in Cyprus, President Nicos Anastasiades on Monday morning will receive the second dose of his vaccine. The President was...

Epidemiological indicators still below covid-19 safety levels

The epidemiological indicators in Cyprus are still below safety levels but the number of falling coronavirus test results recorded in recent days is encouraging, according...

Negative impact of lockdown on mental health of children, adolescents

The impact on mental health of children and adolescents from the coronavirus and protracted lockdown is very negative since these age groups are not...

Pro-Trump protests quiet amid massive police presence across U.S.

Law enforcement officers far outnumbered protesters at state capitol grounds on Sunday, as few Trump supporters who believe the president's false claim that he...

UK hopes to ease lockdown from March – minister

Britain's government hopes to ease some lockdown restrictions in March as it presses ahead with Europe's fastest rollout of COVID-19 vaccines, foreign minister Dominic...

Taste

Squash soup

Ingredients: 1 kg pumpkin, cut into small cubes, approximately 5 cups 2 medium (400g) sweet potatoes, cut into cubes, approximately 2 ½ cups 1 chopped leek, only...

Mezedes

No visit to Cyprus is complete without enjoying the traditional meal of many small dishes known as ‘meze’. This large feast, which has been a...

Prawns with fried cheese, barley shaped pasta

Put the barley shaped pasta into a small pan with salted water, bring to a boil and when tender, drain. Peal the prawns leaving...

Salmon and shrimp sheftalies

Mix all ingredients for tabbouli in a bowl and keep to one side so flavours can combine. Prepare the sheftalies: wash and soak the casing...