Cyprus’ FinMin expects local banks to follow the country’s path to capital markets

Cyprus’ FinMin expects local banks to follow the country’s path to capital markets

 

Review Hari Stefanatos

Finance Minister of the Republic of Cyprus, Harris Georgiades, stated that the return of Cyprus to the capital markets paves the way for the country’s commercial banks to follow along the same path. He added that the banks themselves along with their regulatory authority will have to plan how they will pursue this goal.

“Such a move, if decided, would be of equally decisive and strategic importance,” Georgiades said speaking to the press on Sunday.

On Thursday, Cyprus returned to the capital markets 15 months after it entered a €10 billion financial adjustment programme and three years after its exclusion from bond markets raising €750 million in a 5-year bond with a yield of 4.75%.

“Banks on a European level are currently trying to strengthen their capital utilizing the solid investment interest noted internationally,” the Finance Minister said, to add that last week`s bond issue was not an isolated nor a one-off move but “part of a broader planning towards the restoration of Cyprus` credibility and its ability to finance its needs.

Georgiades concluded saying that Cyprus’ return to the capital markets  “will not be permanent if we relax our efforts and if we return to the attitudes of procrastination and dithering. The return to the markets will be permanent if we continue to press on with the reform and consolidation of the economy.”

(Source: CNA)