Nicosia lightens its arrears
Cyprus made strides in paying down its debt in the second quarter of 2024, settling over 1 billion euros in bonds and loans. According to the Cypriot Finance Ministry’s Debt Management Office (PDMO), this repayment approach helps reduce the national debt, boost financial stability and potentially open up new benefits for Cypriot citizens and the economy.
In a key move in June, Cyprus issued a new seven-year bond worth €1 billion. This issuance also came with a “switch offer,” allowing investors to exchange an existing bond set to mature in 2028, worth €150 million, with the new bond. Additionally, Cyprus redeemed another bond set to mature in 2026, taking €850 million off the books.
On the loan side, the government repaid €286 million in debt, which included an early repayment of €250 million to the House Financing Corporation – a state-owned lender that had extended a six-year loan to Cyprus in 2019 at an interest rate of 0.97%. The early payoff of this loan lowers Cyprus’ interest costs, freeing up funds for other public needs.
The PDMO added that other short-term debts and retail bonds were repaid, further chipping away at the nation’s overall debt load.
