Nicosia - AFP
Cyprus returned to international debt markets Wednesday, just a little over a year after being forced to accept a 10-billion euro ($13.6 billion) bailout, with a five-year bond issue.
Finance Minister Harris Georgiades said on Twitter: "It's done. Cyprus back to the markets."
The bond, he said, was for 750 million euros at an interest rate of 4.75 percent.
In contrast to this public issue, Cyprus placed 100 million euros privately in April, with the six-year paper carrying a coupon of 6.5 percent.
Ruling Disy party spokesman Prodromos Prodromou described the sale as “a critical moment” in restoring confidence in the Cypriot economy.
Despite the quick return to the market, Prodromou added that Cyprus was not out of the woods just yet.
“Great progress has been made by the government but nothing has finished yet. We are still in the middle of a process and we will continue to strive towards restoring the economy.”
In March 2013, Cyprus obtained the bailout from the European Commission, European Central Bank and International Monetary Fund, in exchange for a severe austerity programme and a profound restructuring of the bloated banking sector.
Last month, the so-called troika of lenders said the recession in Cyprus looks set to be shallower this year than expected, but recovery will also be slower than anticipated.
At the same time, it said Cyprus continued to meet its targets under an the austerity plan, which included both tax hikes and sharp spending cuts, as well as partial privatisation of some state-owned entities.