ECONOMY

EFSF taps Cyprus-backed bond to complete Q1 funding

The European Financial Stability Facility (EFSF) surpassed its 16.5-billion-euro Q1 funding target on Wednesday, with what looks likely to be the issuer’s last tap of an outstanding bond guaranteed by Cyprus.

The euro rescue fund, rated Aa1/AA+/AAA, took its total funding in the year to date to 17 billion euros.

However, with Cyprus on the verge of accepting a bailout program, the Mediterranean island is expected to soon step out as a guarantor of EFSF’s debt obligations, which would prevent the rescue fund from tapping these bonds in the future.

[Reuters]