ECONOMY

Nicosia raises 1 bln euros in second post-bailout issue

Cyprus’s finance minister said on Tuesday the country has raised 1 billion euros from international markets with its second public bond issue since its painful bailout two years ago.

Harris Georgiades stated the seven-year bonds were nearly twice oversubscribed and carried a 4 percent interest rate.

Georgiades said the issue affirms that confidence has been restored in the Cypriot economy, which will help the country emerge from recession.

He added that the money will be used to pay off older, more expensive debt and inject fresh liquidity into the economy.

Cyprus’s finance minister said the country won’t need all of its 10-billion-euro rescue loan because Cypriot banks won’t need further state support and budget deficits have been reined in.

[AP]