Cyprus: New bond issues help repay Russian loan faster

Cyprus: New bond issues help repay Russian loan faster

Cyprus' finance minister says new bond issues will save the country money by helping to pay off the remainder of a 2.5 billion-euro ($2.8 billion) Russian loan more quickly.

Harris Georgiades told state radio Thursday the combined interest rate from the five-year bond issue and Cyprus' first-ever 30-year issue is under 2 percent, meaning the country will pay less and have more time to repay.

Cyprus still owes Russia 1.56 billion euros ($1.75 billion). It got the loan with a 2.5 percent interest rate amid a 2012 financial crisis.

Cyprus on Wednesday secured 500 million euros from its five-year bond issued at a 0.625 percent rate. The 30-year issue raised 750 million euros at 2.75 percent.

Georgiades said Cyprus wants to take advantage of an early repayment clause in its loan deal with Russia. [AP]

Subscribe to our Newsletters

Enter your information below to receive our weekly newsletters with the latest insights, opinion pieces and current events straight to your inbox.

By signing up you are agreeing to our Terms of Service and Privacy Policy.