The Minister of Finance of Cyprus stated that Cyprus will launch a retail savings bond program starting in July, with the program being offered on a monthly basis.
It is reported that the country will issue 6-year government bonds with a coupon rate of 5.75%. Holders may keep the bonds until maturity, or they may redeem them after two years at a yield of 2.75%. The primary target of this program is retail investors, with a minimum investment amount of 1000 Euros.
Since May 2011, Cyprus has been excluded from financial markets and was forced to accept loan assistance from the European Union and the IMF in early 2013.
Cypriot President Nicos Anastasiades stated earlier this month that the country will return to the bond market for financing by the end of next year, but did not rule out the possibility of testing market demand earlier.
