Cyprus has raised €100 million through its first bond issue since international lenders rescued the country from near-bankruptcy a little over a year ago.
The six-year bonds were issued through a private placement at an interest rate of 6.5% and will be listed on the London Stock Exchange. The money will be used to manage Cyprus' debt.
The Finance Ministry said in a statement yesterday that the success of the transaction was indicative of a "gradual rebuilding of trust" in the Cypriot economy.
Cyprus' 10 billion-euro bailout deal with the Troika crushed the banking sector as it also involved the seizure of uninsured deposits in the two largest banks.
The government said yesterday it would park its extra cash in the island’s banks rather than the Central Bank as a vote of confidence in the sector.
In a parallel development yesterday Bank of Cyprus decided the release of nine-month time deposits that were blocked as per the decrees relating to the recapitalisation of the Bank in July 2013 and matured on April 30.
But it will be done gradually - one third of nine-month time deposits is immediately released, one third converted into a 3-month time deposit maturing and automatically released at July 31 and the other third converted into a six-month time deposit maturing October 31.