Cen­tral gov­ern­ment debt rises to € 18.6bn in Q4

Financial Mirror (Cyprus) - - FRONT PAGE -

Cen­tral Gov­ern­ment debt rose to EUR 18,626 mln in the fourth quar­ter of 2014, up EUR 360 mln from EUR 18,266 mln in the pre­vi­ous quar­ter, ac­cord­ing to fig­ures re­leased by the Fi­nance Min­istry?s Public Debt Man­age­ment Of­fice (PDMO).

About 31% of the debt is held in the do­mes­tic mar­ket and 69% in the for­eign mar­ket. The debt ex­cludes in­tragov­ern­men­tal obligations and debt of state-owned en­ter­prises.

In De­cem­ber, the sixth tranche by the ESM for EUR 350 mln was dis­bursed as part of the 10 bln bailout plan, while the IMF’s con­tri­bu­tion of EUR 86 mln was suspended due to par­lia­ment’s stalling on a cru­cial fore­clo­sures bill that would help banks re­cover as­sets and re­duce the level of high-risk non­per­form­ing loans, presently at 50% of the na­tional loan­book.

In Novem­ber and De­cem­ber the Euro­pean In­vest­ment Bank and the Coun­cil of Europe Devel­op­ment Bank dis­bursed EUR 15 mln and 25 mln, re­spec­tively, for in­fra­struc­ture projects in pri­mary and sec­ondary ed­u­ca­tion.

The is­suance of re­tail bonds con­tin­ued with sales of EUR 38 mln over the quar­ter.

Short term se­cu­ri­ties dom­i­nated the mar­ket is­suance ac­tiv­ity, ac­cord­ing to the PDMO data, with the to­tal is­suance vol­ume in short term se­cu­ri­ties, in­clud­ing all rollovers, at EUR 869 mln.

The weighted av­er­age cost of Trea­sury Bills for the tenors up to 3 months fell fur­ther by 47 ba­sis points vis-à-vis the pre­vi­ous quar­ter to 3.45%. The stock of short term debt, in nom­i­nal terms, in­creased from EUR 716 mln at the end of Septem­ber to 736 mln at year end 2014. In Novem­ber and De­cem­ber, 10-year do­mes­tic bonds worth EUR 55 mln had ma­tured. The re­main­ing debt re­demp­tions re­lated to short term debt is­sued within the quar­ter or dur­ing the pre­vi­ous one. In gross terms, i.e. in­clud­ing rollovers, there were EUR 889 mln in re­demp­tions of Trea­sury Bills. Ad­di­tion­ally loan amor­ti­sa­tions amounted to EUR 60 mln, the PDMO con­cluded.

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