Income Statement and Eurosystem Funding Review
Yield
16%
14%
12%
10%
8%
6%
4%
2%
07-10
2020 Cyprus government bond
Two Years After: ...supported by the Sovereign return to capital markets
Improved rating and credit outlook as demonstrated by benchmark sovereign bond issue
09-10
11-10
01-11
03-11
05-11
07-11
09-11
11-11
01-12
03-12
05-12
07-12
09-12
11-12
01-13
03-13
05-13
07-13
09-13
11-13
01-14
03-14
05-14
07-14
09-14
11-14
01-15
03-15
05-15
Agency
Rating
Last action
Outlook
Rating date
Previous
rating
Moody's
B3
Upgrade
Stable
14-Nov-14
Caa3
S&P
B+
Affirmed
Positive
27-Mar-15
B
Fitch
B-
Affirmed
Positive
24-Apr-15
B-
Continued
DBRS
B (low)
Affirmed
Stable
5-Dec-14
CCC
improvement
General government debt / GDP (%)
200
180
160
140
120
100
6842
80
60
40
20
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Cyprus
Spain
Greece
Portugal
SOURCE: Bloomberg, BofA Merrill Lynch global research
Italy
Ireland
.
•
Cyprus tapped international debt markets twice
since bail-out by Troika. 1st issue of €750 mn in
July 2014 and 2nd issue of €1 bn in May 2015
Both issues were oversubscribed by around two
times, indicating significant increase in
confidence towards the Cypriot economy;
Important milestone for Cyprus' economic
recovery
Recently adopted Foreclosure and Insolvency
framework is a significant step towards the
positive conclusion of the 6th review of the
country's economic adjustment program by
Troika; Cyprus may benefit from QE Program of
the ECB
Bank of Cyprus
5
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