Finance Ministry auctions three-year GRD Stocks

The Ministry of Finance will today hold an auction for three–year Government Registered Development Stocks (GRDS), to be issued on January 4, 2012 and mature in January 2015.

The GRDS’s nominal rate will reach 6 per cent. The Cypriot Finance Ministry aims to raise €50 million from the internal market to pay a debt.

On Thursday the government will hold another auction of Treasury Bills, which will also be issued January 4, 2012 and mature date February 3, 2012. The Ministry aims to raise €250 million from the internal market. 

Head of Public Debt Management Office at the Ministry of Finance Phaedon Kalozois said that one of the main reasons for the debt issuance this year is the political consensus reached in relation to fiscal measures, which “sends positive messages to the market”.

Another reason for the debt issuance this year, he added, is a debt that matures on January 4, 2012. He said that on January 4th a debt of €427 million expires, held mainly by banks. 

”The challenges we face are enormous but the political consensus reached on fiscal measures has given many messages of optimism and the outlook is very positive”, he said.

This year, the Ministry of Finance has sold to domestic investors GRDS of 10-year bonds reaching €23.1 million with an interest rate 7 per cent. It has also sold 2-year bonds with interest rate 5 per cent, raising €714.56 million.

In September, the Ministry raised €245 million from an auction of 13 -week Treasury Bills. The Ministry’s initial aim was €100 million. The interest rate paid was 4.6 per cent. (CNA)

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