First Draft for Cyprus Govt Three Billion Euro Bonds Issue

Three billion euros in bonds are set to be introduced to the market with the drafting of a legal framework in a bid to inject liquidity into the Cyprus market.

"It was decided to press on immediately with all procedures for the issue of covered bonds which can bring to the economy significant additional cheap liquidity," said Finance Minister Charilaos Stavrakis.

The bonds will be issued from credit institutions after they submit their loan portfolios to the European Central Bank, said a recent article from the Cyprus News Agency.

The bonds usually have a ten-year duration, said Mr.Stavrakis.