The return of Cyprus to the international markets was described on June 19 as positive by Fitch Ratings. But the agency said that this does not mean that market access will be permanent, as risk to the struggling economy of the Eastern Mediterranean island’s economy remains.
On Wednesday, Cyprus issued a five-year bond that was oversubscribed by four times as offers reached two billion euro, enabling the authorities to issue bonds worth 750 million euro.
“Cyprus’s return to the international bond market is positive for the sovereign, helping it meet funding needs and improving its financing flexibility,” Fitch said in a media statement, adding however, that “it is not certain that market access will be permanent, and the high level of sovereign risk in Cyprus is reflected in its `B-`rating.”
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