Cyprus to Swap 1 Billion Euros of Bonds to Meet Aid Conditions
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Cyprus offered to swap 1 billion euros ($1.3 billion) of its shorter-dated government bonds for others with longer maturities, seeking to meet the requirements of the 10 billion-euro rescue deal agreed on in March.
The nation will exchange “a number of existing local government bonds” due between 2013 and 2015 for five new bonds with equal coupon rates and five- to 10-year maturities, the Ministry of Finance said in a statement. Cyprus avoided a financial collapse in March by bowing to demands from creditors to shrink its banking system in exchange for aid. Greece pushed through the biggest sovereign restructuring in history in 2012 to maintain access to its rescue funds.