Cypriot finance minister Kikis Kazamias asked the European Central Bank to buy the country’s bonds on the secondary market, Alithia reported today, without saying where it obtained the information.
Kazamias’s request, included in a letter to the ECB, will be supported by Athanasios Orphanides, governor of the Central Bank of Cyprus who is also member of the ECB’s governing council, when the body meets this week, the Nicosia-based newspaper reported.
An unidentified finance ministry spokesman said Kazamias had written to ECB President Mario Draghi, with an analysis of the fundamentals of the euro area’s third-smallest economy, which was shut out of markets in May.
The bid yield to maturity of Cyprus’s 10-year bond that expires in February 2020 was 14.21 percent today after it fell from 14.24 yesterday, compared to 5.95 on March 7, last year. Cyprus aims at slashing its fiscal deficit this year to 2.5 percent of gross domestic product from around 6 percent in 2011.
-- Editor: Chris Peterson