The Council of Ministers was briefed today on the progress of the project and the preparation of the necessary Framework for Sustainable Finance and the planned issuance of the first Sustainability Bond of the Republic of Cyprus.
This Framework can be used by the Republic to issue "sustainable" bonds and loans to finance government initiatives covering a wide range of green and social projects.
The Sustainability Financing Framework identifies areas of environmental and social expenditure that can be financed through the issuance of sustainable bonds in line with current international standards.
The mentioned Framework includes, inter alia, the categories of government projects/projects/spending that could be financed by a sustainable bond issue.
The international ESG (Environmental - Social - Governance) bond market is an ever-growing dynamic market with bond issuances in 2022 amounting to almost €1 trillion. An increasing number of European Union Member States are proceeding or preparing to proceed with the issuance of such bonds.
The participation of the Republic of Cyprus in this market is expected to offer significant advantages both in terms of liquidity and rating by international rating agencies.
The forthcoming finalisation of the Cyprus Sustainable Finance Policy Framework paves the way for raising sustainable finance, allowing the Republic to access additional
