In 2023, Cyprus’s central government debt decreased by €689 million, marking a 3% reduction from the previous year, with the total debt standing at €22.4 billion. This fiscal improvement was driven by the repayment of domestic bonds and a strategic approach towards sustainable financing, including the issuance of green and social bonds. The Republic of Cyprus showcased a remarkable fiscal turnaround in 2023, with the central government debt decreasing significantly, setting the stage for economic recovery postpandemic and boosting confidence among investors and international financial entities.
1 public debt reduction
Cyprus is set to witness a significant reduction in its public debt by the end of 2024, with a projected 30 percent decrease in the debttoGDP ratio. The European Commission has praised Cyprus for its fiscal discipline and expects the country to achieve a structural surplus and maintain economic stability through prudent fiscal management.