1 public debt reduction

debt management economic stability

Cyprus’ Cash Reserves: A Buffer Against Global Economic Uncertainty

Cyprus strategically accumulated €2.83 billion in cash reserves to cover 132% of nearterm debt, leading to a notable €740 million debt reduction and net debt at 68% of GDP. The PDMO’s issuance of benchmark bonds and investments from the Social Insurance Fund further solidified the nation’s fiscal resilience against global economic uncertainty.

debt reduction external borrowing

Cyprus Central Government Debt Reduces Significantly in 2023

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 to Witness Significant Public Debt Reduction by End of 2024

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.

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