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.
The economic outlook for Cyprus is now positive, as Capital Intelligence Ratings has upgraded the longterm foreign currency rating to BBB and highlighted the reduction in government debt, strong fiscal performance, and banking sector reforms contributing to this optimistic outlook. The nation’s proactive debt management strategy, high per capita GDP, and robust fiscal performance are key factors driving this positive assessment, signaling a promising future for Cyprus’s economic stability.
