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Private debt in Cyprus at 206% of GDP in Q3 2023

Private debt in Cyprus, debt of households and non-financial corporations, amounted to 206% of Cyprus’ GDP in the third quarter of 2023, remaining broadly stable, according to the quarterly financial accounts released by the Central Bank of Cyprus (CBC).

According to the CBC, Household financial assets in the third quarter of 2023 amounted to pound 57 billion, of which 57% was in cash deposits and loans, 2% in bonds, 22% in stocks and 19% in other financial assets.

Household debt in end-March amounted to pound 19.9 billion and represented 48% of Cyprus GDP, marking a marginal decline due to GDP expansion. Compared with the end of December 2022 household debt rose by pound 200 million.

According to the CBC, since December 2016 household debt to GDP declined by 48%.

Furthermore, the assets of the non-financial corporations (NFCs) amounted to pound 66.5 billion in the third quarter of 2023, of which 19% were cash and deposits, 4% in loans and 0.5% in securities, 46% in stocks and 31% in other financial asse
ts.

According to the CBC, the NFCs’ debt of non-financial corporations (total liabilities in loans and bonds excluding intra-company debt), in the third quarter of 2023, amounted to pound 40.2 billion, amounting to 138% of Cyprus GDP, with the debt-to-GDP index marking a small increase compared with the previous quarter.

Compared to December 2016 the debt of non-financial corporation to GDP has declined by 73%, the CBC added.

Source: Cyprus News Agency