Public debt posts decline in Cyprus

Cyprus is seeing a promising reduction in its public debt, with figures suggesting a return to 2019 levels. The debt stood at 22.3 billion euros by the end of 2023, showing a slight decrease from €22.4 billion in September of the same year. Notably, the debt had reached €23.8 billion last June.

Analysis of the debt structure reveals that domestic debt accounts for a mere 3%, with the remaining 97% being foreign debt. The composition of borrowing also indicates a shift, with fixed-rate borrowing at 67% and floating-rate borrowing at 33%. Interestingly, the latter has been on the rise, increasing from 30% in June to 33% by the end of 2023, while fixed-rate loans have witnessed a decline.

In the fiscal realm, the Ministry of Finance's preliminary projections foresee a continued downward trajectory of public debt as a percentage of GDP, with an estimated 60.1% by the end...