04.01.2022
Cyprus’ current account balance and its international investment position improved in the third quarter of 2021, according to preliminary data released by the Statistical Office of the Central Bank of Cyprus.
According to preliminary balance of payments data for the third quarter of 2021, the current account balance of Cyprus recorded an improvement, with the deficit narrowing from 616.9 million euros in the third quarter of 2020 to 144.7 million euros in the third quarter of 2021, the Central bank in its press release.
The resulting deficit, when adjusted for the impact of Special Purpose Entities (SPEs), i.e. classifying SPEs as non-residents, was €237.4 million in the third quarter of 2021, compared to a deficit of €617.6 million in the third quarter of 2020.
The International Investment Position (IIP) recorded a slight improvement at the end of the third quarter of 2021, presenting a net liability position of EUR 29,761.3 million compared to a net liability position of EUR 29,809.9 million in the second quarter of 2021.
After the relevant data was adjusted for the impact of the SPE, IIP recorded a net liability position of €10,480.4 million at the end of the third quarter of 2021 compared to a net liability position of €10,664.1 million at the end of Q3 2021. the previous quarter.
At the same time, gross external debt decreased to EUR 192,395.1 million in the third quarter of 2021 from EUR 193,271.5 million in the second quarter of 2021.
On the other hand, external assets in the form of debt instruments increased to EUR 132,121.1 million, compared to EUR 127,925.5 million in the second quarter of 2021. Consequently, net external debt decreased by 5,072.0 million euros to 60,274.0 million euros in the third quarter of 2021, the Central Bank said.
Adjusted for the impact of SPEs, gross external debt reached EUR 66,816.9 million at the end of the third quarter of 2021, compared to EUR 62,630.2 million at the end of the second quarter of 2021. The corresponding indicator of net external debt reached -3,021.5 million euros compared to -1,786.2 million euros at the end of the previous quarter.
