12.08.2022
According to the latest available data, the Cypriot public debt decreased to 24.18 billion euros at the end of June 2022, a decrease of 3.10% compared to the corresponding period last year.
Compared to the first quarter of this year, the gross public debt of Cyprus decreased by 3.9%. In May, the government redeemed EUR 1 billion of European medium-term bonds (EMTN) using existing cash reserves.
In June 2022, Cyprus’ debt fell to its lowest level since the start of the Covid-19 pandemic, but remains well above pre-pandemic levels as the Ministry of Finance began issuing large debt in an attempt to boost government cash reserves to support economic activity during the time of health crisis.
According to the latest data, a significant amount of Cyprus’ gross debt in June 2022, estimated at more than 10%, is held in cash reserves, which cover financing needs for 2022 and a significant part for 2023.
In addition, the Ministry of Finance stated in its Stability Program 2022-2025 that it estimates that public debt is projected to fall to 23.5 billion euros or 93.9% of GDP by the end of the year and continue to decline in subsequent years. . as the government draws down its cash reserves.
“The expected 10.1 percentage point decline in total government debt is due to the repayment of a significant amount of debt due during the year, which is expected to be covered by both new debt issuance and the use of a monetary buffer,” said the Ministry of Finance .
The ministry estimates that in 2023 gross public debt will fall to around 88.2% and 81% and 76.7% by the end of 2024 and 2025, respectively. billion 10-year EMTN bond , covering its core funding needs for the year, while the ministry’s funding plan also includes an additional €0.5 billion bond issue.
