Cyprus Republic Sees Debt-to-GDP Ratio Drop to 72.3 Per Cent
Cyprus Republic has seen its debt-to-GDP ratio drop to 72.3 per cent, marking a substantial decrease of nearly 10 percentage points over the past year.
According to a report released on Friday from the Cyprus Statistical Service (Cystat), the total general government debt was recorded at €22.81 billion at the end of June, a reduction from the previous figure of €23.04 billion at the end of March.
Consequently, this decrease of €1.6 billion, corresponding to a drop of 6.8 per cent, compared to June 2023, has brought the debt-to-GDP ratio down from the previous year’s 82.1 per cent.
Additionally, on June 18, Cyprus issued a €1 billion seven-year bond, effectively ensuring the financial resources needed to cover its annual requirements, which the Public Debt Management Office (PDMO) estimates at €1.3 billion.
Moreover, GDP growth in the first half of the year also significantly impacted the debt reduction, standing at a seasonally adjusted rate of 3.5 per cent.
As a result, the revised forecast will be included in the 2025 government’s budget, which is expected to receive Cabinet approval by mid-September.
The above data indicate that the debt-to-GDP ratio may close the year below the Finance Ministry’s initial projection of 70.5 per cent, as detailed in the fiscal outlook for 2025-2028.
Finally, the ministry said that it expects that the ratio will drop below the Maastricht Treaty’s threshold of 60 per cent by 2026.
Source: Cyprus Mail
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