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59% of Cyprus government debt in 2013 covered by loans

03 July, 2014

More than half of Cyprus` government debt in 2013 was covered by loans, figures released by Eurostat show.

59% of Cyprus government debt was financed by loans and the remaining 41% was financed by bonds. In contrast 81% of the EU average government debt was financed by securities (bills, bonds, etc. excluding shares and financial derivatives), 16% by loans and 4% by currency and deposits.

The fist country with the highest ratio of government debt financed by loans was Estonia with 86%, Greece with 75%, Cyprus with 59% and Latvia with 54%. Greece and Cyprus are under a financial assistance programme from the EU/IMF which covers their financing needs.

Excluded from international capital markets since May 2011, Cyprus agreed with the Troika of the European Commission, the European Central Bank and the International Monetary Fund on a €10 billion financial assistance programme, of which €7.5 billion covers its maturing debt and fiscal needs until the first quarter of 2013. The remaining €2.5 billion were allocated for the recapitalisation of hte banking sector, except Bank of Cyprus which has been recapitalised by conversion of deposits to capital.

In contrast, Malta (92% of total government debt), the Czech Republic and the United Kingdom (both 90%), Belgium and Slovenia (both 87%), Slovakia (86%), France and Italy (both 84%) registered the highest proportions of debt financed by securities.