Private debt reduced to €56 bln in Q2

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In Cyprus, private debt (households and non-financial corporations) declined to €56 bln in Q2 2021, marking a reduction of €500 mln from the previous quarter, according to financial data from the central bank (CBC).

The debt of the non-financial corporations (total liabilities in loans and bonds excluding intra-group amounts) at the end of June was €36.2 bln, from €36.9 bln in Q1.

The CBC said that the debt to GDP ratio was 168%, marking a small reduction in GDP growth.

And corporate debt to GDP ratio has declined by 43% since the end of 2016.

Household debt end-June 2021 was €19.8 bln from €19.6 bln, with the debt to GDP ratio declining to 92% due to GDP growth.

And since December 2016, household debt to GDP has declined by 24%.

Total assets of the non-financial corporations reached €63.3 bln in Q2, 17% in cash and deposits, 4% in loans, 0.4% in bonds, 49% in stocks and 30% in other financial assets.

Household total financial assets Q2 were €56.3 bln, 61% in cash, deposits and loans, 2% in bonds and 17% in other financial assets.

According to the CBC, the assets of insurance companies in mainly financial means rose slightly to €4.1 bln in Q2, 10% in cash and deposits, 3% in loans, 24% in bonds, 47% in stocks and 16% in other financial assets.

The assets of investment firms were €7.4 bln, 4% in cash and deposits, 8% in loans and bonds, 84% in stocks and 4% in other financial assets.

Pension fund assets amounted to €3.8 bln, 27% in cash and deposits, 16% in loans, 3% in bonds, 43% in stocks and 12% in other financial assets.