Private debt at €218% of GDP

Private debt in Cyprus (households and non-financial corporations) was 218% of GDP in the first quarter of 2023, with debt in absolute numbers totalling €60.1 bln, the Central Bank of Cyprus (CBC) said.

Household debt in end-March was €20.2 bln, representing 73% of Cyprus’ GDP, marking a marginal decline due to GDP expansion.

Compared with the end of December, household debt rose by €200 mln.

Household financial assets in Q1 2023 were €59.6 bln, compared with €59.6 in Q4 2022, of which 61% was in cash deposits and loans, 2% in bonds, 20% in stocks and 18% in other financial assets.

Since December 2016, household debt to GDP declined by 42%.

The debt of non-financial corporations (total liabilities in loans and bonds excluding intra-company debt), in Q1, rose to €39.9 bln, amounting to 145% of GDP, with the debt-to-GDP index marking a small increase from the previous quarter.

In absolute terms, NFCs debt amounted to €38.6 bln in Q4 2022.

According to the CBC, the NFCs financial assets were €66.3 bln in Q1 2023, of which 18% were cash and deposits, 4% in loans and 0.3% in securities, 48% in stocks and 30% in other financial assets.

Compared to December 2016, the debt of non-financial corporations to GDP has declined by 66%.