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

According to the Quarterly Financial Accounts published for the end of June 2023, the household debt in end-March amounted to €20.2 billion and represented 73% of Cyprus GDP, marking a marginal decline due to GDP expansion. Compared with the end of December 2022 household debt rose by €200 million.

Household financial assets in the first quarter of 2023 amounted to €59.6 billion, 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.

According to the CBC, 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 the first quarter of 2023, rose to €39.9 billion, amounting to 145% of Cyprus GDP, with the debt-to-GDP index marking a small increase compared with the previous quarter. In absolute terms NFCs debt amounted to €38.6 billion in the fourth quarter of 2022.

According to the CBC, the NFCs financial assets amounted to €66.3 billion in the first quarter of 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 corporation to GDP has declined by 66%, the CBC added.