As of July this year, the Central Bank of Cyprus will become independent from the government and other authorities, with full responsibility for its budget. At the same time, a loan of at least CYP 300 million will be taken up at the end of June, consolidating all its obligations into a long-term loan to be paid off over 30 years.

The independence of the CB will mean that it will be beyond government or other influences and it is considered that this will assist in the correct handling of public finance management overall. In addition, this will mean that the government will need to turn to the private sector for borrowing. To date, it is estimated that the state owes the CB around CYP 300 million.