The total private debt in Cyprus, encompassing both households and non-financial corporations, reached 195% of GDP in the first quarter of 2024. This marks a slight reduction compared to the previous quarter, primarily driven by an increase in the country’s GDP.

According to the quarterly financial accounts for the first quarter of the year released on Wednesday by the Central Bank of Cyprus (CBC), household debt stood at €19.6 billion at the end of March 2024. This places the debt-to-GDP ratio for households at 65%, showing a marginal decrease from the previous quarter, attributed to GDP growth.

At the close of the fourth quarter of 2023, household debt was recorded at €19.7 billion, with a corresponding debt-to-GDP ratio of 66%.

Household financial assets totaled €56.3 billion at the end of March 2024. These assets were distributed as follows: 56% in cash, deposits, and loans, 3% in debt securities, 24% in shares and 17% in other financial assets.

The CBC noted that the household debt ratio has significantly decreased by 51% since December 2016.

Non-financial corporations debt reach €39.3 billion at the end of March 2024, with the debt-to-GDP ratio at 130%. This represents a decline from the previous quarter, again primarily due to GDP growth. At the end of the fourth quarter of 2023, the sector’s debt was €39.4 billion, with a debt-to-GDP ratio of 133%.

Since December 2016, the debt ratio for non-financial corporations has decreased by 81%.

The financial assets of non-financial corporations amounted to €68.7 billion, with 17% in cash and deposits, 5% in loans, 0.6% in debt securities, 45% in shares, and 32% in other financial assets.