Household debt in Cyprus has dropped by 57 per cent drop since December 2016, according to a report by the Central Bank of Cyprus (CBC).
The CBC’s latest quarterly financial accounts report for the period ending June 2024, also highlighted an 81 per cent reduction in the debt ratio for non-financial corporations.
The report includes a breakdown of assets held by insurance companies, investment funds, and pension funds in Cyprus.
Insurance companies hold financial assets worth €5.5 billion. These include 7 per cent in cash and deposits, 2 per cent in loans, 29 per cent in bonds, 43 per cent in shares, and 18 per cent in other financial instruments.
Investment funds reported €6.3 billion in financial assets, with 5 per cent in cash and deposits, 15 per cent in loans and bonds, 78 per cent in shares, and 2 per cent in other assets.
Pension funds recorded financial investments of €4.3 billion, with allocations of 15 per cent to cash and deposits, 15 per cent to loans, 7 per cent to bonds, 55 per cent to shares, and 8 per cent to other financial holdings.
Elsewhere in the report, household financial assets totalled €59.5 billion as of June 2024, with 55 per cent held in cash, deposits, and loans, 4 per cent in bonds, 24 per cent in shares, and 17 per cent in other assets.
Household debt reached €19.8 billion, marking a debt-to-GDP ratio of 61 per cent. This ratio has edged down compared to the previous quarter, partly due to GDP growth.
When compared to December 2016, household debt has dropped by a substantial 57 per cent.
Moreover, non-financial corporations recorded financial assets of €74.6 billion, with allocations of 18 per cent in cash and deposits, 7 per cent in loans, 0.6 per cent in bonds, 43 per cent in shares, and 32 per cent in other assets.
In addition, corporate debt totalled €40.5 billion by June 2024, equating to 125 per cent of GDP—a decrease from the prior quarter.
Finally, since December 2016, Cyprus’ corporate debt ratio has fallen by 81 per cent.
