Cyprus household debt reached 66 per cent of GDP in 2023

Household debt in Cyprus stood at 66 per cent of Gross Domestic Product (GDP) at the end of 2023, while corporate debt reached 133 per cent of GDP, according to the Central Bank of Cyprus’ (CBC) quarterly financial accounts, published on Tuesday.

The CBC report highlighted that household assets in financial instruments totalled €55.8 billion by the end of December 2023.

Of this, 57 per cent was in cash, deposits, and loans, 2 per cent in securities, 23 per cent in equities, and 17 per cent in other financial assets.

Household debt reached €19.7 billion by the end of December 2023, with the debt-to-GDP ratio at 66 per cent, showing a marginal decrease compared to the previous quarter, largely due to GDP growth.

Compared to December 2016, the household debt-to-GDP ratio indicated a significant decrease, reaching nearly 50 per cent.

On the corporate front, non-financial corporations’ assets in financial instruments totalled €67.6 billion, with 17 per cent in cash and deposits, 5 per cent in loans, 0.6 per cent in securities, 45 per cent in equities, and 32 per cent in other financial assets.

Corporate debt reached €39.4 billion by the end of December 2023, with the debt-to-GDP ratio standing at 133 per cent, marking a decrease compared to the previous quarter mainly due to GDP growth.

Similarly, compared to December 2016, the corporate debt-to-GDP ratio saw a notable decrease, reaching around 78 per cent.

Additionally, the Central Bank provided insight into the financial status of insurance companies, investment firms, and pension funds.

For insurance companies, their assets in financial instruments totalled €5.0 billion, of which 8 per cent were in cash and deposits, 2 per cent in loans, 29 per cent in securities, 43 per cent in equities, and 18 per cent in other financial assets.

Investment firms, on the other hand, possessed financial assets amounting to €5.9 billion, of which 5 per cent were in cash and deposits, 15 per cent in loans and securities, 78 per cent in equities, and 2 per cent in other financial assets.

As for pension funds, their investments in financial instruments reached €4.2 billion. These investments were primarily in cash and deposits (17 per cent), loans (15 per cent), securities (7 per cent), equities (52 per cent), and other financial assets (9 per cent).