InsiderBusinessCypriot households and businesses remain highly indebted

Cypriot households and businesses remain highly indebted

Cypriot households and businesses continue to be highly indebted despite the decline in debt levels, according to a report released on Tuesday by the Central Bank of Cyprus.

According to the report, the debt of the non-financial private sector reached 226.6%  of GDP at the end of March 2018, down from 240.3% in the previous quarter.

Debt ratios of households and non-financial corporations show a gradual decrease to 104.7% and 121.9% of GDP respectively at the end of March 2018, compared to 109.4% and 130.9% of GDP respectively, at the end of December 2017.

The net worth of households declined to 108.7% of GDP in the first quarter of 2018 compared to 109.8% in the fourth quarter of 2017. This ratio is still below the corresponding average the euro area (148.5%) in March 2018.

The net worth of non-financial corporations to GDP is negative and decreased to 107.5% at the end of March 2018 from the level of 114.4% at the end of December 2017.

(Cyprus News Agency)

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