The current account of Cyprus recorded a significant deterioration in the first quarter of 2020, while the international investment position of Cyprus marked a small improvement, according to data released on Tuesday by the Central Bank of Cyprus.
The current account of Cyprus deteriorated significantly in Q1, recording a deficit of €928,1 million, compared with a deficit of €639,4 million in the corresponding quarter of 2019.
Adjusting the data for the impact of Special Purpose Entities (SPEs), that is, classifying SPEs as non-residents, the resulting deficit stands at €769,9 million in Q1 2020, compared with a deficit of €798,4 million in Q1 2019.
The international investment position (IIP) recorded a slight improvement at the end of Q1 2020, presenting a net liability position of €25.342,1 million, compared with a net liability position of €25.459,5 million in the last quarter (Q4) of 2019.
Adjusting the data for the impact of SPEs, IIP recorded a net liability position of €7.650,3 million at the end of Q1 2020, compared with a net liability position of €8.000,5 million, at the end of Q4 2019.
The gross external debt amounted to €205.690,5 million in Q1 2020, compared with €205.302,8 million in Q4 2019. The same trend was also recorded by external assets in debt instruments which increased to €121.401,1 million, up from €119.652,5 million in Q4 2019. The net external debt decreased by €1.360,9 million to €84.289,5 million, over Q1 2020.
Adjusted for the impact of SPEs, gross external debt reached €57.474,3 million at the end of Q1 2020, compared to €57.759,7 million, at the end of Q4 2019, while the corresponding net external debt indicator significantly declined to -€1.975,6 million, compared with €282,0 million at the end of Q4 2019.