in-cyprus Government debt rises to €20.4 b in 1st half of 2018 

Government debt rises to €20.4 b in 1st half of 2018 

Cyprus’ central government’s debt rose to €20.43 billion in the first half of 2018 recording an increase of 11.6% compared with December 2017, according to data released by the Finance Ministry’s Public Debt Management Office (PDMO).

In absolute terms, the increase amounted to €2.12 billion due to the issuance of domestic government bonds amounting to €2.35 billion to facilitate the sale of the state-owned Cyprus Cooperative Bank to Hellenic Bank. The rise was partly of the offset by the first payment to the loan Cyprus received in 2011 from the Russian Federation which now amounts to €2.18 billion.

Due to the bonds issued to the CCB, total debt in domestic bonds rose to €4.5 billion in the end of the first half of the current year, compared with €2.08 billion in end-2017. Total debt in domestic bonds also comprises Treasury Bills amounting to €300 million and special retail bonds and saving securities totalling €672 million.

Total domestic debt for the first half of 2018 (both domestic securities and domestic loans) amounted to €5.34 billion or 26% of the central government’s total debt.

Debt in Euro Medium Term Notes remained unchanged at €4.50 billion, while no change was observed in domestic loans to the Central Bank and the CCB which amounted to €858.2 million.

The lion share in Cyprus’ debt was held by foreign official sectors. Foreign loans in the end of June 2018 amounted to €10.6 billion from €10.9 billion in end-2017. The reduction is attributed to the first payment of €313 million to the loan obtained by the Russian Federation in 2011. Foreign loans include the €6.3 billion debt to the European Stability Mechanism which remains Cyprus biggest creditor. Cyprus’ loan to the IMF amounted to €687 million.

The central government’s debt as reported by the PDMO, amounts to 98% to Cyprus’ total debt and excludes debt to the social security fund, debt of the semi-governmental organisations and local administration.

Top Stories

EU, Turkey cautiously eye improved ties after tough 2020

The European Union and Turkey have pressed each other to take concrete steps to improve relations long strained by disagreements over energy, migration and...

EU to tighten travel curbs for virus hot spots as third wave fears mount

The European Commission has proposed to EU leaders identifying "dark red" coronavirus hot spots from which all but essential travel would be discouraged after...

President Anastasiades says slow rollout of EU vaccines a problem

President Nicos Anastasiades has pointed out the problems Cyprus is confronted with because of the slow rollout from the EU of Covid-19 vaccines. This is...

Cyprus’ revised 2021 budget approved by marginal majority

Cyprus’ revised 2021 budget was approved by marginal majority on Thursday evening allowing the government to deal with the crucial economic fallout from the...

Mainly fine on Friday with high cloud in the afternoon

Mainly fine on Friday with high cloud developing in the afternoon and light snow falling on  Troodos mountain. Winds will be north-westerly to north-easterly, initially...

Taste

Squash soup

Ingredients: 1 kg pumpkin, cut into small cubes, approximately 5 cups 2 medium (400g) sweet potatoes, cut into cubes, approximately 2 ½ cups 1 chopped leek, only...

Mezedes

No visit to Cyprus is complete without enjoying the traditional meal of many small dishes known as ‘meze’. This large feast, which has been a...

Prawns with fried cheese, barley shaped pasta

Put the barley shaped pasta into a small pan with salted water, bring to a boil and when tender, drain. Peal the prawns leaving...

Salmon and shrimp sheftalies

Mix all ingredients for tabbouli in a bowl and keep to one side so flavours can combine. Prepare the sheftalies: wash and soak the casing...