Cyprus public debt falls below 100%

_: Cyprus Public debt decreased to 98.4% of GDP, the Finance Ministry’s Public Debt Management Office announced on Wednesday confirming its earlier projection that the public debt would fall below the 100% mark in December of 2017.

In November 2017, the government proceeded with an early repayment of a part of its debt to Central Bank of Cyprus amounting to Euros 630 million. The outstanding debt to the CBC amounts to Euros 510 million.

The debt-to-GDP ratio declined from 107% in 2017 to 98.4% at end year 2017, the PDMO said in a newsletter.

Apart from the early repayment of the debt to the CBC, the debt-to-GDP ratio declined due to increase of Cyprus’ GDP in absolute numbers due to the grow of the economy. After a 3.9% growth in 2017 Cyprus’ GDP is calculated at Euros 18.83 billion.

Furthermore, the PDMO said cash reserves are sufficient to cover the financing needs for 2018.

The PDMO also noted that yields for Cyprus 2024 EMTN bond followed an upward trajectory since December 2017 reaching 1,61% from 1.31%,but remains below the yield of 2.61% recorded at its launch in June 2017.

However, the bond’s yield return to a downward path declining to 1.59% during its trading yesterday.

Source: Cyprus News Agency