Private debt still high in Cyprus

Domestic households and non-financial corporations (NFC) continue to be highly indebted although the latest data indicate that debt levels have started decreasing, says a Central Banks of Cyprus report for September, released Friday.

Private non-financial debt stood at 354.2% of GDP as at the end of March 2016, down from 357.6% in the previous quarter. In comparison with the previous year, household and NFC debt ratios declined gradually to 127.3% and 226.9%2 of GDP, respectively, at the end of March 2016.

Bank credit to the domestic non-financial private sector decreased to 243.1% of GDP at end of March 2016 compared with 252.0% a year earlier.

Furthermore, a stabilisation in the financial position of households and NFCs was observed. The net financial asset position (net worth) of households increased to 121.8% of GDP in 2016 Q1.

Source: Cyprus News Agency.