Investor Presentaiton

Strong fiscal performance continues during 2019 • During Jan-Aug 2019 the fiscal position continued to be in surplus at 3,2% of GDP compared to 2,4% of GDP of the corresponding period of the previous year. • The revenue side increased by 12% vis-à-vis the corresponding period of 2018. This improvement is attributed primarily to revenue collection due to the introduction of the national health system, as well as EU-related grants. The expenditure side increased at a rate of 9,6% vis-à- vis the corresponding period of 2018 with the increase attributed to national health system contributions and expenditure as well as increases in payments for wages and salaries. • Structurally, 2019 marked the continuation of the gradual reversal of wage cuts, the increase in social security contributions, and most importantly, the introduction of the national health system. Budget revenue breakdown, EUR million 6.976 8.278 7.671 7.087 5.874 5.246 2015 2016 2017 2018 Jan-Aug 2018 Jan-Aug2019 Indirect taxation Other Social contributions Direct taxation Budget expenditure breakdown, EUR million 7.038 7.028 7.328 7.542 4.513 4.950 2015 2016 2017 ■Capital Expenditure Interest Source: Cyprus Statistical Service, Ministry of Finance ■Compensation of Employees Note: The budget outcomes of 2014-15 and 2018 exclude government contributions for the Cyprus Cooperative Bank. 2018 Jan-Aug 2018 Jan-Aug2019 Others Social Transfers ■Consumption 17

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