Investor Presentaiton
Positive public debt dynamics
• Public debt peaked over 2014-2015. After a one-off
increase in 2018 due to the placement of government
bonds as part of the partial sale of Cyprus Cooperative
Bank, the decline is expected to resume and progress
steadily to 81% by 2022.
• Debt dynamics are favourable due to growth, positive
fiscal balance and low interest burden.
• The debt sustainability analysis, introducing various
shocks to the macroeconomic parameters, indicates
that the debt declining rate remains resilient albeit at
a slower pace.
Evolution of gross and net general government debt, %
120
108
108 106
110
103
96
103
104
99
97
100
102
101
98
91
94
86
90
80
81
80
79
66
70
56
60
56
50
62
62
Gross Debt/GDP
Net debt/GDP
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019f 2020f 2021f 2022f
Debt dynamics, % of GDP
0
• The current policy followed is for liquid assets to cover
gross financing needs of the following 9-month period
on a rolling basis.
-2
-4
-6
-8
2019f
2020f
2021f
2022f
I Primary balance
Interest rate-growth differential
Inflation
Source: Cyprus Statistical Service, Ministry of Finance
Note: "f" denotes forecasts by the Ministry of Finance as of September 2019. All forecasts are based on assumptions and there can be no assurance they will be realised.
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