Investor Presentaiton

Budget expenditure grows moderately • Expenditure growth has remained below the medium term GDP growth rate. • Wages and salaries have been increasing at contained rates, and less than the increase in nominal GDP. The year 2018 marked the start of the reversal of wage cuts imposed during the crisis with a view to restoration by 2023. • Interest payments are expected to evolve broadly stable in 2019 vis-à-vis 2018 despite the increase in the public debt recorded in 2018 owing to debt refinancing at lower interest rates. • Despite expenditure increases, budget expenditure as a share of GDP was 36% in 2018, below the EU average of 45,6%. Budget expenditure, EUR million 1.833 1.763 1.684 1.707 1.521 1.558 1.573 1.623 11931136 2015 2016 2017 2018 Jan-Aug2019 ■Social Security Payments Wages & Salaries Budget expenditure, % change y-o-y 9,9 5,8 4,0 3,3 1,4 -1,1 3,2 2,4 1,0 -2,5 2015 2016 2017 Wages & Salaries Source: Cyprus Statistical Service, Eurostat, Ministry of Finance Note: The budget outcomes of 2014-15 and 2018 exclude government contributions for the Cyprus Cooperative Bank. 2018 Jan-Aug2019 Social Security Payments 19

View entire presentation