Sustainable Bond Framework slide image

Sustainable Bond Framework

• Positive public debt dynamics from 2021 onwards In 2020, the increase of the debt-to-GDP ratio to 113.5 percent (of which 12 percent was due to increased cash buffer) from 90.4 percent the year before, was attributed to the revision of the Annual Funding Plan targeted to tackle the challenges of the pandemic crisis from the beginning of the year. Evolution of gross and net general government debt, % 120.0 110.0 113.5 108.2106.8 102.6 102.6 101.0 98.1 100.0 90.4 92.6 102.4103.0 98.3 97.4 90.0 95.7 97.0 $86.5 In 2021, general government debt recorded a 79.7 80.6 89.3 89.5 substantial decrease of about 12.5 percentage points (p.p) of the GDP, reaching 101% of the GDP, which was the highest reduction among the euro area countries. 80.0 86.2 74.1 65.7 78.6 76.9 70.0 Gross Debt/GDP 56.3 60.0 Net debt/GDP 61.6 50.0 55.6 In 2022 the general government debt recorded a further reduction of about 14.5 p.p reaching 86.5% of GDP, which constitutes the second largest decrease of debt to GDP in the EU. The debt-to-GDP ratio is expected to further decline during the medium term and fall below 75 percent of GDP by the end of 2025, to about 71 percent. However, there is a high uncertainty surrounding the developments of the Russian- Ukraine crisis, along with the global economic uncertainty. 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022(est.) 2023(f) 2024(f) Source: Cyprus Statistical Service, Ministry of Finance Note: "f" denotes forecasts by the Ministry of Finance as of April 2022. All forecasts are based on assumptions and there can be no assurance they will be realised. 17 2025(f) 70.0
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