Sustainable Bond Framework

• • • • Unemployment rates and Current Account • Labour Force Survey (LFS) unemployment in monthly seasonally adjusted terms increased to 7.4% in January 2023 compared to 6.0 % in January 2022. Youth unemployment is on downward trend reaching 18.6% in 2022 while long-term unemployment is at 2.3%. Deterioration in Labour market contained due to fiscal measures 18 16 14 Jo 12 Moderate current account deficits until 2018, within the limits set by the European Commission (-4%/+6% of GDP). The deterioration of the . current account in 2020 was mainly attributed to the income account as well as the services' balance, due to the COVID-19 pandemic. In 2021, the current account exhibited an improvement due to increased surplus in services and decreased deficit in the secondary income. The aforementioned developments were partly offset by increased deficits in goods and primary income. For the 9 months of 2022, the current account deficit stood at 8.5% of GDP compared to a deficit of 5.9% the corresponding period the year before. The deterioration resulted mainly from the increased deficit in goods and to a much lesser extent to secondary income. The aforementioned developments were partly offset by increased surplus in services and decreased deficit in primary income 10 8 6 Jan-15 May-15 Sep-15 Jan-16 May-16 Sep-16 Jan-17 Jan-17 May-17 May-17 Sep-17 Jan-18 May 18 May-18 Seasonally adjusted unemployment rate Sep-18 Jan-19 May-19 Sep-19 Jan-20 May-20 Sep-20 Jan-21 May-21 Sep-21 Jan-22 May-22 Current Account Balance (% of GDP) 0.0 Sep-22 Jan-23 -1.0 -0.5 -1.4 -3.1 -2.0 -0.4 -4.4 -4.0 -6.0 -4.1 -6.0 -4.2 -4.0 -5.0 -6.8 -7.7 -5.6 -9.4 -8.0 -8.1 -8.5 -10.0 The resulting deficit adjusted for the impact of Special Purpose Entities (SPEs), that is, classifying SPEs as non-residents, stood at €2.1 bn -12.0 (7.7% of GDP) in 9m2022, compared with a deficit of €1.3 bn (5.6% of GDP) in 9m2021. Services-based economy has been diversified from the traditionally main sectors, with IT&Telecom and Pharmaceuticals sectors now contributing to the economic activity. -10.1 2014 2015 2016 2017 2018 2019 2020 2021 9m 2022 Current Account excl. SPES Current Account Note: Special Purpose Entities (SPES) primarily operate in the shipping industry (ship registration/deregistration) with a small footprint on the economy Source: Central Bank of Cyprus, Cyprus Statistical Service, Eurostat 11

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