Investor Presentaiton
Positive public debt dynamics
• Public debt peaked over 2015-2016. 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 78% 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 ratio continues to exhibit a declining
path albeit at a slower pace.
• The current policy followed is for liquid assets to cover
gross financing needs of the following 9-month period
on a rolling basis.
Evolution of gross and net general government debt, %
120
110
100
80
108
108 106.
103
103
96
104
102
101
96
98
91
94
89
83
78
90
80
80
79
66
70
56
60
50
ཐ
56
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
-2
-4
-6
-8
2019f
2020f
2021f
2022f
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 April 2019. All forecasts are based on assumptions and there can be no assurance they will be realised.
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