Household and non-financial corporations debt shows significant decrease

The debt index of non-financial corporations and households in Cyprus showed a significant decrease end of June 2024 compared to December 2016, according to data included in the publication of the Central Bank of Cyprus' Quarterly Financial Accounts.

The publication provides aggregated data on the financial assets and liabilities by economic sector for the reference quarter ending June 2024. 

The debt index of households compared to December 2016 dropped by 57%, while the debt index of non-financial corporations fell by 81%.

Assets of insurance corporations in terms of purely financial instruments amounted to €5.5 billion, ie 7% in currency and deposits, 2% in loans, 29% in securities, 43% in shares and 18% in other financial instruments.

Assets of investment funds in financial instruments were 6.3 billion euro invested 5% in currency and deposits, 15% in loans and securities, 78% in shares and 2% in other financial assets.

Investments in financial instruments of the pension funds amounted to 4.3 billion euro and are mainly currency and deposits (15%), loans also 15%, 7% in securities, 55% in shares and 8% in other financial instruments.

Household assets in financial instruments amounted to 59.5 billion euro at the end of June 2024, of which 55% in currency, deposits and loans, 4% in securities, 24% in shares and 17% in other financial assets.

Their debt at the end of June 2024 amounted to 19.8 billion euro corresponding to 61% of GDP, showing a marginal decrease compared to the previous quarter, partly due to the increase of the GDP. Compared to December 2016, the household debt index shows a noticeable decrease, reaching 57%.

The assets of non-financial corporations amounted to 74.6 billion euro with 18% in currency and deposits, 7% in loans, 0.6% in securities, 43% in shares and 32% in other financial assets.

The debt of this sector at the end of June 2024 amounted to 40.5 billion euro corresponding to 125% of GDP, marking a decrease compared to the previous quarter, partly due to the increase of GDP. Compared to December 2016, the debt index of non-financial corporations shows a significant decrease, reaching 81%.

(Source: CNA)