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12° Nicosia,
13 June, 2024
 

Cyprus navigates economic uncertainty with strong economic reserves

Government's financial strategy positions Cyprus for stability amid global challenges

Newsroom

Cyprus is sitting pretty with a lot of cash in the bank, and it's good news for handling any economic bumps in the road. The government's stash of nearly €2.83 billion can cover a big chunk of its debts due in the next year. Plus, when you take away that cash, the country's debt compared to what it makes (the debt-to-GDP ratio) isn't too scary at 68%.

Even though interest rates are going up globally, Cyprus managed its money well in 2023. It used a bunch of its cash to pay off debts, which means it owed less compared to what it makes. Since the COVID-19 mess started in 2020, Cyprus has been getting its debt down by almost 39% thanks to strong economic growth.

Looking forward, most of Cyprus' debts are due between 2024 and 2028, with the biggest chunk coming in 2028. But don't worry, they're keeping an eye on things to make sure they don't end up owing more. They're feeling pretty confident they can handle it though, especially with the economy bouncing back.

They've also got a plan for the future: issuing bonds (kind of like IOUs) every year to cover their bills. They're aiming for longer-term bonds because they think it'll be cheaper in the long run. Overall, Cyprus is doing a good job managing its money, which should help keep things stable in the future.

[With information from CNA]

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Cyprus  |  economy

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