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Cyprus will begin planning its return to international financial markets in September, aiming for a fourth-quarter re-entry, officials confirmed. According to an article by Kathimerini's Panayiotis Rougalas, the move comes despite global uncertainties, including wars and trade disputes, but analysts expect the country to borrow without difficulty and at favorable interest rates.
Cyprus does not urgently need to access markets in 2025, thanks to strong fiscal results and previous successful debt issuances that have bolstered cash reserves. Financing needs are projected at €1.1 billion in 2025 and 2026 and €1.7 billion in 2027, with total debt maturing between 2025 and 2029 estimated at €10.4 billion.
The government’s Medium-Term Public Debt Management Plan aims for 85% of gross financing to come from external sources, primarily through European Medium-Term Note (EMTN) bonds. Debt maturities are set to peak in 2028 at €2.67 billion, split between EMTN bonds and loans, including repayments to the European Stability Mechanism.
Cyprus’ credit rating has strengthened in 2025, with S&P, Fitch, Moody’s, and DBRS Morningstar assigning ratings from A3 to A-, reflecting stable fiscal policy, debt reduction, and financial system improvements. A second round of assessments is expected next year.
Under a new EU economic governance framework, Cyprus will follow a Strategic Fiscal Policy Framework for 2026–2028 that ties fiscal planning to country-specific debt sustainability analyses, giving member states more flexibility while enforcing commitments through annual progress reports to the European Commission.
