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20 July, 2024
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Cyprus to fully repay IMF loan in 2020

The Finance Ministry expects a debt reduction to 91.1% of GDP


Following the repayment of the € 2.5 billion Russian loan this year, the government has indicated that it is also planning for the early repayment of the debt to the International Monetary Fund.

According to figures from the 2020 budget presented by Finance Minister Haris Georgiades to the Cabinet, Cyprus will repay the IMF loan early resulting in a government debt reduction to 91.1% of GDP. The IMF loan now stands at 691 million euros.

The IMF loan now stands at 691 million euros

The repayment of the Russian loan in 2019 reduced government debt to 97.4% of GDP. 

Based on the medium-term budgetary framework for 2020 - 2022, the Ministry of Finance notes that the fiscal policy pursued and the strong recovery of economic activity have brought about a significant improvement in the budget balance sheet, which remains in surplus. Public debt is judged to be viable under all scenarios of stress tests.

Cyprus debt is classified as investment grade, there is easy access to international markets while yields on Cyprus bonds remain at historically low levels.

The 2020 budget provides for general government revenue of € 10 billion and government expenditure of € 9.4 billion. Primary central government expenditure (state budget expenditure) will amount to € 6.94 billion, which is an increase of € 633 million over the 2019 budget.

Budget  |  Cyprus  |  Economy  |  Georgiades  |  Finance  |  Surplus

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