Cyprus Cuts Debt Ratio to 54.6% in Q1, Posting EU’s No. 2 Annual Drop
Updated
Updated · Stockwatch · Jul 21
Cyprus Cuts Debt Ratio to 54.6% in Q1, Posting EU’s No. 2 Annual Drop
2 articles · Updated · Stockwatch · Jul 21
Summary
Cyprus’ gross government debt fell to 54.6% of GDP in the first quarter of 2026, down 7.4 percentage points from 61.9% a year earlier—the second-largest annual decline in the EU after Greece.
Eurostat data showed the ratio also eased from 55.0% in the fourth quarter of 2025, even as the nominal debt stock was little changed quarter on quarter at €20.089 billion.
Compared with the first quarter of 2025, Cyprus’ debt stock dropped from €21.790 billion, helping drive the sharper annual improvement in the debt burden.
In Cyprus, debt securities accounted for 31.6% of GDP, loans 22.5%, and currency and deposits 0.5%, while intergovernmental lending assets stood at 0.8% of GDP.
Across the bloc, the trend was less favorable: euro area debt rose to 88.9% of GDP from 87.7% in the prior quarter, and the EU ratio climbed to 82.9% from 81.8%.