Friday 20 July 2018

Cyprus reduces debt burden as it partly pays off central bank loan

A post box in Nicosia, Cyprus
A post box in Nicosia, Cyprus

Cyprus's public debt is projected to drop to 98.4% of gross domestic product by the end of this year after partly paying off a large loan it owed to the central bank, the island nation's government has said.

The government said Monday's 621 million euro (£549 million) payment shaves 3.2 percentage points off the public debt, bringing it below 100 percent of GDP noticeably faster than earlier forecasts.

The International Monetary Fund had projected that Cyprus' debt would drop to 98.7% of GDP in 2019.

Cypriot government officials have hailed the debt drop as an important sign of the economy's steady return to health.

Cyprus had to get a multi-billion euro rescue deal with the IMF and other eurozone creditors in 2013 to stave off bankruptcy.

AP

Press Association

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