Central Bank of Cyprus reports ongoing debt reduction in private sector

The Central Bank of Cyprus released its 'Quarterly Financial Accounts' report on Friday, October 30, 2026, detailing the financial position of households and non-financial companies as of the end of June 2026. The data indicates a significant trend of deleveraging across the Cypriot economy compared to December 2016.

As of June 2026, household debt stood at €20 billion, representing 53% of the country's GDP, while debt for non-financial companies reached €41.7 billion, or 111% of GDP. Household financial assets amounted to €67.1 billion, with 54% held in cash, deposits, and loans, 25% in shares, and the remainder in other assets. Non-financial companies reported total assets of €77.9 billion, primarily composed of shares (37%), cash and deposits (24%), and other financial instruments.

The report highlights a dramatic long-term reduction in indebtedness, with household debt levels down 65% since December 2016 and corporate debt indices showing a 95% decrease over the same decade-long period. These figures demonstrate improved financial stability and resilience within the Cypriot private sector, reflecting a decade of systematic debt repayment and deleveraging.