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Debt financing eases until 2019

23/02/2016 14:50
The financing needs of Cyprus are relatively small in the next three years, according to data released yesterday by the public debt management office of the ministry of finance.

The PDMO announced the repayment schedule for the public debt.

An amount of €1139 mn must be repaid in 2016 while repayment amounts for 2017 and 2018 stand at €453 mn and €873 mn respectively.

The largest part of debt repayments for 2016 relates to domestic bonds (€764 mn) followed by other loans (€250 mn) and foreign bonds (€170 mn).

The state’s domestic lending is usually based on domestic financial institutions, many of whom currently have excess liquidity and are directly linked to the government (e.g. Cooperatives).

The largest part of 2017 repayments is also domestic debt, but from 2018 there are large amounts for repayments of other loans, possibly related to the repayment of the Russian loan.

The PDMO does not specify what “other loans” includes.

The total amount of the public debt reached €18684 mn at the end of December.

The largest part corresponds to IMF and ESM loans (€7182 mn), foreign bonds (€3372 mn), other loans (€5608 mn) and domestic bonds (€2522 mn).

The ministry of finance aims at retaining liquidity of €1 bn, in order to mitigate risks looming after the end of the international support program in March.

The public debt is expected to fall to 91% of GDP until 2020 without privatizations, and to 80% in case privatizations proceed.

The public debt is currently estimated around 107% of GDP, though official final data on the size of the economy in 2015, are not released yet.