Small improvement in Cyprus international investment position

The international investment position (IIP) recorded a small improvement at the end of first quarter of 2022, while the net external debt decreased by €2.23 billion, despite the deterioration recorded on the current account balance.

In particular, according to the provisional data for the Q1 of 2022 published by the Statistics Department of the Central Bank of Cyprus, the international investment position recorded a small improvement, presenting a net liability position of €28,008.9 million, compared with a net liability position of €28,786.8 million in 2021 Q4.

With the corresponding data being adjusted for the impact of SPEs, IIP recorded a net liability position of -€8,999.2 million at the end of 2022 Q1, compared with a net liability position of -€10.150,0 million, at the end of the previous quarter.

Moreover, according to the CBC, the current account balance of Cyprus recorded a deterioration, with the deficit increasing from €865.9 million in 2021 Q1, to €1,061.8 million, in 2022 Q1.

The resulting deficit when adjusting the data for the impact of Special Purpose Entities (SPEs), that is, classifying SPEs as non-residents, stood at €1,018.8 million in 2022 Q1, compared with a deficit of €682.7 million in 2021 Q1.

Also, gross external debt decreased to €189,246.7 million in 2022 Q1 from €192,714.8 million in 2021 Q4.

External assets in debt instruments decreased to €132,654.5 million, down from €133,889.4 million in 2021 Q4. "Consequently, net external debt decreased by €2,233.2 million to €56,592.2  million, over 2022 Q1", CBC reports.

Adjusted for the impact of SPEs, gross external debt reached €64,658.8 million at the end of 2022 Q1, compared to €68,271 million, at the end of 2021 Q4, while the corresponding net external debt indicator decreased to -€5,793.5 million, compared with -€3,730.1 million at the end of the previous quarter.