Current account balance improves

The current account balance of Cyprus in the second quarter of 2020 recorded an improvement. At the same time, the international investment position (IIP) recorded a slight deterioration at the end of the second quarter of 2020.

The Statistics Department of the Central Bank of Cyprus released today the provisional data for external statistics (balance of payments, international investment position and external debt) for the second quarter of 2020 (2020 Q2), as well as the revised data of the said statistics for the years 2017, 2018, 2019 and the first quarter of 2020 (2020 Q1).

According to the preliminary balance of payments data for 2020 Q2, the current account balance of Cyprus recorded an improvement, with the deficit decreasing from €307.9 million in 2019 Q2, to €182,0 million, in 2020 Q2.

The resulting deficit when adjusting the data for the impact of Special Purpose Entities (SPEs), that is, classifying SPEs as non-residents, stood at €450,7 million in  2020 Q2, compared with a deficit of €196,4 million in 2019 Q2.

The international investment position (IIP) recorded a slight deterioration at the end of 2020 Q2, presenting a net liability position of €27.015,4 million, compared with a net liability position of €26.735,4 million in 2020 Q1.

With the corresponding data being adjusted for the impact of SPEs, IIP recorded a net liability position of €8.989,5 million at the end of 2020 Q2, compared with a net liability position of €8.684,6 million, at the end of the previous quarter.

The gross external debt increased to €189.395,9 million in 2020 Q2 from €188.841,8 million in 2020 Q1. A similar trend was also recorded by external assets in debt instruments, which increased to €110.539,4 million, up from €110.411,7 million in 2020 Q1. Consequently, net external debt decreased by €426,4 million to €78.856,5 million, over 2020 Q2.

Adjusted for the impact of SPEs, gross external debt reached €60.204,1 million at the end of 2020 Q2, compared to €59.526,8 million, at the end of 2020 Q1. The corresponding net external debt indicator declined to -€2.635,5 million, compared with -€3.645,0 million at the end of the previous quarter.