Household debt remained at the same levels as in the second quarter of 2020, according to an announcement by the Central Bank of Cyprus.
According to the data, their debt amounted to 19.7 billion euros at the end of September 2020, with the relevant debt ratio being at 93% of Gross Domestic Product (GDP), without much change compared to the previous quarter. Compared to December 2016, the household debt ratio shows a significant decrease reaching 23%.
The following is a brief description of the basic sizes:
Insurance companies, investment firms and pension funds
The assets of insurance companies [1] in terms of purely financial instruments increased very little and amounted to 3.9 billion euros and are distributed as follows: 10% [2] in cash and deposits, 3% in loans, 28% in bonds, 44% in shares and 16% in other financial assets.
Respectively, the investment institutions have assets in financial instruments 5.2 billion euros invested 6% in cash and deposits, 9% in loans and securities, 79% in shares and 5% in other financial elements.
Investments in financial instruments of the pension funds amounted to 3.4 billion euros and mainly concern cash and deposits at a rate of 31%, 18% in loans, 3% in securities, 41% in shares and 8% in other financial elements.
Households and non-financial companies
Household assets in financial instruments at the end of September 2020 amounted to 52.2 billion euros, of which 62% related to cash, deposits and loans, 2% related to securities, 20% shares and 17% other financial assets. Their debt [3] at the end of September 2020 amounted to 19.7 billion euros with the relevant debt ratio [4] being at 93% of Gross Domestic Product (GDP), without much change compared to the previous quarter. Compared to December 2016, the household debt ratio shows a significant decrease reaching 23%.
The corresponding assets of non-financial companies amounted to 62.8 billion euros with a ratio of 16% in cash and deposits, 5% in loans, 1% in securities, 49% in shares and 29% in other financial assets. The sector's debt [3] at the end of September 2020 amounted to € 37.3 billion with the debt ratio [4] at 176% of GDP), recording a small increase compared to the previous quarter due to the contraction of GDP. Compared to December 2016, the debt ratio of non-financial companies shows a significant decrease of up to 36%.
[1] From March 2016, the data of the insurance companies sector are compiled based on the new Regulation ECB / 2014/50
[2] The percentages listed may not add up to 100% due to rounding.
[3] Debt is defined as the total liabilities in loans and securities (excluding amounts between companies in the same sector).
[4] Debt ratio is defined as debt as a percentage of Gross Domestic Product (GDP).
Philenews / Insider
