Cypriot households hold more than €56 billion in financial assets, CBC reports

Households in Cyprus hold more than €56 billion in financial assets, with a significant portion held in cash, deposits, and loans, while also reducing their debt burden, according to a report released on Wednesday by the Central Bank of Cyprus (CBC).

Specifically, according to the CBC’s latest edition of its quarterly financial accounts, Cypriot households’ financial assets were reported at €56.3 billion by the end of March 2024.

Of these assets, 56 per cent were held in cash, deposits, and loans, 3 per cent in securities, 24 per cent in shares, and 17 per cent in other financial assets.

In addition, the CBC reported that household debt stood at €19.6 billion, with a debt-to-GDP ratio of 65 per cent, showing a slight decrease compared to the previous quarter, primarily due to GDP growth.

Additionally, it was noted that since December 2016, the household debt ratio has decreased significantly, falling by 51 per cent during this time.

Meanwhile, the central bank reported insurance companies in Cyprus held financial assets totalling €5.2 billion.

These assets include 8 per cent in cash and deposits, 2 per cent in loans, 30 per cent in securities, 44 per cent in shares, and 16 per cent in other financial assets.

What is more, investment funds reported financial assets amounting to €6.2 billion, with investments divided into 5 per cent in cash and deposits, 15 per cent in loans and securities, 79 per cent in shares, and 2 per cent in other financial instruments.

Pension funds held €4.2 billion in financial assets, with 16 per cent in cash and deposits, 15 per cent in loans, 7 per cent in securities, 54 per cent in shares, and 8 per cent in other financial assets.

Non-financial corporations held financial assets of €68.7 billion, allocated as 17 per cent in cash and deposits, 5 per cent in loans, 0.6 per cent in securities, 45 per cent in shares, and 32 per cent in other financial assets.

The sector’s debt amounted to €39.3 billion, with a debt-to-GDP ratio of 130 per cent, also marking a decline from the previous quarter due to GDP growth.

Finally, when compared to December 2016, the debt ratio of non-financial corporations has significantly decreased, falling by 81 per cent since that time.