Cypriot households and businesses continue to be highly indebted despite the decline in debt levels, according to a report released on Tuesday by the Central Bank of Cyprus.
According to the report, the debt of the non-financial private sector reached 226.6% of GDP at the end of March 2018, down from 240.3% in the previous quarter.
Debt ratios of households and non-financial corporations show a gradual decrease to 104.7% and 121.9% of GDP respectively at the end of March 2018, compared to 109.4% and 130.9% of GDP respectively, at the end of December 2017.
The net worth of households declined to 108.7% of GDP in the first quarter of 2018 compared to 109.8% in the fourth quarter of 2017. This ratio is still below the corresponding average the euro area (148.5%) in March 2018.
The net worth of non-financial corporations to GDP is negative and decreased to 107.5% at the end of March 2018 from the level of 114.4% at the end of December 2017.