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Share of public debt held by non-residents highest in Cyprus among EU28

June 21, 2019 at 1:44pm
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The share of public debt held by non-residents in 2018 was highest in Cyprus (76%), followed by Latvia (74%) and Lithuania (73%), according to data released today by Eurostat.

In contrast, the largest proportion of debt held by the (resident) financial corporations sector was recorded in Denmark (72%), ahead of Sweden (70%) and Italy (65%).

More specifically out of the 102.5% of total debt to GDP ratio in 2018,  76.5% is held by non-residents (rest of the world), 19.8% by resident financial (financial corporations), 3.7% by resident non-financial sectors, 1.8% is short term (<1 year) and  0.7% is  on currency and deposits, 50.9% is on debt securities, 48.5% on loans. Finally 97.9% corresponds to the total central government debt.

Generally across the EU, less than 10% of debt was held by the resident non-financial sectors (non-financial corporations, households and non-profit institutions serving households), except Malta (25%), Hungary (22%), Portugal (13%) and Ireland (11%).

With slightly above 20% of total government debt having a term below one year, Sweden registered the highest proportion of short-term initial maturities of debt among the Member States in 2018, ahead of Hungary (18%), Portugal (17%), Italy (13%) and Denmark (12%). At the opposite end of the scale, almost all of the debt was made up of maturities exceeding one year in Bulgaria, Lithuania, Poland and Cyprus.

In 2018, debt securities were the main financial instrument in almost all Member States. This was notably the case in Czechia (90% of total general government debt) and Hungary (89%), followed by Malta and Slovenia (both 88%), the United Kingdom (87%), Spain, France and Slovakia (all 86%), as well as Italy (85%).

In contrast, loans largely prevailed in Estonia and Greece, where they accounted for 88% and 82% respectively.

The use of loans was also relatively high in Cyprus (48%), Luxembourg (32%), Croatia (31%), Sweden (30%) and Portugal (28%). Currency and deposits generally made up a relatively small share of debt, except in Portugal (11%), Ireland and the United Kingdom (both 10%), and Italy (8%).

(Cyprus News Agency)