Cyprus economy records negative financial net worth of €31.32 billion

Cyprus households held €62.57 billion in financial assets at the end of 2025, with more than half of their holdings kept in cash and bank deposits, while outstanding household loans approached €20 billion, according to figures released by the Cyprus Statistical Service (Cystat) on Monday.

The figures showed that household financial assets totalled €62.57bn at the end of December 2025, of which 53.8 per cent consisted of currency and deposits, indicating that bank savings and cash remained the largest component of household financial holdings.

Equities accounted for a further 25 per cent of household financial assets, while debt securities represented 2.6 per cent and loans 0.8 per cent.

Meanwhile, household loans reached €19.89bn at the end of December 2025, equivalent to a debt-to-gross domestic product ratio of 51.9 per cent.

The figures form part of Cystat’s annual financial accounts by institutional sector, which examine the financial assets and liabilities held by households, businesses and other parts of the economy.

Non-financial corporations, meanwhile, held €75.86bn in financial assets at the end of 2025, with a considerably different composition from that of households.

Cash and deposits accounted for 24.1 per cent of corporate financial assets, while loans represented 5.5 per cent and debt securities 1 per cent.

Equities made up 37 per cent of the total, while other financial instruments accounted for a further 31.9 per cent.

Outstanding loans to non-financial corporations reached €41.62bn at the end of December 2025, corresponding to a corporate debt-to-GDP ratio of 108.6 per cent.

Looking at the economy as a whole, Cystat recorded total financial assets of €795.13bn, compared with financial liabilities of €826.45bn, leaving a negative financial net worth of €31.32bn.

These figures do not represent the value of money held by households or the annual output of the Cypriot economy.

Instead, they capture financial positions across institutional sectors, including companies and financial institutions, and cover instruments such as shares, investment fund holdings, deposits, loans and debt securities.

The scale of the totals is largely explained by the inclusion of financial instruments and investment holdings across the economy, rather than simply the savings and borrowing of individuals and businesses.

Equities and investment fund shares accounted for the largest proportion of total financial assets, representing 50.4 per cent, equivalent to approximately €400.74bn.

Currency and deposits represented 17.9 per cent, or around €142.33bn, while loans accounted for 17.6 per cent, worth approximately €139.94bn.

Debt securities made up 5.7 per cent of total financial assets, while other accounts receivable and payable accounted for 6.8 per cent. Other financial categories represented the remaining 1.6 per cent.

On the liabilities side, equities and investment fund shares represented 51.9 per cent of total liabilities, equivalent to approximately €428.98bn.

Loans accounted for 23.4 per cent of total liabilities, or around €193.39bn, while currency and deposit obligations represented 12.6 per cent, worth approximately €104.13bn.

Other accounts receivable and payable made up 7.8 per cent of liabilities, debt securities accounted for 3 per cent, and other financial categories represented the remaining 1.4 per cent.

The figures highlight the distinct asset distribution strategies, with household holdings concentrated in deposits and cash, while corporate assets were more heavily weighted towards equities and other financial instruments.