Warnings about the Fragility of the Cypriot Economy
August 20, 2025
The stability of the private sector in Cyprus is sensitive to negative external developments. High levels of debt remain a source of vulnerability for the private sector, although there has been a reduction in recent years. The debt of households and non-financial enterprises has decreased but remains above the euro area average. Economists from the Central Bank warn of the risks posed by old debt. Financial stability depends on the conditions of the broader economy.