Cyprus to fully repay IMF loan in 2020

Cyprus to fully repay IMF loan in 2020

Following the repayment of the 2.5 billion dollars Russian loan this year, the government has indicated that it is also planning for the early repayment of the debt to the International Monetary Fund.

According to figures from the 2020 budget presented by Finance Minister Haris Georgiades to the Cabinet, Cyprus will repay the IMF loan early resulting in a government debt reduction to 91.1 percent of GDP. The IMF loan now stands at 691 million euros.

The repayment of the Russian loan in 2019 reduced government debt to 97.4 percent of GDP.

Based on the medium-term budgetary framework for 2020 – 2022, the Ministry of Finance notes that the fiscal policy pursued and the strong recovery of economic activity have brought about a significant improvement in the budget balance sheet, which remains in surplus. Public debt is judged to be viable under all scenarios of stress tests.

Cyprus debt is classified as investment grade, there is easy access to international markets while yields on Cyprus bonds remain at historically low levels.

The 2020 budget provides for general government revenue of 10 billion euros and government expenditure of 9.4 billion euros.

Primary central government expenditure (state budget expenditure) will amount to 6.94 billion euros, which is an increase of 633 million euros over the 2019 budget.

[Kathimerini Cyprus]

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