Why is Cyprus in so much debt?
It erupted 10 years ago when the tiny mediterranean island, member of the EU but also a tax haven, found out that the local banks were insolvent. They had lent money to Greece; when the Greek economy nosedived, the Cypriot banks took a bigger gamble, buying up Greek government bonds in the hopes of a bailout.
The 2012–2013 Cypriot financial crisis was an economic crisis in the Republic of Cyprus that involved the exposure of Cypriot banks to overleveraged local property companies, the Greek government-debt crisis, the downgrading of the Cypriot government's bond credit rating to junk status by international credit rating ...
The banking crisis was in fact the result of very poor regulation and supervision by the Central Bank of Cyprus (see, for example, the Lascelles report), huge nonperforming loans built up by the two largest commercial banks, poor governance at the banks (resulting in conflicts of interest vis-a-vis overextended ...
In 2022, the national debt of Cyprus amounted to around 25.56 billion U.S. dollars.
At the top is Japan, whose national debt has remained above 100% of its GDP for two decades, reaching 255% in 2023. *For the U.S. and Canada, gross debt levels were adjusted to exclude unfunded pension liabilities of government employees' defined-benefit pension plans.
Akrotiri and Dhekelia (/ˌækroʊˈtɪəri ənd diˈkeɪliə/), officially the Sovereign Base Areas of Akrotiri and Dhekelia (SBA), is a British Overseas Territory on the island of Cyprus.
The services sector, including tourism, contributes almost 80% to GDP and employs more than 70% of the labor force. Industry and construction account for approximately one-fifth of GDP and labor, while agriculture is responsible for 2.1% of GDP and 8.5% of the labor force.
A small Cypriot institution called Cyprus Development Bank[1] had violated certain unnamed provisions of anti-money laundering regulatory requirements between 2014 and 2016, the Central Bank found. For these infractions, a modest fine of €715,000 would be imposed, reducible to about €600,000 if paid promptly.
Resilient Macroeconomic Performance: The Cypriot economy has remained relatively resilient this year, with GDP increasing by 2.5% on an annual basis in the first three quarters of 2023. Faster economic growth in 2H24 should translate into GDP growth of 2.7% for next year.
Depositors in two Cypriot banks lost billions when savings were confiscated to protect the island's banking system in 2013, in a process known as a bail-in. The move was a condition sought by international creditors for a 10 billion euro ($11.62 billion) bailout to the east Mediterranean island.
Is Cyprus a rich or Poor country?
Despite being an attractive tourist destination, the nation faces economic challenges, particularly due to the division of the island. Cyprus has a GNI per capita of $26,110 and a GDP per capita of $26,623.80. The total GDP of Cyprus is 24 billion.
However, the Republic of Cyprus is de facto partitioned into two main parts: the area under the effective control of the Republic, in the south and west and comprising about 59% of the island's area, and the north, administered by the self-declared Turkish Republic of Northern Cyprus, covering about 36% of the island's ...
Cyprus is generally considered to be a high-income country. It has a developed and diversified economy with a high per capita income, ranking 32nd in the world by the World Bank in 2021.
| Characteristic | National debt in relation to GDP |
|---|---|
| Macao SAR | 0% |
| Brunei Darussalam | 2.06% |
| Kuwait | 3.08% |
| Hong Kong SAR | 4.27% |
- Brunei. 3.2%
- Afghanistan. 7.8%
- Kuwait. 11.5%
- Democratic Republic of Congo. 15.2%
- Eswatini. 15.5%
- Palestine. 16.4%
- Russia. 17.8%
Low Interest Rates: Japan has maintained a low interest rate environment for an extended period, partly due to the Bank of Japan's monetary policies. This means that the cost of servicing the debt is re.
Before 1974, Varosha was the modern tourist area of the Famagusta city. Its Greek Cypriot inhabitants fled during the Turkish invasion of Cyprus in 1974, when the city of Famagusta came under Turkish control, and it has remained abandoned ever since.
| Ranking in Cyprus | World position | Name |
|---|---|---|
| 1 | 63 | Vinod Adani |
| 2 | 133 | John Fredriksen |
| 3 | 842 | Yakir Gabay |
| 4 | 1264 | Sergey Dmitriev |
Yes, Cyprus is generally considered safe for female travellers, including those travelling on their own. Crime rates are low but personal attacks, including sexual assault, do happen. The UK Foreign Office says that drug-assisted rape is a risk in Cyprus, and includes the use of drugs such as GHB and liquid ecstasy.
Wages in Cyprus averaged 1877.48 EUR/Month from 2003 until 2023, reaching an all time high of 2693.00 EUR/Month in the fourth quarter of 2023 and a record low of 1360.00 EUR/Month in the first quarter of 2003. source: Statistical Service, Ministry of Finance of Republic of Cyprus.
Why is Cyprus so important?
The strategic importance of Cyprus increased as the result of the Ottoman Empire taking over the countries around the Eastern Mediterranean. The conquest of the island was necessary for the establishment of the Ottoman rule in the Mediterranean.
Cyprus, island in the eastern Mediterranean Sea renowned since ancient times for its mineral wealth, superb wines and produce, and natural beauty.
The suspicious financial flows, reportedly more than €220 million, were made between 2019 and 2021. During that period, T.C.R. International Limited, a financial services company registered in Cyprus, conducted investment transactions for its clients in partnership with BNP Paribas Securities Services.
In March 2013, Cyprus experienced an acute crisis surrounding the terms of an agreement to receive financial assistance from the European Union and the International Monetary Fund. The original proposal, which included a bank deposit levy on Cypriot bank account holders, was rejected by the country's parliament.
Revealed as a central player in these stories: RCB Bank. The series showed the Cyprus bank had funneled more than $800 million in lines of credit — unsecured — to a Caribbean shell company that moved money to other shell companies that traced directly to intimates of Putin himself.
