Cyprus records significant public debt reduction in late 2025

Data from Eurostat for the fourth quarter of 2025 indicates that Cyprus achieved one of the largest public debt reductions among European Union member states. The Cypriot public debt fell to 55.0% of GDP, totaling 20.078 billion euros, compared to 21.696 billion euros in the third quarter of 2025 and 21.814 billion euros in the fourth quarter of 2024. This represents a quarterly decrease of 5.3 percentage points and an annual decrease of 7.7 percentage points. Across the European Union, the debt-to-GDP ratio stood at 81.7%, while in the Eurozone it was 87.8% at the end of 2025. Although these figures show a quarterly decline, both the EU and Eurozone experienced an annual increase in debt ratios compared to the previous year. Eurostat reports that 83.5% of EU public debt consists of debt securities, 14.2% of loans, and 2.4% of currency and deposits. High debt-to-GDP ratios were recorded in Greece (146.1%), Italy (137.1%), France (115.6%), Belgium (107.9%), and Spain (100.7%), while Estonia recorded the lowest at 24.1%.