Household and business debt in Cyprus remains at €60 billion but continues to decline

The total debt of households and businesses in Cyprus amounted to approximately €60 billion as of the end of September 2025. This was reported by the Central Bank of Cyprus in data published on Friday.

Despite the overall level of debt remaining high, the regulator notes a significant year-on-year reduction, indicating a gradual improvement in the financial sector and a decrease in the debt burden on the economy.

According to the Central Bank, the reduction in debt is linked both to the repayment of previously taken loans and to a more restrained lending policy by banks, as well as a cautious approach by households and businesses to borrowing amid economic uncertainty.

Experts note that the downward trend in debt is a positive signal for the country’s financial stability; however, the level of debt remains substantial and requires continued monitoring.