The government is faced with €903m in debt maturities next year after having to repay €374m in maturing debt by the end of 2017, the Public Debt Management Office (PDMO).
Next year’s maturities are broken down to €805m in loans, including the first two instalments of a loan from Russia and €98m in domestic government development stock, the PDMO said in a statement on its website. This year’s remaining maturities include €309m in government development stock and €65m in other loans.
Following recent debt buybacks, maturities in 2019 and 2018 dropped below €1.4bn for each year, from a cumulative €4.5bn two years ago, the PDMO said. Maturities will drop to below €1.3bn in 2021 when Cyprus repays the Russian loan and will rise in 2022 and 2023 to €1.7bn and €1.6bn respectively.
According to a source, the repayment of the €2.5bn loan received from Russia in 2011, restructured in 2013, will commence on March 1 next year, when Cyprus will pay the first of eight instalments of €312.5m each.
On October 16, Finance Minister Harris Georgiades said that the government intended to repay the government’s debt to the central bank thus reducing the ratio of public debt to gross domestic product to 99 per cent or below.