Cyprus current account balance and international investment position improve in Q3 2021

The current account balance of Cyprus and its international investment position improved in the third quarter of 2021, according to provisional data released by the Statistics Department of the Central Bank of Cyprus on Thursday.

According to the preliminary balance of payments data for 2021 Q3, the current account balance of Cyprus recorded an improvement, with the deficit decreasing from €616.9 million in 2020 Q3, to €144.7 million, in 2021 Q3, the Central Bank said in a press release.

The resulting deficit when adjusting the data for the impact of Special Purpose Entities (SPEs), that is, classifying SPEs as non-residents, stood at €237.4 million in 2021 Q3, compared with a deficit of €617.6 million in 2020 Q3, it adds.

The international investment position (IIP) recorded a slight improvement at the end of 2021 Q3, presenting a net liability position of €29,761.3 million, compared with a net liability position of €29,809.9 million in 2021 Q2, it notes.

With the corresponding data being adjusted for the impact of SPEs, IIP recorded a net liability position of €10,480.4 million at the end of 2021 Q3, compared with a net liability position of €10.664,1 million, at the end of the previous quarter.

At the same time, the gross external debt decreased to €192,395.1 million in 2021 Q3 from €193,271.5 million in 2021 Q2.

On the other hand, external assets in debt instruments increased to €132,121.1 million, up from €127,925.5 million in 2021 Q2. Consequently, net external debt decreased by €5,072.0 million to €60,274.0 million in 2021 Q3, the Central Bank says.

Adjusted for the impact of SPEs, gross external debt reached €66,816.9 million at the end of 2021 Q3, compared to €62,630.2 million, at the end of 2021 Q2. The corresponding net external debt indicator reached -€3,021.5 million, compared with -€1,786.2 million at the end of the previous quarter, it concludes.