Cyprus’ international investment position (IIP) showed slight improvement during the third quarter of 2024, according to a report released this week by the Central Bank of Cyprus (CBC).

The IIP recorded a net liability position of €27.8 billion in Q3 2024, compared to €27.9 billion in Q2 2024.

Adjusted for the impact of special purpose entities (SPEs), categorised as non-residents, the IIP showed a net liability of €9.9 billion, down from €10.0 billion in Q2 2024.

In addition, the balance of payments showed a marked improvement. The current account deficit narrowed significantly to €29.6 million in Q3 2024 from €369.4 million in the same period in 2023.

When adjusted for SPEs, the deficit stood at €108.2 million in Q3 2024, down from €351.6 million in Q3 2023.

Gross external debt also declined to €261.5 billion in Q3 2024 from €262.1 billion in Q2 2024.

Meanwhile, external assets in debt instruments dropped to €243.8 billion from €249.7 billion in Q2 2024.

As a result, net external debt increased by €5.3 billion to €17.7 billion in Q3 2024.

When SPEs are excluded, gross external debt stood at €59.3 billion in Q3 2024, down from €61.1 billion in Q2 2024, while net external debt improved to -€20.8 billion, compared to -€19.2 billion in the previous quarter.