According to the latest quarterly report from the Central Bank of Cyprus, household financial assets in Cyprus reached €65.1 billion at the end of December 2025. The data also show changes in asset allocation and a continued decline in borrowing levels.
Household Asset Composition And Debt Trends
Cash, deposits, and loans accounted for 53% of household financial assets, while bonds represented 3%. Equities made up 26%, with the remaining 17% classified as other financial instruments. Household debt stood at €19.8 billion, equivalent to 54% of GDP, slightly lower than in the previous quarter. Compared with December 2016, the debt-to-GDP ratio has fallen by 64%, indicating a reduction in leverage over time.
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Financial Performance Of Non-Financial Corporations
Non-financial corporations held €78.4 billion in financial assets. Their portfolios included 23% in cash and deposits, 6% in loans, 0.6% in bonds, 38% in equities, and 32% in other financial instruments. Total corporate debt reached €39.2 billion, or 107% of GDP. This represents a 99% decline in the debt-to-GDP ratio compared with December 2016, reflecting a sustained adjustment in corporate balance sheets.
Insurance, Investment And Pension Funds
Insurance companies held €6.2 billion in financial assets, while investment organisations managed €7.4 billion and pension funds €4.9 billion. In the insurance sector, equities accounted for 45% of assets and bonds for 28%. Investment organisations allocated 80% of assets to equities, while pension funds held 57% in equities.
These comprehensive insights from the Central Bank of Cyprus shed light on the evolving financial landscape in Cyprus, highlighting the ongoing shift toward asset-driven stability and strategic debt management amid a backdrop of economic recalibration.
