After 15 years, the credit rating agency Standard & Poor’s has upgraded Cyprus’s credit rating from “A-” to “A,” again with a positive outlook.
“This is undoubtedly a strong vote of confidence in our economy, its resilience, and its prospects. A strong vote of confidence in our fiscal responsibility. In our high growth rates. In historically low unemployment rates. In the significant reduction of public debt.”
Nikos Christodoulides – President of the Republic
ΣΧΕΤΙΚΑ ΑΡΘΡΑ
“The balanced and growth-oriented economic policy pursued by the government, which ensures resilience and strengthens the fundamentals of the Cypriot economy, has been recognized in practice by S&P’s upgrade of the country’s credit rating.”
Makis Keravnos – Minister of Finance
At a time when the country’s inflation is rising rapidly and the cost of living is taking its toll, Giorgos Georgiou explains exactly what these ratings mean.
“The fact that the country has surpluses—meaning it can repay its debt and has banks that are sufficiently robust—leads to upgrades. All of this leads to upgrades by the rating agencies. Of course, this does not reflect the situation for the average household, as much of the government’s revenue comes precisely because inflation is rising, and some of the revenue comes from profits generated by companiesthat are headquartered in Cyprus but operate internationally.”
George Georgiou – Economic Analyst
Social Policy
As the numbers look promising, the President of the Republic and the Minister of Finance explain that this creates opportunities for social policy.
“In practice, this means increasing disposable income and improving citizens’ daily lives. Above all, it means that we are building a more secure foundation for future generations.”
Nikos Christodoulides – President of the Republic
“The government’s priority is to ensure that the benefits of the economy’s positive performance reach our households and businesses, and, through targeted social policy, to effectively support our most vulnerable fellow citizens.”
Makis Keravnos – Minister of Finance
Despite the upgrades, the majority of citizens do not share the same sense of satisfaction as the president and the minister, AKEL points out in a statement.
AKEL
“While inflation, energy poverty, and the housing crisis continue to take their toll, the economy’s recovery is not translating into tangible benefits for society. While the country’s major problems await answers, the government does not appear capable or willing to offer solutions to them.”
DISY
“Economic progress must reach the everyday lives of citizens, especially at a time when rising costs are putting pressure on households, workers, young couples, and small businesses. Now is the time to harness this momentum for substantive reforms such as reducing energy costs, creating a digital and efficient government, boosting productivity, and implementing effective social and housing policies.”
Public debt is projected to fall to 46.6% in 2027, to 42.5% in 2028, and to 38.4% in 2029.
Watch the report by Kleio Vourkou:
