Cyprus central banker calls for vigilance

Constantinos Herodotou, governor of the Central Bank of Cyprus (CBC), has called for the preservation of fiscal space, as economic prospects are deteriorating due to Russia's war in Ukraine.

Addressing an event held on Thursday titled "The Global Debt Trap - The Implications for Growth and Possible Solutions to Tackle It," Herodotou also called for increased vigilance to avert private debt defaults that would lead to increased private debt levels.

Referring to Cyprus' public debt, Herodotou said that following its downward trajectory after the 2012-2013 economic crisis, public debt spiked in 2018 and 2020 due to matters related to the Cyprus Cooperative Bank, and in 2020 due to the outbreak of the pandemic.

Noting that the ratio of Cyprus' national debt to gross domestic product (GDP) dropped below 90% at the end of 2022 due to the reopening of the economy and...