Loans ex­ceed vol­ume of debt se­cu­ri­ties

Financial Mirror (Cyprus) - - FRONT PAGE -

Loans ex­ceed the vol­ume of debt se­cu­ri­ties in Cyprus at a ra­tio of 69% as a main fi­nan­cial in­stru­ment for 2015, ac­cord­ing to Euro­stat. At the same time, the share of debt owned by non-res­i­dents was the high­est in the EU (at 76%), along with Lithua­nia, Slove­nia and Fin­land, the Cyprus News Agency re­ported.

In con­trast, debt se­cu­ri­ties were the main fi­nan­cial in­stru­ment in al­most all EU mem­ber states in 2015. This was par­tic­u­larly the case in Malta (92% of to­tal govern­ment debt), the Czech Repub­lic (90%), the United King­dom (89%), Hun­gary, Slove­nia and Slo­vakia (all 85%), France and Italy (both 84%).

Loans largely pre­vailed only in Es­to­nia, Greece and Cyprus, where they ac­counted for 89%, 78% and 69% re­spec­tively. The use of loans was also high in Lux­em­bourg (42%), Por­tu­gal (39%) and Croa­tia (37%). The use of cur­rency and de­posits was in gen­eral very low, ex­cept in Ire­land (10%), the United King­dom (9%), Italy and Por­tu­gal (both 8%).

Sig­nif­i­cant dif­fer­ences can be ob­served across the EU re­gard­ing the sec­tor in which govern­ment debt is held. Among mem­ber states for which data are avail­able, the share of pub­lic debt held by non-res­i­dents in 2015 was high­est in Cyprus, Lithua­nia, Slove­nia and Fin­land (all with 76% of to­tal govern­ment debt), fol­lowed by Aus­tria (73%) and Latvia (72%).

In con­trast, the largest pro­por­tion of debt held by the res­i­dent fi­nan­cial cor­po­ra­tions sec­tor was recorded in Den­mark (63%), ahead of Lux­em­bourg and Malta (both 62%), Italy (60%), Croa­tia and the United King­dom (both 59%). Gen­er­ally across the EU, less than 10% of debt was held by the res­i­dent non fi­nan­cial sec­tors, with the no­tice­able ex­cep­tions of Malta (29%), Hun­gary (14%) and Ire­land (10%).

With slightly more than a quar­ter (27%) of to­tal govern­ment debt hav­ing a term below one year, Swe­den reg­is­tered in 2015 the high­est pro­por­tion of short-term ini­tial ma­tu­ri­ties of debt among the Mem­ber States for which data are avail­able. Hun­gary (15%), Italy and Por­tu­gal (both 14%) as well as France (11%) fol­low.

At the op­po­site end of the scale, al­most all debt was made up of long-term ma­tu­ri­ties in Es­to­nia, Poland, Bul­garia and Slo­vakia. This in­for­ma­tion comes from a re­port re­leased by Euro­stat. It pro­vides de­tailed in­for­ma­tion on gen­eral govern­ment debt in the EU Mem­ber States bro­ken down by sub­sec­tor, fi­nan­cial in­stru­ment, debt holder, ma­tu­rity, cur­rency of is­suance as well as govern­ment guar­an­tees and other fea­tures. Only a small se­lec­tion was re­leased to­day.

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