Cyprus: Lower Interest Rates and Lender Confidence

Cyprus is now borrowing on more favorable terms, reflecting increased confidence from the investment community. The interest rate for the new €1 billion ten-year EMTN bond was set at 3.25%, lower than the 4.125% in April 2023.

The price difference (spread) with mid-swaps base rates reached a historic low for the Republic of Cyprus, at 44 basis points (0.44%). Minister of Finance Makis Keraunos emphasized that the government will continue its sound policy for further economic development.

According to Eurostat data, Cyprus recorded a significant decrease in public debt in the third quarter of 2025, ranking among the countries with the largest improvement in the European Union. Cypriot public debt decreased to 60.6% of GDP.