The COVID-19 pandemic has sent the world into a flurry, with countries scrambling for funds to deal with the emergency and run the nation. Cyprus, of course, is no exception. The rising coronavirus case numbers have left many in doubt of the capability of the government to maintain fiscal balance.
The country’s top economist, however, does not agree. Fiona Mullen, who works for Sapienta Economics claims that the Cypriot government is far from being in danger; in fact, it has enough reserve to last for at least 2 years.
Her statement was confirmed by the Finance Ministry, who’s spokesperson declared that the bank has reserves worth €4.2 billion.
Mullen further explained that while the government may have issued a lot of debt in the last year, it has more than enough funds to cover this debt. She stated how the during December 2019, the public debt was at €20.96 billion, which is 95.5 per cent of island country’s GDP. While this is a lot, the good news is that this time around, the 100 per cent mark has not been crossed.
As of May 2020, the amount of public debt stood at €24.4 billion.