Nicosia, Cyprus. Cyprus’ apparent cost of government debt increased to 2 per cent in 2025, while the country’s debt remained overwhelmingly denominated in euro, according to newly released Eurostat data on general government debt in the European Union.
Eurostat debt data
The latest figures were part of Eurostat data on general government debt in the European Union, which also examined debt instruments, debt holders, debt maturities, transactions in debt securities and government guarantees.
Differences across the European Union
Across the bloc, the structure of general government gross debt differed considerably from country to country.
Eurostat said these differences reflected factors such as the initial and remaining maturity of debt, the instruments used by governments and the institutional sectors holding the debt.
Currency denomination
A more uniform picture emerged when debt was examined by currency denomination.
By the end of 2025, all members of the euro area had virtually all of their general government gross debt denominated in euro.
Eurostat said more than 99.5 per cent of government debt in every euro area country was denominated in the single currency.
This meant that Cyprus, along with other eurozone members, maintained almost complete reliance on the euro for public borrowing.
Countries outside the euro area
Among countries outside the euro area, the Czech Republic and Sweden also showed a strong preference for issuing debt in their own national currencies.
In both countries, more than 90 per cent of government debt was denominated domestically.