Cyprus’ state debt to the Social Security Fund has increased sharply in recent years, according to figures submitted to Parliament by the Ministry of Labour.
During a session of the Parliamentary Finance Committee on Monday, which discussed the 2026 budgets for the Social Security Fund, the Central Leave Fund, the Fund for the Protection of Employees’ Rights in Cases of Employer Insolvency, and the Redundant Staff Fund, the ministry provided detailed data on state debt dating back to 2010.
The state’s debt to the Social Security Fund reached €11.3 billion in 2025, up from €9.4 billion in 2023, €7.3 billion in 2018, €7 billion in 2013, and €6.6 billion in 2010.
Arrangement
Debt to the Redundant Staff Fund stands at €998 million, rising from €792 million in 2023, €447 million in 2018, €369 million in 2013, and €342 million in 2010.
Overall, total debt to all public funds now totals €12.8 billion, compared with €10.6 billion in 2023, €8.1 billion in 2018, €7.6 billion in 2013, and €7.2 billion in 2010.
The ministry noted that until 31 July 2010, there was an arrangement between the Social Security Fund and the Central Bank of Cyprus, which managed public debt and invested the fund’s reserves in 13-week government bills, automatically renewed at maturity.
In 2010, management of public debt was transferred to the Ministry of Finance, and a new arrangement was implemented. Under the new system, government bills are no longer automatically renewed but become part of the Fund’s reserves, which are made available to the government as interest-bearing deposits in the General Accounting Office.
Repayment plan
Lawmakers requested the figures and a clear repayment plan for the debt. The Minister of Labour told Parliament that repayment will be addressed through the upcoming pension reform.
The minister emphasized that there are no sustainability concerns, noting that actuarial studies projecting to 2080 confirm the fund’s strength, barring extreme unforeseen circumstances. Pension reform will also include provisions for the fund’s investment policy, management, and gradual debt repayment.
This article was originally published on the Greek-language Politis website.