Cyprus: Technical Assistance Report-Debt and Cash Management
January 5, 2022
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In tandem with Eurozone financial market developments and the prevalence of negative interest rates in 2020, Cypriot banks passed through the costs of their liquidity to their customers, reducing the attractiveness of placing PDMO cash surpluses in domestic bank deposits. Suitable investment alternatives to central bank deposits for the PDMO’s liquidity buffer are scarce, given negative yields on other Eurozone sovereign and agency issues. This situation is shared by the PDMO with almost all of its Eurozone peers. While this is likely to persist in the short term, it should not preclude establishing a framework governing the PDMO’s investment policy or a suitable set of guidelines.
Subject: Asset and liability management, Currencies, Debt management, Financial regulation and supervision, Government cash forecasting, Government debt management, International organization, Liquidity requirements, Monetary policy, Money, Public financial management (PFM)
Keywords: cash liquidity buffer, cash management practice, Currencies, Debt management, debt Management Office, Europe, funding plan, Global, Government cash forecasting, Government debt management, investment option, Liquidity requirements
Pages:
49
Volume:
2022
DOI:
Issue:
002
Series:
Country Report No. 2022/002
Stock No:
1CYPEA2022001
ISBN:
9781616358419
ISSN:
1934-7685
