The Cypriot government plans to create a national register of debts owed by individuals and legal entities.
The initiative is being implemented as part of the European Economic Recovery and Sustainability Plan, under which the island nation will receive €1.2 billion in cash grants until the end of 2026.
The project will be managed by the Ministry of Finance. According to the idea, the national registry will store all information on debts owed to the state, local authorities, the Department of Electrification (AΗΚ), the telecommunications company CyTA, banks and credit companies. The system will show any outstanding debt, even if it is only one cent.
Initially, the register will contain data on debts at the state level. For example, information on unpaid income tax, social security contributions, unpaid fines from the Department of Motor Vehicles and land registry taxes and fees. The register will then include data on the liabilities of individuals and legal entities to banks and debt purchase companies.
The innovations are expected to ensure a fair and accurate registration of debts, contributing to the stability of both the financial sector and public institutions. The data collection will be linked to government databases, allowing for real-time updates.
According to preliminary indications, the new system will come into force on 31 December 2024, which will be a significant step towards improving fiscal surveillance and ensuring more sustainable debt management practices in Cyprus.