Here are the top business stories in Cyprus from the week starting February 10:
Cypriot banks have lowered their key interest rates, with expectations of further reductions throughout 2025, in response to decisions made by the European Central Bank (ECB).
The director of retail banking at the Bank of Cyprus, Theodosios Theodosiou, stated in an interview with state radio that “the Bank of Cyprus, with a steady focus on the needs of society, immediately implemented all the measures announced on December 20, 2024.”
He explained that the bank had first moved to lower interest rates, promptly responding to the ECB’s decisions by reducing its reference rate for loans linked to the ECB’s base rate from 3.15 per cent to 2.90 per cent, effective from February 5, 2025.
Additionally, the Central Bank of Cyprus (CBC) has issued a warning regarding the risks associated with investing in crypto-assets, stressing the need to safeguard financial stability and protect consumers.
In a statement, the CBC advised the public “to be cautious before investing in crypto-assets, given the risks that could lead to significant financial losses and fraud.”
The bank explained that crypto-assets come in various forms, including those designed for payments, investments, and access to goods or services.
He explained that “by ensuring a stable economic environment, central banks provide the necessary foundation for businesses to invest and innovate with confidence.”
“Businesses are unlikely to gamble on new ideas if they’re worried about wild inflation swings or shaky financial markets,” Papadopoulos said.
He emphasised that this stability is crucial, allowing companies to plan and execute long-term strategies vital for innovation.
Papadopoulos also mentioned that central banks also play a significant role in directing the flow of capital towards innovation.
Keravnos acknowledged the “historical significance of the cooperative movement in Cyprus, particularly its role in supporting disadvantaged groups and farmers.”
However, he noted that as the movement expanded, various issues emerged, leading to its eventual collapse.
Subsequently, Limassol continued to lead Cyprus’ high-value real estate market in 2024, accounting for eight of the ten most expensive property transactions, with a total value of €176.8 million, according to real estate analytics firm Ask Wire.
Speaking on the sidelines of the general assembly of the Association of Cyprus Tourist Enterprises (Stek), he said that while Cyprus is not directly affected for now, continued tariffs could pose economic challenges.
“The EU has already expressed its concerns,” he said, adding that “Trump’s actions are creating issues around the globe.”
“As an EU member state, we are aligned with the European Commission’s position, and certainly, tariffs will not facilitate global trade,” he said.
“On the contrary”, he continued, “they will create barriers and inflationary pressures.”
Speaking during the annual general assembly of the Association of Cyprus Tourist Enterprises (Stek), the president explained that the government’s priority will now shift to targeted support for tourism within a sustainable and socially responsible framework, in order to improve competitiveness. In this context, he said that addressing climate change is key, as visitor satisfaction depends on national efforts.
“In the last three years, our country’s tourism was significantly impacted by external factors,” Christodoulides said.
“At first, it was the Covid-19 pandemic, which completely paralysed the tourism sector for a whole year, and later, it was the loss of the second-largest market for the tourism sector, Russia.”
Speaking at the association’s annual general assembly, Vavlitis highlighted the sector’s resilience and its critical role in benefiting local communities, workers, and businesses.
Despite geopolitical challenges, he said, Cyprus achieved a record 4.04 million visitors in 2024, with expected tourism revenue reaching €3.2 billion, contributing about 13 per cent to the country’s GDP.
However, Vavlitis noted that a significant portion of these visitors—around 35 per cent, or 1.4 million people—did not stay in licensed hotel accommodations, opting instead for unregistered or short-term rental properties or even visiting the Turkish-occupied north.
The European Commission has issued a positive preliminary assessment for Cyprus’ request to receive €76.9 million under the NextGenerationEU programme, which aims to drive Europe’s recovery towards a greener, more digital, and competitive future.
According to the European Commission, Cyprus has successfully met the required milestones and targets to qualify for this third payment under the Recovery and Resilience Facility (RRF), the core funding instrument of NextGenerationEU.
This instalment of €76.9 million is part of Cyprus’ broader Recovery and Resilience Plan (RRP) and follows the implementation of nine key reforms and seven investment projects.
These initiatives aim to bring tangible benefits to Cypriot citizens and businesses in areas such as digitalisation, healthcare, environmental sustainability, energy, research, and connectivity.
The environment department has given approval for a €55 million project to convert an existing tourist apartment complex into a 480-bed, 4-star hotel in Polis Chrysochous, it emerged on Wednesday.
In addition, the department noted that the approval is subject to specific conditions and input from various stakeholders.
According to the environmental study submitted by Fattal Latsi Ltd, the overall cost is estimated to cost €55 million, with an expected construction period of 18 months following the necessary permit approvals. The development involves the expansion, conversion, and reclassification of the existing complex into a four-star hotel, capable of accommodating up to 720 guests.
Moreover, the European Investment Bank group’s (EIB) latest investment survey reports that 81 per cent of Cypriot companies are engaged in global trade, significantly outperforming the EU average of 63 per cent.
The report, released on Wednesday, showed that there has been an 18 per cent increase in real investment levels in Cyprus since before the pandemic, supported by Recovery and Resilience Facility (RRF) funds. Cypriot companies reported higher satisfaction with their investment activities compared to other EU countries.
According to the announcement, the commission is focused on adapting to emerging regulatory challenges while building on the progress achieved in 2024. Moreover, the new framework seeks to enhance oversight, address digital risks, and ensure compliance with evolving regulations.
CySEC chairman George Theocharides reiterated the regulator’s commitment to safeguarding investors and maintaining market integrity. “Our aim is to ensure that investors are protected while strengthening the resilience of the financial sector,” he stated.
One of the central themes during the conference’s discussions was the fact that “financial markets require specialised knowledge and adaptable strategies”.
Moreover, the event provided essential insights into market dynamics and practical strategies to enhance investment decisions.
The signing took place at the World Governments Summit in Dubai on February 12-13, highlighting the commitment of both nations to advancing AI collaboration.
According to the announcement, the MoU, signed against the backdrop of a summit that draws global technology leaders, “aims to strengthen bilateral ties by fostering innovation and addressing socio-economic challenges jointly”.
Furthermore, it facilitates the exchange of best practices and the acceleration of AI technology integration in both public and private sectors, “aiming to enhance the AI ecosystems within each country”.
The announcement mentioned that this marks “a significant milestone in strengthening the economic ties between the three nations”.
It added that this “landmark initiative” follows the signing of a Memorandum of Understanding (MoU) between Eurobank S.A. and the Indian Chamber of Commerce (ICC) in September 2024. The event was attended by representatives of the ambassadors of Greece and Cyprus in India, as well as various business leaders, including Abhyuday Jindal, President, ICC & Managing Director, Jindal Stainless Ltd. and Eurobank S.A. CEO Fokion Karavias.
The announcement stated that the newly launched IGC Business & Investment Council “aims to accelerate trade, investment, and strategic cooperation across diverse sectors“. These sectors include infrastructure, shipping, technology, financial services, and SMEs.
The Bank of Cyprus this week presented its revamped branch network model, inaugurating its newly renovated branch on Archbishop Makarios III Avenue in Nicosia.
The event, held on Wednesday afternoon, was attended by the Nicosia Mayor Charalambos Prountzos, along with the city’s deputy mayors.
Retail Banking Director Theodosis Theodosiou explained that in-store banking used to be a “relatively simple business activity”, where customers conducted basic transactions and “developed long-term relationships of cooperation and trust with their bank”.
However, he noted that this is no longer the case, with the banking sector currently undergoing a period of radical transformation, influenced by technological advancements, regulatory changes, and shifting consumer behaviours.
In addition, continued strong economic performance in both nations is expected to contribute to further upgrades of the banking sector in the future.
Based on aggregated ratings from the three major agencies—Fitch, Moody’s, and S&P—S&P’s recent upgrade has positioned the Bank of Cyprus as the most reliable bank in Cyprus and Greece.
The president outlined the details of this plan, which includes 30 new and ongoing projects, during a regional meeting in Paralimni, as part of his broader tour of Cyprus’ municipalities.
Christodoulides pointed out the “crucial role Famagusta plays in the country’s economy”, particularly noting its substantial contributions to the tourism industry.
