In a statement released on Friday, at the conclusion of an IMF mission to Cyprus from March 17 to 28, mission chief Alex Pienkowski highlighted key economic developments and policy priorities for the country.
“Cyprus has demonstrated impressive resilience to successive shocks,” he said. “Growth has remained among the highest in the euro area, mainly supported by foreign investment, strong tourism, and a boom in the ICT sector“.
“Inflation is declining but remains above 2 per cent and signs of moderate overheating have emerged,” he added.
Pienkowski also said that “fiscal performance continues to be strong, with debt on a firm downward trajectory”.
In a statement released on Friday, the ministry expressed agreement with the IMF’s assessment that the Cypriot economy has demonstrated resilience in the face of successive shocks and that fiscal indicators remain strong and on the right track.
Regarding the recommendations, the ministry acknowledged the importance of focusing fiscal policy on reducing public debt while avoiding any fiscal relaxation.
This aligns with the reference trajectory set for the increase in net primary expenditures under the new European economic governance framework.
The ministry also stated that “the real estate sector is being closely monitored due to its significant impact on various aspects of the economy and macroeconomic stability“.
The non-performing loan (NPL) ratio in Cyprus stood at 1.9 per cent at the end of 2024, marking a decrease of 0.3 percentage points compared to the previous quarter and a decline of 0.5 percentage points over the past twelve months.
This improvement is the largest among the EU countries assessed by Scope Ratings.
The progress reflects ongoing efforts to stabilise the banking sector, as the NPL ratio in Cyprus had exceeded 19 per cent in 2019.
The reduction is largely attributed to the targeted strategies of the country’s two largest banks.
The Bank of Cyprus managed to lower its non-performing loan ratio from 3.6 per cent in 2023 to 1.9 per cent in 2024, while Hellenic Bank reduced its ratio from 2.5 per cent to 2.4 per cent.
Hellenic Bank officially announced that the process will commence with the transfer of Eurobank Cyprus’ banking operations to Hellenic Bank, followed by the full merger of the two organisations.
This will be achieved through a restructuring and merger plan in line with the provisions of Cypriot corporate legislation.
“The board of directors of the bank, during its meeting yesterday, decided, among other things, that after the completion of the current public offer to acquire up to 100 per cent of the issued share capital of the bank and the exercise of the squeeze-out right by Eurobank S.A., as already announced, the merger of the bank with Eurobank Cyprus Ltd shall commence,” Hellenic Bank stated in its official announcement.
The report, submitted to parliament this week and published by the Treasury outlined key fiscal developments over the year.
The Treasury clarified that the reported total debt excludes intergovernmental borrowing, which amounted to €12.03 billion in 2024, compared to €10.73 billion in 2023.
According to an announcement by the Treasury, the fiscal report was originally submitted to Finance Minister Makis Keravnos by accountant general Andreas Antoniades on March 7, 2025.
The minister then presented it to the Council of Ministers, which approved it on March 26, 2025.
Specifically, the bank was recognised in the categories of Cyprus’ Best International Private Bank, Cyprus’ Best for UHNW (Ultra-High Net Worth), Cyprus’ Best for Discretionary Portfolio Management, and Cyprus’ Best for Alternative Investments.
“These awards underscore Eurobank Cyprus’ dedication to providing high-level, internationally acclaimed banking services, with an emphasis on exceptional customer service,” the bank said.
“They also reflect the bank’s ongoing growth, the trust of its clientele, and the professionalism of its experienced Wealth Management team,” it added.
According to the announcement, a key factor in this success is the bank’s “pioneering private banking service model adopted by Eurobank Cyprus and the Eurobank Group”.
Specifically, the net increase amounted to €498.3 million, a significant recovery compared to the net decrease of €211.3 million recorded in January 2025.
The Central Bank noted that this increase includes deposits from the sale of shares by former shareholders of Hellenic Bank to Eurobank.
The annual growth rate of total deposits accelerated to 7.7 per cent in February, up from 6.9 per cent in January.
The total balance of deposits stood at €56.2 billion at the end of February 2025.
This follows a decision by the Cabinet to establish the initiative as an annual institution.
“The award is presented annually by the Deputy Minister of Shipping, on behalf of the president of the Republic of Cyprus, during an event held in honour of the International Day for Women in Maritime,” the ministry said in its statement.
The ministry has invited nominations for the award, which must be submitted to the selection committee through the director general of the Deputy Ministry of Shipping.
Moreover, the designated application form should be submitted no later than April 30, 2025 at 3pm.
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