Here are the top business stories in Cyprus from the week starting June 9:
The Cypriot banking sector has undergone an impressive transformation since the 2013 financial crisis and has emerged stronger, more resilient, and better aligned with international standards, according to Wim Mijs, Director General of the European Banking Federation (EBF).
Speaking to the in an exclusive interview with the Cyprus News Agency (CNA), Mijs highlighted the substantial reduction of non-performing loans, the modernisation of Cyprus’ anti-money laundering framework, and the sector’s pivot toward digital transformation as key markers of progress.
At the same time, he cautioned that Cyprus, like the rest of Europe, must remain vigilant against growing cyber threats, ongoing geopolitical instability, and the competitive pressure from large technology firms.
Discussing the broader European context, he stressed the need for a shift in regulatory thinking to allow banks to support growth and investment more effectively.
This development follows the approval granted by the Cyprus Securities and Exchange Commission (CySEC) on May 8, 2025, permitting the exercise of the squeeze-out right, thereby allowing Eurobank to acquire one hundred per cent of Hellenic Bank’s shares.
Based on responses from 133 senior executives, the third annual edition of the report points to a decline in confidence across key operational areas, emphasising the need for clearer regulation, greater investment and improved coordination at both national and international levels.
Almost 43 per cent of respondents were shipowners, while nearly 30 per cent were ship managers, offering a representative snapshot of operational decision-makers across all major shipping sectors.
Political instability remained the most pressing concern for the second consecutive year, reflecting growing unease over the wider geopolitical environment.
From protracted conflicts to shifting alliances and sanctions regimes, respondents pointed to the direct operational and financial impact of political disruptions, from rerouted shipping lanes to surging insurance costs and crewing challenges in conflict zones.
Speaking at the annual general meeting of the Association of Cyprus Banks (ACB), held at the Hilton Nicosia, Patsalides outlined key priorities for monetary policy, financial supervision, and the broader strategic direction of the eurozone and Cyprus.
The event is considered a cornerstone for the domestic banking sector and was also attended by Finance Minister Makis Keravnos and European Banking Federation CEO Wim Mijs, who is currently in Cyprus for consultations with stakeholders from the financial and business community.
Opening his address, Patsalides expressed his appreciation for the ACB’s contribution in helping to shape “a resilient, transparent and future-oriented banking system”.
“The challenges facing the banking sector are significant and require continuous adaptation, innovation and investment,” he said during the annual general meeting of the Association of Cyprus Banks.
“Banks are called upon to invest further in modern technologies, from developing mobile banking applications to harnessing artificial intelligence, while also ensuring cybersecurity and full compliance with new regulatory frameworks,” he stated.
Moreover, the minister emphasised that digital transformation is not merely technological but also demands cultural change and continuous training of human capital.
Speaking during his address at the annual general assembly of the Association of Cyprus Banks, Vourakis stated that two major mergers among the five largest banks in Cyprus are nearing completion.
He said these mergers will create powerful banking groups with European access, offering new avenues for Cypriot businesses and individuals.
Vourakis described 2024 as a second consecutive record year for European banks in terms of profitability and shareholder returns.
“The global cruise industry has emerged as a significant catalyst for tourism development, contributing substantially to local and national economies,” the Limassol cruise terminal operator said.
“Cruise tourism stimulates economic activity in various ways, including spending on port infrastructure, shipbuilding, job growth, as well as passenger spending at the destinations,” it added.
The company also cited data from the Cruise Lines International Association (CLIA) to underline value of the sector as a whole.
The event drew a crowd of cultural and diplomatic figures, including Deputy Culture Minister Vasiliki Kassianidou, who delivered the address on behalf of President Nikos Christodoulides.
Also in attendance were Limassol Mayor Yiannis Armeftis, representatives of the US and Greek embassies, and key members of the country’s creative, academic, business and media communities.
In his message, the President said Copper Island’s presence would “actively contribute to the establishment of Cyprus as a point of reference in international creative production,” adding that the company arrives at a time when the island is becoming “a new, dynamic audiovisual hub in the Eastern Mediterranean.”
Mijs stated that over €1 trillion in inactive capital remains locked, limiting banks’ capacity to support the economy and threatening the EU’s ability to achieve its strategic goals.
Speaking at the general assembly of the Association of Cyprus Banks in Nicosia, Mijs described the current situation as “a story of two trillions”.
He explained that on the one hand, the EU needs to mobilise approximately €1 trillion annually to meet its green, digital, defence, and industrial ambitions.
On the other, nearly the same amount remains frozen due to regulatory inconsistencies across member states.
According to an announcement by the Transport Ministry on Thursday, this marks an increase of 12.02 per cent compared to the same period in 2024.
In May 2025 alone, the two airports welcomed 1,282,882 passengers. This figure represents a 12.47 per cent increase compared to May 2024.
At Larnaca airport, passenger volume rose by 19 per cent. At Paphos airport, however, there was a slight decline of 1.36 per cent compared to 2024.
Aircraft traffic also showed an upward trend. The ministry said that the number of flights increased by 10.25 per cent compared to 2024, reaching a total of 9,518.
In a statement to the Cyprus News Agency (CNA), Loizides described the month of June as “problematic” because, as he put it, the high cost of living has “killed” extended holiday stays in Cyprus.
He added that hotel occupancy in Paphos for June so far stands at approximately 75 per cent.
Asked for further comment, he explained that Paphos has a tradition as a family destination.
However, he explained that there are also hotels catering exclusively to couples, and that the district of Paphos offers the full range of hotel accommodation types.
“We are proud of the remarkable growth and ongoing success of our shipping sector, and we are working to expand it towards new horizons,” Christodoulides said.
He added that shipping is “one of the key pillars of the Cypriot economy”, contributing more than 7 per cent to Cyprus’ Gross Domestic Product.
The president also hailed the reputation of the Cypriot maritime industry and the high quality of the national ship registry.
Moreover, the president said that Cyprus applies high safety standards and has evolved into a fully developed maritime centre.
The appointment is seen as a milestone not only for Cyprus but for the global maritime industry, as Kazakos steps into the role at a time of mounting regulatory and geopolitical pressure on international shipping.
The event was attended by President Nikos Christodoulides, who formally welcomed him into the position, emphasising the strategic importance of the moment for Cyprus.
After more than two decades at the helm of the Cyprus Shipping Chamber (CSC), where he was credited with raising the island’s profile in international maritime circles, Kazakos now brings his experience to the ICS, representing more than 80 per cent of the world’s merchant fleet.
The company this year completed 15 years of operations in Cyprus, during which time it has been guided by a business philosophy that places consumers, suppliers and community at the core of its development strategy.
Martin Brandenburger, CEO and Chairman of the Board of Lidl Cyprus, stated “at Lidl Cyprus, for 15 years we have been evolving together with the place and the people, thanks to our unique business philosophy, as well as the passion, dedication and professionalism of our approximately 700 employees” he said.
Collaboration with Greek partner Evrofarma was also showcased in a recent press trip, an experience that offered not just a closer look at a key supplier, but a chance to witness firsthand the depth and integrity behind Lidl’s supply chain strategy.
In a panel alongside UAE Minister of Economy Abdulla bin Touq Al Marri, Papanastasiou said the time is right to deepen the partnership.
“Now is the time to do business,” he stated, stressing that Cyprus has moved away from acting as a ‘supermarket’ economy and is now pursuing targeted investments, with the UAE a key priority.
He laid out four main pillars guiding the Cyprus-UAE relationship, economic complementarity, shared geopolitical interests, sustainability, and a common vision for the Eastern Mediterranean. “
Speaking at the Investopia Global Mediterranean Forum in Limassol, Columbia’s chairperson and CEO Mark O’Neil said the group’s proprietary platform, SmartSea, is already reshaping how shipping operations are managed, and that Cyprus is expected to play a key role in its regional rollout.
“The UAE saw the potential of this approach, as did Abu Dhabi,” O’Neil said, referring to SmartSea’s real-time, automated systems based on Sita’s technology, designed to replace outdated manual processes.
Larnaca continues to strengthen its position in the real estate market, registering the highest increases in property values during the first quarter of 2025, according to the latest RICS Cyprus Property Price Index with KPMG in Cyprus.
Christophoros Anayiotos, managing director and head of real estate and land development at KPMG Cyprus, said that Larnaca stood out once again, with the largest increase recorded in offices, followed by residential properties such as apartments and houses.
He added that “the first quarter of 2025 shows an overall increase in property values in Larnaca, while other districts record moderate increases.”
At the same time, warehouses recorded only small gains, while commercial properties, particularly shops, posted a decline, “continuing the trend of previous quarters,” he said.
Cyprus Deputy Minister of Tourism Kostas Koumis, Greece’s Minister Tourism Olga Kefalogianni, and Lebanon’s Minister of Tourism Laura Kazin Lahoud delved into these issues during a panel discussion at the Investopia Global Mediterranean Forum.
They were joined by president of the Cyprus Hoteliers Association (Pasyxe) Thanos Michaelides and Shaikha Al Nowais, the first woman set to take over as Secretary-General of the World Tourism Organisation (WHO) from 2026.
Connectivity, seasonality and workforce shortages were among the key concerns raised. Speakers also pointed to growing demand for authentic experiences, sustainable destinations and personalised travel offerings shaped by digital tools.
“The chamber took part in the Investopia Global Mediterranean Forum with substantial and multifaceted participation,” the announced said.
“This was the first time the international business forum took place in Cyprus,” it added.
“In the margins of the Forum, the chamber organised an official networking event on Monday, June 9, attended by UAE Minister of Economy Abdulla bin Touq Al Marri and Cyprus Minister of Energy, Commerce and Industry George Papanastasiou,” the chamber explained.
“This year’s Kataklysmos weekend was one of the best in recent years in terms of footfall at leisure centres,” Thrasivoulou said in comments to the Cyprus News Agency (CNA) on Wednesday.
“There were high occupancy levels,” he added, expressing hope that “this level of attendance would continue in the coming period”.
“This year’s tourist season is similar to last year’s and is expected to remain at satisfactory levels,” Thrasivoulou he continued.
“Only in this way will it be possible for businesses in the catering industry to survive,” he added.
The European Union Intellectual Property Office (EUIPO) on Wednesday warned that counterfeit wines and spirits alone are responsible for €2.29 billion in sales losses and the destruction of nearly 5,700 jobs across the EU each year.
The data, released as part of EUIPO’s World Anti-Counterfeiting Day (WAD) campaign, with the title ‘What’s on your table?’, emphasises the growing threat from fake food and drink products, not only to the economy, but also to public health.
In an official announcement, the agency underlined that counterfeit products, particularly alcoholic drinks, frequently contain hazardous substances including methanol, mercury and banned pesticides, putting consumers at significant risk.
Joao Negrao, executive director of EUIPO, said the campaign seeks to “equip consumers with the knowledge they need to protect themselves, while supporting legitimate businesses that meet EU quality standards”.
