Cyprus banks have seen a 600% increase in profits in 2023, mainly from ECB interest earnings and higher lending rates. This has sparked concerns about the impact on the real economy and prompted discussions on potential government interventions to address the ethical and economic implications.
Kedipes, a stateowned asset management company, transferred a recordbreaking €140 million to the state’s reserves, marking the largest quarterly government contribution since its establishment in 2018. This significant payment, resulting from the sale of loan portfolios to the Bank of Cyprus, showcases Kedipes’ dedication to reducing public debt and promoting economic stability in Cyprus.
The eFx Convert service by the Bank of Cyprus is a cuttingedge feature that allows instant currency conversion using live exchange rates, without any extra fees. Available on business days between 7:30 am and 5:30 pm, it caters to over 45 currency pairs, revolutionizing how customers handle their finances seamlessly within the bank’s platforms.
Cyprus Business Now: Cyprus anticipates a rebound in tourism with an influx of Israeli travelers, as the Bank of Cyprus showcases financial strength through dividends and a buyback program. Foreign investments are encouraged, while construction sees a mild price decline, and SMEs receive support for circular economy initiatives. Local governance focuses on sustainable urban planning, and the government modernizes employment categorization.
The Bank of Cyprus has acquired a restructured loan portfolio from Kedipes valued at €58.4 million, aimed at bolstering its loan offerings, reinforcing market position, and improving services for customers while delivering shareholder value. This strategic acquisition responds to economic challenges and indicates a commitment to sustainable growth.
Eurobank aims to be a regional banking leader by 2026, focusing on Cyprus to drive growth and expand its influence. With a strong financial performance in 2023, the bank plans to strengthen its presence in key markets like Greece, Cyprus, and Bulgaria, utilizing Cyprus as a gateway to Europe for Middle Eastern and Indian businesses.
The Central Bank of Cyprus has issued a revised directive outlining new criteria for registration in the bounced cheque registry, requiring individuals or entities who issue three or more bounced cheques within a year or exceed €2,000 in total value to be registered, even if the cheques are settled later. The aim of these changes is to enhance clarity and efficiency within the bounced cheque registry, reflecting the CBC’s commitment to maintaining a reliable and transparent financial system in Cyprus.
Cyprus banks are enjoying soaring profits thanks to interest rate hikes by the European Central Bank (ECB). However, they are showing reluctance to support growth projects and instead prefer to deposit funds with the ECB, which offers a secure 4% return. This conservative approach is posing a challenge for policymakers who want the banks to play a role in supporting the real economy.
Hellenic Bank is offering free banking transactions and reduced fees as part of their measures to support vulnerable customers. This includes nocost online and mobile banking services, free SEPA transfers up to €5,000, decreased cashier transaction fees for those over 65, free accounts for Guaranteed Minimum Income beneficiaries, and no maintenance fee for lowincome pensioners’ savings accounts for one year.
