The corporate loan market in Cyprus is expected to see a resurgence with the forecasted interest rate cut, potentially boosting loan applications despite existing challenges. Bankers are prepared to adapt and provide support to businesses amidst geopolitical tensions and economic uncertainties, positioning themselves to navigate through the evolving market dynamics.
The Cyprus Stock Exchange (CSE) has introduced European MediumTerm Notes (EMTNs) to increase market liquidity and diversity, aligning with strategies to strengthen its role in the European financial landscape. Meanwhile, the real estate sector in Cyprus faces challenges with a downturn in transactions, influenced by inflation and rising interest rates.
Cyprus is on the path to economic recovery, with the IMF projecting a decrease in public debt ratio to 70.7% this year and aiming to reach the 60% mark by 2026. The tourism sector is flourishing, with a 9.8% increase in arrivals, while the Cyprus Stock Exchange reflects investor confidence and economic vigor with its recent growth.
Christodoulos Patsalides has been sworn in as the new Central Bank governor of Cyprus, pledging to uphold financial stability, implement reforms, and drive sustainable economic growth. His leadership signifies a new era for Cyprus’ financial oversight, promising a future marked by competitiveness and social cohesion.
Finance Minister Makis Keravnos is dedicated to enhancing Cyprus’s economic model through sustainable growth and increased investments, with a focus on sectors like agriculture and tourism. He aims to create synergies across sectors, implement reforms, and transition towards a green and digital economy, projecting stable inflation rates and reduced public debt by 2026.
The Cyprus government is expanding its mortgagetorent scheme to help struggling homeowners facing pressure from credit companies and banks. This initiative aims to reduce nonperforming loans and is open for applications from December 2023 to August 2024.
The mortgagetorent scheme has been extended to assist more homeowners, including welfare recipients and individuals with unresolved loans from the Estia Plan, offering a lifeline to vulnerable citizens struggling with nonperforming loans. The application deadline for the expanded scheme is August 2024, providing hope for nearly 2,500 borrowers in need.
Valentina Georgiadou steps into the role of Finance Commissioner, aiming to enhance financial sector compliance and resolve disputes. With a background in law and finance, she succeeds Pavlos Ioannou and plans to adapt to global economic changes during her fiveyear term.
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.
Hellenic Bank is a key player in Cyprus’ tourism industry, allocating over 10% of its loans to support innovation and sustainability in the sector. Through collaborations with entrepreneurs and stakeholders, they aim to create a competitive and resilient tourism model for the future, as discussed at the recent annual tourism conference.
