The Central Bank of Cyprus (CBC) has declared a new reference interest rate at 11.76 percent, impacting financial transactions like loans. Exceeding this rate is now a criminal offense according to Article 314A of the Penal Code Law, Cap. 154, in a move to safeguard consumers and promote fairness in financial dealings.
Eurobank has proposed to acquire full ownership of Hellenic Bank, aiming to buy out all shares and potentially delist the bank from the Cyprus Stock Exchange. This strategic move could reshape the banking sector, solidifying Eurobank’s market position.
Eurobank is poised to acquire full ownership of Hellenic Bank, transforming the banking landscape in Cyprus. With regulatory approval from CySEC, this strategic move will enhance Eurobank’s market presence, offer shareholders a premium on their shares, and pave the way for more competitive financial products and digital banking services.
The Bank of Cyprus has been awarded the title “Best Financial Institution Bond in Southeast Europe” by EMEA Finance for its impressive €220 million AT1 capital raise that showcased its financial strength and operational success. This international recognition highlights the bank’s significant achievements and growth trajectory, marking a milestone in its journey towards becoming a prominent player in the financial sector of Southeast Europe.
The Bank of Cyprus received the prestigious ‘Best Financial Institution Bond in Southeastern Europe’ award at the EMEA Finance’s 2023 Achievement Awards for its innovative €220 million AT1 bond issuance, highlighting its strong position in the financial industry. CEO Panicos Nicolaou’s leadership has been instrumental in the bank’s growth and stability, making it a cornerstone of the Cypriot economy as it celebrates 125 years of operation in 2024.
Cyprus is experiencing significant economic growth with plans for a €1.3 billion financing program, boosted credit ratings, and potential tenyear bond issuance. Larnaca’s tourism appeal is thriving, while the banking sector remains stable, focusing on innovation in tourism and shipping. Additionally, Cyprus has seen an improvement in its world competitiveness ranking, indicating a rise in foreign investment and economic prosperity.
Cyprus’s new 7year bond has attracted remarkable interest, with offers reaching €6.7 billion, nearly seven times the expected amount, reflecting strong investor confidence in the Cypriot economy. The bond features a competitive yield of 3.295 percent, showcasing Cyprus’s strategic debt management and commitment to longterm financial stability.
The business sector in Cyprus is thriving, with financial institutions experiencing stability and growth. Leadership changes in the Association of Cyprus Banks aim to maintain this positive momentum, despite calls for financial reforms to achieve economic balance and enhance growth.
In a significant achievement, Sophic, led by Athlos Capital, secured over 80% of Cyprus Treasury Bills in a recent auction, offering clients an annualized yield of 3.74% for optimal liquidity management and diversified portfolios in a low deposit rate environment. The success of this strategic investment showcases Sophic’s prowess in the investment landscape, providing clients with lucrative and secure opportunities tailored to their financial objectives.
Cyprus is gearing up for a robust return to financial markets, buoyed by a credit rating boost to BBB+ by Standard and Poor’s, reflecting its solid fiscal performance and economic recovery. The move aims to support government funding needs and sustain growth, showcasing the nation’s economic resurgence and investor confidence.
