The CBC’s decision to maintain the countercyclical capital buffer at 1% showcases a commitment to financial stability and resilience in Cyprus. By adhering to international financial standards and preparing banks for potential risks, the CBC aims to safeguard the economy against future downturns while promoting steady growth.
Cyprus maintains a BBB+ credit rating with a stable outlook, indicating strong fiscal performance and economic resilience. Key factors like robust growth rates and a commitment to reforms support this rating, with projected GDP growth of up to 3% by 2025 showcasing the nation’s economic stability.
Cyprus strategically accumulated €2.83 billion in cash reserves to cover 132% of nearterm debt, leading to a notable €740 million debt reduction and net debt at 68% of GDP. The PDMO’s issuance of benchmark bonds and investments from the Social Insurance Fund further solidified the nation’s fiscal resilience against global economic uncertainty.
Amid Middle East tensions, Cyprus maintains economic stability through strategic planning and readiness for protective measures. President Christodoulides assures commitment to neutrality as Finance Minister Keravnos emphasizes cautious optimism and vigilance in assessing potential economic impacts.
The European Commission forecasts a positive economic outlook for Cyprus, with GDP growth expected to stabilize around 3 percent for 2024 and 2025. Cyprus remains committed to policy measures aimed at enhancing economic stability, with strategic reforms focused on reducing debt and improving the production base.
The EUEgypt strategic partnership agreement, sealed at a landmark summit in Cyprus, aims to bolster collaboration in renewable energy, trade, and security while offering a €7.4 billion financial lifeline to Egypt’s economy. This pivotal alliance not only seeks to fortify regional stability and manage migration but also aims to strengthen ties in the Eastern Mediterranean and Middle East, ushering in a new era of cooperation and shared prosperity.
The Memorandum of Cooperation between the Central Bank of Cyprus and the Bank of Greece is a significant step towards financial collaboration and stability, focusing on mutual growth and knowledge exchange. This partnership sets a precedent for future central bank alliances, emphasizing the importance of addressing emerging financial challenges together.
In 2023, the Bank of Cyprus saw remarkable financial success with an aftertax profit of €487 million, significant Net Interest Income increase, and a strong Return on Tangible Equity of 24.8 percent. NonPerforming Exposure remained stable at 3.6 percent, showcasing the bank’s solid liquidity and capital strength with CET1 and Total Capital ratios at 16.5 percent and 21.5 percent, respectively.
President Nikos Christodoulides envisions a reunified Cyprus in 2024, where peace, security, and prosperity prevail. His message emphasizes unity, economic revival through key sectors like tourism and energy, and a modern state prioritizing the welfare of its people, irrespective of ethnicity. This vision is a commitment to end the longstanding division and create a harmonious future for all Cypriots.
Cyprus’s top concerns regarding cybersecurity threats and economic stability include cyberattacks on vital institutions, mass influx of migrants, climate change effects, challenges to public finances and debt management, and the need for digital transformation. These issues demand strategic responses and international collaboration to safeguard the country’s economy.
