Cyprus Business Now: banks, digital euro, UK talent, shipping, tourism, PwC

The digital euro will offer offline transactions, physical cards for people who do not use smart devices and a full rollout by 2030, according to Central Bank of Cyprus (CBC) payments director Stelios Georgakis. Speaking to the Cyprus News Agency (CNA), Georgakis explained that the digital euro is essentially an additional payment option and represents the digital equivalent of banknotes and coins already in circulation. He stressed that the new form of money will not replace cash, with both banknotes and coins continuing to circulate alongside the digital euro. Georgakis added that its use will be entirely voluntary and that all services associated with it will be free of charge. He also explained that the exchange rate will always remain fixed, meaning that one euro will always equal one digital euro. The CBC official said limits will be imposed on the amount citizens can hold in digital euros, as the system is not intended to serve as a savings vehicle. Limassol’s hotel sector is banking on last-minute bookings and domestic tourism to lift summer demand, as occupancy rates remain below those recorded last year, according to Limassol hoteliers association president Christos Tsanos. In an interview with the Cyprus News Agency (CNA), Tsanos said that Limassol hoteliers are increasingly depending on domestic visitors and last-minute reservations to fill their rooms, while also calling on the government to provide practical support to the hotel industry. He said that up to May 31, Limassol had recorded an estimated 30 per cent decline in bookings compared with 2025, broadly in line with other districts across the island. Following positive developments linked to the Iran-United States conflict and revisions in several countries’ travel advisories, June showed encouraging signs, with the drop in bookings now reduced to around 20 per cent, he pointed out. John Denholm CBE has been appointed chairman of the International Chamber of Shipping (ICS), succeeding Emanuele Grimaldi after four years at the head of the global shipowners’ body. The decision was taken unanimously by the ICS Board of Directors at the organisation’s Annual General Meeting, held at Palazzo Valentini in Rome on June 22. Denholm, a qualified chartered accountant, joined the family-owned shipping business J. & J. Denholm before becoming chief executive in 1993. He currently serves as executive chairman of J. & J. Denholm and Denholm Energy Services. His appointment comes at a difficult moment for the shipping industry, with geopolitical tensions, security threats, the energy transition and changing trade patterns continuing to shape global maritime operations. Denholm has also held several senior roles across the industry, including president of both the UK Chamber of Shipping and BIMCO. “It is a great honour to be appointed chairman of the ICS and to represent an industry that underpins global trade and prosperity,” Denholm said. Cyprus’ presence at Eurosatory 2026 in Paris has emphasised the country’s growing effort to turn its defence industry from a small research-led sector into a more outward-looking part of the economy, officials said. Speaking on CyBC’s daytime show ‘Apo Mera se Mera’, deputy secretary general of the Cyprus Chamber of Commerce and Industry (Keve) Andreas Andreou said Cypriot companies had presented defence and technology products that “have nothing to envy” from similar products abroad. The exhibition, held in Paris last week, is one of the world’s largest defence and security events, bringing together companies, governments, armed forces and industry bodies from across the sector. For Cyprus, however, this year’s participation carried wider significance. The island’s national pavilion brought together Cypriot companies active in defence, security, space, telecommunications, energy and related technologies, at a time when the government is seeking to strengthen the sector’s international reach. Cyprus Shipping Deputy Minister Marina Hadjimanolis attended the gala dinner held on the sidelines of the ICS 2026 Shaping the Future of Shipping Summit in Rome, as Cyprus continues to strengthen its presence in international maritime discussions. The event, organised by the International Chamber of Shipping (ICS) in cooperation with Confitarma, the Italian Confederation of Shipowners, brought together senior industry figures, government officials and maritime stakeholders at a time when shipping is facing mounting pressure from geopolitical tension, regulatory change and the energy transition. According to the Shipping Deputy Ministry, Hadjimanolis attended the dinner together with her associates, with the evening offering an opportunity to exchange views with industry leaders and further reinforce the spirit of cooperation that supports the global maritime community. The Rome summit, held under the title ‘Shaping the Future of Shipping Summit 2026 – Forging Partnerships for Resilience’, forms part of a wider ICS series aimed at bringing governments, shipowners and maritime organisations closer together. Invest Cyprus is seeking to reconnect UK-based Cypriot professionals with the island’s labour market, as the Minds in Cyprus initiative continues in London on Tuesday with a career-focused event aimed at talent living abroad. The London event, taking place at The Peninsula Hotel, follows Monday’s session in Birmingham and forms part of a wider effort to turn Cyprus’ long-discussed brain drain into a more practical brain gain strategy. Unlike last year’s broader launch in London, this year’s UK roadshow has a more targeted focus, bringing Cypriot employers face to face with professionals who may be considering a return, looking for their next career move, or simply exploring how the island’s economy has changed. According to the official Minds in Cyprus platform, the UK roadshow includes a Birmingham networking event and presentation of the initiative, followed by the London event on Tuesday, June 23, at 5pm. The platform said professionals attending will be able to explore meaningful career opportunities in Cyprus, connect directly with leading employers, and learn more about the support available to make a return more realistic. The PwC Foundation has awarded 14 scholarships to first-year students at the University of Cyprus and the Cyprus University of Technology (Tepak), continuing its support for equal access to education for a fourth consecutive year. The scholarships were given to seven students from each university, based on both their academic performance after completing their first year of studies and their socio-economic background. In this way, the programme seeks to reward students who have shown effort, excellence and commitment, while also supporting young people who may face financial or social barriers in their studies. The initiative falls under the foundation’s Education and Culture pillar, one of its three main areas of activity, through which it aims to support local communities and help improve people’s quality of life. ERB Asfalistiki on Tuesday announced that it has reaffirmed its support for the Ministry of Defence and the National Guard, continuing for the 11th consecutive year a partnership focused on road safety and the protection of conscripts. The company, which is Cyprus’ largest general insurance provider and a member of the Eurobank group, said it remains committed to social responsibility and prevention initiatives designed to enhance the safety of National Guard soldiers. The initiative is based on the philosophy of “Observe-Anticipate-Act”, with the company seeking to encourage responsible behaviour on the road. Under the slogan “Let’s not let our dreams fall apart!”, a special event was held on June 19, 2026, at the headquarters of the ERB Cyprus Group. The Cyprus Presidency of the Council of the European Union will host a High-Level Conference in Paphos on June 26, titled “Strengthening EU Islands and Coastal Communities”. The event, which is being held at the Elysium Hotel, will see the participation of the President of the Republic of Cyprus, Nikos Christodoulides, and the Prime Minister of Malta, Robert Abela. A central focus of the summit is the unveiling of the European Commission’s first-ever, comprehensive strategies designed specifically for Europe’s islands and coastal communities. These initiatives address the unique needs of the 17 million people living on over 4,000 islands across 16 member states, including the three island nations of Cyprus, Ireland, and Malta, and the 95 million people residing along 70,000 km of EU coastlines across 22 member states. Central Bank of Cyprus (CBC) governor Christodoulos Patsalides has said that the central bank is examining the activation of a systemic risk buffer, while warning that strong current performance should not lead to complacency in the face of mounting risks. Speaking at the annual general meeting of the Association of Cyprus Banks (ACB), Patsalides said the Cypriot banking sector currently enjoys the strongest fundamentals in its history, with capital adequacy, liquidity, profitability and asset quality all showing significant improvement. He explained that Cypriot banks rank among the strongest in the European Union in terms of their Common Equity Tier 1 (CET1) capital ratios, while liquidity levels are substantially above both regulatory requirements and the European average. He added that profitability has recovered strongly, largely reflecting the monetary policy environment created by the European Central Bank (ECB). Cyprus reaffirmed its growing reputation as an emerging technology and innovation hub during its participation in the VivaTech 2026 international exhibition, held in Paris from June 17 to June 20, 2026. The Ministry of Energy, Commerce and Industry coordinated the national presence through its Paris Trade Centre, showcasing the island’s potential to an international audience. This year marked the tenth anniversary of the event, which achieved record-breaking metrics by attracting more than 200,000 visitors from 165 countries and hosting over 15,000 startups. The Cypriot pavilion featured five innovative local enterprises that presented advanced technological solutions, successfully engaging with representatives from major international groups and potential investors. Cyprus’ state visit to India was always going to be measured through meetings, agreements and official photographs. For partner and chief operating officer at Oesterreichischer Lloyd Shipping Group Sunil Kapoor, however, it became something more personal, bringing together the country he came from, the island he chose and a partnership now clearly coming of age. In his account of the visit, Kapoor recalled that there are “phone calls that change your afternoon, and phone calls that change your year”. When Marios Tannousis, CEO of Invest Cyprus and, as Kapoor put it, “a man on a mission”, rang him one ordinary afternoon, he assumed it was the former. It was not. Within two minutes, Tannousis had informed him that he would be joining President Nikos Christodoulides on a state visit to India and participating in a high-level investors’ roundtable at the Taj Mahal Palace Hotel in Mumbai. Cyprus’ banking sector has called for close cooperation with the state and the newly elected House of Representatives, while warning that populist interventions in foreclosures and lending risk undermining financial stability, according to remarks delivered at the annual general meeting of the Association of Cyprus Banks (ACB). Indeed, Association of Cyprus Banks chairman Panicos Nicolaou used his address to send what he described as a message of cooperation to both the government and members of the newly elected parliament. He stressed that the banking sector’s longstanding positions on the need to preserve a stable foreclosure framework are based on economic realities rather than subjective assessments. Nicolaou said these views had been reinforced by the recent and strongly worded opinion issued by the European Central Bank (ECB). Lending criteria for businesses and households in Cyprus remained unchanged during the first quarter of 2026 compared to the previous three-month period, according to the latest bank lending survey published by the Central Bank of Cyprus (CBC). Net demand for loans saw a marked increase from both corporate entities and households across all categories during this timeframe. Banks anticipate that criteria for granting loans to both businesses and households will become more stringent during the second quarter of 2026. Despite these expectations for tighter standards, the net demand for loans from businesses and households is projected to remain stable in the coming months. The Cyprus Cement Public Company bought back 2,480 of its own shares on June 22, 2026, through ProChoice Chrimatistiriaki. According to an announcement on Tuesday, the share repurchase was conducted following a decision made by the extraordinary general meeting of shareholders on June 18, 2026. The Cyprus Securities and Exchange Commission (CySEC) announced on Tuesday that it had suspended the licence of Cyprus Investment Firm (CIF) Mind Money Limited over suspected breaches of regulatory requirements and concerns regarding client protection and market integrity. The regulator said the company’s authorisation, licence number 115/10, has been fully suspended under section 10(1) of Directive DI87-05 concerning the withdrawal and suspension of authorisations. According to CySEC, the decision relates to suspicions of alleged violations of section 22(1) of the Investment Services and Activities and Regulated Markets Law of 2017. The commission stated that Mind Money Limited does not appear to comply at all times with several conditions attached to its authorisation.