Cyprus Business Now: surplus, Petrolina, India, shipping, electronic payments

Petrolina (Holdings) Public Limited announced on Tuesday that it has decided to commence operations for five separate special purpose companies established to develop individual phases of the ambitious Land of Tomorrow project. The first special purpose company, Land of Tomorrow – Residential Towers Ltd, involves a 21 per cent participation by Petrolina (Holdings) Public Limited. The second special purpose company, Land of Tomorrow – Ecovillage Ltd, features a 35 per cent participation by the holding company. The third special purpose company, Land of Tomorrow – Resort Ltd, is fully owned with a 100 per cent participation by Petrolina (Holdings) Public Limited. The fourth special purpose company, Land of Tomorrow – Boutique Ltd, is also wholly owned with a 100 per cent participation by the parent group. Cyprus has concluded a four-year tender process for the management of government electronic payment services, awarding the contract to VivaBank after a lengthy series of legal challenges and appeals. According to a report from Philenews, a decision by the Tenders Review Authority highlighted the unusually long procurement process and dismissed the latest legal challenge against the award. The electronic payment service has been managed by JCC Payment Systems Ltd since 2010, allowing citizens and businesses to make online payments, including card payments, for a wide range of government services. These transactions include the payment of direct taxes and outstanding obligations to the state, vehicle licence renewals, social insurance contributions, traffic fines and other fixed penalties, as well as various government fees. JCC has also been widely used by the public to pay municipal charges, including sewerage fees, water supply bills and immovable property charges. The Financial Wellbeing Institute (FWI) has been selected as one of the ten founding organisations of FIN.e, a new European alliance designed to strengthen financial literacy and financial wellbeing across the continent. The selection places the Cyprus-based institute alongside leading European organisations working to improve financial education in schools and communities, while also creating opportunities for the exchange of expertise, the development of joint initiatives and participation in European projects. Known formally as the European Alliance for Financial Education Practitioners, FIN.e brings together organisations delivering financial literacy programmes and connects them with academics, policymakers and the private sector. FWI said its inclusion reflected the work it has carried out in Cyprus through scientific research, educational programmes, public information events and strategic partnerships. This includes the development of the Financial Wellbeing Index, which measures the financial health, resilience and confidence of citizens. Cyprus and India are seeking to turn their expanding political ties into concrete maritime partnerships, with Shipping Deputy Minister Marina Hadjimanolis preparing an official visit to India alongside a Cypriot shipping business delegation. Hadjimanolis met India’s High Commissioner to Cyprus, Manish Manish, on Tuesday to discuss the visit and identify areas in which companies from the two countries could work together across the maritime sector. According to the Shipping Deputy Ministry, the mission will focus on business-to-business cooperation, bringing Cypriot maritime companies into direct contact with potential Indian partners and exploring commercial opportunities in key areas of shipping. The two officials also discussed the next steps in implementing the existing Bilateral Agreement on Merchant Shipping, including plans to convene the first Cyprus–India Joint Maritime Committee. The mechanism is expected to provide a more structured framework for cooperation between the two governments and their maritime industries. The agreement was signed during former president Nicos Anastasiades’ state visit to India in April 2017 and covers cooperation in merchant shipping and maritime transport. Cyprus recorded a general government surplus of €567.10 million in the first quarter of 2026, as public revenue continued to rise despite a faster increase in government expenditure, according to preliminary figures released by the Cyprus Statistical Service (Cystat). The latest data also show that Cyprus remained one of the few European Union countries to record a budget surplus, with Eurostat reporting a seasonally adjusted surplus equivalent to 0.4 per cent of GDP in the first quarter of 2026. Cystat said the January to March 2026 surplus compared with €600.60m recorded during the same period of 2025. Total government revenue increased by 5.8 per cent year-on-year to €3.82 billion, up from €3.61 billion in the corresponding quarter of last year. The increase was primarily driven by higher receipts from social contributions, income taxes and taxes on production and imports. Construction of a new access point for Limassol’s Agios Athanasios industrial area began last month as authorities move ahead with infrastructure upgrades aimed at improving safety and traffic flow in one of Limassol’s busiest business zones. According to Entrepreneurial Limassol, a periodical published by the Limassol Chamber of Commerce and Industry (Evel), the project is now entering a new phase, with the additional entrance-exit expected to be completed within four months. The project is considered particularly important for the safety and operation of the Agios Athanasios industrial area, which accommodates around 120 businesses employing more than 5,000 people. The Public Works Department awarded the contract to AN. Christou Properties and Constructions Ltd for €198,550, while the total estimated cost of the project stands at €250,000. The Pancyprian Cooperative Society for Participation and Promotion of Cooperativism has announced the launch of an online platform allowing the public to purchase shares in the proposed Pancyprian Cooperative Bank from Wednesday, July 22, 2026. The organisation said the new platform, available at shares.pccpc.cy, enables any eligible citizen to become a member by purchasing shares in the participation company established to create the new bank. The minimum investment has been set at 100 shares, with each share priced at €1. Payments of up to €10,000 can be made by bank card through JCC and will be transferred to a dedicated bank account held with the Bank of Cyprus. Amounts exceeding €10,000 must be paid by bank transfer after investors contact the issuer’s support team. The Cyprus Borrowers Protection Association (Syprodat) has welcomed the launch of the public share offering for the proposed Pancyprian Cooperative Bank, while stressing that the project’s success will ultimately depend on transparency, sound corporate governance and restoring public trust. The association’s intervention comes after the Cyprus Securities and Exchange Commission (CySEC) approved the prospectus for the new bank’s public offering, allowing organisers to begin raising €42 million in capital as part of efforts to establish the new credit institution. Syprodat said the initiative had now entered its most critical phase, explaining that successfully completing the share offering is a prerequisite for securing the necessary licences from the Central Bank of Cyprus (CBC) and the European Central Bank (ECB) before the bank can begin operating. The public offering will run from July 22, 2026 to November 17, 2026, with up to 42 million new shares, each carrying a nominal value of €1.00, available to investors through the Athlos Capital platform. The Cyprus Union of Shipowners (CUS) has praised Cyprus for strengthening the country’s maritime influence during its six-month presidency of the Council of the European Union, which ended on June 30. Cyprus, which assumed the rotating presidency on January 1 before handing it to Ireland on July 1, held the role for the second time after its first term in 2012. “Cyprus delivered a presidency marked by decisive leadership, constructive diplomacy, and a clear strategic vision that strengthened Europe’s maritime agenda and reinforced the Union’s collective priorities,” CUS said in its official report. During the 181-day term, Cyprus organised three summits, 19 informal ministerial meetings and 52 formal ministerial meetings, while more than 30,000 visitors travelled to the island for presidency-related events. CUS said it participated in several of the term’s main institutional gatherings, including the opening ceremony in Nicosia, the EU Trade Policy Retreat in Geneva and the high-level conference “Investing in Seafarers – Securing the Future of Global Shipping”, held in Limassol on April 28. Cyprus Airways and Air France have launched a new codeshare agreement covering flights between Larnaca Airport and Paris Charles de Gaulle Airport, strengthening connectivity between Cyprus and one of Europe’s largest aviation hubs. The airlines announced that the agreement came into effect on July 7, 2026, with flight codes from both Air France and Cyprus Airways already appearing on services operated by Cyprus Airways. Under the partnership, passengers will have access to up to six flights per week during the summer season between Larnaca and Paris Charles de Gaulle. The companies said the agreement is intended to improve year-round connectivity by allowing travellers to connect through Air France’s extensive network via its Paris hub. “Our partnership with Air France marks an important step forward for Cyprus Airways and confirms the growing confidence in our network and services,” said Cyprus Airways chief executive Thanos Pashalis. Demetra Holdings Plc announced this week that board member Mark Klerides had stepped down from the board of directors and the boards of its subsidiaries, marking a leadership change alongside a share buyback update. “His service and contribution have been invaluable and we wish him every success in his future endeavours,” the board of directors said, expressing gratitude following Klerides’ departure. The company confirmed that Klerides resigned from all board positions within the group on July 20, 2026. In a separate development on Tuesday, Demetra Holdings Plc also informed investors of a share buyback transaction conducted in line with regulatory requirements. Mitsides Public Company Limited confirmed on Tuesday that shareholders approved a final dividend of €0.05 per share during its annual general meeting held on July 17, 2026, alongside a series of governance decisions. “Payment of dividend has been approved at €0.05 per share, totalling €410,000 from the profits of the financial year 2023,” the company said in its announcement. The decision was taken at the company’s annual general meeting held on July 17, 2026, where shareholders examined and approved a range of matters concerning the company’s financial and corporate governance. The record date for determining eligible shareholders has been set for July 31, 2026, the company confirmed. “The record will include transactions carried out until the end of the trading day of July 29, 2026,” the company said, clarifying that this date represents the final day for trading with dividend entitlement. Cyprus’ outstanding tax debt rose to €4.64 billion by the end of 2025, with immediately collectable arrears reaching €3.32 billion, according to data from the Tax Department. The figures were reported by Philenews, based on Tax Department data showing a sharp increase in overdue liabilities and a growing use of enforcement measures to recover unpaid taxes. The data show that €979.4 million, representing 29.5 per cent of the immediately collectable debt, relates to relatively recent tax arrears that have been outstanding for less than one year. A further €992.6m, or 29.9 per cent of the collectable debt, has remained unpaid for between one and four years. Cyprus reduced its government debt ratio in the first quarter of 2026, recording one of the largest annual declines in the European Union, while overall debt levels increased across both the euro area and the bloc, according to figures released by Eurostat on Tuesday. Cyprus’ general government gross debt stood at 54.6 per cent of GDP at the end of March 2026, down from 55 per cent at the end of the fourth quarter of 2025 and significantly lower than the 62 per cent recorded in the first quarter of 2025. In absolute terms, Cyprus’ government debt reached €20.09 billion in the first quarter of 2026, compared with €20.08 billion at the end of 2025. The annual decline of 7.4 percentage points in Cyprus’ debt-to-GDP ratio was the second largest reduction among EU member states, behind Greece, which recorded a fall of 9.4 percentage points. Cyprus Cement Public Company Ltd announced on Tuesday afternoon that it completed a further share buyback, acquiring 1,790 of its own shares at €1.33 each for a total value of €2,380.70. The transaction was carried out through ProChoice Chrimatistiriaki Ltd on July 17, 2026, following a decision approved at an extraordinary general meeting of shareholders held on June 18, 2026. The company said the purchase was conducted in accordance with the relevant regulations of the Cyprus Stock Exchange, circulars issued by the Cyprus Securities and Exchange Commission (CySEC) and Article 57A of the Companies Law, Cap 113. The PwC Foundation continued to expand its contribution to education, entrepreneurship and community support during the 2026 financial year, with PwC Cyprus reporting a wide range of initiatives aimed at creating social impact across the island. Through the activities of the PwC Foundation, the firm focused on three main areas: education and culture, youth entrepreneurship, and community support through its Offering Our Hearts & Minds programme. The foundation said its work was guided by PwC’s wider purpose of building trust in society and addressing important challenges through long-term engagement. Education remained a central priority during FY26, with the foundation supporting equal opportunities, academic excellence and the development of skills needed for the future workforce.