Cyprus Business Now: weekly wrap-up

Here are the top business stories in Cyprus from the week starting October 12: The Cyprus economy is forecast to grow next year despite the economic headwinds due to ongoing crises abroad, the finance minister said on Monday in presenting the state budget for 2027. Makis Keravnos said GDP growth during the 2027-2029 period is projected at around 3 per cent on average, with inflation next year expected to decline to 2.5 per cent – down from 4.6 per cent overall for 2026. The general government’s balance sheet will again post a surplus in 2027, hovering at around 3.9 per cent of GDP. Meanwhile public debt as a percentage of GDP would continue falling next year. Speaking to media after presenting the budget in parliament, Keravnos said the external environment is particularly adverse amid escalating armed conflicts – the wars in Ukraine and the Persian Gulf. These conflicts have created a serious energy crisis, creating pressures on European economies and impacting individuals and businesses alike. Morgan Stanley sees an opportunity to buy European bank shares following their recent decline, arguing that the sell-off reflects deteriorating sentiment in government bond markets and profit-taking rather than a fundamental weakening of the sector. In its latest report, whose findings were shared by Greek business outlet Newmoney, the investment bank said that it maintained a positive outlook for Greek lenders, highlighting their valuations, resilient profitability and strong capital positions despite renewed volatility in European bond markets. Alpha Bank is among Morgan Stanley’s preferred mid-cap European banks, with an Overweight recommendation and a target price of €5.50, compared with €4.65 in the report’s valuation, implying potential upside of around 18 per cent. Morgan Stanley also favours Piraeus Bank and Eurobank, assigning both an Overweight recommendation. Eurobank repurchased 2,120,001 of its own shares on the Athens stock exchange between October 5 and October 9, spending a total of €9,606,163.33 as part of its ongoing share buyback programme. The bank paid an average of €4.5312 per share during the five-day period, according to an announcement issued on Monday. The purchases were carried out on Euronext Athens through Eurobank Equities Single Member Investment Firm SA, under a programme approved by the bank’s annual general meeting on April 28, 2026, and its board of directors on April 29. The largest daily purchase took place on October 9, when Eurobank bought back 653,284 shares for €2.88m, at an average price of €4.4015 per share. On October 8, it repurchased 514,312 shares for €2.28m, at an average price of €4.4298. The Employers and Industrialists Federation (Oev) has called for proportionate, risk-based workplace safety requirements for the retail sector, arguing that measures should reflect the size and needs of individual businesses rather than impose uniform solutions. The federation outlined its position during a tripartite technical committee of the International Labour Organisation (ILO) on occupational safety and health in retail, held in Geneva, Switzerland, from September 28 to October 2, 2026. Oev was represented by Amalia Papaioannou, an officer in its Energy and Environment Department, who participated as a member of a small international employers’ delegation. The committee brought together government representatives, employers’ organisations and workers’ organisations from various countries to examine existing and emerging risks to retail employees, taking into account ongoing changes in the world of work and the growing use of new technologies. Cyprus’ financial intelligence unit (FIU) received 24,092 reports of suspicious transactions and activities in 2025, as the growth of crypto-asset services and cross-border financial business drove a sharp increase in submissions, according to an annual assessment published by the authorities. The report, prepared by the anti-money laundering unit (Mokas) and circulated to regulated entities by the Cyprus Securities and Exchange Commission (CySEC), examines both the volume and quality of reports submitted by businesses and professionals required to flag suspected financial crime. Crypto-asset service providers accounted for 20,570 reports, while investment firms submitted another 980, reflecting the substantial contribution of firms licensed in Cyprus but providing services across the European area under the EU’s freedom to provide services rules. Cyprus’ trade deficit widened to €6.3 billion in the first eight months of 2026, as imports increased by 10.9 per cent, more than double the 5 per cent growth recorded in exports, according to provisional data released by the statistical service (Cystat) on Monday. The trade deficit reached €6.3bn between January and August, compared with €5.48bn in the corresponding period of 2025, an increase of €819.8 million, almost 15 per cent. Total imports of goods rose to €10.26bn during the eight-month period, up from €9.25bn a year earlier. Exports, meanwhile, increased to €3.95bn, compared with €3.76bn during the same period of 2025. The latest figures showed that the widening trade gap was driven by a stronger increase in imports, despite growth in exports over the eight-month period. Traditional banks have won the first battle with fintech companies, but Cyprus must speed up regulatory procedures, cut bureaucracy and attract skilled workers if it wants to compete in digital finance, the Forbes Cyprus Next Gen Banking & Fintech Summit heard on Tuesday. London Business School professor Costas Markides told the gathering in Limassol that fintech companies had transformed financial services without displacing established lenders. Instead, banks had adapted to the competition by investing in technology, working with fintech firms and buying some of their rivals. Over the past two decades, fintech providers have gained ground in payments, foreign exchange and digital investment services by making transactions quicker, cheaper and easier. Traditional banks, however, have retained their advantage in mortgages, business lending and wealth management. Markides pointed to Revolut as an example of the challenge facing digital providers. Many consumers, particularly younger customers, use fintech accounts for everyday spending but still have their salaries paid into traditional banks and turn to those lenders when they need a mortgage. President Nikos Christodoulides said on Tuesday that Cyprus aims to strengthen its position in financial innovation, presenting the country as a gateway to the European market for international businesses and investors at the Forbes Cyprus’ Next Gen Banking & Fintech Summit in Limassol. Addressing the event, Christodoulides said Cyprus’ economic stability, European Union membership, skilled workforce and growing technology sector gave it a strong foundation to attract investment in financial technology. “Our ambition is to strengthen Cyprus’ position as a reliable, agile and internationally connected European gateway for financial innovation,” he said. He added that the government wanted Cyprus to become a place where fintech companies could establish substantial operations, develop new solutions, attract investment and talent, and expand into European and international markets. The president pointed to Cyprus’ economic performance and improving public finances as foundations for achieving that ambition, despite geopolitical uncertainty and economic challenges affecting Europe and the wider region. Prices for the same products at Cyprus supermarkets differ by as much as 226 per cent, according to a new survey by the Cyprus consumers association, which has called for a review of the government’s e-kalathi price comparison platform. The association’s findings, released this week, also showed that fruit and vegetables at a Nicosia farmers’ market were 26 per cent cheaper on average than equivalent products sold in supermarkets. The findings have raised fresh questions about price competition, product availability and the accuracy of information published on the platform, which was introduced to help consumers compare supermarket prices. According to the association, its survey, conducted on September 30, covered all products and supermarkets participating in e-kalathi. Of the products examined, 54 items, representing 11.3 per cent, showed differences of between 100 and 226 per cent between their highest and lowest listed prices. The International Monetary Fund (IMF) has lowered its forecast for Cyprus’ economic growth in 2026 to 2.9 per cent from 3 per cent, while raising its projection for 2027 to 3.2 per cent from 3 per cent, according to its latest World Economic Outlook published on Tuesday. The IMF also expects inflation in Cyprus to reach 3.7 per cent in 2026, before falling to 1.9 per cent in 2027, according to the October 2026 report. The projections differ from those of the finance ministry, which expects the economy to grow by 3.1 per cent in 2026 and 2.9 per cent in 2027, according to the draft 2027 state budget presented to parliament by Finance Minister Makis Keravnos on October 12. The IMF’s latest inflation forecasts are also higher than those published in its April 2026 report, when it projected inflation of 2.6 per cent for 2026 and 1.6 per cent for 2027. Cyprus must strengthen its response to illegal gambling and ensure that player protection goes beyond regulatory compliance, National Betting Authority (NBA) chairman Panayiotis Trisokkas said this week, as the island opened its ninth Safer Gambling Week. Speaking at the 9th Safer Gambling Conference on October 12, Trisokkas stressed the need for effective regulation, stronger prevention measures and greater use of technology to identify risks before they cause harm. The conference brought together academics, researchers, regulators and gambling industry professionals from Cyprus and abroad to discuss illegal betting, artificial intelligence (AI), public health concerns and the future of player protection. “A well-regulated market is a prerequisite for a sustainable market. And a sustainable market is one in which player protection is an integral part of its operation,” Trisokkas said. Cyprus startups raised €112.8 million across 28 funding rounds in 2026, bringing the sector close to its full-year total for 2025 with three months remaining, according to analysis by Dionysis Partsinevelos, an associate at venture capital firm 33East and an analyst at G4 Ventures. In an update published on Tuesday, Partsinevelos said 21 additional rounds had been announced over the five months since his previous funding review in May, with 17 disclosing their amounts and collectively raising €100m. The total for 2026 stands at $131.9m, with a median investment of $1m, while the €112.8m raised so far compares with approximately €120m in 2025. Partsinevelos counts funding rounds by announcement date, uses the currency reported by each company and converts amounts at a year-to-date average exchange rate of approximately $1.16 per euro, excluding grants. Cyprus’ fintech sector is approaching 200 companies, with around 55 per cent involved in payments, but the growth of digital finance is putting fresh demands on regulation, cybersecurity and the people running financial institutions, a summit in Limassol heard this week. European University Cyprus professor Pieris Chourides presented preliminary research at the Forbes Cyprus Next Gen Banking & Fintech Summit showing the prominence of payment services in the industry. He said “businesses from India and other markets were using Cyprus as a base to enter the European Union, attracted by its regulatory environment and skilled workforce.” The findings set the scene for a discussion involving Kraken, Nuvei and Bank of Cyprus (BoC) on how digital assets, stablecoins and newer payment systems could serve businesses and consumers. Cyprus needs a coordinated strategy for shipping, energy and environmental protection to support port investment and modernisation, Cyprus shipping agents association president Reginos Tsanos said, warning that separate planning and regulatory priorities risk undermining commercially viable projects. Speaking at the Italy-Cyprus Maritime Business Forum, held at the DP World Limassol passenger terminal, Tsanos called for closer cooperation between government authorities, energy providers, municipalities and the maritime industry. According to a statement issued by the association on Wednesday, he said the three sectors were closely connected but often operated with different priorities, decision-making processes and timelines. Addressing a panel on sustainable ports and their integration with surrounding cities, Tsanos stressed that better coordination was essential for investments combining commercial viability, energy security and environmental protection. Cyprus is seeking to strengthen clinical research and improve patients’ access to innovative medicines, with government officials, healthcare professionals and pharmaceutical industry representatives calling for closer cooperation to address delays in bringing new treatments into the country’s healthcare system. The issues were discussed at AbbVie ONE – Human Centered Innovation, an event jointly organised by AbbVie and the MSJ Group at Nicosia’s Old Town Hall on October 8, under the auspices of President Nikos Christodoulides. Bringing together representatives of the government, medical and scientific communities, healthcare organisations, the pharmaceutical industry and patient associations, the event examined how scientific advances could be translated more quickly into effective treatment options for patients in Cyprus. Particular attention was given to access to innovative medicines, the development of clinical research, healthcare funding and the assessment of new therapies, as well as the need to address medical conditions for which existing treatment options remain limited. Plans to supply electricity to ships at Limassol port remain dependent on securing a connection to the national power grid and European funding, despite progress on technical studies, with key administrative procedures still outstanding. The proposed cold ironing system, which would allow vessels to draw electricity from shore rather than running their engines while berthed, has yet to complete crucial steps towards implementation, according to information provided by Transport Minister Evi Tsolaki. The minister confirmed that a request has been submitted for land to accommodate an electricity substation, but applications to connect the project to the transmission network have yet to be filed. The development comes as MP Fotini Tsiridou has raised concerns over delays, warning that further setbacks could jeopardise the country’s ability to secure European financing. The number of bounced cheques in Cyprus rose by 47.8 per cent in September 2026, reaching 34 cheques worth €97,622, compared with 23 cheques valued at €74,655 a year earlier, according to figures released on Wednesday by the Central Bank of Cyprus (CBC). The figures showed that the total value of bounced cheques increased by 30.8 per cent year-on-year, while the number of cases also rose from August, when 27 cheques worth €27,092 were recorded. In particular, the value of bounced cheques in September was more than three times the August figure. According to the central bank, the September cases were recorded on the preliminary list of the Central Information Register (CIR) for issuers of bounced cheques. Cyprus is stepping up efforts to improve women’s access to funding, technology and business opportunities in rural communities, Gender Equality Commissioner Josie Christodoulou said on Wednesday, emphasising new training initiatives and government measures aimed at strengthening women’s economic independence. Speaking at a conference entitled ‘Women in rural areas: challenges and opportunities’ in Kyperounta, Christodoulou said “women had long played an important role in agriculture, livestock farming, family businesses and agritourism, although their contribution had not always received sufficient recognition.” However, she stressed that “limited access to services, infrastructure, finance and professional networks, combined with family responsibilities, continued to restrict women’s opportunities to establish businesses, develop careers and participate in decision-making.” She also warned that these barriers affected not only individual women but the wider economic prospects of rural communities. Cyprus and Germany are exploring new business partnerships in energy storage, smart grids and electric mobility, as a German business delegation visits the island for a series of meetings aimed at strengthening cooperation and addressing Cyprus’ energy challenges. The initiative, organised by the Employers and Industrialists Federation (Oev) in cooperation with the German-Hellenic Chamber of Industry and Commerce, brings together German companies and Cypriot businesses and organisations for dozens of targeted business-to-business (B2B) meetings. The meetings began on October 13 and will continue until October 16, 2026, at Oev’s offices, with discussions focusing on energy management, electricity infrastructure and opportunities for commercial cooperation. As part of the visit, Oev also hosted a roundtable discussion bringing together representatives of the German delegation and key stakeholders from Cyprus’ energy sector. The International Monetary Fund (IMF) raised its growth forecast for Cyprus to 3.2 per cent in 2027, a revision welcomed on Thursday by Finance Minister Makis Keravnos, who pointed to the economy’s resilience despite continuing international uncertainty. According to the IMF’s October 2026 World Economic Outlook, growth for this year has been revised slightly downwards, from 3 per cent to 2.9 per cent, reflecting the impact of ongoing conflicts. However, the Fund has raised its 2027 projection from 3 per cent to 3.2 per cent. The Finance Ministry, meanwhile, maintains its own 3.1 per cent growth forecast for 2026, supported by statistical service (Cystat) figures showing economic expansion of 3.2 per cent during the first half of the year. In a statement, Keravnos said the latest projections followed similar assessments by international and European institutions, which “emphatically confirm the resilience of the Cypriot economy” despite the pressures created by international developments. Cyprus is moving to strengthen oversight of its cryptocurrency market, with proposed legislation providing for penalties of up to €15 million for serious breaches and expanded enforcement powers for the Central Bank of Cyprus (CBC) and the Cyprus Securities and Exchange Commission (CySEC). The Markets in Crypto-Assets Bill of 2026, submitted to the House of Representatives on October 8, seeks to establish the national enforcement framework for the European Union’s Markets in Crypto-Assets Regulation, known as MiCA. The proposed legislation follows its approval by the cabinet on September 10 and forms part of efforts to introduce more consistent supervision of digital assets, strengthen investor protection and address misconduct in a sector that has expanded considerably in recent years. According to parliamentary records, the bill was formally tabled alongside other financial legislation, bringing Cyprus closer to completing its domestic arrangements for enforcing the EU rules. A central feature of the framework is the introduction of substantial financial penalties for companies and individuals that fail to comply with regulatory requirements. Cyprus could face continued pressure on fuel prices, transport costs and business expenses well into 2027, as the International Energy Agency (IEA) warned that global oil markets would remain tight despite falling demand and a recovery in production. In its latest Oil Market Report, published this week, the agency warned that oil supply would remain insufficient to meet demand until the end of 2026, while shortages of diesel and other middle distillates could persist for a substantial part of next year. The findings raise fresh concerns for Cyprus, where dependence on imported petroleum products leaves households and businesses exposed to international energy prices, particularly in transport, shipping and electricity generation. According to the IEA, global recorded oil inventories were 509 million barrels below pre-war levels at the end of September, with onshore stocks falling to their lowest levels since at least 2016. The decline came despite a recovery in oil shipments from the Gulf, as 103m additional barrels held at sea were more than offset by a 113m-barrel reduction in onshore inventories. Almost half of Cyprus households could be at risk of poverty by the end of the century, as increasingly severe heatwaves and droughts threaten incomes and deepen inequality, according to a new study published in the academic journal Global Environmental Change. The research, emphasised by the Cyprus Institute (CyI) on Thursday, found that the proportion of households at risk of poverty could rise from 14.9 per cent to 49 per cent if global temperatures increase by 2.7 degrees Celsius above pre-industrial levels and Cyprus fails to introduce substantial climate adaptation measures. Even if global warming is limited to 2 degrees Celsius, the proportion could still reach approximately 25 per cent, highlighting the economic consequences of rising temperatures even under a less severe climate scenario. The findings are particularly concerning for Cyprus, where income losses caused by heatwaves and droughts have already exceeded the European average. Cyprus and Brazil have established a joint business and investment council to strengthen economic cooperation and create new opportunities for companies in both countries, following three years of efforts by Invest Cyprus to develop closer ties with the Brazilian market. The Cyprus–Brazil Business and Investment Council was established through a Memorandum of Understanding (MoU) between Invest Cyprus, the Cyprus Chamber of Commerce and Industry (Keve) and Brazil’s Fecomercio Goias, during the Cyprus – Brazil Business Forum and B2B Networking Event held in Nicosia on Thursday, October 15. The forum also welcomed the first organised Brazilian business delegation of its kind to visit Cyprus, reflecting Invest Cyprus’ continued efforts to strengthen bilateral investment relations and expand cooperation with the wider Latin American market. Under the agreement, the new council will provide a permanent platform for investment promotion, business partnerships and institutional cooperation, while helping Brazilian companies gain access to European and Middle Eastern markets through Cyprus. At the same time, it is expected to open new opportunities for Cypriot businesses seeking to expand into Brazil and Latin America, strengthening commercial links between the two regions. The Bank of Cyprus (BoC) – the Cyprus Development Bank Group (CDB) agreement has been finalised, banking union Etyk said this week, following negotiations that raised the ceiling for voluntary retirement payouts to €350,000 and secured the transfer of employees who chose to stay. In a statement issued on October 15, Etyk said its intervention had increased the maximum payout from an initial €200,000, describing the revised package as the most generous offered to banking staff. The union also said BoC had initially intended to acquire CDB’s banking business without taking on its employees. Following discussions, however, it agreed to absorb staff who had not opted for voluntary departure, with their employment rights and continuity of service preserved. According to Etyk, negotiations had reached a serious impasse at one stage, threatening the transaction after more than half of CDB’s workforce had already left under the early retirement scheme. The union then convened a general meeting, chaired by its honorary president Loizos Hadjicostis, as efforts continued to reach an agreement acceptable to all parties. Cyprus is stepping up efforts to attract Japanese shipping business, with Shipping Deputy Minister Marina Hadjimanolis hosting a reception in Tokyo to promote the Cyprus flag and develop closer ties with the country’s maritime industry. Bringing together representatives of Japan’s maritime and business communities, the reception showcased Cyprus as an international shipping centre and highlighted the advantages of its flag, according to the Shipping Deputy Ministry. At the same time, the event explored opportunities for new partnerships and closer cooperation with Japan’s maritime industry, with Polys Hajioannou, president of the Cyprus Union of Shipowners (CUS), delivering the opening address at the Cyprus Ship Registry reception. The reception forms part of a wider programme of contacts in Tokyo, where Hadjimanolis is also scheduled to take part in the 5th Capital Link Japan Maritime Forum on Friday, October 16. Greek Shipping Minister Vassilis Kikilias called for closer cooperation with Japan on shipping and shipbuilding following talks in Tokyo, as Cyprus Shipping Deputy Minister Marina Hadjimanolis pursues similar efforts to strengthen maritime business ties with Japan. Kikilias met Japanese Shipowners’ Association (JSA) vice-president Masanori Kato and secretary-general Yasuhiro Shinohara, in the presence of both countries’ ambassadors, to discuss maritime cooperation, freedom of navigation and the impact of armed conflicts on global trade. The discussions also addressed the shipping industry’s energy transition and the need for balanced international regulations through the International Maritime Organisation (IMO). In a social media post on Friday, Kikilias said “Greece and Japan had both the ability and responsibility to play a decisive role in international shipping developments.” Cyprus-based shipping companies are seeking a role in the development of the Kronos offshore gas field, following discussions between the Cyprus Shipping Chamber (CSC) and Eni Cyprus on maritime services and future liquefied natural gas (LNG) exports. The chamber’s Offshore Activities Committee met representatives of Eni Cyprus on Friday, October 16, to discuss the company’s development plans for the gas field in Block 6 of Cyprus’ exclusive economic zone (EEZ) and opportunities for the island’s shipping industry. Eni was represented by logistics manager Fadi Sayde, procurement manager Salman Ali Syed and senior contracts engineer Foteini Ioannou. According to the chamber, discussions focused on the potential participation of Cyprus-based shipping companies in offshore operations, the provision of maritime services and activities associated with future LNG exports. Cyprus’ expanding betting industry cannot be judged by financial performance alone, Finance Minister Makis Keravnos warned, calling for greater protection of players as gambling activity continues to grow and digital risks increase. In a speech delivered on his behalf at the 9th Safer Gambling Conference in Nicosia this week, and published in full by the Finance Ministry on Thursday, Keravnos stressed that the industry’s contribution to the economy must be balanced against its social consequences. His message was delivered by Lucy Herodotou Mouskou, director of financial management of the central government, who represented the minister at the event organised by the National Betting Authority (NBA). Keravnos acknowledged that betting activity has expanded considerably in recent years, contributing to economic activity and generating additional value for the Cypriot economy.