Cyprus Business Now

An estimated 3.6 million unemployed people in the European Union found employment in the fourth quarter of 2021, according to data released on Wednesday by Eurostat, the EU’s statistical service.

This figure is about 24.6 per cent of all those registered as unemployed in the third quarter of 2021.

A total of 7.4 million remained unemployed compared to the previous quarter (51 per cent), while 3.5 million unemployed left the market and are now considered economically inactive (24.5 per cent).

Regarding the data for Cyprus, 9,000 people who were in the category of unemployed in the third quarter of 2021 found a job in the fourth quarter of 2021.

Moreover, 20,000 people remained unemployed, while 2,000 unemployed were transferred into the category of economically inactive.

Of those who worked in the EU during the third quarter of 2021, 2.5 million became unemployed in the fourth quarter (1.3 per cent of workers), while 5.8 million became economically inactive (2.9 per cent).

In the case of Cyprus, 5,000 people who worked in the third quarter of 2021 went into unemployment in the fourth quarter.

Furthermore, 7,000 previously active workers became economically inactive.

In addition, of those who were in the category of economically inactive in the previous quarter in the EU, 5.5 million entered the labour market and found work (4.7 per cent), while 3.8 million became unemployed (3.2 per cent).

Finally, in Cyprus, 6,000 people who were in the category of economically inactive entered the labour market and found work, while 5,000 became unemployed.

Association for the Protection of Borrowers (Syprodat) president Costas Melas on Tuesday met with Association of Cyprus Banks director general Michael Kammas, in order to discuss various issues pertaining to the two associations.

Points of discussion between the two representatives included the issue of loan restructurings, as well as the behaviour of banks, investment funds and credit management companies towards borrowers.

According to a Syprodat statement released on Wednesday, loan restructuring was the main point of discussion, alongside the necessity to eliminate overcharging, which can help borrowers maintain loan viability.

“This in turn leads to the avoidance of foreclosure and contributes to the refinancing of companies with a beneficial impact on the economy,” Syprodat said.

Moreover, the discussion also took into account the war in Ukraine and its impact on the Cypriot economy, including the increase in the prices of all goods and services, inflation, as well as impact on borrowers and their income.

The association noted that a reduction in real income will lead to an increase in non-performing loans (NPLs).

Ratings agency DBRS Morningstar earlier this month upgraded Cyprus’ credit rating from BBB (low) to BBB, while it also revised its outlook from positive to stable.

Cyprus’ credit rating is currently rated at investment grade by Standard & Poor’s (S&P), Fitch Ratings and DBRS, with Moody’s being the sole agency that rates the country’s credit as junk, two levels away from investment grade.

“The ratings upgrade reflects the country’s stronger-than-anticipated economic and public finance performance during 2021 and its expectation that medium-term conditions remain supportive of Cyprus’ debt reduction efforts, despite risks posed by Russia’s invasion of Ukraine and the pandemic,” the agency said in its report.

“The Cypriot economy exceeded its pre-pandemic real GDP level during 2021, in spite of the only partial recovery of the tourism sector,” the report added.

In addition, the agency noted that Cyprus’ fiscal reconciliation has moved along at a faster rate than previously expected during 2021, with the fiscal deficit falling to 1.8 per cent of GDP from 5.6 per cent of GDP in 2020, primarily due to strong revenue growth.

“Cyprus’ elevated public debt ratio decreased from 115.0 per cent of GDP in 2020 to 103.9 per cent of GDP in 2021,” the agency added, before adding that “the banking system’s continued non-performing exposures (NPEs) reduction and limited impact from the pandemic on asset quality are supportive factors for the upgrade”.

The Cyprus Stock Exchange (CSE) ended Wednesday, April 13 with profits.

The main Cyprus Stock Market Index was at 67.98 points at 13:36 during the day, reflecting a rise of 0.76 per cent over the previous day of trading.

The FTSE / CySE 20 Index was at 40.91 points, which represents an increase of 0.79 per cent.

The total value of transactions came up to €94,925.

In terms of the sub-indexes, the main and alternative indexes rose by 0.62 per cent and 0.87 per cent respectively.

The hotel index also rose by 0.15 per cent, while the investment firm index remained stable.

The biggest investment interest was attracted by the Cyprus Cement Company (+4.72 per cent), the Bank of Cyprus (+1.08 per cent), Logicom (+1.02 per cent), CCC Tourist Enterprises (+8 per cent), and K+G Complex (+8.09 per cent).