Cyprus Business Now

The balance of deposits in Cyprus amounted to €51.2 billion, while the balance of loans to €28.6 billion in July 2022, registering a net decrease compared to June, according to a report published on Friday by the Central Bank of Cyprus.

According to the report, total deposits in July 2022 recorded a net decrease (in transactions, excluding changes from reclassifications, foreign exchange and other adjustments) of €183.9 million, compared to a net increase of €352.5 million in June 2022.

The annual rate change reached 1.3 per cent, compared to 1.7 per cent in June 2022.

In addition, total loans in July 2022 recorded a net decrease of €162.7 million, compared to a net increase of €109.9 million in June 2022.

Finally, the annual rate of change reached 1.9 per cent, compared to 2.9 per cent in June 2022.

Fitch Ratings on Friday said that Austria, Germany and Italia are among the most exposed countries in Europe in regards to Russian gas supply disruptions.

Conversely, Cyprus, alongside 11 other countries, is among the least exposed to any slowing down or stoppage in the supply of Russian gas.

“Germany, Austria and Italy are the most vulnerable countries to the disruption of Russian gas flow,” the agency said, noting that Germany and Austria lack sustainable short-term alternative energy supplies, while Italy has one of the highest shares of natural gas in its energy mix among of EU countries.

Furthermore, the agency explained that the sharp decline in natural gas flows suggests that Russia is ready to use natural gas exports as a political tool.

The agency also stated that the EU is reducing its dependence on Russian gas, but supply and infrastructure constraints mean that “it may take more than three years to compensate for the complete loss of Russian supply”.

What is more, Fitch said that its quantitative vulnerability index shows that within the EU, Western European countries are less dependent on Russian gas than Central and Eastern European countries, with most having low to moderate direct exposure.

However, the report noted that there is a large divergence in Western Europe, and the region as a whole will face a serious long-term shock if Russian gas supplies are cut.

The Cyprus Stock Exchange (CSE) ended Friday, August 26 with losses.

The general Cyprus Stock Market Index was at 73.12 points at 13:30 during the day, reflecting a drop of 0.79 per cent over the previous day of trading.

The FTSE / CySE 20 Index was at 44.85 points, which represents a decrease of 0.79 per cent.

The total value of transactions came up to €37,488.

In terms of the sub-indexes, the main and alternative indexes fell by 0.91 per cent and 0.36 per cent respectively, while the hotel and investment firm indexes remained stable.

The biggest investment interest was attracted by the Bank of Cyprus (-1.56 per cent), Hellenic Bank (-1.08 per cent), Logicom (-0.57 per cent) and CCC Tourist Enterprises (1.54 per cent).