Cyprus Business Now

DBRS Morningstar has confirmed the BBB rating with a stable outlook for Cyprus in both domestic and foreign currency over the long term, according to a report recently published by the rating agency.

In addition, the agency also confirmed the short-term rating in foreign and domestic currency at R-2 (high), also with a stable outlook.

The stable outlook balances recent favourable fiscal dynamics against significant downside risks to the fiscal and economic outlook, the rating agency said in a statement.

According to the report, fiscal balances have improved significantly over the past year. The general government budget balance turned into a surplus of 2.3 per cent of GDP from a deficit of 1.7 per cent in 2021, primarily due to a large reduction in public support measures first enacted during the Covid-19 pandemic.

In addition, nominal tax revenues have been boosted by high inflation and strong economic growth with real GDP growing by 5.6 per cent in 2022.

“This favourable fiscal and economic momentum has contributed to a noticeable decline in the public debt-to-GDP ratio to an albeit still high 86.5 per cent in 2022 from 101 per cent in 2021,” the agency said.

“In DBRS Morningstar’s view, maintaining this declining trend in debt metrics is key to increasing upward rating pressure,” it added.

What is more, the agency pointed out that it expects the new government to remain committed to fiscal prudence.

Moreover, according to its estimates, it expects future economic growth momentum to be supported by the opening of large-scale tourism facilities and capital inflows from the Next Generation EU programme.

Finally, the agency also noted that the economic and fiscal outlook is exposed to significant downside risks, such as the further escalation of the war in Ukraine and the recent marked increase in global financial fragility.

The Corporate Sustainability and Responsibility Good Practice Awards, organised by the non-profit organization CSR Cyprus, have announced the beginning of the application submission period this week.

CSR Cyprus, in collaboration with the Cooperative Societies and Social Enterprises Service, is the competent public authority of the Republic of Cyprus for Corporate Social Responsibility (CSR).

According to the organisers, the competition aims to reward pioneering Cypriot companies in the field of Corporate Sustainability and Responsibility (CSR), to highlight business initiatives that have social or environmental and business benefits and can be examples of the adoption of similar approaches by other companies.

In addition, the competition also seeks to facilitate the promotion and visibility of the contribution of Cypriot businesses in the management of issues concerning both themselves and their interested parties, through the development of corporate sustainability and responsibility initiatives.

What is more, through their participation in the competition, companies have the opportunity to be recognised among similar organisations as pioneers in the field of Corporate Sustainability and Responsibility, allowing them to expand and strengthen their reputation and credibility both at the national and European levels.

Furthermore, participation also helps companies to highlight their organisation’s innovation and commitment to sustainable development and to further influence the promotion of Corporate Sustainability and Responsibility in Cyprus through the adoption of corresponding “best practices” by other businesses.

The announcement noted that the good practices submitted will be evaluated by an evaluation committee according to the Strategic Practice Approach, Practice Implementation and Practice Outcomes, while the award winners will be announced at a special ceremony in the summer of 2023.

All entities doing business in Cyprus can take part in the competition, submitting up to two good practices, provided that they relate to separate programmes implemented in Cyprus.

The Minister of Finance, Makis Keravnos, and Michalis Louis, the chief executive officer of Eurobank Cyprus, on Tuesday, met to discuss matters related to the local economy and the domestic banking sector.

According to a statement from the Ministry of Finance, the meeting involved exchanging information and viewpoints on these topics.

During the meeting, Louis congratulated the Minister of Finance on his appointment and expressed his willingness to continue collaborating and exchanging views on initiatives aimed at promoting the sound health and development of the Cypriot economy.

The Cyprus Stock Exchange (CSE) ended Tuesday, April 4 with losses.

The general Cyprus Stock Market Index was at 107.30 points at 12:39 during the day, reflecting a decrease of 0.39 per cent over the previous day of trading.

The FTSE / CySE 20 Index was at 64.85 points, representing a drop of 0.40 per cent.

The total value of transactions came up to €72,439.

In terms of the sub-indexes, the main index fell by 0.45 per cent, the alternative index rose by 0.02 per cent, while the hotel and investment firm indexes remained stable.

The biggest investment interest was attracted by the Bank of Cyprus (-1.49 per cent), Hellenic Bank (+0.3 per cent), and Mitsides (+9.84 per cent).