Cyprus Business Now: weekly wrap-up

Here are the top business stories in Cyprus from the week starting August 28:

Hellenic Bank announced on Wednesday that it posted a profit of €160.2 million during the first half of 2023, a result that underscores the resilience of its business model amidst a challenging operational environment.

The Cyprus Research & Innovation Foundation (Idek) on Tuesday announced a groundbreaking opportunity for the Cypriot startup, innovation and research ecosystem, allowing successful applicants to engage in international collaborations.

The spokesperson of the Association of Cyprus Banks Andreas Costouris on Wednesday stated that the association does not agree with how Finance Minister Makis Keravnos is presenting the situation surrounding the cost of higher interest rates.

The Cyprus Association of Tourism Enterprises (Stek) and the Crete regional authority joined forces on Tuesday in an effort to enhance and diversify their tourism product while extending the tourist season, combating the adverse effects of a sharp drop-off after the summer.

After experiencing a notable increase over the past two months, both deposits and loans in the Cypriot banking system witnessed a decline in July 2023.

The proposed measures by the government aimed at reducing non-performing loans (NPLs) will not effectively contribute to their reduction, the Association for the Protection of Bank Borrowers (Syprodat) said in a statement released this week.

Wargaming, a prominent player in the gaming industry, has announced its decision to sell its remaining stake in Hellenic Bank to Eurobank.

The deal, valued at €65.9 million, encompasses Wargaming’s 6.8 per cent ownership stake, totalling 28,023,767 shares, which will be transferred to Eurobank.

The Cyprus Tourist Enterprises Association (Stek) on Wednesday issued a warning about the unchecked operation of short-term rentals and the escalating influx of tourists into the occupied areas, highlighting “asymmetric risks” for the hotel industry.

In a press release, the association pointed out that the legitimate hotel industry in Cyprus is continuously and increasingly affected by the reckless rise of short-term property rentals and the growing tourist flow into the occupied territories.

The Cyprus Borrower Protection Association (Syprodat) on Thursday said that the “serious and vigorous efforts” made by the Minister of Finance to provide relief to borrowers have been warmly welcomed and appreciated.

Washington has weighed into a dispute between Cyprus and international companies led by Chevron over how to develop a giant offshore gas field, backing the US company’s plan to link it to neighbouring Egypt, two industry sources and a US source said on Friday.

The Paphos Regional Tourism Board (Etap) this week reported that it expects increased flight activity during the winter season of 2023-2024.

In an official statement, Etap executive director Nasos Hadjigeorgiou expressed satisfaction with the enhanced flight programmes to Paphos International Airport for the winter of 2023-2024.

The Cypriot economy experienced a notable deceleration in its growth rate during the second quarter of 2023, with GDP growth slowing to 2.1 per cent compared to the same period in 2022.

The Cyprus Real Estate Registration Council this week has unveiled a comprehensive analysis of the property sales trends across Cyprus for the first half of the year.

The data, sourced from the Department of Lands and Surveys, provides valuable insights into the dynamics of the Cypriot real estate market.

Net new loans in Cyprus showed a modest recovery in July 2023, reaching €300.5 million compared to €240 million in the previous month.

For the period from January to July, net new loans amounted to €2.03 billion, compared to €1.93 billion for the same period in 2022.

International credit rating agency Standard and Poor’s Global Ratings has upgraded the prospects of the Cypriot economy from stable to positive, citing the ongoing macroeconomic stabilisation.

At the same time, it reaffirmed Cyprus’ long-term credit rating at “BBB” (in local and foreign currency) and its short-term rating at “A-2”.