Cyprus Business Now: weekly wrap-up

Here are the top business stories in Cyprus from the week starting October 2:

The Governor of the Central Bank of Cyprus (CBC) Constantinos Herodotou on Friday used his keynote address at the 14th Limassol Economic Forum to provide insights into the economic outlook for the euro area, stressing that difficult measures are necessary to combat inflation.

Herodotou stated that “amidst the continuous waves of shocks and high uncertainty, the euro area remains a cornerstone of the global economy, exemplifying both the challenges and opportunities of integrated economies”.

Minister of Energy, Commerce, and Industry George Papastasiou on Friday, while speaking at the Limassol Economic Forum, highlighted the significant issues facing the energy sector in Cyprus, considering both the ongoing energy crisis in Europe and global developments in the Eastern Mediterranean.

Cyprus’ robust shipping registry is bolstering the nation’s maritime prominence, positioning it as a key player in shaping maritime policy while delivering a clear message that illicit restrictive measures and violations of international law are unacceptable, stated Marina Hadjimanoli, Deputy Minister of Shipping, during a press conference for the Cyprus Shipping 2023 International Conference.

Cyprus’ Deputy Minister of Tourism Kostas Koumis highlighted the importance of promoting the historical connection between Cyprus and France as the Kingdom of the Lusignans during his recent visit to Paris.

Net new loans in Cyprus decreased by €71.2 million in August 2023, compared to July 2023, according to the latest data from the Central Bank of Cyprus (CBC).

TechIsland, Cyprus’s leading tech association, on Thursday released a statement announcing that Ugne Buraciene, Group Chief Executive Officer of payabl., has officially joined its board of directors, effective as of October 4, 2023.

In this exclusive interview, Timur Turlov, a visionary leader and CEO, delves into his triumphant journey in the world of finance. It all began in 2008 amidst the global financial crisis, when the bank he worked for shuttered its investment subsidiaries.

As head of operations for the US markets, Turlov was tasked with navigating this tumultuous period, leading to the birth of his own investment boutique.

The Vice President of the European Central Bank (ECB) Luis de Guindos on Wednesday praised the notable improvement in Cyprus’ economy and its recent upgrade by two credit rating agencies during a meeting with the Governor of the Central Bank of Cyprus (CBC), Constantinos Herodotou, in Nicosia on Wednesday morning.

Finance Minister Makis Keravnos delivered on Wednesday the state budget for 2024 with a promise of cost-of-living relief measures by the end of the month – and a look ahead to next year’s ‘green taxes’.

The 2024 budget projects a surplus of €659 million, equivalent to 2.2 per cent of the GDP. Development spending shows a 12 per cent increase on an annual basis, while social benefits are up by 15 per cent compared to 2023, reaching €2bn. Additionally, there is a restraint on public sector salaries.

Cyprus witnessed a notable increase in house prices during the second quarter of 2023, with the House Price Index (HPI) rising by 3.2 per cent during this time, compared to the same period in 2022.

Two Cypriot banks, the Bank of Cyprus and the Hellenic Bank, had their credit ratings upgraded by investment service Moody’s on Monday.

Both had their long-term deposit ratings increased by one level, from Ba1 to Baa3, while Moody’s maintained a “positive outlook” for both banks.

Cyprus tourism has experienced a remarkable surge in revenue, with an impressive 26.9 per cent increase during the period of January to July 2023, compared to the same period in 2022.

These findings were revealed in the Traveler Survey results published by the state’s statistical service on Tuesday.

The Cyprus Securities and Exchange Commission (CySEC) on Monday released a statement announcing its active participation in World Investor Week 2023 (WIW2023), a global initiative that unites regulators from more than 100 countries across six continents, alongside 12 regional and international organisations.