Here are the top business stories in Cyprus from the week starting January 8:

Cyprus pensioners are poised to experience an uplifting change in their financial circumstances. The Union of Cypriot Pensioners (Ekysy) unveiled the implementation of legislation on 1st January, ensuring a 3.89 per cent boost in the basic component of pensions for individuals benefiting from the Social Insurance Fund. This legislative change signifies a positive development for pensioners across the island.

Furthermore, the Cyprus Statistical Service (CSE) released data in December indicating a modest inflation rate of 1.6 per cent. This rate is marginally below the Eurozone average reported by Eurostat’s harmonized consumer price index, which stood at 1.9 per cent. Cyprus ranks as the sixth lowest in terms of inflation within the Eurozone, trailing behind the bloc’s overall average of 2.9 per cent for the same period. The figure represents a slight uptick from the 2.4 per cent reported in November, signifying a nuanced fluctuation in the country’s inflationary trend.

Moreover, the Cyprus Organisation for Standardisation (CYS) and the Great Britain-Cyprus Business Association (GBCY) have formalized a strategic collaboration aimed at fortifying business ties and fostering opportunities between UK and Cypriot companies. This partnership, initiated after a meeting on January 5, 2024, between Pambos Kammas, Director of Standardisation at CYS, and Savvas Kyriakides, Founder and President of GBCY, seeks to provide GBCY members with access to CYS services and solutions. The initiative is designed to propel advancements toward a safer and more sustainable future while concurrently elevating overall competitiveness and performance.

Additionally, container costs have experienced a notable surge due to escalating Houthi attacks on ships in the Red Sea. The repercussions are evident in the significant increase in freight expenses, prompting several shipping companies, particularly container carriers, to adopt alternative routes such as circumnavigating the Cape of Good Hope to reach Europe, despite the associated higher costs. Shipping executives have characterized the situation as critical, with 18 companies opting for such rerouting measures around southern Africa. Consequently, this strategic shift been seen upward on freight costs, subsequently influencing the final prices of various products.

In the maritime sector, the Oesterreichischer Lloyd Shipping Group has announced the appointment of Sunil Kapoor as its newest Partner and Chief Operating Officer, marking a significant addition to the leadership team.

In a strategic business move, Mediterranean Hospitality Venture (MHV) Ltd has reached an agreement to divest 50 per cent of its ownership in Aphrodite Hills Resort Limited (AHRL) to WRA Consultants Ltd, a private company registered in Cyprus. This transaction signifies a noteworthy development in the resort’s ownership structure and holds implications for the ongoing operations and management of Aphrodite Hills Resort.

Cypriot banks, maintaining robust lending activity despite changes in interest rates, issued over €3 billion in new loans by November 2023.

Additionally, Cyprus has set up the National Cybersecurity Certification Authority to become a key hub for cybersecurity services in the region. The authority, under the Office of Commissioner of Communications-Digital Security Authority, focuses on certifying IT and communication products and services to boost Cyprus’s capabilities and bring economic benefits as a regional certification centre.

In a different sector, Paphos embarks on a digital revamp in 2024 as the Paphos Regional Tourism Board (Etap) allocates significant funds to enhance its online footprint. Etap has unveiled an investment exceeding €220,000, collaborating with hoteliers, Hermes Airports, and Hellenic Bank for a year-round digital campaign in priority markets. The initiative aims to amplify Paphos as a travel option in 2024 and fortify its digital infrastructure.

Moreover, the State Aid Commissioner, Stella Michaelidou, has given the green light for €240 million in funding for the ‘RESTART 2016 – 2020 Programs for Research, Technological Development, and Innovation of the Research and Innovation Foundation.’ This financial allocation, approved until the conclusion of 2026, is considered compliant with state aid regulations.

The government has set aside €5 million to motivate businesses to reduce their carbon footprint. Approved by State Aid Commissioner Stella Michaelidou last month, this initiative aims to inspire businesses to cut down on greenhouse gas emissions. The funding for this environmentally friendly program will be sourced from the EU’s Recovery and Resilience Facility allocated for 2022-2026. Both large companies and small to medium-sized enterprises can apply for this funding, which will be managed by the Ministry of Agriculture.

To further underscore Cyprus’s dynamic innovation landscape, the thriving ecosystem boasts exceeding 400 startups and innovative businesses, complemented by a substantial presence of over 2500 researchers and 4000 entrepreneurs, as highlighted by Demetris Skourides, Chief Scientist of the Research and Innovation Foundation.

In addition, the recently appointed Commissioner for the Environment, Antonia Theodosiou, commended the Cyprus Sustainable Tourism Initiative (CSTI) for its notable contribution and significance within the tourism industry.

Responding to pressure from diverse professional bodies, such as the Bar Association, the Chamber of Commerce (Keve), the Accountants Association (Selk), and the Cyprus International Business Association, alongside representatives from various political parties, the Registrar of Companies and the Ministry of Commerce have complied regarding fines imposed on companies for neglecting to register ultimate beneficial owners (UBO). In the latest announcement on Friday, the Registrar disclosed that the system for UBO registration will now enable companies to submit this information without facing the fines initiated on January 1.