Cyprus Business Now

Finance Minister Makis Keravnos welcomed the release of the International Monetary Fund’s (IMF) Fiscal Monitor, which expects that Cyprus’ public debt ratio will decline to the Maastricht Treaty limit (60 per cent) one year earlier than previously thought, describing it as a very positive development.

This year the debt-to-GDP ratio will decline to 70.7 per cent (compared to 71.9 per cent in last year’s Fiscal Monitor) and will significantly decrease to 65.1 per cent in 2025 (compared to 67.8 per cent last year).

In 2026, Cyprus’ debt ratio will reach the 60 per cent threshold, declining to 56 per cent, 52.8 per cent, and 50 per cent in the years 2027, 2028, and 2029, respectively.

“This is a very positive development in a period with all these geopolitical developments, which the Ministry of Finance, of course, closely monitors,” Keravnos said.

“We all hope that there will be no further complications,” he added.

The Finance Ministry, in collaboration with SIX, a financial market infrastructure company, and the Cyprus Stock Exchange (CSE), on Thursday announced the successful activation, referred to as going live, of the dual-listing of Euro Medium Term Notes (EMTN) of the Republic of Cyprus at the Cyprus Stock Exchange.

According to an announcement by the CSE, the first trading day in the EMTN officially commenced on March 27, 2024.

Spearheading this initiative, SIX has engineered a post-trade solution that fortifies the Cyprus Stock Exchange’s role as the Central Securities Depository, ensuring the provision of safekeeping, settlement, and asset servicing for the Euro Medium Term Notes of the Republic of Cyprus.

The announcement stated that “this partnership will enhance liquidity for the Republic of Cyprus’ funding vehicles, accelerate the growth of the Cypriot capital markets and capture long-term joint value for both Cyprus Stock Exchange and SIX”.

Developments in the Middle East are indeed worrying, however, for the time being, they do not appear to have had any significant impact on tourist arrivals in Cyprus, with the island enjoying a strong start to 2024, according to Antonis Orthodoxou, the press spokesman of the Association of Cyprus Travel Agents (ACTA).

According to the Cyprus Statistical Service (Cystat), tourist arrivals saw a rise of 9.8 per cent, reaching 202,256 compared to 184,263 in March 2023.

During the period from January to March 2024, the total arrivals of tourists amounted to 415,251, in contrast to 393,893 in the corresponding period of 2023, recording an increase of 5.4 per cent.

The price index of construction materials in Cyprus reached 117.19 units in March, with 2021 serving as the base year with a default value of 100 units, marking a slight increase of 0.21 per cent compared to the previous month, according to a report released on Thursday by the state’s statistical service.

However, when compared to the same month of the previous year, the index recorded a notable decrease of 1.70 per cent.

The Cyprus Stock Exchange (CSE) ended Thursday, April 18 with profits.

The general Cyprus Stock Market Index was at 143.85 points at 12:50 during the day, reflecting an increase of 0.55 per cent over the previous day of trading.

The FTSE / CySE 20 Index was at 87.30 points, representing a rise of 0.55 per cent.

The total value of transactions came up to €149,223, until the aforementioned time during trading.

In terms of the sub-indexes, the main and alternative indexes rose by 0.4 per cent and 0.63 per cent respectively. The hotel index remained unchanged while the investment firm index fell by 0.63 per cent.

The biggest investment interest was attracted by Vassiliko Cement Works Public Company (+2.17 per cent), Petrolina (no change), the Bank of Cyprus (+1.13 per cent), Hellenic Bank (+0.86 per cent), and Demetra (-0.65 per cent).