Cyprus Business Now

Limassol port has seen a substantial rise in wheeled cargo traffic since DP World Limassol (DPWL) took over its operation, processing around 60,000 multipurpose Ro-Ro units (Roll-on, Roll-off) in 2023 alone, according to an announcement by the port management company released on Thursday.

The announcement pointed out that this number represents a nearly 75 per cent increase in volume since the company took over the operation of the port’s multipurpose terminal in 2017.

“DP World Limassol is an important stakeholder of the country’s automotive and construction industries, making a significant contribution to Cyprus’ economic growth every year,” DP World Limassol CEO Simon Pitout said.

The acquisition of CNP’s insurance operations in Cyprus and Greece is expected to lead to increased and more varied revenue streams for Hellenic Bank, according to a report released this week by international rating agency Fitch.

Hellenic Bank has entered into exclusive negotiations and has signed a put option agreement with CNP Assurances for the acquisition of its subsidiary, CNP Cyprus Insurance Holdings Limited, which operates in Cyprus and Greece, for a price of €182 million.

In its report, the agency noted that the agreement is not expected to have an immediate impact on the bank’s ratings and anticipates that the transaction will have a “manageable” effect of around 2.6 per cent on the bank’s regulatory capital.

Cyprus has rejected the new proposal by consortium Chevron, NewMed Energy, and BG Cyprus (Shell) to develop the ‘Aphrodite’ natural gas field in block 12 of the exclusive economic zone (EEZ), it emerged on Thursday.

The government deemed the proposal inadequate and requested the consortium states its consent within six months on specific actions aiming to develop the gas field.

The energy ministry announced on April 2 that it had received a proposal from Chevron, the operator of the field, to optimise the agreed Development and Production Plan adding it would review the proposal and notify the consortium, which also includes BG Cyprus (Shell) and NewMed Energy.

Cyprus on Thursday welcomed a Moneyval report that said the country had improved measures in tackling money laundering and combating terrorism financing, though it identified existing shortcomings.

Moneyval is the Council of Europe’s committee of experts on evaluating anti-money laundering measures and the financing of terrorism.

Commenting on the results of the report and Cyprus’ compliance with the actions, the government said there has been “significant improvement” in recommendations to deal with money laundering.

A recently held property conference held in Larnaca expressed great confidence about the city’s real estate prospects, while also providing assurances that the redevelopment of the port and marina will be pursued at all costs.

The event, titled ‘Property Show Larnaka 2024’, gathered a large number of property sector professionals and other stakeholders interested in the development of Larnaca, with twenty specialised market factors speaking about the city’s potential, new projects, competitiveness, and attractiveness to foreign investors.

Leading PayTech firm payabl., which has offices in Cyprus, Germany, Netherlands and the United Kingdom, on Thursday marked a significant achievement as it commemorated 12 years as a principal member of Mastercard.

“This collaboration has seamlessly integrated Mastercard’s robust capabilities into payabl.’s cutting-edge payment services, allowing businesses of all sizes to conduct transactions effortlessly,” the company said in a statement.

“payabl.’s comprehensive array of payment products, fortified by Mastercard’s reliable network, includes card acquiring, POS terminals, and bespoke payment services designed to meet the dynamic needs of modern marketplaces,” it added.

Cyprus’ retail sector experienced a significant upturn in March 2024, according to a report from the Cyprus Statistical Service (Cystat) released on Thursday.

The report disclosed a 5.5 per cent increase in the retail trade turnover value index compared to March of the preceding year, while the retail trade turnover volume index saw a rise of 5.2 per cent during the same period.

Moreover, it added that for the January-March 2024 period, the Value Index is estimated to have increased by 5.4 per cent and the Volume Index by 4.9 per cent compared to the same period in 2023.

A total of 7,500 people have submitted applications for participation in the national solidarity fund scheme for depositors and bondholders affected by the bank haircut in 2013, it was revealed on Thursday, a day after the deadline.

Speaking to Cybc radio, the finance ministry’s permanent secretary George Panteli said that the process of verifying the applications will begin, in collaboration with the Bank of Cyprus and the administrator of the former Laiki Bank.

Inflation soared to its highest level since October 2023 in April of this year, according to a report released on Thursday by the Cyprus Statistical Service (Cystat), reigniting concerns amongst consumers and households.

According to the report, the consumer price index rose to 2.4 per cent in April, which is double the 1.2 per cent recorded in March and close to the 3.7 per cent recorded in April 2023. This, indeed, is the highest level since October 2023, when inflation reached 3.7 per cent.

Furthermore, the expiration of subsidies on motor fuel and heating oil from 1 April has pushed up the prices of oil products, which consumers now also have to contend with.

The Cyprus Stock Exchange (CSE) ended Thursday, May 2 with profits.

The general Cyprus Stock Market Index was at 145.44 points at 13:00 during the day, reflecting an increase of 0.49 per cent over the previous day of trading.

The FTSE / CySE 20 Index was at 88.25 points, representing a rise of 0.49 per cent.

The total value of transactions came up to €650,314, until the aforementioned time during trading.

In terms of the sub-indexes, the main and investment firm indexes rose by 0.67 per cent and 0.86 per cent respectively. The hotel index remained unchanged while the alternative index fell by 0.1 per cent.

The biggest investment interest was attracted by Vassiliko Cement Works Public Company (+1.15 per cent), Demetra (+0.87 per cent), Hellenic Bank (+0.43 per cent), the Bank of Cyprus (+1.1 per cent), and Logicom (no change).