The European Central Bank’s (ECB) decision to cut interest rates by 0.25 per cent on Thursday is expected to have a positive impact on the Cypriot economy, Professor Sofronis Clerides, Dean of the Faculty of Economics and Management at the University of Cyprus, said on Friday.
Speaking to the Cyprus News Agency (CNA), Clerides highlighted that a decrease in borrowing rates is expected to take place, although he expressed uncertainty about the corresponding trajectory of deposit rates.
“Over the past two years, with the ECB’s rate hikes, borrowing rates in Cyprus increased proportionally, while deposit rates increased much less,” he said.
According to Clerides, the ECB’s decision was largely anticipated, having been effectively announced through various statements since the beginning of the year.
The number of building permits issued in Cyprus increased by 3.3 per cent year-on-year for the period of January to March 2024, with the value of these permits rising to €0.73 billion, marking a 13.2 per cent annual increase.
According to a report released on Friday from the Cyprus Statistical Service (Cystat), the total number of building permits in the first quarter of 2024 reached 1,876, compared to 1,816 in the same period last year. Residential unit permits saw a significant rise of 20.7 per cent.
Breaking down by project category, the most notable annual increase was observed in permits for civil engineering projects, which grew by 18.9 per cent.
Permits for non-residential buildings increased by 10.7 per cent, while permits for residential buildings slightly decreased by 0.6 per cent.
The minister’s comments were delivered during a discussion on shipping challenges organised by the newspaper Akti Miaouli, which coincided with Cyprus’ participation in the Posidonia 2024 shipping exhibition.
Hadjimanolis addressed the impact of recent geopolitical developments on maritime trade in Cyprus and Greece.
Moreover, she stressed the need for international solutions to enhance the resilience of the shipping industry through collaboration and adherence to international law.
Commenting on this decision, Victor Trokoudes, CEO and founder of fintech Plum, which has offices in Nicosia, Athens and London, said that “the ECB will be hoping that the reduction will help to stimulate further growth in the eurozone area where there have already been promising signs, with growth levels beating expectations and forward-looking business activity coming ahead of forecasts”.
He explained that while the announcement was no surprise, it still represents a major milestone for the ECB.
He also noted that “the cut had been well-trailed, to the effect that the ECB had effectively already committed themselves to this announcement, despite Friday’s inflation figures being higher than expected”.
Eurobank has received approval from the European Central Bank (ECB) to distribute a cash dividend of €342 million, equivalent to €0.0933 per share, according to an official announcement released this week.
The announcement noted that this amount represents a 30 per cent payout of the bank’s net profits for 2023.
“This milestone marks the first dividend distribution in 16 years, underscoring the robustness and well-diversified operational model of Eurobank, which focuses on creating value for its shareholders,” the bank stated.
Invest Cyprus recently spotlighted Cyprus’ potential as a major business hub at the prestigious Island Conference and Reflect Festival held in Limassol, both of which took place on May 30-31, with the agency outlining its actions in an announcement released this week.
Reflect Festival attracted a vibrant mix of digital marketers, startup enthusiasts, potential investors, and influential decision-makers from around the world.
During their presentation, Invest Cyprus emphasised that “Investors are clear on what’s needed: a swift implementation of the Blue Card for professionals in Cyprus and quick integration into the Schengen area.” These steps are crucial for boosting Cyprus’ attractiveness as a top spot for business and investment.
Invest Cyprus described its participation in these conferences as “highly successful,” noting that their representatives had the opportunity “to unfold in front of a specialised audience all the elements that have turned Cyprus into an attractive investment destination.”
The total number of passengers that transited at both airports reached 1,140,659, marking a 4.26 per cent increase compared to May 2023.
At Larnaca airport, passenger traffic saw a 4.3 per cent increase over the previous year. In contrast, Paphos airport maintained its passenger numbers at the same level as May 2023.
Aircraft movements at both airports totalled 8,631 flights for the month, remaining consistent with last year’s figures.
The Cyprus Stock Exchange (CSE) ended Friday, June 7 with losses.
The general Cyprus Stock Market Index was at 160.15 points at 17:57 during the day, reflecting a decrease of 0.91 per cent over the previous day of trading.
The FTSE / CySE 20 Index was at 97.36 points, representing a drop of 0.97 per cent.
The total value of transactions came up to €901,160, until the aforementioned time during trading.
In terms of the sub-indexes, the main, alternative and investment firm indexes fell by 0.92 per cent, 1.26 per cent, and 0.95 per cent respectively. The hotel index rose by 0.71 per cent.
The biggest investment interest was attracted by the Bank of Cyprus (-0.72 per cent), Demetra (-0.96 per cent), Logicom (-2.52 per cent), Hellenic Bank (-0.39 per cent), and the Cyprus Cement Company (-1.88 per cent).
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