The Central Bank of Cyprus (CBC) announced on Thursday that new loans taken out by non-financial corporations over €1 million increased by 10 per cent in May of this year, despite a 0.52 per cent rise in lending rates.

The CBC published the interest rate statistics for Cyprus’ monetary financial institutions concerning deposits and loans, along with new loan amounts for May 2024.

These figures are included in the June 2024 edition of Monetary and Financial Statistics.

The interest rate for household deposits with a maturity of up to one year decreased to 2.02 per cent in May, down from 2.16 per cent the previous month.

Conversely, the interest rate for deposits from non-financial corporations increased to 2.29 per cent from 1.82 per cent in the prior month.

President Nikos Christodoulides used his address at the 12th Invest Cyprus International Investment Awards held in Nicosia, to highlight the crucial role of foreign investors in Cyprus’ economic growth.

The president said that the government views them as partners in unlocking opportunities, fostering innovation, and driving sustainable growth.

“Our target is clear: a thriving and resilient economy characterised by high competitiveness, ease of doing business, and sustainability,” Christodoulides stated.

The president also outlined the government’s economic policy, which is built on three core pillars. The first pillar, he said, is maintaining a stable macroeconomic environment through responsible fiscal policy.

“At times of growth, the implementation of a responsible fiscal policy allows us the flexibility to take corrective measures when external shocks impact the economy,” he explained.

Cyprus’ wholesale and retail trade sector demonstrated robust growth in 2022, according to a recent report by the Cyprus Statistical Service (Cystat).

In 2022, the overall turnover in the sector soared by 20.7 per cent, reaching €17.61 billion, up from €14.59 billion in 2021.

This surge was primarily driven by significant growth in specific areas. Turnover in wholesale and retail trade, including the repair of motor vehicles and motorcycles, rose by 17.9 per cent to €1.22 billion.

The wholesale trade alone saw an even more striking increase, with turnover jumping by 28.7 per cent to €9.07 billion. Retail trade was not far behind, with a 12.5 per cent increase in turnover, totalling €7.32 billion.

The production value in the trade sector also showed positive trends, rising by 16.8 per cent in 2022 to reach €4.57 billion.

Inflation in June 2024 rose by 2.9 per cent over the previous month, marking a continuation of the upward trend that began in April and reaching its highest level since October 2023.

Data released by the Cyprus Statistical Service (Cystat) on Thursday showed that Cyprus’ Consumer Price Index (CPI) dropped slightly by 0.12 points to 117.72, down from 117.84 in May 2024.

The most significant year-on-year changes were noted in electricity, with a sharp rise of 9.5 per cent, and petroleum products, which increased by 8.6 per cent.

However, compared to the previous month, petroleum products saw a notable decrease of 3.7 per cent.

A total of 12 bounced cheques worth €13,048 were issued in June of this year, involving 10 persons, according to a report by the Central Bank of Cyprus (CBC) released this week.

These persons, comprising 6 legal entities and 4 individuals, were subsequently included in the preliminary list of the Central Information Registry (CIR) for bounced cheques, which is maintained by the CBC.

According to the CBC report, 143 cheques with a total value of €302,947 were registered in the preliminary list of the CIR during the period from January to June 2024.

This is a notable decrease compared to the same period last year when 197 cheques with a total value of €503,094 were registered.

The Central Bank of Cyprus (CBC) stated in its 2023 annual report, which was published this week, that increased bank profitability is not expected to alter the supervisory authorities’ prudent policy regarding dividend distribution.

The CBC highlighted that the management of non-performing loans (NPLs) remains a priority. It has signed an agreement with a consortium of experienced international firms to find a systemic solution that, with the existing available collateral, will lead to a more drastic reduction of NPLs across all banks.

The report covers the year 2023 and mentions economic developments in the first half of 2024. The forecasts for 2024, 2025, and 2026 are based on the CBC’s March 2024 projections.

The report indicates that the data reflects the stabilisation of the impact of ongoing sanctions against Russia on the turnover of financial and professional services. Regarding the conflict in the Middle East, any effects are described as limited.

In his introduction, former CBC governor Constantinos Herodotou stated that the Cypriot economy continues to show resilience despite ongoing challenges mainly stemming from unstable international geopolitical developments.

“The outlook is positive, indicating a strengthening of GDP growth and further easing of inflation,” he said.

Cyprus witnessed a growth in house prices during the first quarter of 2024, as evidenced by the latest figures released by the Cyprus Statistical Service (Cystat) on Thursday.

According to a preliminary estimate, the House Price Index (HPI) for the first quarter of 2024 stood at 111.53 points.

This index represents a modest year-on-year increase of 1.1 per cent, a notable slowdown compared to the 1.6 per cent annual increase seen in the fourth quarter of 2023.

Eni denied on Thursday that it has been engaged in any discussion for the sale of shares in Cyprus, a company spokesperson told the Cyprus Mail after the government also denied claims that there were thoughts of the company selling shares.

“Eni denies being engaged in any discussion for the sale of shares in its assets held in Cyprus,” a company spokesperson said on Thursday.

President Nikos Christodoulides also refuted reports from Bloomberg on Wednesday that Eni intends to sell its rights in Cyprus’ exclusive economic zone (EEZ).

“We have spoken with Eni, there is absolutely no intention in relation to the EEZ of the Republic of Cyprus,” the president said when he was whether he was concerned by reports in relation to Eni’s intention to sell its rights for hydrocarbon exploration and exploitation in Cyprus’ EEZ.

The Cyprus Stock Exchange (CSE) ended Thursday, July 4 with losses.

The general Cyprus Stock Market Index was at 162.51 points at 12:33 during the day, reflecting a decrease of 0.78 per cent over the previous day of trading.

The FTSE / CySE 20 Index was at 98.83 points, representing a drop of 0.79 per cent.

The total value of transactions came up to €144,104, 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, 0.23 per cent and 0.86 per cent respectively. The hotel index remained unchanged.

The biggest investment interest was attracted by Hellenic Bank (-1.14 per cent), the Bank of Cyprus (-0.72 per cent), Logicom (no change), Demetra Holdings (-0.89 per cent), and Petrolina (no change).