The Bank of Cyprus on Friday announced that it has “swiftly reacted to the European Central Bank’s (ECB) latest decision to cut interest rates,” announcing a reduction in the reference rate for loans linked to the ECB’s base rate.

According to the announcement, effective from December 18, 2024, the rate will decrease by 0.25 percentage points, dropping from 3.40 per cent to 3.15 per cent.

This reduction, the bank pointed out, is expected to provide significant relief to approximately 10,000 borrowers whose loans are tied to the ECB base rate.

Cyprus’ economy is projected to maintain its resilience in 2025, with an anticipated growth rate of 3.1 per cent – significantly higher than the EU average – Finance Minister Makis Keravnos said on Friday.

Speaking at the Safe VAT Forum in Nicosia, Keravnos highlighted the strong economic performance in 2024, including a decline in unemployment to near full employment levels and inflation easing to approximately 2 per cent.

The finance minister said VAT revenue amounted to 47 per cent of total tax revenue.

President Nikos Christodoulides presented a roadmap for economic growth and resilience during his address at the Cyprus Chamber of Commerce and Industry (Keve) annual general meeting in Nicosia on Thursday evening.

The president laid out plans for comprehensive tax reform, digitisation of public services, and initiatives to strengthen Cyprus’ industrial and financial sectors.

Christodoulides opened his address by affirming his administration’s focus on creating a supportive environment for business and entrepreneurship.

“Our government’s philosophy is rooted in the belief that a thriving business community benefits society as a whole,” he said.

All new buildings across the European Union must achieve zero emissions by 2030, while public buildings face an even tighter deadline of 2028.

This ambitious plan forms part of the EU’s revised energy performance of buildings directive, which aims to transform Europe’s building stock into a cornerstone of its climate neutrality strategy.

In this context, Cyprus’ energy ministry has undertaken several measures to align with the directive, including drafting a national renovation plan to map building stock, set policies and outline a roadmap to 2050.

The plan prioritises the renovation of energy-inefficient buildings and aims to accelerate annual renovations from 1,000 today to 3,000 by the end of the decade.

To fund this transition, additional public resources of €100 million will be required, enabling private and public sectors to mobilise total investments exceeding €200 million.

S&P Global Ratings has upgraded the long-term issuer credit rating of Freedom Finance Europe Ltd., which operates under the Freedom24 brand, from ‘B’ to ‘B+’.

According to the announcement, this improvement reflects a broader enhancement of ratings for Freedom Holding Corp.’s subsidiaries, with Freedom Finance JSC, Freedom Finance Global PLC, and Freedom Bank Kazakhstan JSC also receiving upgrades to ‘B+’.

Meanwhile, the short-term ratings of all four subsidiaries were affirmed at ‘B’, and the holding company’s long-term credit rating was maintained at ‘B-’.

S&P Global Ratings highlighted the group’s strong position as the largest retail brokerage franchise in Kazakhstan, a growing presence in Europe, and a diversified business portfolio that includes banking and insurance operations in Kazakhstan.

The proposed bill to impose a tax on banks’ windfall profits would jeopardise the stability of the financial system, government spokesman Konstantinos Letymbiotis said on Friday.

His comments came a day after the House plenary session rejected Akel’s proposal in a tied vote of 25 in favour and 25 against, with four abstentions.

The defeated bill sought to impose a 5 per cent tax on bank profits, aiming to raise €100 million over two years to support vulnerable groups and borrowers. Akel framed the issue as a choice between ‘serving society or the banks,’ but critics dismissed this as an oversimplification.

“There was no immediate benefit for borrowers, as these funds would have gone directly to the state coffers,” Letymbiotis stressed in his interview on radio Trito.

More than 800 students from schools across Cyprus participated in a series of lectures and talks organised by the Cyprus Securities and Exchange Commission (CySEC), aimed at enhancing financial literacy among school-age children.

The lectures, which concluded on Thursday, were presented by CySEC officials to students at 17 primary schools, high schools, and lyceums as part of the 2024 World Investor Week.

This follows a similar programme in March 2024, which took place at nine schools.

The commission said that financial education for the youth is increasingly recognised as a fundamental life skill.

It cited recent research which showed that only 36.9 per cent of young people aged 18-24 possess sufficient financial knowledge.

Cyprus unveiled an ambitious aviation strategy during an event held on Thursday by the Mediterranean Flight Safety Foundation (FSF-MED) in Nicosia.

At the event, Transport Minister Alexis Vafeades outlined plans to enhance aviation safety, improve connectivity, and promote regional cooperation.

“We understand that the challenges of tomorrow require innovation, cooperation, and insight, and we are determined to tackle these challenges head-on,” Vafeades said.  

Furthermore, he outlined the Ministry’s goals to develop safe, sustainable aviation, improve connectivity, and enhance airport services, aligning with Cyprus’ geographical position. 

The ministry is partnering with Hermes Airports to reinforce the aviation sector and boost tourism.

The Cyprus Stock Exchange (CSE) ended Friday, December 13 with losses.

The general Cyprus Stock Market Index stood at 214.20 points at 12:27, representing a decrease of 0.19 per cent.

The FTSE / CySE 20 Index was at 130.28 points, reflecting a drop of 0.21 per cent.

The total value of transactions amounted to €65,150 at the aforementioned time during trading.

In terms of the sub-indexes, the main and investment firm indexes fell by 0.36 per cent and 0.22 per cent respectively. The alternative index rose by 0.2 per cent while the hotel index remained stable.

The biggest investment interest was attracted by the Bank of Cyprus (+0.66 per cent), Hellenic Bank (no change), KEO (-0.93 per cent), Demetra Holdings (-1.97 per cent), and Vassiliko Cement Works Public Company (+0.63 per cent).