The Central Bank of Cyprus (CBC) on Monday released its late report on interest rates across all monetary financial institutions (MFIs) for the month of October.

According to the CBC, housing loan rates in Cyprus experienced a slight rise, while those in the eurozone declined.

In addition, business loan rates showed a downward trend both locally and across the eurozone.

The report also showed that household deposit rates in Cyprus fell, maintaining a gap below the eurozone average.

The Cyprus Securities and Exchange Commission (CySEC) on Monday published a policy statement detailing the fees payable and the information required under the European Regulation on markets in crypto-assets (MiCAR).

MiCAR introduces a harmonised framework for crypto-assets that are fungible but do not qualify as financial instruments or fall outside the regulation’s scope.

The regulation applies to both natural and legal persons involved in the issuance, public offering, and trading of such crypto-assets, as well as those providing related services within the European Union.

Limassol’s share of the 2025-2027 state budget has drawn the ire of the Limassol Chamber of Commerce & Industry (Evel), which called for action to address traffic, infrastructure, and overdue development projects.

The chamber said that Limassol, which generates half of Cyprus’ GDP, has been “allocated a disproportionately small share of the budget”.

The state budget, presented by Finance Minister Makis Keravnos, outlines €1.27 billion in co-financed projects over three years.

Despite these substantial allocations, Limassol’s share remains limited, the chamber stated.

President Nikos Christodoulides met bank heads on Monday for a “useful and constructive exchange” on his proposals for interest rate changes to help vulnerable groups.

Government spokesman Konstantinos Leymbiotis said at the same time it was accepted that banks “must be kept alive and substantial”.

He said the president’s proposals on interest rates are aimed at reliable borrowers and “population groups on which the state can place in its focus.”

The proposed measures will be brought before the finance minister on Wednesday, after their evaluation by the bankers, Letymbiotis said.

Hellenic Bank on Monday announced a reduction in its reference rate for loans linked to the European Central Bank’s (ECB) base rate.

Effective from December 18, 2024, the rate will decrease by 0.25 percentage points, moving from 3.40 per cent to 3.15 per cent.

“This reduction will also affect loans tied to Euribor interbank rates, benefiting over 6,000 borrowers,” the bank stated.

Last month, the bank also lowered its own base rate by 0.21 percentage points, bringing it down to 1.91 per cent.

“This earlier reduction positively impacted more than 90,000 borrowers, including individuals and businesses, helping them better manage their borrowing costs,” the bank explained.

Rising costs are driving restaurants and bars in Paphos to the brink, with 50-60 expected to close permanently in 2024, according to Angelos Onisiforou, chairman of the regional association of recreation centres.

Onisiforou said many businesses are unable to withstand soaring expenses such as rent and electricity, compounded by shrinking profit margins.  

“Some businesses will not reopen due to rising operating costs, such as rent and electricity, combined with a narrowing profit margin,” he said. 

District local authorities are now issuing building permits within 48 hours for low-risk developments of up to two residential units (Category A).

This is provided that applications were submitted before July 1, 2024, and meet the streamlined checklist criteria.

In the first week of the decree’s implementation, Nicosia district self-governance organisations (Eoas) received 48 applications for fast-track approval.

Monday afternoon marked the start of a three-day debate in parliament on the 2025 state budget, which will culminate in a vote by the plenary on Wednesday, December 18.

Before the budget debate, work focused on the issue of defective Takata airbags following the topic’s postponement from the previous plenary session.

During the debate, party leaders and all MPs addressed the budget itself and the economic, political, social and international contexts in which it was drafted.

The 2025 state budget, as initially submitted, sees an increase in expenditure and significant changes in revenue and spending.

Total expenditure is projected at €9.4 billion, reflecting a 3.25 per cent increase compared to the 2024 budget, while total anticipated revenues are expected to reach €11.75 billion, marking a 4.1 per cent rise.

Labour costs and job vacancies in Cyprus experienced significant increases in the third quarter of 2024, according to a report released by the state’s statistical service on Monday.

According to the report, the hourly labour cost rose by 4 per cent compared to the same quarter last year.

Meanwhile, the number of job vacancies reached 16,010 in the third quarter of 2024, a substantial increase of 30.4 per cent (3,736 more vacancies) compared to 12,274 in the same period of 2023.

The Commissioner of State Aid Control Stella Michaelidou on Monday approved a €3 million grant scheme to boost rural tourism.

Specifically, the scheme seeks to provide support for the renovation or enhancement of hotels and tourist accommodations in rural, mountainous, and remote areas.

The scheme, originally announced on December 6, will be implemented by the Deputy Ministry of Tourism.

Capital Intelligence Ratings has upgraded Hellenic Bank’s foreign currency long-term rating to “BBB-” from “BB”, citing significant improvements in financial stability and capitalisation.

This took place on the same day when S&P Global Ratings upgraded Cyprus’ long-term credit rating to “A-” from “BBB+” with a stable outlook.

Regarding Hellenic Bank, the agency also upgraded its Standalone Rating (BSR) to “bbb-” from “bb” and the Core Financial Strength (CFS) rating to “bbb” from “bb+”. The outlooks for both the LT FCR and BSR were revised to Stable from Positive.

CyRIC and bialoom, two Cypriot organisations, are contributing to the PhotonMed project, a major initiative in healthcare innovation, according to an official announcement.

PhotonMed is a €32 million international project aimed at revolutionising medical diagnostics and therapeutic tools using photonics technology.

This initiative, coordinated by Finland’s VTT, brings together 39 partners across nine countries and is co-financed by ChipsJU/EU and national agencies, including Cyprus’ Research and Innovation Foundation (RIF).

The Cyprus Chamber of Commerce and Industry (Keve) on Monday announced the appointment of Philokypros Rousounides as its new secretary general.

The chamber said that Rousounides will assume his duties on January 1, succeeding the current secretary general, Marios Tsiakkis, who is retiring.

The announcement also mentioned that Rousounides holds an MBA in international business and “brings extensive experience in senior management roles across major organisations and businesses both in Cyprus and abroad”.

“His expertise is expected to contribute significantly to the continued development of the chamber,” Keve stated.

A red flag analysis over the Great Sea Interconnector (GSI) project has dampened prospects for its viability, as it questions whether it can actually lower energy costs for consumers.

“It is unclear whether the development and utilisation of the GSI will ultimately decrease the cost of electric power for Cypriot consumers,” the analysis carried out by Charles River Associates and seen by the Cyprus Mail on Monday said.

“We find that it is unclear whether the GSI represents the optimal solution for Cyprus to 1) meet renewable energy targets and 2) lower costs to the Cypriot consumers.”

The GSI is a proposed 1GW, 500kV line spanning 898km between Cyprus and Greece, with a second 310 km segment planned to connect Cyprus to Israel, for a total of 1,208km.

The Cyprus Stock Exchange (CSE) ended Monday, December 16 with losses.

The general Cyprus Stock Market Index stood at 213.33 points at 12:03, representing a decrease of 0.40 per cent.

The FTSE / CySE 20 Index was at 129.75 points, reflecting a drop of 0.41 per cent.

The total value of transactions amounted to €847,654 at the aforementioned time during trading.

In terms of the sub-indexes, all recorded decreases. The main and alternative market indexes fell by 0.47 per cent and 0.34 per cent respectively, while the investment firm and hotel indexes declined by 1.69 per cent and 0.21 per cent respectively.

The biggest investment interest was attracted by Salamis Tours (€604,800, no change), Hellenic Bank (€120,382, -0.21 per cent), Bank of Cyprus (€83,298, +0.22 per cent), Vassiliko Cement Works Public Company (€6,750, -0.66 per cent), and Demetra Holdings (€6,443, -1.71 per cent).