The developments come after meetings at the presidential palace earlier in the week between the CEOs of the banks with President Nikos Christodoulides.
After months of punishing interest rates on loans, both banks announced measures aimed at reducing the blow on borrowers.
Both banks said they were offering reduced interest rates for individuals who obtained a housing loan linked to a government scheme for young people (up to the age of 41) or property purchases in mountainous or disadvantaged areas.
The signing ceremony took place at the finance ministry, with Finance Minister Makis Keravnos and Transport Minister Alexis Vafeades also in attendance.
Keravnos described the agreement as more than a financial transaction, emphasising its alignment with a shared vision for Cyprus’ future in terms of development, sustainability and connectivity.
He stated that the projects, with a total cost of approximately €400 million, would be implemented between 2024 and 2029.
This figure remains close to the €872.8 million surplus recorded during the same period last year, despite increased government spending outpacing revenue growth.
During the period from July to September 2024, total government revenue rose by €255.7 million, an increase of 6.9 per cent, reaching €3.97 billion.
The rise was primarily attributed to an increase in social contributions, which surged by 13.2 per cent to €1.09 billion, and higher income and wealth taxes, which grew by 13.9 per cent to €1.29 billion.
Speaking during a briefing on the CBC’s new organisational structure, governor Christodoulos Patsalides left open the possibility of higher capital requirements.
Patsalides pointed out that unprecedented challenges are creating new uncertainties.
“The updated structure”, he said, “equips the central bank to address emerging risks such as geopolitical instability, climate change, technological advancements, cyber threats, trade protectionism, and the growth of cryptocurrencies”.
“Limassol absorbed a large percentage of the approximately 800,000 Russian arrivals annually in Cyprus,” Theocharous said.
She added that “it is very encouraging that this loss has been covered, while tourism, after the pandemic, is recording an overall positive trend.”
The revision is attributed to stronger domestic demand, with private consumption playing a central role, supported by the ongoing resilience of the Cypriot economy.
However, the CBC also revised its forecasts for 2025-2026 downwards, due to increased imports required to meet the higher domestic demand.
President of the Larnaca branch of the Confederation of Professional Craftsmen and Shopkeepers (Povek) Kyriacos Ambizas said the timing of the works was wrong.
He added that works should have started after the Christmas and New Year holidays.
“This important achievement comes after a period of significant challenges and changes in tourism and aviation, brought about by both the pandemic and the various geopolitical developments,” airports operator Hermes said.
It added that the 12 million passenger milestone was proof of the country’s dynamic as a destination and the resilience of the tourism sector.
For high earners, Cyprus is now a part of the European Blue Card scheme, with third-country nationals earning above a certain amount and working in certain sectors offered extra rights compared to ordinary third-country nationals, including the right to live and work in 25 European Union member states – all except Denmark and Ireland.
To qualify for the blue card in Cyprus, a third-country national must be earning a gross salary of at least €43,632 per year and must be working in either information and communication technologies, pharmaceuticals for research purposes, or the maritime sector, excluding ship captains and crews.
The government also amended the rules for third-country nationals students in Cyprus to be able to work on the island while studying, with them now able to work in a large number of professions.
The CBC said that the strategy was developed with the assistance of an international consultancy firm.
In collaboration with CBC officials, the firm conducted an analysis of the sector and its inherent risks.
The findings were presented to the CBC’s board of directors during its meeting on December 19, 2024.
Violaris also highlighted the fact that approving the new law is beneficial to Cyprus’ image, helping to attract new multinational groups, while also generating more tax revenue for the state.
The new law was finally passed by the House on December 12, implementing the OECD’s Pillar Two framework, introducing a global minimum tax rate of 15 per cent for large multinational and domestic groups.
The legislation, formally titled “The Global Minimum Tax Assurance for Multinational Enterprise Groups and Large-Scale Domestic Groups in the Union Act of 2024”, will come into force following its publication in the Official Gazette.
For the first time, the data included details on the district local government organisations (Eoas), established in July 2024.
Employment within the general government reached 68,153, while government-controlled companies and enterprises employed 4,984 individuals.
Within the general government, which comprises the central government, non-profit organisations, and local authorities, employment was recorded at 52,690, 9,975, and 5,488 employees, respectively.
The Cyprus Stock Exchange (CSE) ended Friday, December 20, with losses.
The general Cyprus Stock Market Index stood at 212.89 points at 13:32, reflecting a drop of 0.26 per cent.
The FTSE / CySE 20 Index was at 129.44 points, representing a decrease of 0.26 per cent.
The total value of transactions came up to €503,647, until the aforementioned time during trading.
In terms of the sub-indexes, the main index fell by 0.28 per cent. The investment firms, alternative and hotels indexes dropped by by 0.58 per cent, 0.21 per cent, and 0.95 per cent respectively.
The biggest investment interest was attracted by Agros Development Company “Proodos” (€287,922, no change), Bank of Cyprus (€90,401, -0.88 per cent), Vassiliko Cement Works (€51,411, -0.63 per cent), Hellenic Bank (€50,388, +0.21 per cent), and Demetra Holdings (€12,236, -0.58 per cent).
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