The bank explained that “this 0.25 per cent reduction will have a significant positive impact on customers, particularly in terms of their monthly loan repayments”.
“Nearly 12,000 borrowers whose loans are tied to the ECB base rate will see an immediate reduction in their instalments,” it added.
The bank pointed out that since the ECB began reducing rates in June 2024, the total decrease now amounts to 1.6 per cent (from 4.50 per cent to 2.90 per cent).
Additionally, the bank noted that interest rates for 8,000 other borrowers with loans linked to Euribor have also been decreasing steadily over recent months.
According to the Economics Research Centre of the University of Cyprus (CypERC), this decline was primarily driven by weaker business confidence in the construction and industrial sectors, along with lower consumer confidence.
The Services Confidence Indicator saw a small increase, as businesses were more optimistic about their expected turnover, although assessments of recent performance were less favourable.
The Retail Trade Confidence Indicator also increased slightly, as firms revised their sales expectations upwards.
In contrast, the Construction Confidence Indicator dropped sharply, with firms expressing more negative views on current order books and revising their employment expectations downwards.
Citing preliminary data, the service also reported a 1.3 per cent rise in seasonally adjusted gross monthly earnings when compared to the second quarter of 2024.
In the third quarter of 2024, the average gross monthly earnings for men were estimated at €2,526, compared to €2,133 for women.
Finance Minister Makis Keravnos on Friday expressed satisfaction with the European Central Bank’s (ECB) decision to further reduce key interest rates by 0.25 per cent.
In a written statement, Keravnos described the move as a positive development for the European economy, especially during the current economic climate.
He also mentioned that the decision also reflects trends in the Cypriot economy, citing an inflation rate of 1.8 per cent in 2024.
Speaking at a recent conference in Athens, Ioannou’s address focused on Cypriot business opportunities, outlining the country’s transformation into a hub of growth, innovation, and investment appeal.
Highlighting the country’s resilience, Ioannou referenced European Commission projections for Cyprus’ economic performance.
“The European Commission forecasts a 3.6 per cent growth for 2024, with strong momentum of 2.8 per cent in 2025 and 2.5 per cent in 2026,” he said.
The budget is expected to run at a deficit of approximately €1.88 million.
Specifically, total expenditure has been set at €6,855,825, while revenues are estimated at €4,973,506.
The Central Bank of Cyprus (CBC) has set the reference interest rate at 11.5 per cent, following the authority granted under Article 314A of the Criminal Code, Cap. 154.
This new rate aims to regulate the financial sector and curb excessive charges on loans.
This visit comes following an official invitation from Oman’s Minister of Transport, Communications and Information Technology, Saeed bin Hamoud bin Saeed al Maawali.
Subsequently, the deputy minister will proceed to Qatar to participate in the ‘Seatrade Maritime Qatar exhibition and conference 2025’, following an invitation from Qatar’s Minister of Transport, Sheikh Mohammed bin Abdulla bin Mohammed Al Thani.
According to the commission, certain entities within the scope of the EU Digital Operational Resilience Act (DORA) will be required to perform a Thread Lead Penetration Test or TLPT, “testing their resilience against ever-evolving cyber threats”.
It added that “the proposals include the payment of an annual ICT oversight fee and a fee for the TLPT assessment“.
The deadline for responses to the consultation paper is March 7, 2025.
Specifically, Cyprus received the “Best Worldwide Climb in the Top 50” award, recording the largest jump—nine places—in the global ranking of startup ecosystems for 2024.
The award was part of the Startup Ecosystem Awards 2025, organised by StartupBlink, the world’s leading platform for evaluating innovation and startup ecosystems.
Speaking during a business event in Athens, Kassianides said that the Cypriot banking sector, despite challenges in the past decade, has regained customer trust, with data underscoring its positive trajectory.
“Capital strength, effective credit risk management, and adaptability to economic challenges ensure that Cypriot banks can robustly support growth, even in a climate of geopolitical instability,” he stated.
He also emphasised Hellenic Bank’s strong position to support business opportunities and national development.
This was highlighted in the EY attractiveness survey, released this week, which explored global investment trends and their regional impacts.
The survey revealed Cyprus’ mixed results as an FDI destination, highlighting its strengths and areas for improvement while showing the changing investment plans of international investors.
Conducted in March and April 2024, it involved 100 executives from foreign companies across 13 countries, with nearly two-thirds of them already having operations in Cyprus.
Results from the survey show a significant shift in investor sentiment; notably, more than half (57 per cent) plan to either establish or expand their operations in Cyprus over the next year.
This marks a considerable increase from only 29 per cent in 2022.
Specifically, the index stood at 102.7 points, using 2021 as the base year set at 100 points, according to the state statistical service.
The report showed that a notable 44.2 per cent drop was recorded in the production of non-metallic mineral products, a sector impacted by the long-running strike in the ready-mixed concrete industry that began in November.
The Cyprus Stock Exchange (CSE) ended Friday, January 31, with gains.
The general Cyprus Stock Market Index stood at 227.00 points at 13:11, reflecting a rise of 0.5 per cent.
The FTSE / CySE 20 Index was at 137.94 points, representing an increase of 0.53 per cent.
The total value of transactions came up to €69,118, until the aforementioned time during trading.
In terms of the sub-indexes, the main, alternative and investment firm indexes rose by 0.57 per cent, 0.13 per cent and 0.29 per cent respectively. The hotel index remained unchanged.
The biggest investment interest was attracted by the Bank of Cyprus (+1.6 per cent), Demetra (+0.3 per cent), Agros Development Company (no change), the Cyprus Cement Company (no change), and Atlantic Insurance (-0.82 per cent).
Click here to change your cookie preferences