Business & economy wrap-up from the day before

Cypriot economists have warned that the European Central Bank (ECB) could raise interest rates further if the war in the Middle East continues to worsen, as higher oil prices threaten to prolong inflationary pressures.

The economists, speaking to the Cyprus News Agency (CNA) on Friday, also said the ECB’s expectation that inflation will return to its 2 per cent target by the end of 2027 pointed to a prolonged period of price pressures.

University of Cyprus economist Sofronis Clerides said the ECB’s latest rate increase had been expected given the inflationary trends seen in recent months.

“If the war situation continues to worsen, there is likely to be greater pressure on oil prices and consequently greater inflationary pressures and further interest rate increases in the coming months,” Clerides said.


Eurobank on Friday said it is investing about €1 billion between 2025 and 2028 in what it described as the largest technology investment programme in the banking group’s history, as it seeks to expand digital services and redesign how customers interact with the bank.

The initiative, called Banking Forward, is described by Eurobank as a strategy focused on technology, data and artificial intelligence, with the aim of combining digital banking with human contact.

According to the bank, the programme is intended to create a so-called “phygital” model, combining the speed of digital channels with face-to-face interaction while redesigning customer journeys for individuals and businesses.

“The Banking Forward programme is the largest technology investment programme in the history of the Group,” Eurobank said.

The bank added that its technology strategy is built around three areas, which it calls Cognitive, Conversational and Commercial.


The Cyprus Chamber of Commerce and Industry (Keve) has called for a formal and regular dialogue with the government on competitiveness and the wider economy, arguing that Cyprus needs to react quickly when companies consider leaving and make better use of opportunities to attract foreign firms.

Speaking to the Cyprus News Agency (CNA), Keve secretary general Philokypros Roussounides said closer and more frequent contact with the state could help tackle problems affecting foreign investment before they become more serious. 

It could also, he argued, put Cyprus in a better position to benefit when geopolitical uncertainty pushes companies to look for a new base.

His comments followed reports that a company had decided to leave Cyprus, although Roussounides was careful not to present the case as evidence of a wider trend. 

He stressed that Keve did not want a single departure to be seen as the beginning of an exodus or to create unnecessary concern over the position of other companies based on the island.


Cyprus had successfully attracted a sizeable technology industry but still lacked the infrastructure needed to create new companies, entrepreneur Alexey Gubarev has argued.

The sector contributed €5.9 billion, or 16.2 per cent of GDP, while supporting about 79,000 jobs, with ICT contribution rising 435 per cent between 2016 and 2025.

However, much of the growth came from relocated foreign companies rather than locally founded startups.

Gubarev said Cyprus needed stronger early-stage funding, founder-friendly legal structures, better stock-option rules, Series A financing and public procurement opportunities.

He proposed a five-year co-investment plan, combining public and private capital to help build a sustainable startup ecosystem and create repeat founders.


The Bank of Cyprus (BoC) is bringing its fintech hackathon back to Nicosia from November 27 to 29, inviting developers, startups, professionals and students to build working digital products around finance, artificial intelligence, cybersecurity, smart cities and entrepreneurship.

The BoC Fintech Hackathon 7.0, the bank’s seventh innovation marathon for application development, will take place in person at the IDEA Innovation Centre, with participants competing for a combined €16,000 in cash prizes

The aim is not simply to pitch ideas. Teams will be expected to develop their concepts as far as a Minimum Viable Product (MVP), creating an initial working version that could later be developed into a fully operational application. 

Participation is open to developers, startups, professionals, students and anyone interested in contributing to applications designed to encourage innovation, entrepreneurship and the development of services that can make everyday transactions and other services easier. 


Cyprus’ gender equality commissioner Josie Christodoulou has called for investment in care services to be treated as an economic and competitiveness issue, as well as a question of equality, during a high-level EU conference in Dublin.

Christodoulou took part this week in The EU’s Equality Advantage: How equality powers competitiveness, innovation and social cohesion, organised by the Irish Presidency of the Council of the EU and Ireland’s Department of Children, Disability and Equality. 

The conference looked at a question that is becoming harder for Europe to ignore, whether better equality policies can also help improve productivity, labour participation and economic performance. 

Christodoulou spoke on a panel on the care economy and competitiveness, where much of the discussion focused on who carries the burden of care, and what that means for the labour market. 


Cypriot businesses working in energy storage, electric mobility and energy technologies are being offered free one-to-one meetings with German companies in Nicosia in October, as part of a business mission aimed at opening the door to new commercial partnerships.

The business-to-business meetings will take place at the offices of the Cyprus Employers and Industrialists Federation (Oev) on October 13, 15 and 16, with companies interested in taking part asked to register by September 25

According to Oev, the meetings form part of a business delegation to Cyprus organised by the German-Hellenic Chamber of Industry and Commerce and will give local companies direct access to German businesses operating across a range of energy-related sectors. 

The aim is to allow companies to discuss their business needs and proposals directly, exchange technical expertise and explore possible partnerships and joint projects


Eurobank has emerged as the preferred pick among Greece’s four systemic banks after Euroxx upgraded its estimates and price targets for the sector, citing strong second-quarter results, improved earnings forecasts and a more favourable interest-rate environment.

In its latest report, whose findings were shared by Greek business outlet Newmoney, the brokerage retained an Overweight recommendation for all four banks and raised its price targets by about 20 per cent on average.

Eurobank received the largest increase in implied upside, with its price target raised to €6.30 from €5.30, representing potential gains of 32 per cent.

The target for the National Bank of Greece was increased to €22 from €19.40, implying 26 per cent upside.

Alpha Bank’s target rose to €5.80 from €5.20, with potential upside of 23 per cent, while Piraeus Bank’s target increased to €13 from €11, implying a 21 per cent return.

Euroxx argued that Greek banks could now justify trading at a premium to their European peers, rather than the discount currently reflected in their valuations.


The Cyprus Stock Exchange (CSE) announced on Friday that trading in 13-week treasury bills of the 6th issue, series 2026, will be suspended from September 15, 2026 to September 17, 2026 inclusive.

The temporary suspension covers the government paper issued on June 19, 2026 and maturing on September 18, 2026, which trades under the code TB13F26.

The trading halt is necessary to allow for the smooth settlement of all final market transactions ahead of the securities’ formal removal from the market.


Cyprus’ state workforce reached 53,080 employees in August 2026, rising by 419 people or 0.8 per cent from 52,661 a year earlier, according to figures released on Friday by the statistical service (Cystat).

The increase came as employment in both the educational service and security forces rose by 2.2 per cent, while civil service staffing fell by 1 per cent. 

The civil service remained the largest of the three services, although employment declined from 23,108 to 22,872. 

Meanwhile, the educational service grew from 15,948 to 16,301 employees, while the security forces added 302 people to reach 13,907

Across the state workforce, permanent employees remained by far the largest category, with their number rising by 0.2 per cent from 32,853 to 32,907. 


Girls aged 14 to 16 will get the chance to explore science, technology, engineering, arts and mathematics through a free two-day BridgeSTEAM programme at PwC’s Limassol offices on October 10 and 11.

Organised by the Girls in STEAM Academy, BridgeSTEAM combines hands-on programming and digital skills, career guidance and contact with women already working in STEAM professions, giving teenage girls a practical introduction to possible studies and careers in the field. 

Applications for the Limassol programme are open until September 30, while no previous knowledge of programming is required. 

The programme is aimed both at girls who already have an interest in technology and science and at those who simply want the opportunity to explore the subjects and find out what studying or working in STEAM could involve. 

During the two days, participants will take part in practical and creative programming activities, while a career guidance workshop will introduce them to different academic and professional routes. 


Central Bank of Cyprus (CBC) governor Christodoulos Patsalides said the European Central Bank’s (ECB) latest 0.25 percentage point increase in key interest rates had become necessary as the prolonged conflict in the Middle East continued to fuel inflationary pressures.

In a written statement following Thursday’s meeting of the ECB Governing Council, Patsalides said the latest data had confirmed earlier concerns over the inflationary impact of a prolonged conflict.

As he explained, the ECB’s initial scenario analysis at the start of the Middle East conflict had shown that a prolonged confrontation would intensify price pressures and push inflation forecasts higher. 

“Six months after the start of the conflict, this assessment is now being confirmed by the latest data,” he said. 

Patsalides said the inflation outlook continued to be shaped largely by the energy shock, while stronger economic growth forecasts were also adding to price pressures. 


The International Maritime Organisation (IMO) is heading towards a decisive December showdown over its Net-Zero Framework, with Greek and Cyprus shipping voices warning that the final rules must work in the real world of global fuel supply, ship investment and international competition.

After four days of negotiations in London last week failed to close several of the remaining gaps, governments now have less than three months before another intense round of talks that could determine the shape of global shipping regulation for decades. 

The next round, ISWG-GHG 23, will take place from November 23 to 27, immediately followed by the Marine Environment Protection Committee’s MEPC 85 session from November 30 to December 3. 

Then, subject to confirmation by MEPC 85, the extraordinary session suspended in October 2025 is scheduled to reconvene on December 4, when governments could again attempt formally to adopt the framework. 


The Cyprus Stock Exchange (CSE) will remove ProsperTree PLC from the emerging companies market (ECM) from September 14, 2026, following the suspension of trading in the company’s shares.

The CSE announced the change in a notice to investors on Friday, citing Rule 4.1 of its Basic Rules for the Management and Calculation of Indices.

The rule covers the suspension of shares belonging to a company included in an index.


The government presented a twelve-year plan worth some €610.9 million to rebuild the livestock sector on Friday, following the foot and mouth disease outbreak that led to the culling of more than 84,000 animals.

The proposals, drawn up by the scientific committee under Stavros Malas, were presented to stakeholders at the presidential palace.

The committee’s head told those gathered that the outbreak “exposed existing problems” within the sector rather than having created them.

“This is why we cannot simply return livestock farming to where it was before the crisis,” Malas insisted.