Here are the top business stories in Cyprus from the week starting May 5:
According to the announcement, it was mentioned that the chronic lack of suitable human resources continues to top the list of concerns.
In nearly every edition of the barometer to date, labour shortages have emerged as the number one obstacle for Limassol-based companies.
In the latest survey, nearly one in five respondents (19.3 per cent) cited this as their main issue.
Although the problem spans across sectors, businesses reported more intense pressure when it comes to hiring specialised personnel.
The total value of all real estate transactions in Cyprus reached a record-high €5.71 billion in 2024, reflecting a modest one per cent increase compared to 2023, according to a report released on Monday by PwC Cyprus.
The firm also noted that the total number of transactions decreased slightly to 23,900, representing a three per cent annual decline.
“Despite the persistence of global economic challenges, the real estate market in Cyprus displayed remarkable stability throughout the year,” the company stated.
Among the districts, Nicosia recorded a four per cent rise in transaction volume, whereas coastal cities experienced minor drops.
In terms of value, Limassol maintained its leading position, contributing 44 per cent of total transaction value, followed by Nicosia and Paphos.
According to an announcement by Hermes Airports, the upgrades represent a total investment of €170 million, to be fully funded by the airport operator.
Maria Kouroupi, Director of Aviation Development, Marketing and Communication of Hermes Airports, told InBusinessNews that the works mark “a legacy for future generations of travellers,” as the infrastructure will serve long-term needs with a planning horizon up to 2040.
At Larnaca airport, the redevelopment will take approximately 30 months and affect a total area of some 20,000 square metres.
It was also mentioned that the expansion includes a new wing with departure and arrival gates connected to the main terminal, additional baggage claims belts, a new passport and security screening area, enlarged commercial zones, and more aircraft parking spaces.
Residential properties in Cyprus sold under foreclosure in the final quarter of 2024 lost significant value, with six primary residences auctioned off at an average discount of 26.7 per cent from their market worth, according to data from the Central Bank of Cyprus (CBC).
These sales took place through two rounds of auctions conducted between October and December 2024.
The total market value of the six homes reached €1.2 million, yet the combined selling price amounted to only €878,000.
In the first auction round, four homes with a collective market value of €381,000 were sold for €357,000.
The average sale price per home in that group stood at €90,000. Two additional homes, auctioned in the second round, had a combined market value of €805,000 but were sold for €521,000, averaging €260,000 per unit.
During a workshop on labour issues organised by the Institute of Certified Public Accountants of Cyprus (Selk) in collaboration with the Ministry of Labour, only through full and effective participation of women in the workforce, she noted, can Cyprus strengthen social cohesion and accelerate development.
According to her, creating a fair and equal working environment is a shared responsibility, of the government, private sector, and every individual.
One that respects, recognises and makes use of each person’s value, ability and ambition.
The Cyprus Real Estate Agents Registration Council recorded 125 convictions for illegal real estate brokerage in 2024, according to an announcement released on Tuesday.
The number of convictions, the council explained, “reinforces its stance that tackling unlicensed activity remains a top priority“.
Throughout the year, the council handled hundreds of complaints, submitted by licensed estate agents, members of the public, and its own team of inspectors, across all districts of the Republic of Cyprus.
“Following investigation and legal proceedings, a significant number of individuals and legal entities were brought to justice“, the council said.
This is a development which the council says “highlights the scale of a problem that continues to plague the Cypriot property market“.
In addition, the agency kept the bank’s outlook on deposit ratings as stable.
According to the agency’s latest report, the Bank of Cyprus now holds the highest deposit rating among all banks in Cyprus and Greece.
This distinction, the bank said, sends “a strong message about the bank’s reliability and stability”.
The upgrade follows what Moody’s described as “continued improvements in the bank’s asset quality and risk profile,” as well as expectations of sustained profitability and strong capital metrics.
Cyprus recorded over 1.15 million passengers at its two airports in April 2025, crossing the one million threshold for the first time in a single month, the Transport Ministry said on Tuesday.
Traffic at Larnaca and Paphos airports rose by 20.66 per cent compared to the same month last year.
Additionally, total passenger numbers for the January–April period climbed by 11.83 per cent year-on-year, according to the ministry.
“The results of April 2025, during which for the first time the number of passengers transported through Larnaca and Paphos airports exceeded one million,” the ministry said, “reflect the coordinated efforts of the ministry of transport, Hermes Airports, the Deputy Ministry of Tourism, as well as all stakeholders in the tourism industry.”
“These results confirm that the strategy for extending the tourist season is paying off, with tangible results and benefits already in the current year,” the ministry added.
Meanwhile, Larnaca Airport recorded a 23.05 per cent rise in passenger numbers compared to April 2024, while Paphos Airport saw an increase of 15.51 per cent.
Deposit interest rates in Cyprus declined in March 2025 for both households and businesses, reflecting a softening trend in returns on short-term savings, according to the Central Bank of Cyprus (CBC).
At the same time, new lending surged across all major categories, with total new loans more than doubling to €964.2 million compared to the previous month.
The data, published on Tuesday in the April 2025 edition of Monetary and Financial Statistics, outline the average interest rates applied by Cyprus banks on deposits and loans of euro area residents in euro, as well as the volumes of new euro-denominated loans.
The interest rate on household deposits with an agreed maturity of up to one year recorded a decline to 1.41 per cent, compared with 1.51 per cent in the previous month.
In addition, figures for the month of April showed a slight nationwide increase despite small drops in Larnaca and Paphos.
According to data from the Department of Land and Surveys, 1,404 property transactions were recorded across the island in April 2025, up from 1,366 in April 2024, an increase of 3 per cent.
From January to April this year, the total number of sales documents filed with district land registry offices reached 5,541, compared to 4,963 during the same period in 2024.
Limassol continued to lead the market with 461 sales in April, up 5 per cent from 440 in the same month last year.
The organisation expressed this position during a meeting with Akel leader Stefanos Stefanou, as part of its ongoing dialogue with parliamentary parties.
According to a statement issued by Selk, the meeting served as a “constructive opportunity for exchanging views and forming joint conclusions regarding improvements to the country’s tax system”.
The discussion focused on tax reform and other pressing issues concerning the Cypriot economy.
Cyprus is doubling down on its commitment to a greener, more competitive maritime sector, with a renewed push to enhance the Cyprus flag’s standing on the international stage, Shipping Deputy Minister Marina Hadjimanolis said this week during a policy briefing in Nicosia.
“Our goal is to create a dynamic ecosystem and shape a sustainable, competitive environment for Cypriot shipping,” she said, reaffirming the ministry’s full alignment with its long-term strategy.
“After two years of reforms, the results are already visible“, mentioned the deputy minister.
She noted that efforts to improve competitiveness, upgrade services, enhance safety, and strengthen bilateral ties have made Cyprus a credible player in global shipping.
The sector now contributes around 7 per cent to GDP and, according to the deputy minister, its social and political relevance is equally notable.
The figures, based on 2023 Eurostat data, highlight a sharp divide in earnings across the bloc, from €1,125 in Bulgaria to €6,755 in Luxembourg.
Western and Northern European countries continue to dominate the upper end of the pay scale.
Apart from Luxembourg, Denmark was the only other EU country where average salaries exceeded €5,000, offering €5,634.
Pantelides was elected unanimously by the board and used his first address to set out a bold strategic goal, which is to upgrade Cyprus’ credit rating to AAA.
He said this goal could only be achieved through targeted investment in three pillars. These are people, value and competitiveness.
The incoming president emphasised that these three areas must guide reforms and policy in the coming years, while also highlighting the importance of accelerating the digital transformation in both the public and private sectors.
It also warned that escalating trade tariffs and geopolitical instability are shaping an environment of heightened economic risk that could derail the country’s growth trajectory.
According to a statement issued by the council, while these developments are not expected to have significant immediate economic effects, they nonetheless pose serious threats to the long-term stability of the Cypriot economy.
The council noted that the International Monetary Fund (IMF) has already cautioned that rising trade tensions and policy uncertainty could limit economic growth both in the short and long term.
It added that the University of Cyprus’ Economic Research Centre (CypERC) has also identified risks related to both economic growth and fiscal sustainability.
This initiative is part of the European strategy for green development and aims to enhance local sustainability.
The focus group will be held online on May 9, 2025, from 11:00 to 12:30, as part of the European Erasmus+ project SUSTAINET.
The SUSTAINET project aims to strengthen local authorities and small and medium-sized enterprises (SMEs) by establishing a network of Green Business Innovation Centres (GBICs).
These centres are intended to promote sustainable economic development and support the transition to green practices.
Cyprus will inaugurate its new business service centre on May 26, a day after the launch of the Brain Gain campaign in London, aimed to attract talented Cypriots back to the island, president Nikos Christodoulides announced.
Speaking at the general assembly of the Employers and Industrialists Federation (Oev), the president said he was pleased that more than 550 Cypriots working in London have already registered to attend the Brain Gain event, showing an active interest in exploring opportunities to return to Cyprus.
He described the business service centre as an important step towards a less bureaucratic Cyprus with improved services, focused on the needs of businesses and investors.
President Christodoulides emphasised that a resilient economy cannot exist without strong businesses, and sustainable development is impossible in any country without robust private initiative.
In its announcement, the association explained that these fraudulent programmes typically require individuals to deposit a minimum amount of around €250.
Citizens are then presented with an indicative table showing the expected profits from their “investment.”
The announcement also pointed out that scammers use fake news and doctored photographs of well-known political and public figures who appear to endorse or encourage participation in these fraudulent investment programmes.
According to the Cyprus Consumers Association, “there is evidence and video footage where the names of the president Nikos Christodoulides, former Disy president Averof Neophytou, former Finance Minister Finance Harris Georgiades, journalist Katerina Agapitou, and Cypriot entrepreneur Sir Stelios Haji-Ioannou were illegally used”.
Moreover, the bank stated that the latest results reflect its solid capital position. It reported a pro forma Common Equity Tier 1 (CET1) ratio of 32.38 per cent and a pro forma Total Capital Adequacy Ratio of 36.28 per cent, both significantly exceeding regulatory requirements.
“Hellenic Bank has reported satisfactory financial results for the first quarter of 2025, demonstrating the resilience of our business model and the successful execution of our strategic priorities,” said chief executive officer Michalis Louis.
“In the first quarter of 2025, the Bank reported a profit of €45 million after the one-off cost related to the voluntary exit scheme,” he added.
“As a result of the profitability,” Louis continued, “combined with the effective management of the risk weighted assets base of the bank, the pro forma Total Capital Adequacy Ratio increased further by 408 basis points and amounted to 36.28 per cent.”
The offer price for the remaining shares has been set at €4.843 per share, payable in cash.
The approval was officially granted on May 5, 2025, according to a press release by Eurobank S.A., a subsidiary of Eurobank Ergasias Services and Holdings S.A.
The acquisition is being carried out under Article 36(5) of the Public Takeover Bids Law of 2007 to 2022.
Eurobank currently holds 404,525,263 shares in Hellenic Bank, which represents 97.99 per cent of its total issued share capital.
The squeeze-out applies to the remaining 8,279,967 shares, which account for just over 2 per cent of the bank’s issued share capital.
The offer price of €4.843 per share matches the consideration offered during the earlier public offer stage.
The move comes after the Cyprus Securities and Exchange Commission (CySEC) formally recognised Eurobank’s right to proceed with the compulsory acquisition of up to 100 per cent of Hellenic Bank’s issued share capital.
According to the announcement, this action is taken in line with Article 5 of the Regulatory Decision on the clearing and settlement of transactions involving dematerialised securities held at the Central Securities Depository and Central Registry, in cases following acceptance of a public offer or the exercise of a squeeze-out right (RAA96/2008).
As a result, any transaction or act involving Hellenic Bank securities will not be permitted.
This includes all trading activity on the market, as well as off-exchange and over-the-counter (OTC) transactions.
The Consumer Price Index (CPI) increased marginally to 117.31 points from 117.25 in March, marking a monthly rise of 0.06 points.
The most notable changes in economic categories on an annual basis were seen in agricultural products, which surged by 9.3 per cent, and services, which climbed by 3.7 per cent.
It also highlighted the need for new value-added initiatives to “secure Paphos’ long-term growth and competitiveness“.
Speaking at the Property Show Pafos ’25, held under the theme of “The Present and Future of Paphos Development,” Evep president George Mais stressed that “although progress has been made in recent years, Paphos still lacks the necessary public investment to fully realise its development potential”.
“We believe that we can further enrich our infrastructure and make our region more attractive for both local and foreign visitors and investors,” he stated.
A majority of Cypriots are concerned that artificial intelligence could threaten the cultural sector and the livelihoods of artists, echoing widespread concerns across the EU, according to a new Eurobarometer survey published this week.
Specifically, 80 per cent of respondents in Cyprus, compared to 73 per cent across the EU, expressed concern that the rise of generative AI could affect employment or earnings in the artistic field.
Despite this, only half of Cypriots surveyed said they can tell the difference between artwork made by AI and that made by humans, a finding broadly in line with the EU average of 48 per cent.
Meanwhile, the issue of fair remuneration remains a key challenge. Just 23 per cent of Cypriots believe artists in their country receive fair and appropriate pay for their work, significantly below the EU average of 51 per cent.
The shares, each with a nominal value of €0.10, were bought on the Cyprus Stock Exchange (CSE) and the Main Market of the Regulated Securities Market of the Athens Stock Exchange (ATHEX).
According to the announcement, 57,824 of the shares were bought on the Cyprus Stock Exchange and 317,099 on the Athens Stock Exchange.
The highest price paid per share on both exchanges was €6.04, while the lowest price paid was €5.82 on the CSE and €5.80 on the ATHEX.
What is more, the volume weighted average price paid was €5.96 on the CSE and €5.93 on the ATHEX.
The decision forms part of Ermes’s wider strategy to exit loss-making ventures and improve its financial health.
The agreement has already been approved by Ermes’s board of directors, though it remains subject to clearance by the Cyprus Commission for the Protection of Competition and the fulfilment of several additional conditions.
As part of the transaction, the long-term lease agreements linked to the department stores will be transferred to Gencom.
The buyer will also assume outstanding purchase orders valued at approximately €4.5 million for the Spring-Summer 2025 season.
Moreover, Ermes confirmed that the existing staff of the department stores will be retained under the new ownership.
Koumis travelled to the Romanian capital to meet with senior officials and travel industry representatives following the launch of new routes by Animawings.
According to the announcement, the carrier is introducing direct flights to Cyprus for the first time, operating three times a week.
“Romania is a market that has developed in recent years in our country, and this year we are attempting to further expand it,” Koumis said, following talks with representatives from Romania’s Ministry of Economy, Digitisation, Entrepreneurship and Tourism.
He also mentioned that air connectivity between the two countries has strengthened considerably over the past few years, and this summer looks set to bring further growth.
Between January and April 2025, electric vehicles accounted for 4.8 per cent of passenger saloon car registrations, up from 3.6 per cent during the same period in 2024.
Hybrid cars also saw strong growth, increasing their share from 37.4 per cent to 43.3 per cent year-on-year.
In contrast, petrol-powered cars fell sharply, dropping to 42.9 per cent of total saloon registrations from 48.9 per cent a year earlier.
Diesel car registrations also declined slightly, making up just 9 per cent of the market compared to 10 per cent in the first four months of 2024.
Cypriots pay the second-highest rates for electricity in Europe when adjusted for spending power, Eurostat data released on Tuesday showed.
Only consumers in the Czech Republic pay more for their household energy bills than those in Cyprus, with the former paying 41 purchasing power standard (PPS) per 100 kilowatt hours, while consumers in Cyprus fork out 35.7.
The PPS is an artificial currency unit, where one PPS unit can buy the same amount of goods and services in each country. It is calculated by dividing a country’s economic aggregate – the total value of goods and services produced – by its purchasing power parity – an indicator of its relative cost of living.
Other relatively high prices were recorded in Poland at 34.67, Germany at 35.23, and Romania at 32.69.
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