Cyprus Business Now: weekly wrap-up
Here are the top business stories in Cyprus from the week starting September 15:
The meeting allowed the two officials to discuss opportunities and possibilities for further strengthening the relations and cooperation between the two organisations.
According to an announcement by the Deputy Ministry, a number of tourism-related issues were discussed, including the connection between the tourism stakeholders of the two countries and the handling of common challenges faced in the tourism sector.
The announcement added that an exchange of views and suggestions followed on how to present and promote more effectively the products offered by Cyprus and Greece.
Chief executive officer of Eurobank Limited Michalis Louis, opened the session by highlighting the significance of the merger.
He recalled that the process included a squeeze-out of minority shareholders and the delisting of Hellenic Bank shares.
The legal merger was completed on September 1, when the new entity, Eurobank Limited, officially began operating as a unified bank.
In this context, Louis praised the relevant government departments and regulators for facilitating what he described as a smooth and efficient process.
The Finance Ministry requested more time to examine how to handle cases of natural persons holding dual nationality from an EU member state and a third country who wish to make strategic investments in Cyprus.
During the session, ministry representatives explained that they had contacted the European Commission about the issue.
They said that the commission had responded that “as long as a person holds the nationality of an EU member state, regardless of also having the nationality of a third country, they will be considered a European citizen and will not be subject to screening,” meaning they do not fall under the provisions of the bill.
He said that the national shipping strategy is guiding the efforts of the Cypriot government to tackle the challenges facing the sector.
Vafeades delivered the above comments while welcoming the opening of the International Transport Workers’ Federation’s (ITF) Maritime Roundtable in Limassol.
More than 180 unionists from 140 countries are taking part in the event, which aims to strengthen international trade union cooperation and defend the rights of seafarers and dockers.
In his speech, the minister said that Cyprus is proud to be recognised as a maritime nation and one of the leading shipping centres in Europe and the Mediterranean, with a modern registry, dynamic ports and a strong logistics network.
The House finance committee examined the issue on Monday, with trade unions voicing concerns about how decisions will be made.
Pasydy’s representative noted that the Council of Ministers will decide the number of remote working days without prior consultation. In the wider public sector, she said, such decisions are only taken after dialogue with unions.
Officials from the department of public service and staff clarified that the original draft of the bill had set the number of remote working days at 100, but this provision was later scrapped.
They assured that consultation with unions will take place before the Cabinet sets any limits, adding that semi-state organisations already operate with a mixed remote working model.
Despite submitting well-documented recommendations to both the government and the technical team at the University of Cyprus’ Centre for Economic Research, the final draft bills now under public consultation contain “no meaningful provisions to support the capital market”, the exchange said.
Instead, the reforms include measures that could weaken existing tax incentives, particularly affecting the Emerging Companies Market and the New Market of the Cyprus Stock Exchange (CSE), which operates as a multilateral trading facility, the statement added.
The exchange said the tax reform represents a unique opportunity to stimulate business activity by encouraging companies to list on the exchange, raise new capital in a transparent and reliable framework, and attract strategic investment to Cyprus.
In addition, the association said the incentive should not be subject to income or socio-economic criteria, warning that such restrictions would limit participation and slow progress toward Cyprus’ commitment to the EU’s “Fit for 55” climate targets.
CPDA stressed that the scheme should cover both renovations of existing homes and newly built residences designed to modern environmental standards.
“This would ensure fairer treatment for buyers, encourage sustainable construction and support Cyprus’ efforts to reduce the environmental footprint of its building stock,” the association said.
The draft law, titled the Sustainability and Fuel Emissions Amendment Law of 2025, seeks to update the 2022 and 2024 fuel sustainability laws.
It aims to partially align Cyprus legislation with European Union directives, including Directive (EU) 2023/2413 and Regulation (EU) 2023/2405, covering renewable energy in transport and sustainable aviation fuels.
The bill sets new binding targets for renewable fuels and emissions reduction in transport.
By 2030, EU member states must ensure renewable energy makes up at least 29 per cent of final energy consumption in transport or that greenhouse gas emissions intensity falls by at least 14.5 per cent compared with a reference level of 94 grams CO2 per megajoule.
According to the statement, it is “particularly important that Cyprus will acquire a modern and clear framework for the protection of national security and public order in the context of foreign investments,” while at the same time this should not undermine the country’s appeal as an investment destination.
The association further noted that “the adoption of clear and transparent procedures is a basic prerequisite for establishing the confidence of foreign investments and further promoting Cyprus as a modern and reliable investment destination.”
“Attracting quality investments”, it added, “has always contributed both to economic growth and to the wider progress of society.”
Discussions ranged from infrastructure upgrades to new routes aimed at easing seasonality in tourism.
According to Etap, Hermes Airport CEO Eleni Kalogirou and Director of Aviation Development, Marketing and Communication Maria Kouroupi presented an update on current works at the airport and outlined both immediate and long-term solutions covering areas such as ground handling and immigration.
The meeting also reviewed the results of the 2025 summer season, looked ahead to winter 2025-2026 schedules and summer 2026 forecasts, and examined challenges and prospects in key markets.
Early discussions were held on expanding connections from Germany, Lebanon, Armenia, Egypt, the Nordic countries and Switzerland.
For the period from January to August 2025, total tourist arrivals reached 3,034,155, representing a 10 per cent increase from 2,758,627 over the same period in 2024, the report added.
The main source of tourism in August 2025 was the United Kingdom, accounting for 32.1 per cent of all arrivals with 193,091 visitors, followed by Israel with 17.5 per cent (105,597) and Poland with 7.0 per cent (41,844), the report said.
Germany recorded 4.6 per cent (27,665), Sweden 3.1 per cent (18,636), and Romania 3.0 per cent (18,300) of tourist arrivals, the Statistical Service noted.
In an article released on Wednesday, he stressed that “it is no coincidence the event is held simultaneously in more than 450 cities in Europe, attracting over 1.5 million visitors”.
He also pointed out that it reminds people that science has a social impact and is not confined to the laboratory, but belongs to everyone.
On September 26, at the state fair grounds in Nicosia, visitors will therefore have the chance to participate in interactive experiments, explore more than 70 pavilions, chat with famous scientists from the past in hologram form, and enjoy a rich programme of activities.
The plan, adopted in principle last April, combines mandatory fuel intensity limits with a global carbon pricing mechanism and financial incentives for compliance.
If approved, it will come into force in 2027 and cover ships over 5,000 gross tonnes, a segment responsible for 85 per cent of the industry’s emissions.
However, as mentioned in Newmoney, reactions have been fierce. US president Donald Trump has warned that a new administration in Washington would not hesitate to take measures against countries that support the regulation, opening a front of geopolitical confrontation.
The Norwegian classification society DNV followed, criticising the IMO for “institutional romanticism” and indifference to market realities.
The delegation visited Cyprus on September 16 and September 17, meeting with the House Speaker Annita Demetriou, members of the House finance committee, the assistant tax commissioner, as well as leading business and professional associations.
The latter included the Cyprus Chamber of Commerce and Industry (Keve), the Employers and Industrialists Federation (Oev), the Institute of Certified Public Accountants of Cyprus (Selk), and the Cyprus Bar Association.
Their discussions focused on key tax policy issues, including combating tax evasion, simplifying tax systems, and boosting competitiveness through targeted tax measures.
According to the announcement, the company invited holders of the existing notes to tender their securities for cash purchase at a price equal to 102.3 per cent of the principal amount.
The company will also pay the accrued interest due on such existing notes up to, but excluding, the settlement date on September 18, 2025.
The bank said that it received valid tenders of approximately €217 million in aggregate principal amount, representing around 72 per cent of the outstanding existing notes.
All of the valid tenders were accepted by the company, leaving around €83 million in aggregate principal amount of the existing notes still outstanding.
The country stood out at a time when the average inflation rate in the euro area was 2.0 per cent, while the European Union overall recorded 2.4 per cent.
According to Eurostat, the lowest annual inflation rates were also observed in France at 0.8 per cent and Italy at 1.6 per cent.
By contrast, the highest inflation rates were registered in Romania at 8.5 per cent, Estonia at 6.2 per cent and Croatia at 4.6 per cent.
The Eurostat data also showed that unlike other member states where prices increased, prices in Cyprus remained stable.
According to the Deputy Ministry, the event was attended by leading figures from the political, diplomatic and maritime spheres of global shipping.
Hadjimanolis outlined the government’s commitment to the green and digital transition, the priorities of the ministry during Cyprus’ EU presidency in the first half of 2026, and the role of shipping in the economy.
She stressed that the sector contributes more than 7 per cent to Cyprus’ GDP and plays an equally important part in the country’s social and political development.
She also noted that Cyprus is not only a leading hub for shipowning and shipmanagement services but also “one of the largest top quality sovereign flag states.”
He said Cyprus’ economy was stable and resilient, with “one of the best performances in the EU,” pointing to its business-friendly environment, its geostrategic location at the crossroads of three continents and its role as a pillar of regional stability and humanitarian aid.
Damianou noted that relations between Cyprus and India were “deep and timeless” but had evolved rapidly in recent years, now extending into technology, shipping, tourism and investment.
Since his last visit a year ago, he said the partnership had entered a more dynamic phase with Indian companies choosing Cyprus as a base for new activities.
As Damianou mentioned, “that momentum gained historic significance when Indian Prime Minister Narendra Modi visited Cyprus in June, the first such visit in more than two decades.”
Speaking to Cypriot daily Politis, Mantovani said this was the first time since he joined the association in 1983 that he had seen such high volumes of arrivals during September.
He added that the early signs and bookings for October are also highly encouraging, with Larnaca and other destinations already reporting robust demand.
The majority of visitors this autumn are coming from the United Kingdom, Poland, Israel, and Germany, Mantovani said.
“In the 42 years I have worked in the tourism industry and with the Association of Cyprus Travel Agents, I do not recall another September with such a large number of tourist arrivals,” he said.