Key Updates In Cyprus Finance And Economy
Cypriot Economy Saw Its Highest Growth Rate In Five Quarters, With A GDP Rise Of 3.5%. Despite Recent Legislation, Compliance Issues Persist In The Hotel Industry. Cyprus Also Ranks Among The Top Three Eurozone Countries For Economic Growth In 2024.
Bank of Cyprus Reports Strong First Quarter for 2024
The Bank of Cyprus released its financial results for the first quarter of 2024, showing a post-tax profit of €133 million. Although this represents a 4% decrease from the previous quarter, it marks a significant 40% increase compared to the same period last year.
CEO Panicos Nicolaou highlighted the robust start to the year, emphasising the importance of the strong financial results and the approval of a notable distribution. “We proposed a total distribution of €137 million for 2023 earnings, including a cash dividend of €112 million and an inaugural share buyback of up to €25 million, amounting to a 30% overall payout ratio, a substantial increase from the previous year,” he stated.
Cypriot Economy Sees Highest Growth in Five Quarters
The Cypriot economy recorded its highest growth rate in the last five quarters during the first quarter of 2024. According to preliminary estimates by the Cyprus Statistical Service (Cystat), the Gross Domestic Product (GDP) increased by 3.5% compared to the first quarter of 2023. After seasonal adjustments, the growth rate was 3.3%, the highest since the first quarter of 2023. Quarter-over-quarter, GDP grew by 1.2% from the fourth quarter of 2023.
Compliance Issues in Cyprus Hotel Industry
A recent inventory revision by the Deputy Ministry of Tourism revealed that most hotels and tourist accommodations in Cyprus do not meet compliance criteria. Currently, 268 hotels are operational, offering 30,493 rooms and 62,340 beds, with Ayia Napa having the most accommodations. Despite legislation introduced in 2019 to regulate the sector, only 18 hotels have obtained an operating license under the new framework, representing just 7% of all hotel businesses.
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Cyprus-Japan Scientific Collaboration Initiative Launched
The Research and Innovation Foundation (RIF) announced the launch of the “EIG CONCERT-Japan” initiative, with a budget of €400,000. This program aims to enhance scientific collaboration between Japan and Cyprus, significantly boosting the ecosystem’s extroversion. It invites collaborative R&D projects between Japanese and European organisations under the ‘European Initiatives – National Development’ program, with Cyprus participating through the RIF.
Hellenic Bank Achieves Recertification for Energy Management
Hellenic Bank announced its recertification under the International Energy Management System ISO 50001, focusing on energy management for another year. The bank has been annually certified since 2015 and was the first organization in Cyprus to receive this certification from the Cyprus Certification Company.
Cyprus Among Top Eurozone Performers in 2024 Growth
Government spokesman Konstantinos Letymbiotis announced that Cyprus ranks among the top three countries in the Eurozone for the highest growth rate in 2024. He noted that the European Commission’s spring forecasts indicate a positive trajectory for the Cypriot economy, with a strong pace of economic activity. Letymbiotis also mentioned that the government is considering new, targeted support measures if needed.
Andreas Demetriades Re-Elected to Lead Investment Projects Association
Andreas Demetriades will continue to lead the Cyprus Association of Large Investment Projects, following a decision made at the annual general assembly held in Nicosia. The newly appointed board of directors includes Vice President Menelaos Shacolas and members Theodoros Aristodemou, George Leptos, Michalis Zavos, Elias Eliades, Christos Christou, Nicolas Lanitis, and Evagoras Lanitis. Demetriades emphasised the need for a comprehensive strategy to boost productive foreign investment in sectors like higher education, research, new technologies, IT, and green skills.
Sourse: Cyprus Business News