Alpha Bank Cyprus Consolidates Market Leadership With AstroBank Acquisition

Alpha Bank Cyprus has secured a transformative agreement to acquire nearly all of AstroBank’s assets, liabilities, and workforce, marking a strategic consolidation within the Cypriot banking sector. This significant transaction not only elevates the new entity to the status of the country’s third largest bank, but also fortifies its competitive positioning with a robust financial and operational framework.

Strengthening the Strategic Footprint

The definitive agreement involves the complete transfer of AstroBank’s banking portfolio and obligations, including its skilled personnel, to Alpha Bank Cyprus. As part of a well-planned integration into the Alpha Bank Group, this move dramatically enhances the group’s presence in Cyprus while aligning with a clear vision for regional expansion and improved service delivery.

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Enhanced Financial Base and Growth Potential

Set for completion in the fourth quarter of 2025, pending customary regulatory approvals, the merger is expected to yield a stronger financial base and open new opportunities for both AstroBank’s employees and clients. The expanded entity will harness the extensive international network and operational excellence of Alpha Bank, one of the most influential banking groups across Greece and Southeastern Europe.

Recognition and Strategic Vision

Under the leadership of CEO Aristidis Vourakis, AstroBank has demonstrated a robust growth trajectory over the past four years—a trend that has not gone unnoticed. This acquisition not only underscores continued confidence in Cyprus’ economic and banking environment but also positions the enlarged bank to address market needs more effectively while driving significant contributions to the country’s economic development.

Financial Impact and Future Synergies

According to Alpha Services and Holdings S.A., the parent company of Alpha Bank Cyprus, the transaction is fully aligned with their strategic goal of bolstering market position and financial performance in Cyprus. The deal is forecast to contribute approximately 5% to earnings per share on a fully phased-in synergies basis and will have a minimal impact on the Common Equity Tier 1 ratio. With an acquisition price estimated at no less than €205 million, the consolidation signals a new chapter aimed at enhancing competitiveness and modernizing financial services for both individual and corporate clients.

This integration not only exemplifies robust strategic planning but also serves as a strong indicator of the growing confidence in Cyprus’ financial landscape, setting the stage for dynamic market evolution and sustained economic progress.

The Future Forbes Realty Global Properties

Cyprus Foreclosure Reform Debate Intensifies Amid Rising Non-Performing Loans

by THEFUTURE.TEAM

February 18, 2026

Political Stakes And Foreclosure Regulation

Cypriot political parties are engaging in a high-stakes debate in parliament as they deliberate changes to the legal framework governing foreclosures ahead of the May parliamentary elections. The proposed shifts are aimed at curbing the rapid escalation in the value of non-performing loans, a trend that has sparked significant public and legislative concern. Confidential data from the Central Bank of Cyprus indicates that the nation has not yet moved away from its longstanding issues related to so-called “red loans.”

Non-Performing Loans: A Mounting Financial Challenge

Recent figures show that the value of distressed loans has continued to rise, surpassing €20 billion following transfers involving banks and credit recovery companies. This level exceeds the approximately €15 billion recorded during the economic crisis period. Central Bank data indicates that after loan sales, credit recovery firms now manage portfolios totaling €19.7 billion, of which €18.5 billion are classified as non-performing. About 87% of these loans are considered terminated, while the firms acquired 141,478 loans for €3.2 billion, roughly 80% below their original value.

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Credit Recovery Companies: Overshooting Investment Returns

By June, credit recovery companies had recovered €5.7 billion through a combination of cash repayments, judicial asset auctions and property-for-debt exchanges. Cash repayments accounted for €3.6 billion, judicial recoveries contributed €619 million, and property swaps added €1.5 billion. These recoveries exceeded the original purchase cost of many loan portfolios while overall balances continued to increase due to accrued interest, a development that remains a concern for policymakers.

Bank Portfolios And The Impact On Financial Stability

Data from the State Guarantee Fund for Deposits and Loans shows that 77,561 loans valued at €7.5 billion were transferred, leaving a remaining balance of €5.7 billion by June 2025, of which €5 billion are non-performing. Within the banking sector, non-performing loans totaled €1.45 billion across 24,736 accounts as of last June. Since December 2024, these figures have improved by approximately €86 million due to repayments and asset recoveries. The reduction in problematic loans has lowered bank exposure compared with levels recorded during the 2013 crisis.

Legislative Proposals And Government Considerations

Political leaders argue that adjustments to foreclosure procedures can be introduced without undermining banking stability. Parliament’s Economic Committee is scheduled to begin discussions on March 9, with an estimated 20 to 30 legislative proposals currently pending from multiple parties. While the Ministry of Finance has not announced immediate legislative action, officials are evaluating the potential reintroduction of elements of the Rent-Versus-Rate plan for vulnerable borrowers, subject to fiscal impact assessments.

Advocacy From AKEL And Environmental Groups

Proposals supported by the AKEL party and several civil organizations focus on strengthening legal protections for borrowers. Among the suggested measures is restoring the right to seek judicial relief to delay foreclosures in cases involving disputed charges or alleged abusive contract clauses. AKEL representative Aristos Damianou criticized the pace of foreclosure proceedings and warned of risks to primary residences and small businesses.

Proposals Targeting Guarantors And Foreclosure Processes

The Democratic Rally party has introduced a proposal aimed at limiting guarantor liability during foreclosure procedures. Under the draft measure, if a property is auctioned or repossessed, the guarantor’s responsibility would be capped at the original loan amount adjusted by recovered sums. The proposal also requires that enforcement actions against guarantors be suspended until a court ruling is issued if the borrower formally disputes the debt.

Revisions Proposed By The Democratic Party of Cyprus

The Democratic Party is also preparing new legislative measures to be introduced on Thursday. Party leader Mario Karogian outlined plans to suspend the foreclosures of primary residences valued up to €350,000 until the end of the year, allowing time to address legislative gaps. Additional proposals include broadening the powers of the Financial Ombudsperson to make binding decisions on disputes up to €50,000, enforcing the Central Bank’s code of conduct, and ensuring strict adherence to refinancing guidelines for first residences.

Outlook And Strategic Implications

The range of proposals reflects an ongoing effort to balance financial system stability with stronger consumer protections. Decisions made in the coming months are expected to shape the regulatory environment for foreclosures and influence broader confidence in Cyprus’ financial sector and economic outlook.

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