Cyprus Trade Sector Achieves Robust Growth In 2023 Amid Pricing Pressures

Strong Overall Expansion

The Cyprus trade sector demonstrated notable resilience and growth in 2023, as evidenced by the latest wholesale and retail trade survey released by the state statistical service. Total turnover increased by 5.7 percent, rising to €19.34 billion from €18.31 billion in the previous year, demonstrating the sector’s ability to maintain momentum despite external challenges.

Differentiated Divisional Performance

At the divisional level, the most dynamic performance was observed in wholesale and retail trade combined with the repair of motor vehicles and motorcycles, which experienced a striking 25.4 percent increase in turnover, totaling €1.53 billion. While wholesale trade itself registered a modest rise of 0.7 percent to €9.83 billion, the retail segment outperformed expectations with a robust 9.0 percent growth, reaching €7.98 billion in turnover.

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Furthermore, production value across the broader trade sector increased by 2.7 percent, reaching €5.41 billion. However, in a landscape impacted by volatile fuel pricing, value added at current prices experienced a slight contraction of 2.2 percent, falling from €3.49 billion to €3.42 billion, reflecting the nuanced challenges within the market.

Value Added and Employment Trends

Breaking down the value added, the combined wholesale and retail trade alongside vehicle repair saw a robust 19.3 percent surge to €314.30 million, while wholesale trade alone registered a significant decline of 13.4 percent, dropping to €1.75 billion. Conversely, retail trade demonstrated recovery and strength with an 11.6 percent increase in value added, rising to €1.36 billion.

Employment within the sector also showed positive momentum, expanding by 2.1 percent to 77,500 employees in 2023. Notably, the distribution of jobs reflected a balanced structure across the contributing segments, with 9,600 positions in wholesale and retail trade combined with motor vehicle repair, 26,500 in wholesale trade, and 41,400 in retail trade.

Methodological Insights

This comprehensive survey, encompassing 2,285 enterprises, defines turnover as the total income from ordinary business operations after accounting for discounts and rebates. Production value is determined by the sum of other income and stock variations added to turnover, less the cost of goods purchased for resale, while value added is computed by subtracting production, administrative, and rental expenses from production value. Employment figures encapsulate both salaried workers and the self-employed.

Conclusion

The insights from the 2023 survey underline Cyprus’s ability to navigate market pressures and achieve growth. The nuanced performance across divisions highlights both opportunities and challenges in an evolving economic landscape, emphasizing the importance of strategic adjustments as key trends continue to evolve in the trade sector.

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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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