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Cyprus Expands Meat Imports To Stabilize Prices

Cyprus supermarket representatives say meat imports may be introduced if needed to prevent price pressures following the culling of around 13,000 animals during a recent fever outbreak.

Measured Response To A Health Crisis

Andreas Hatziadamos, Executive Secretary of the Cyprus Supermarkets Association, said the market remains stable for now, but authorities and retailers are prepared to act if supply pressures begin to affect prices. The option of imports is being assessed as a precaution rather than an immediate necessity.

Competitive Market Dynamics And Import Strategy

Mr. Hatziadamos noted that reduced domestic availability of goat meat during the Lent period could place temporary pressure on supply. He added that the competitive nature of the market, combined with the ability to source meat from Greece and neighbouring countries, provides flexibility to prevent sharp price increases.

Outlook On Pricing And Consumer Impact

It remains too early to make firm projections about Easter pricing. Industry representatives say market competition should help limit volatility, while any decisions on imports would be taken gradually and only if needed to protect consumers from excessive price rises.

Consumer Confidence And Industry Projections

Marios Drusiotis, President of the Consumers Association, said no significant shortages are expected. The affected livestock represents roughly 1–1.5% of total national production, suggesting a limited overall impact. Some pressure on lamb availability may emerge as part of the stock is retained for replenishment, though imports could offset any temporary gap. Imported meat may carry a modest premium of around €1–2 per unit.

Haloumi Production And Dairy Sector Considerations

Concerning haloumi production, industry experts do not foresee a rise in prices given that dairy manufacturers maintain robust reserves capable of offsetting any reductions in milk production. However, there is a cautionary note regarding PDO haloumi, as rising demand for goat milk might constrain production capacity.

This strategic blend of import readiness and market vigilance reflects a comprehensive approach aimed at preserving consumer benefits while navigating unforeseen challenges in the food supply chain.

Bank of Cyprus Upgrade Signals Fresh Optimism For Greek And Cypriot Banks

Regional Banks Enter A More Favorable Cycle

Bank of Cyprus and Eurobank are well positioned to benefit from a renewed re-rating of Greek and Cypriot bank stocks, according to Cyprus-based investment firm Roemer Capital, which upgraded Bank of Cyprus to a buy rating and reaffirmed its positive view on Eurobank.

The firm cited easing geopolitical tensions, resilient economic growth in Greece and Cyprus, lower funding costs and Greece’s expected transition to developed-market status as the main factors supporting the sector.

Roemer Capital also lowered its cost of equity assumptions, updated its forecasts following first-quarter 2026 results and extended its valuation horizon to the end of 2027, raising target prices across its banking coverage.

Bank Of Cyprus Gets The Largest Upgrade

Bank of Cyprus received the biggest revision, with Roemer Capital upgrading the stock from hold to buy and setting a target price of €11.10, implying potential total upside of 27%.

The firm highlighted the bank’s strong capital generation, profitability and projected 100% dividend payout, describing it as the strongest capital-return story among the banks under coverage. Roemer Capital maintained its buy rating on Eurobank, assigning a target price of €4.90 and forecasting potential upside of 28%. The report said the bank is well placed to benefit from loan growth, improving operating performance and merger-and-acquisition synergies.

National Bank of Greece and Piraeus Bank also retained buy ratings, with expected returns ranging from 25% to 36%. Optima Bank was upgraded to buy, while Alpha Bank remained at hold on valuation grounds.

Why Growth Still Sets The Region Apart

According to Roemer Capital, Greek and Cypriot banks continue to benefit from stronger economic fundamentals than many western European peers. The report pointed to faster economic growth, healthier balance sheets, low levels of non-performing exposures, capital ratios approaching 20% and strong customer deposit bases.

Analysts expect performing loans across the sector to grow at a compound annual rate of 6% to 8% through 2028, supported by private investment, digitalisation, green manufacturing, supply-chain expansion and a gradual recovery in household lending.

The report also said the conclusion of lending under the EU Recovery and Resilience Facility is unlikely to materially affect credit growth, as banks have already shifted back towards traditional commercial lending. Roemer Capital expects Euribor to remain between 2.2% and 2.5%, a level it believes should support both lending activity and net interest margins.

Geopolitics, Valuation And Market Structure Support The Case

The report said improving geopolitical conditions have strengthened the investment outlook, noting that Brent crude prices have largely returned to pre-war levels while Greek government bond yields have stabilised at around 3.5%. Although geopolitical risks remain, Roemer Capital believes the likelihood of a major inflationary shock or significant pressure on bank profitability has eased.

Another important catalyst identified by the firm is Greece’s expected promotion to developed-market status by FTSE Russell, STOXX and MSCI over the coming months.

According to the report, the reclassification should improve liquidity and attract a broader base of international investors. Roemer Capital also said Euronext’s acquisition of the Athens Exchange is expected to strengthen market infrastructure and increase international visibility, particularly for Bank of Cyprus and Optima Bank.

The firm noted that Bank of Cyprus has already benefited from its Athens listing, with average daily trading value increasing from less than €400,000 before its September 2024 move to nearly €6 million afterwards.

Economic Momentum Remains A Core Tailwind

Roemer Capital said both Greece and Cyprus have moved beyond post-crisis recovery and are now supported by private-sector-led growth. For Cyprus, the report highlighted recent tax reform and efforts to simplify the legal and regulatory framework, while also noting that limited foreign banking competition continues to support domestic lenders.

Overall, Roemer Capital expects Greek and Cypriot banks to remain well-positioned for profitable loan growth over the coming years.

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