Breaking news

Cyprus Sees Record €3.9 Billion In New Lending For 2024, Loan Restructurings Drop Sharply

by THEFUTURE.TEAM

February 5, 2025

Cyprus experienced a significant surge in new lending, with total loans issued to businesses and households reaching a record €3.9 billion in 2024, marking an 18% increase from the previous year, according to the Central Bank of Cyprus (CBC).

This figure represents the highest level of new lending since the CBC began recording data in 2014. The rise was predominantly driven by a surge in business loans, which saw the largest annual growth since 2017, while household borrowing also recorded its biggest jump in three years.

Follow THE FUTURE on LinkedIn, Facebook, Instagram, X and Telegram

Business lending was the main contributor, with new loans to businesses climbing by 27%, reaching €2.44 billion in 2024 compared to €1.92 billion in 2023. This was the highest increase in business lending since 2017 when growth hit 43.6%.

Meanwhile, new household loans rose at a slower pace, up by 5.2%, totaling €1.42 billion, compared to €1.35 billion the year before.

In a contrasting trend, loan restructurings dropped sharply in 2024. The total value of restructured loans fell by 30.6% to €2.46 billion, down from €3.55 billion in 2023. Household loan restructurings saw a steeper drop of 36%, falling from €826.5 million to €529.6 million, while restructured business loans decreased by 29%, from €2.73 billion to €1.93 billion.

A significant portion of the new lending was concentrated in December 2024, when net new loans to businesses and households soared to €598 million, an 86.6% increase from December 2023. Business lending accounted for the lion’s share of this surge, with new loans reaching €401.9 million, compared to €150.2 million in the same month the previous year.

The shift in lending patterns reflects broader changes in the economic landscape. While 2023 saw slower business lending and declining household borrowing due to rising interest rates, the second half of 2024 witnessed a drop in rates following European Central Bank monetary policy decisions, encouraging increased lending.

However, concerns have been raised over the growing reliance on consumer loans. The Fiscal Council has warned that rising household borrowing, coupled with a decline in mortgage demand, indicates increasing financial pressure on households. Additionally, the CBC data reveals a growing preference among banks for financing larger businesses, with smaller loans seeing fewer restructurings, which could indicate financial strain for small and medium-sized enterprises (SMEs).

The Fiscal Council’s 2024 report suggests that the rising imbalance in lending patterns between large firms and SMEs may require targeted policy measures to ensure fairer access to financing across the economy.

The Future Forbes Realty Global Properties

Cyprus Government Accuses International Media Of Exaggerating Drone Incident

by THEFUTURE.TEAM

March 13, 2026

Cyprus’s government spokesperson, Konstantinos Letymbiotis, issued a pointed rebuke to international media on Thursday, accusing them of exaggerating the island’s situation following an Iranian-made drone strike last week. Speaking at the presidential palace, Letymbiotis stated that some international reports have presented a distorted picture of the situation in Cyprus.

Media Exaggeration And National Stability

According to the government spokesperson, several international media outlets have portrayed developments in Cyprus in a way that does not reflect conditions on the ground. “What is being presented internationally is an image with a high degree of exaggeration,” Letymbiotis said, adding that daily life on the island continues normally. The statement was intended to reassure both residents and international audiences amid heightened regional tensions.

Sustained Tourism And Restored Connectivity

Letymbiotis also addressed concerns about the tourism sector, noting that most airline schedules have resumed. Although the Cyprus Chamber of Commerce and Industry has reported cancellations and slower booking activity, the government maintains that Cyprus remains a functioning tourist destination.

Preventative Measures And Diplomatic Outreach

Authorities have also implemented several precautionary measures in response to the regional situation. These include the presence of naval vessels from five European Union member states and the temporary deployment of four Greek F-16 fighter jets in the region. Visits by French President Emmanuel Macron and Greek Prime Minister Kyriakos Mitsotakis were also highlighted as signs of European political support for Cyprus.

Clarifying The Context

Government officials have sought to emphasise that the measures taken are precautionary and do not reflect an emergency within the country. Letymbiotis reiterated that Cyprus continues to operate normally as a member state of the European Union.

Assessing Security At The Airbase

Responding to questions about meetings held at an airbase during visits by foreign leaders, Letymbiotis explained that such locations allow officials to review coordination of ongoing security measures. He noted that these visits were intended to evaluate preparedness and cooperation among partners rather than to signal a deterioration in the security situation.