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Bank Of Cyprus Achieves €1 Billion In Real Estate Sales Since 2019

Since 2019, the Bank of Cyprus has significantly reduced its non-performing exposures (NPEs) by selling over €1 billion in real estate assets. This aggressive divestment strategy is part of the bank’s broader efforts to improve its balance sheet and financial stability. The sales, which include a mix of residential, commercial, and land assets, have enabled the bank to enhance its capital adequacy ratios and strengthen its position in the Cypriot banking sector.

This strategic move aligns with the bank’s long-term goal of focusing on core banking operations while mitigating risks associated with holding extensive real estate portfolios. By offloading these assets, the Bank of Cyprus has not only reduced its exposure to non-performing loans but also generated substantial liquidity, which can be redirected towards more profitable ventures.

The real estate market in Cyprus has shown resilience, supported by both domestic demand and foreign investment, particularly from European and Middle Eastern buyers. This favourable market environment has allowed the Bank of Cyprus to execute its sales at competitive prices, further bolstering its financial performance.

Looking ahead, the Bank of Cyprus is expected to continue this trajectory, leveraging the proceeds from these sales to strengthen its balance sheet further and explore new growth opportunities within its core banking activities. The success of this real estate disposal strategy underscores the bank’s commitment to maintaining a robust financial position and delivering value to its shareholders.

In conclusion, the €1 billion in real estate sales marks a significant milestone for the Bank of Cyprus, reflecting its strategic focus on financial health and risk management. This move not only enhances the bank’s stability but also positions it for future growth in a competitive and evolving banking landscape.

Cyprus Tourism Recovers After Difficult Start To 2026

Cyprus’ tourism sector is recovering after a sharp decline in arrivals earlier this year, but Deputy Minister of Tourism Kostas Koumis has warned that the industry remains vulnerable to external shocks. Presenting the department’s €59.4 million budget for 2027, he stressed that continued growth cannot be taken for granted.

Arrivals Recover After A Sharp Early-Year Decline

Tourist arrivals fell by 5.6% in the first nine months of 2026 compared with the same period last year, Koumis said. This marks a significant improvement from the 17.9% decline recorded during the first four months, although the recovery remains incomplete.

Despite the setback, arrivals between January and September were 4.1% higher than in 2024 and 8.5% above 2023 levels. Koumis said the figures indicated that the sector had entered a recovery phase, but added that more work was needed to restore demand in certain markets.

An Unprecedented Shock For The Industry

Koumis described 2026 as one of the most difficult years for Cyprus’ tourism sector in decades. External developments triggered widespread cancellations and a sharp slowdown in bookings during March and April, with tens of thousands of reservations cancelled and new bookings largely stalling.

“2026 will undoubtedly remain in the history and memory of those working in the sector as a year during which our country’s tourism industry was called upon to face an unprecedented crisis as a result of external factors,” he told lawmakers.

Budget Focuses On Promotion And Development

Around 62% of the proposed 2027 budget will go towards promoting Cyprus and strengthening its tourism offering. Funding will support marketing campaigns, participation in international tourism fairs and incentive schemes designed to stimulate demand and improve the island’s competitiveness in key markets.

Tourism Revenue Remains Below 2025 Levels

Tourism receipts fell by 7% in the first seven months of 2026 compared with the same period in 2025, according to the Cyprus Statistical Service. However, revenue remained 9.2% above 2024 levels and 13.8% higher than in 2023.

Koumis said the final outcome would depend on performance during the remaining months. If receipts follow a trajectory similar to 2025, he expects the full-year decline to be limited to between 3% and 4%, which he described as “a very satisfactory performance” under the circumstances.

Recovery Does Not Guarantee Future Growth

September recorded what Koumis described as the strongest September on record for tourist arrivals in Cyprus. However, he cautioned against complacency, noting that the disruption earlier in the year demonstrated how quickly external events can affect the sector.

“Success in tourism can never be taken for granted,” he said.

The government aims to ensure that tourism continues to benefit Cyprus’ economy, businesses and local communities in 2027. The proposed budget places particular emphasis on promotion and product development, reflecting a strategy focused on consolidating the recovery while preparing the sector for further uncertainty.

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