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Bank of Cyprus Receives Notable Ratings Upgrade By Fitch

by News Editor

March 18, 2025

In a remarkable financial development, Fitch Ratings has elevated the ratings of the Bank of Cyprus Public Company Limited (BoC) from ‘BB+’ to ‘BBB-‘, indicating a strong positive outlook. This upgrade underscores the bank’s enhanced asset quality and robust capitalization.

The rating improvement is largely attributed to the bank’s strategic reduction in problematic legacy assets, such as non-performing exposures (NPEs) and net foreclosed properties. This has enabled a healthier capital structure with reduced encumbrance by unresolved problem assets.

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Fitch notes that despite lowering interest rates, BoC’s profitability remains solid thanks to its competence as the largest domestic bank in Cyprus. With consistent deleveraging, it is poised for ongoing financial stability.

Prospective Economic Growth For Cypriot Banks

The favorable outlook anticipates better business and financial prospects amidst Cyprus’s economic growth, with decreasing unemployment and lower private sector debt. BoC’s plans to expand into wealth management and insurance activities stand to gain from these economic trends.

Expectations are that the ratio of BoC’s problem assets will drop below 5% within two years, thanks to diminishing NPE portfolios and active disposals of foreclosed assets. Last year, the bank’s operating profit/risk-weighted assets (RWA) ratio was a robust 5.4%, indicating a sustainable path forward.

Financial Strength And Stability

By the end of 2024, BoC boasted a common equity Tier 1 (CET1) ratio of 19.2%, with a notable buffer over regulatory demands. The bank’s CET1 encumbrance by problem assets fell significantly owing to further disposals.

Supported by a strong Cypriot deposit base, BoC maintains excellent liquidity. Looking ahead, while a downgrade is improbable, Fitch warns that any economic downturn in Cyprus could impact ratings. However, further elevation of the operating environment for Cypriot banks could enhance BoC’s business profile.

If you’re curious about technological advancements in Cyprus, read AI At Work: Cyprus Among Europe’s Most AI-Skeptical Nations.

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EU Regulation May Undermine Its AI Ambitions, Warns U.S. Ambassador

by THEFUTURE.TEAM

March 30, 2026

Regulatory Stringency Threatens Europe’s Future In AI

Andrew Puzder said EU regulatory pressure on U.S. technology companies could affect Europe’s access to AI infrastructure. He said access to data centers, data resources and hardware remains linked to U.S.-based providers.

Balancing Oversight And Global Technological Competitiveness

Puzder’s remarks arrive amid a period of aggressive regulatory measures undertaken by the European Commission against major U.S. tech companies. According to Puzder, imposing excessive fines and constantly shifting regulatory goals may force these companies to retreat from the EU market, leaving the continent on the sidelines of the AI revolution. He noted, “If you regulate them off the continent, you’re not going to be a part of the AI economy.”

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U.S. Concerns Over Regulatory Overreach

Critics from across the Atlantic, including figures from former U.S. administrations, have repeatedly lambasted the EU’s stringent policies. Puzder stressed that without a conducive business environment supported by robust U.S. technology infrastructures, Europe’s ambitions in AI might remain unrealized. The warning carries significant implications for transatlantic trade relations and the future integration of technology across borders.

Specific Cases: Impact On Major Tech Companies

Recent EU enforcement actions include fines and regulatory decisions affecting major U.S. technology companies operating in the region. Meta was subject to regulatory action following policy-related concerns. Apple received a €500 million penalty, while Google was fined €2.95 billion in an antitrust case. X, owned by Elon Musk, was also fined €120 million in recent months. Marco Rubio criticized these measures, citing concerns about their impact on U.S. technology companies.

Implications For The Global AI Landscape

EU regulators are also reviewing the compliance of platforms such as Snap Inc. under the Digital Services Act. Focus includes areas such as user protection and platform responsibility. Discussion reflects ongoing differences between EU and U.S. approaches to regulation and innovation. Further developments will depend on policy decisions on both sides.