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Bank of Cyprus Receives Notable Ratings Upgrade By Fitch

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.

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.

Europe’s Greenest Cities Are About To Be Named. Here’s What The Finalists Reveal About Urban Climate Strategy

Eight European cities will learn next week whether years of investment in cleaner air, stronger climate resilience and more room for nature are enough to earn one of the European Union’s most prestigious environmental honours.

The Race For Europe’s Top Green City Titles

The European Commission’s annual European Green Capital and European Green Leaf Awards recognise cities that are delivering measurable environmental progress while improving everyday life for residents. The winners will be announced on 8 October in Guimarães, Portugal, the 2026 European Green Capital.

That advance selection matters. Cities are named more than a year ahead of their title year, giving them time to develop projects, organise public programmes and turn recognition into action.

Who Made The Shortlist

Five cities are competing for the Green Capital title: Aalborg in Denmark, Bielsko-Biała in Poland, Košice in Slovakia, Porto in Portugal and Zaragoza in Spain.

Three smaller cities have been shortlisted for the Green Leaf awards: Benidorm and Chiclana de la Frontera in Spain, and Estarreja in Portugal.

How The Awards Are Judged

The Green Capital Award was created to reward cities making measurable progress on environmental challenges while raising quality of life. It is open to cities with more than 100,000 residents. Cities with populations between 20,000 and 100,000 compete for the Green Leaf title.

An independent expert panel assesses applicants across seven areas, including air quality, water quality, biodiversity, green space, waste management, noise, emissions reduction and climate resilience. The jury also looks at how well cities are preparing for risks such as extreme heat and flooding.

What The Finalists Show About Urban Sustainability

Each finalist brings a distinct model of urban environmental policy.

Zaragoza stands out for biodiversity and green space. The Spanish city is linking parks, riverbanks, wetlands, street trees and surrounding natural areas into a connected network designed to support wildlife movement and reduce flood risk.

Porto has been recognised for its water management and adaptation planning. Over the past decade, the city has restored sections of the Rio Tinto riverbed and banks, created parks that absorb stormwater during heavy rainfall and begun reusing treated wastewater for agricultural irrigation and street cleaning.

Benidorm offers a different lesson: even dense urban areas can expand access to nature. Since 2012, the coastal city has increased its public gardens from 350,000 square metres to more than 1.5 million square metres and nearly quadrupled its tree cover. Today, 92% of residents live within 300 metres of a public green space.

Why Cities Are Reclaiming Space For Nature

The EU awards reflect a broader shift already underway across Europe. As summers grow hotter and weather patterns become less predictable, city leaders are rethinking the way urban space is designed and used. Trees, parks and water are no longer treated as decorative features; they are increasingly seen as core infrastructure for resilience.

In Barcelona, some streets have been closed to through traffic and converted into parks and pedestrian zones. In Milan, the Bosco Verticale has become a high-profile example of how cities can introduce substantial greenery even where land is scarce, with more than 21,000 trees and shrubs placed across two residential towers.

In Breda, the Netherlands, civic participation has driven a broader transformation. Concrete tiles have been replaced with grass, flowers and trees, while homes and schools have added rooftop gardens. Today, 60% of the city is green space, helping Breda become the EU’s first National Park City in 2025.

Beyond Landscaping: A Test Of Citywide Change

The Green Cities Awards are not simply about planting more trees or adding greenery to public buildings. They reward cities that are embedding environmental thinking into transport, water, waste, public space and long-term planning.

Heilbronn, Germany, which won the 2027 Green Capital title, was recognised not just for its clean air and water, but also for noise reduction, waste reduction and a broader commitment to climate action.

When the jury meets next week, it will be judging more than individual projects. It will be assessing how far these eight cities have turned environmental ambition into citywide systems change.

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