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 Goods Trade With Canada Grows In 2025 As Imports Rise Faster Than Exports

by THEFUTURE.TEAM

October 14, 2026

European Union goods exports to Canada increased by 1.2% in 2025 to €48.8 billion, while imports grew by 18% to €33 billion, narrowing the bloc’s trade surplus to €15.8 billion, according to Eurostat.

Despite the faster growth in imports, the EU continued to export substantially more goods to Canada than it imported. The figures point to expanding bilateral trade, with imports gaining ground more quickly than exports.

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Trade Expands Under CETA

EU exports to Canada rose from €48.2 billion in 2024, while imports increased from €28 billion. Overall, bilateral goods trade reached €81.8 billion in 2025.

The growth follows the provisional entry into force of the Comprehensive Economic and Trade Agreement (CETA) in September 2017. Between 2015 and 2017, EU-Canada goods trade grew by an average of 4.7% annually. From 2018 to 2025, its total value increased from €54.2 billion to €81.8 billion, equivalent to average annual growth of 6.1%.

Machinery And Pharmaceuticals Lead EU Exports

Industrial and high-value manufactured goods dominated EU exports to Canada in 2025. Machinery and mechanical appliances topped the list at €9.4 billion, accounting for 19.3% of total exports.

Pharmaceutical products ranked second at €5.5 billion, or 11.2%, closely followed by vehicles, cars, motorcycles and parts at €5.4 billion, representing 11.1%. Electrical machinery and equipment contributed €3.3 billion, or 6.7%, while optical, photographic and medical instruments accounted for €2 billion, equivalent to 4.1%.

Raw Materials And Industrial Goods Drive Canadian Imports

Canada’s exports to the EU were led by raw materials and industrial inputs. Ores, slag and ash formed the largest category, valued at €4 billion and accounting for 12.2% of EU imports from Canada.

Machinery and mechanical appliances followed at €3.8 billion, representing 11.4%. Mineral fuels, oils and distillation products reached €3.1 billion, or 9.4%, while aircraft, spacecraft and parts totalled €2.9 billion, accounting for 8.9%. Pharmaceutical products completed the top five at €1.9 billion, or 5.9%.

A Growing Trade Relationship

Eurostat’s figures show that EU-Canada goods trade continues to expand, although the balance is shifting as imports grow faster than exports. The EU remains a net exporter, while Canada supplies a mix of raw materials, energy-related products and manufactured goods.

The narrowing surplus highlights a more dynamic bilateral trade relationship, with both sides increasing their role in the exchange of industrial products and strategically important goods.

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