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Central Bank Updates Rules On Loan Collateral And E-Money Institutions

by THEFUTURE.TEAM

June 2, 2026

Updated Loan Securitization Guidelines

The Central Bank has amended its directives governing loan collateral management and property revaluation costs during loan restructuring. Published in the Official Gazette of the Republic, the changes update the regulatory framework for credit institutions and apply to both new lending and modifications of existing credit facilities.

Under the revised rules, collateral linked to a secured loan must be released immediately once the facility has been repaid, except in cases involving mortgaged real estate. In those instances, the release of collateral remains subject to the procedures and timelines set out in legislation governing property transfers and mortgages. Title deeds must be returned to the borrower or the holder of the collateral unless written consent has been provided to keep the mortgage in place. If that consent is later withdrawn, the mortgage holder must remove the mortgage within the timeframe established under the relevant legislation. Recent amendments also clarify responsibility for property revaluation costs during loan restructurings. Appraisal expenses will generally be borne by the lending institution unless the loan agreement specifies otherwise.

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Evolving Framework For Electronic Money

A separate directive published by the Central Bank introduces updated governance requirements for electronic money institutions. New rules set out standards for internal controls, risk management procedures and compliance monitoring. Institutions will be required to establish systems for identifying, assessing and reporting risks, including those related to regulatory compliance.

Additional provisions strengthen internal audit requirements and compliance procedures aimed at preventing money laundering and terrorist financing. Together, the measures form part of the Central Bank’s broader effort to update regulatory standards across the financial sector and strengthen oversight of credit and electronic money institutions.

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Cyprus Fuel Prices Jump 20.5% As Energy Costs Rise Across The EU

Cyprus recorded a 20.5% year-on-year increase in the prices of fuels and lubricants for personal transport in May 2026, according to Eurostat data released on Monday.

The increase was broadly in line with the European Union average of 20.7%, with fuel and lubricant prices rising across all EU member states during the period.

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Cyprus Tracks The EU Average

Among EU countries, the largest annual increases were recorded in Bulgaria (33.9%), Luxembourg (32.2%), Lithuania (30.8%) and Romania (30.4%). At the other end of the scale, Hungary registered the smallest increase at 3.5%, while annual growth ranged from 12.7% in Poland to 29.2% in France across the remaining member states.

Eurostat noted that fuel and lubricant prices generally declined across the EU until February 2026 before moving higher in subsequent months.

Diesel And Petrol Follow Different Paths

Across the European Union, diesel prices increased by 29% in May 2026 compared with the same month a year earlier, while petrol prices rose by 16.2%. Monthly trends, however, were more mixed. Between April and May 2026, diesel prices across the EU fell by 5.8%, whereas petrol prices increased by 0.8%.

In Cyprus, diesel prices declined by 1.5% over the same period. Although lower than in April, the decrease was less pronounced than in Germany (-11.9%), Greece (-8.5%), Estonia (-8.4%) and Ireland (-8.1%).

Petrol prices moved in the opposite direction, rising by 2.1% between April and May. A similar pattern was observed across much of the EU, with 23 member states reporting monthly increases. Italy recorded the largest monthly rise in petrol prices at 6.9%, while decreases were reported in Germany (-5.6%), Ireland (-2.0%) and Sweden (-0.7%).