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Concerns Rise Over Shareholder Movements At Bank Of Cyprus

by THEFUTURE.TEAM

June 25, 2024

Recent shareholder activities at the Bank of Cyprus have raised significant concerns within the financial community. At the Cyprus International Business Association Forum in Limassol, it was revealed that major stakeholders CarVal and Caius are contemplating the sale of their 14.65% stake in the bank. Bloomberg’s report on this potential divestiture has sparked a discourse on the future implications for the Cypriot banking sector, which is currently experiencing a period of robust health with strong capital reserves and liquidity.

The potential exit of CarVal and Caius brings to light the broader question of stability and the impact of foreign investment on local financial institutions. Industry experts, including analysts Dimitris Efstathiou and economist Fiona Mullen, have weighed in on the situation. Efstathiou noted that while the sector does not currently require additional capital injections, the entry of new foreign shareholders could catalyse technological innovation within the bank. Mullen echoed this sentiment, emphasizing the need for the banking system to maintain stability and to adapt to potential changes in shareholder dynamics.

The Bank of Cyprus, like many financial institutions in the region, has navigated through a tumultuous past, marked by economic crises and regulatory changes. The current high liquidity and capital levels are testament to its resilience and strategic management. However, the looming possibility of a major shareholder reshuffle introduces an element of uncertainty that could have far-reaching consequences for the bank’s operational and strategic directions.

The broader Cypriot banking sector could also feel the ripple effects of such a significant transaction. The introduction of new shareholders with different strategic priorities and visions could lead to shifts in business models, potentially affecting everything from customer service approaches to technological investments.

While the Cypriot banking sector enjoys a period of stability, the potential sale of a significant stake in the Bank of Cyprus by CarVal and Caius introduces an element of uncertainty. This development calls for careful monitoring and strategic planning to ensure the continued health and growth of the bank and the wider financial sector. The ability of the Bank of Cyprus to adapt to new ownership structures while maintaining its robust financial health will be crucial in navigating this period of change.

New Decrees For Blue Card And Foreign Students: Key Changes And Implications

by THEFUTURE.TEAM

December 20, 2024

The Ministry of Labor and Social Insurance has announced a series of new measures aimed at addressing the increasing demands of Cyprus’ labor market. These initiatives are designed to attract highly skilled professionals from third countries and broaden employment opportunities for foreign students in select fields, as outlined in the recent Decrees published in the Official Gazette of the Republic.

Attracting Skilled Professionals

One of the key updates is the introduction of a minimum annual salary for foreign professionals, which has been set at €43,632, 1.5 times the average gross annual salary in Cyprus. This salary threshold applies to individuals coming to work in sectors such as Information and Communication Technologies (ICT), pharmaceuticals for research purposes, and maritime industries (excluding skippers and crew).

Expanded Employment Options For Foreign Students

The new regulations also provide an update on the employment rights of foreign students. From December 2024, students from third countries will be able to work in Cyprus, with the new rules replacing the previous March 2024 start date.

Students studying ICT who have completed their first academic semester will be eligible to work in occupations related to their field of study, thereby gaining practical experience while pursuing their education.

In response to critical sector shortages, the regulations also clarify the specific occupations and salaries that Blue Card holders—third-country nationals—will be eligible for in Cyprus. The Blue Card, in line with the European Directive, allows highly skilled professionals to live and work in EU member states.

Strengthening The Labor Market and Economy

These updates are expected to bolster the supply of specialized workers in key sectors, addressing existing gaps and promoting the continued growth of Cyprus’ economy. At the same time, the new measures offer foreign students enhanced opportunities for professional development, facilitating their seamless integration into the country’s workforce.