Breaking news

Cypriot Bonds Held By The Eurosystem Decline To €6.38 Billion

by THEFUTURE.TEAM

The European Central Bank’s ongoing efforts to deleverage its balance sheet have led to a significant reduction in the value of Cypriot sovereign bonds held by the Eurosystem. As of mid-August 2024, these bonds, which are part of the Public Sector Purchases Programme (PSPP) and the Pandemic Emergency Purchases Programme (PEPP), have declined to €6.38 billion, representing 28% of Cyprus’ public debt. This reduction aligns with the ECB’s broader strategy to curb inflation by reducing market liquidity, including ending reinvestments in its Asset Purchase Programme (APP).

The Eurosystem’s bond holdings in Cyprus are split between two key programmes: the Public Sector Purchases Programme (PSPP) and the Pandemic Emergency Purchases Programme (PEPP). The PSPP portfolio has seen a reduction to €3.99 billion, driven by the redemption of maturing bonds worth €304 million. This portfolio’s weighted average maturity now stands at 7.62 years. Meanwhile, the value of Cypriot bonds held under the PEPP has also declined to €2.39 billion, with cumulative net purchases dropping by €76 million in July alone.

The ECB’s approach is part of its restrictive monetary policy cycle, aimed at curbing inflation across the Eurozone. In a decisive move in August 2023, the ECB announced the discontinuation of reinvestments under the wider Asset Purchase Programme (APP), of which the PSPP is a part, from July 2023 onwards. This decision is a clear signal of the ECB’s intent to reduce liquidity in the market, a strategy that complements its broader efforts to tighten monetary conditions and manage inflationary pressures.

The implications of this policy for Cyprus are significant. With Cypriot bonds held by the Eurosystem now accounting for 28% of the country’s public debt, the reduction in ECB support could exert upward pressure on Cyprus’s borrowing costs. This scenario may necessitate more robust fiscal policies from the Cypriot government to maintain financial stability.

Looking ahead, the ECB has outlined its plans to continue reducing the PEPP portfolio by €7.5 billion per month on average during the second half of 2024, with a complete discontinuation of reinvestments by the end of the year. This signals a continued tightening of monetary policy that will likely impact not just Cyprus but all Eurozone economies.

Only 1% Of Cyprus Farms Use Precision Farming Technologies

by THEFUTURE.TEAM

Cyprus remains one of the European Union’s least digitised agricultural economies, with just 1% of farms using precision farming technologies in 2023, according to Eurostat.

The findings come as the EU continues to encourage the adoption of digital tools aimed at improving agricultural productivity, efficiency and sustainability.

Internet Access Expands, But Digital Uptake Lags

Internet access has improved across the bloc, although adoption remains uneven. Eurostat found that 43% of EU farms had internet access in 2023, with northern and central European countries leading the way.

Denmark, Germany, Slovakia, Latvia, the Czech Republic and Austria all reported internet access rates above 90%.

Greater connectivity, however, has not translated into widespread digital adoption. Farm management information systems, which help farmers manage day-to-day operations, were used by only about 11% of EU farms. France was a notable exception, with around 60% of farms using the technology.

Precision Farming Concentrated In Larger Operations

Robotics adoption also remained relatively limited, with only about 7% of EU farms using robotic technologies. Overall, around 18% of farms with utilised agricultural area employed at least one precision farming technology or practice in 2023.

These included robotics for plant protection, band spraying, variable-rate application, precision crop monitoring and soil analysis. Despite representing fewer than one in five farms, these holdings accounted for around 44% of the EU’s utilised agricultural area.

The figures suggest that precision farming remains concentrated among larger agricultural businesses, where investment in digital technologies is typically easier to support.

Cyprus Lags Behind EU Leaders

Luxembourg, Finland and Estonia recorded the highest shares of utilised agricultural area managed by farms using precision farming technologies, each exceeding 75%.

At the other end of the ranking, Cyprus recorded just 1%, while Greece and Romania reported between 10% and 15%. The results indicate that Cyprus remains at an early stage of digital adoption in agriculture, even as precision farming becomes more widespread across parts of the European Union.

The Future Forbes Realty Global Properties
Uol
Aretilaw firm
eCredo

Become a Speaker

Become a Speaker

Become a Partner

Subscribe for our weekly newsletter