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Cyprus and China to further liberalise flights between the two counties

Cyprus and China are set to sign a bilateral agreement providing for the further liberalisation of flights and strengthening air connectivity between the two countries.

According to a press release issued by the Ministry of Transport, the two countries will on 26 September sign a Memorandum of Understanding and a bilateral agreement providing for the further liberalisation of flights between the two countries.

The MoU and the agreement will be signed by Han Jun, Deputy Administrator of the Civil Aviation Administration of China (CAAC) and Panagiota Demetriou, Director of the Cypriot Civil Aviation Department, following an authorisation by the Council of Ministers.

“This is a very important agreement which aspires to further improve the air connectivity between the two counties, providing an opportunity to increase the number of travellers both for recreation and business activities,” the Ministry said, adding that “the agreement will contribute to the improvement of flight connectivity and commercial transactions between the countries in the Far East and with Europe as well.”

The signing ceremony will take place at the Civil Aviation Department premises in Nicosia at noon local time.

Interest rates on housing loans up and down on deposits

Cypriot banks raised mortgage rates in August while cutting interest on one-year deposits for households, according to data released by the Central Bank of Cyprus (CBC).

Meanwhile, the total value of new loans dropped sharply in August, falling by 33 per cent compared to July.

The latest figures, published on Wednesday reveal that the interest rate for short-term deposits by households fell to 1.79 per cent, from 1.96 per cent in July. In contrast, the deposit rate for businesses (non-financial companies) travelled in the opposite direction up to 2.33 per cent in August from 2.28 per cent in the previous month.

Consumer loan rates also saw a small decline, dropping to 6.59 per cent from 6.67 per cent in the previous month. Mortgage rates rose marginally to 4.65 per cent, from 4.59 per cent.

Rates for businesses, on loans €1 million also fell to 5.36 per cent from 5.61 per cent. For loans

above €1 million the rate fell to 5.42 per cent from 5.64 per cent.

In terms of new loans, there was a marked drop across the board. Total new loans fell to €395.5 million, down from €596.3 million in July.

Consumer loans also fell with net new loans at €19m, compared to July’s €28m (€26.1m net).

Loans for house purchases also declined significantly, falling to €95.6m, of which €72.3m were net new loans, down from €134.3m (€100.7m net) in July.

New loans of under a million euro to businesses decreased to €52.8m (€34.1m net), down from €75.5m in July (€49.5m net).

Similarly, loans of over a million euros were halved to €179.3m (€78.3m net), compared to €345.2m (€211.8m net) in the previous month.

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