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Cyprus Approves National Anti-Fraud Strategy For 2026-2031

by THEFUTURE.TEAM

June 2, 2026

Unified Framework For Enhanced Fiscal Integrity

Cyprus has approved its first National Anti-Fraud Strategy for the protection of the European Union’s financial interests, covering the 2026-2031 period. The strategy, approved by the Council of Ministers on May 27, is accompanied by a five-year action plan aimed at strengthening transparency, improving oversight and protecting both EU and public funds.

Comprehensive Measures And Collaborative Oversight

The Strategy establishes a cohesive national framework aimed at preventing, detecting, investigating, recovering, and monitoring fraud-related incidents that impact the EU’s financial interests. Covering both expenditure and revenue elements of the EU budget, the Strategy also targets critical funding areas for the Republic of Cyprus, including the Cohesion Policy, Common Agricultural Policy, Common Fisheries Policy, Migration and Home Affairs, as well as the Recovery and Resilience Facility.

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Developed by AFCOS Cyprus with support from the General Accountant of the Republic and technical assistance from the OECD under an EU-funded project, the Strategy leverages coordinated efforts to mitigate fraud risks. Key figures in its implementation include the General Accountant of the Republic, the General Public Prosecutor, the Chief of Police, the Tax Commissioner, and several other high-level officials.

Robust Implementation And Digital Integration

An integral part of the Strategy is a five-year action plan that details specific measures, timelines, performance indicators, and designated authorities responsible for enforcement. Emphasis is placed on risk assessment, enhanced controls, capacity building among involved agencies, and refining procedures for reporting and referring instances of fraud. The plan also outlines the use of digital tools to improve coordination among services, thereby ensuring more effective fraud prevention and response.

Implementation will be closely monitored by AFCOS Cyprus, with biannual progress reviews and an annual report submitted to both the Minister of Finance and the Ministerial Council. This initiative forms a critical step in Cyprus’ broader commitment to strengthening institutional collaboration and ensuring proactive fraud detection.

By adopting its first National Anti-Fraud Strategy, the Republic of Cyprus further cements its commitment to legal integrity, transparency, and the effective stewardship of European funds, setting a benchmark for comprehensive financial governance in the region.

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Bank of Cyprus Upgrade Signals Fresh Optimism For Greek And Cypriot Banks

by THEFUTURE.TEAM

June 26, 2026

Regional Banks Enter A More Favorable Cycle

Bank of Cyprus and Eurobank are well positioned to benefit from a renewed re-rating of Greek and Cypriot bank stocks, according to Cyprus-based investment firm Roemer Capital, which upgraded Bank of Cyprus to a buy rating and reaffirmed its positive view on Eurobank.

The firm cited easing geopolitical tensions, resilient economic growth in Greece and Cyprus, lower funding costs and Greece’s expected transition to developed-market status as the main factors supporting the sector.

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Roemer Capital also lowered its cost of equity assumptions, updated its forecasts following first-quarter 2026 results and extended its valuation horizon to the end of 2027, raising target prices across its banking coverage.

Bank Of Cyprus Gets The Largest Upgrade

Bank of Cyprus received the biggest revision, with Roemer Capital upgrading the stock from hold to buy and setting a target price of €11.10, implying potential total upside of 27%.

The firm highlighted the bank’s strong capital generation, profitability and projected 100% dividend payout, describing it as the strongest capital-return story among the banks under coverage. Roemer Capital maintained its buy rating on Eurobank, assigning a target price of €4.90 and forecasting potential upside of 28%. The report said the bank is well placed to benefit from loan growth, improving operating performance and merger-and-acquisition synergies.

National Bank of Greece and Piraeus Bank also retained buy ratings, with expected returns ranging from 25% to 36%. Optima Bank was upgraded to buy, while Alpha Bank remained at hold on valuation grounds.

Why Growth Still Sets The Region Apart

According to Roemer Capital, Greek and Cypriot banks continue to benefit from stronger economic fundamentals than many western European peers. The report pointed to faster economic growth, healthier balance sheets, low levels of non-performing exposures, capital ratios approaching 20% and strong customer deposit bases.

Analysts expect performing loans across the sector to grow at a compound annual rate of 6% to 8% through 2028, supported by private investment, digitalisation, green manufacturing, supply-chain expansion and a gradual recovery in household lending.

The report also said the conclusion of lending under the EU Recovery and Resilience Facility is unlikely to materially affect credit growth, as banks have already shifted back towards traditional commercial lending. Roemer Capital expects Euribor to remain between 2.2% and 2.5%, a level it believes should support both lending activity and net interest margins.

Geopolitics, Valuation And Market Structure Support The Case

The report said improving geopolitical conditions have strengthened the investment outlook, noting that Brent crude prices have largely returned to pre-war levels while Greek government bond yields have stabilised at around 3.5%. Although geopolitical risks remain, Roemer Capital believes the likelihood of a major inflationary shock or significant pressure on bank profitability has eased.

Another important catalyst identified by the firm is Greece’s expected promotion to developed-market status by FTSE Russell, STOXX and MSCI over the coming months.

According to the report, the reclassification should improve liquidity and attract a broader base of international investors. Roemer Capital also said Euronext’s acquisition of the Athens Exchange is expected to strengthen market infrastructure and increase international visibility, particularly for Bank of Cyprus and Optima Bank.

The firm noted that Bank of Cyprus has already benefited from its Athens listing, with average daily trading value increasing from less than €400,000 before its September 2024 move to nearly €6 million afterwards.

Economic Momentum Remains A Core Tailwind

Roemer Capital said both Greece and Cyprus have moved beyond post-crisis recovery and are now supported by private-sector-led growth. For Cyprus, the report highlighted recent tax reform and efforts to simplify the legal and regulatory framework, while also noting that limited foreign banking competition continues to support domestic lenders.

Overall, Roemer Capital expects Greek and Cypriot banks to remain well-positioned for profitable loan growth over the coming years.