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Cyprus Bank Evaluates Expansion Into Greek Market With Representative Office

Assessing A New Strategic Initiative

Cyprus Bank is actively evaluating the establishment of a representative office in Greece, signaling its ongoing commitment to international expansion. While no final decision has been reached, this potential move is part of a broader strategy to bolster the bank’s outward focus, aligning with its long-term business objectives.

Calculated Timelines And Market Reentry

Senior executives have indicated that any steps toward establishing a permanent presence in Athens will be postponed until after this year, with formal implementation expected by 2026. In the meantime, the bank continues to effectively serve its Greek clientele. This strategic consideration follows recent initiatives, such as the negotiated re-entry into the Athens stock market after an 11-year absence, underscoring the bank’s intent to reestablish significant engagement with Greece.

Fostering International Corporate Lending

Central to this expansion is Cyprus Bank’s ambition to enhance its portfolio of international corporate loans. Notably, in 2024, the institution disbursed €400 million in loans to Greek enterprises, with the aim of increasing its total overseas lending portfolio to €1.5 billion. The robust performance observed in the first half of 2025, marked by a 31% year-on-year increase in new loans predominantly targeting international operations and large corporations, validates its growth strategy.

Future Growth And Sectoral Focus

CEO Panikos Nikolaou has articulated a clear vision: deepen the bank’s footprint in Greece by providing substantial financial support to major Greek enterprises and the dynamic maritime sector. This approach leverages its strong international business network to secure high-quality, risk-compatible investments, ensuring sustainable growth and reinforcing its competitive stance in the European market.

Cyprus Hits Historic Tourism Peak As Overtourism Risks Mount

Record-Breaking Performance In Tourism

Cyprus’ tourism sector achieved unprecedented success in 2025 with record-breaking arrivals and revenues. According to Eurobank analyst Konstantinos Vrachimis, the island’s performance was underpinned by solid real income growth and enhanced market diversification.

Robust Growth In Arrivals And Revenues

Total tourist arrivals reached 4.5 million in 2025, rising 12.2% from 4 million in 2024, with momentum sustained through the final quarter. Tourism receipts for the January–November period climbed to €3.6 billion, marking a 15.3% year-on-year increase that exceeded inflation. The improvement was not driven by volume alone. Average expenditure per visitor increased by 4.6%, while daily spending rose by 9.2%, indicating stronger purchasing power and higher-value tourism activity.

Economic Impact And Diversification Of Source Markets

The stronger performance translated into tangible gains for the broader services economy, lifting real tourism-related income and overall sector turnover. Demand patterns are also shifting. While the United Kingdom remains Cyprus’ largest source market, its relative share has moderated as arrivals from Israel, Germany, Italy, the Czech Republic, the Netherlands, Austria, and Poland have expanded. This gradual diversification reduces dependency on a single market and strengthens resilience against external shocks.

Enhanced Air Connectivity And Seasonal Dynamics

Air connectivity has improved markedly in 2025, with flight volumes expanding substantially compared to 2019. This expansion is driven by increased airline capacity, enhanced route coverage, and more frequent flights, supporting demand during shoulder seasons and reducing overreliance on peak-month flows. Seasonal patterns remain prominent, with arrivals building through the spring and peaking in summer, thereby bolstering employment, fiscal receipts, and corporate earnings across hospitality, transport, and retail sectors.

Structural Risks And Future Considerations

Despite strong headline figures, structural challenges remain. The European Commission’s EU Tourism Dashboard highlights tourism intensity, seasonality, and market concentration as key risk indicators. Cyprus records a high ratio of overnight stays relative to its resident population, signalling potential overtourism pressures. Continued reliance on a limited group of origin markets also exposes the sector to geopolitical uncertainty and sudden demand swings. Seasonal peaks place additional strain on infrastructure, housing availability, labour supply, and natural resources, particularly water.

Strategic Investment And Market Resilience

Vrachimis concludes that sustained growth will depend on targeted investment, product upgrading, and continued market diversification. Strengthening year-round offerings, improving infrastructure capacity, and promoting higher-value experiences can help balance demand while preserving long-term competitiveness. These measures are essential not only to manage overtourism risks but also to ensure tourism remains a stable pillar of Cyprus’ economic development.

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