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Cyprus’ Banking Sector Drives Major Gains In Nonperforming Loan Recovery

A recent analysis from Morningstar DBRS Ratings highlights a positive trajectory for Cyprus’ nonperforming loan (NPL) market, outperforming initial expectations and showcasing resilience against broader economic pressures. According to the report, Cyprus’ NPL sector maintained a steady upward trend throughout 2024, aided by strong performance from key projects such as Hestia Financing, Titan Financing, and Capella Financing.

Key Findings on Cypriot NPL Transactions

The report underscores significant improvements in Cyprus’ NPL transactions, where projects Hestia, Titan, and Capella surpassed prior projections in terms of collections. Capella achieved a notable 5.8% increase in its annual collection rate (CCR), with Titan and Hestia also registering growth at 1.7% and 3.8%, respectively. These results reflect an improved outlook for Cyprus’ NPL market, despite some initial underperformance relative to business plans.

The upgrades follow Cyprus’ ongoing progress in reducing its nonperforming loan ratios, particularly in the mortgage sector, which saw a reduction of 254 basis points (bps)—one of the most significant declines in Europe. DBRS attributes this improvement to proactive deleveraging strategies and the strengthened quality of collateral backing NPL portfolios.

Market Resilience Amid Economic Pressures

Even as the European Central Bank’s (ECB) stringent monetary policy added pressure, the Cypriot NPL market benefited from high demand for foreign labour and a more favourable interest rate environment, helping mitigate the adverse effects. This buoyancy in the real estate sector has encouraged rating agencies to upgrade their outlooks, switching Hestia and Capella’s trends from negative to positive.

The Morningstar DBRS commentary suggests that if these stabilization trends continue, Cyprus’ NPL sector could see further positive adjustments in credit ratings. However, the report does caution that certain projects, such as Titan Financing, face potential risks related to the relatively lower collateralization of senior securities, which could become problematic if collection rates fall short of expectations.

Outlook for Cyprus’ NPL Market

The Cypriot NPL market’s upward trajectory is an encouraging sign of recovery within a traditionally volatile sector. Analysts believe that continued strength in the country’s banking and real estate sectors will be crucial for sustaining these improvements while emphasizing the importance of monitoring collateral levels in individual projects.

Cloudflare Sets New Default To Separate Search Crawlers From AI Bots

Cloudflare has drawn a sharper line between traditional search and artificial intelligence.

Beginning September 15, 2026, the company will change its default settings to block so-called mixed-use crawlers from pages that run ads, unless a site owner chooses otherwise. The policy applies to new Cloudflare customers, new sites created by existing customers, and all current free customers.

A Clearer Divide In Web Access

The shift could materially reshape how AI companies collect web data for model training and agentic products. Cloudflare’s central argument is straightforward: most publishers want their content to remain visible in search and accessible through certain AI services, but they do not want that same material repurposed without compensation.

In Cloudflare’s view, the problem is not crawling itself. It is the blending of three different functions: search, agentic use, and training into a single bot that makes it difficult for website owners to set meaningful boundaries.

The Google Question

Cloudflare pointedly referenced the “world’s largest search engine,” an unmistakable nod to Google, arguing that it has access to roughly twice as much information as rival AI companies because it makes it harder for customers to stay discoverable without also being used for AI.

Google has disputed that framing. The company offers Google Extended, a crawler setting that lets publishers opt out of having content used for training and AI products such as Gemini apps and Vertex AI, without affecting visibility in Google Search. At the same time, Googlebot still crawls for Search and for AI-powered features such as AI Overviews and AI Mode.

Publishers Want Reach, Not Exploitation

Matthew Prince, Cloudflare’s co-founder and chief executive, said the company is moving quickly because the internet is now dominated by machine traffic.

“Now that the majority of traffic on the Internet is non-human, we must go further and act faster so that a sustainable ecosystem can emerge,” Prince said, referring to the recent milestone in which bots surpassed human traffic online sooner than expected.

Prince added that Cloudflare’s tools and partnerships are designed to give publishers more visibility and commercial leverage, while also rewarding AI companies that are transparent about how they use content.

From Pay Per Crawl To Pay Per Use

Cloudflare has increasingly positioned itself as a gatekeeper for publishers looking to assert control in the AI era. The company already offers tools to block AI bots, along with a marketplace called Pay Per Crawl, which lets websites charge AI systems for scraping.

That framework is now expanding into Pay Per Use, which Cloudflare says will allow publishers to charge AI companies when content creates value, not merely when it is fetched. In practical terms, that shifts the economics from extraction to monetization.

Cloudflare says the move may also reduce waste. Its data suggests more than half of crawl traffic from AI bots is spent revisiting pages that have not changed, consuming bandwidth and compute without adding fresh value for either side.

Early Partners Signal The Commercial Model

To launch the new system, Cloudflare is working with Ceramic.ai and You.com. Under the opt-in model, publishers can be paid when their content appears in Ceramic’s AI search results or when You.com accesses premium material.

Cloudflare says other AI companies can adapt the model to fit their own products. The broader message is clear: the era of unrestricted crawling is giving way to one in which access, attribution, and compensation are increasingly negotiated rather than assumed.

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