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Cyprus Bets On EU-Funded Project To Solve Water Scarcity

A groundbreaking European initiative is poised to address Cyprus’ longstanding water challenges. Backed by Horizon 2030 and uniting 39 partners—including the Department of Water Development and the Larnaca Sewerage Board—the Water-Mining project is redefining the potential of desalinated water in drought-prone regions.

Turning Desalination Into A Sustainable Solution

Cyprus relies heavily on desalination, with approximately 70% of its drinking water sourced from these facilities. However, the process is energy-intensive and produces significant brine waste. Enter the Water-Mining project, which leverages innovative scientific methods to transform this byproduct into valuable industrial materials—reducing waste, cutting energy consumption, and increasing the island’s overall water availability.

One of the key figures behind this initiative is Associate Professor Demetris Xevgenos from the Technical University of Delft, who serves as the project’s executive coordinator. He recently presented the results in Lampedusa, Italy—an island entirely dependent on desalination—with overwhelmingly positive feedback. Now, Cyprus is next in line for evaluation and implementation.

From Concept To Implementation

The project, already scientifically advanced, was showcased in Nicosia last November to key stakeholders. The next phase involves a European-level evaluation, with plans to launch the initiative at the Cyprus Electricity Authority’s Vasiliko site. While tendering and commercial management discussions are ongoing, this initiative represents a major step forward in optimizing desalination efficiency.

As climate change intensifies, initiatives like water mining could become essential in securing Cyprus’ water future, ensuring that the island maximizes every drop of its most precious resource.

Central Bank Of Cyprus Balance Sheet Reflects Strong Eurosystem Position

Overview Of Financial Stability

The Central Bank of Cyprus (CBC) has released its latest balance sheet, reaffirming its steadfast role within the Eurosystem. The balance sheet, featuring total assets and liabilities of €29.545 billion, underscores the institution’s stable financial posture at the close of January 2026.

Asset Allocation And Strategic Holdings

Governor Christodoulos Patsalides issued the balance sheet, which details the CBC’s asset composition under the Eurosystem framework. Notably, the bank’s gold and gold receivables amounted to €1.635 billion, providing a significant hedge and stability to its balance sheet. Additional asset categories include claims on non-euro area residents denominated in foreign currency at €1.099 billion, while claims on euro area residents in both foreign and domestic currency add further depth to its portfolio.

The most substantial asset category, intra-Eurosystem claims, reached €19.438 billion, an indication of the CBC’s deep integration with its European counterparts. Furthermore, euro-denominated securities held by euro area residents contributed €6.587 billion. Despite a marked emphasis on these areas, lending to euro area credit institutions in monetary policy operations recorded no activity during the period.

Liability Structure And Monetary Policy Implications

On the liabilities side, banknotes in circulation contributed €3.218 billion. Liabilities to euro area credit institutions associated with monetary policy operations were notably the largest single category, totaling €17.636 billion. Supplementary liabilities included those to other euro area residents, which aggregated to €4.989 billion, with government liabilities playing a predominant role at €4.754 billion.

Other liability items, such as claims related to special drawing rights allocated by the International Monetary Fund at €494.193 million, and provisions of €596.571 million, further articulate the CBC’s exposure. Revaluation accounts stood at €1.643 billion, and overall capital and reserves were confirmed at €333.822 million, completing the picture of a well-capitalized institution.

Conclusive Insights And Strategic Alignment

The detailed breakdown illustrates the CBC’s sizeable intra-Eurosystem exposures, reinforcing its central role within Europe’s monetary landscape. With an asset-liability balance maintained at €29.545 billion, the CBC’s financial position remains robust, indicating a commitment to structural stability and strategic risk management.

This fiscal disclosure not only provides transparency into the CBC’s operations but also serves as a benchmark for comparative analysis among other central banks within the Eurosystem, highlighting the intricate balance between asset liquidity, regulatory oversight, and monetary policy imperatives.

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