Cyprus Central Bank Upholds 1.5% Countercyclical Capital Buffer

by THEFUTURE.TEAM

September 29, 2025

Strategic Regulatory Decision

The Central Bank of Cyprus has announced its decision to maintain the countercyclical capital buffer (CCyB) for exposures in the Republic of Cyprus at 1.5 percent. This decision reaffirms the bank’s commitment to a robust financial regulatory framework, ensuring sufficient capital reserves to mitigate economic downturns and stabilize the banking sector.

Consistency in Policy Implementation

The current decision, implemented following the previous announcement on January 14, 2025, marks a deliberate stance toward preserving the enhanced buffer rate. The bank emphasized that the updated rate of 1.5 percent will be effective from January 14, 2026, reinforcing a systematic approach to capital adequacy requirements.

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Comparative Context and Financial Implications

Previously, the CCyB rate was set at 1 percent. The increase to 1.5 percent reflects the Central Bank’s proactive measures to support a resilient financial ecosystem. This adjustment is designed to provide additional support during periods of economic stress, positioning the Cypriot banking sector to better absorb shocks and sustain lending activities in volatile market conditions.

Future Outlook

As the economic landscape continues to evolve, this decision represents a strategic move in anticipation of future challenges. By opting to uphold the elevated CCyB rate, the Central Bank of Cyprus is signaling a forward-looking perspective, ensuring that capital buffers are sufficiently robust to accommodate emerging risks without compromising credit availability.

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Cyprus Expects More French Visitors In 2027 As Air Capacity Expands

by THEFUTURE.TEAM

September 18, 2026

Cyprus expects more French visitors in 2027 as airlines increase capacity between the two countries, Tourism Deputy Minister Kostas Koumis said after meetings with tour operators in Paris.

France, one of Cyprus’ key tourism markets, has had a difficult 2026. French arrivals fell 46% year over year to 8,453 in August, from 15,663 a year earlier, according to the Statistical Service of Cyprus (Cystat). August arrivals were also nearly 50% below the 16,798 recorded in the same month of 2024.

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Overall, Cyprus received 2.82 million tourist arrivals between January and August, down 7% from the same period in 2025.

Air Connectivity Supports 2027 Outlook

Koumis discussed the 2027 outlook with senior executives from tour operators offering Cyprus holidays during the IFTM Top Resa travel trade fair in Paris.

Higher air capacity between France and Cyprus was a key focus of the talks. Participants also discussed the impact of geopolitical tensions in the Middle East on the French market and Cyprus’ efforts to adapt its tourism offering to French travelers.

“The French market is undoubtedly an extremely important market for our country’s tourism,” Koumis said, adding that France had regained importance only a few years ago and still had room to grow.

Improved air connectivity will be an important factor in that expansion, according to Koumis. “It is now clear that air connectivity between France and Cyprus is improving significantly, which is a basic prerequisite for the further growth of the market,” he said.

Cyprus Promotes Tourism And Regional Cooperation

Koumis attended the opening of IFTM Top Resa at the invitation of French Tourism Minister Serge Papin, who later visited the Cyprus stand. Held from Sept. 15 to 17 at Paris Porte de Versailles, the event brought together more than 32,000 tourism professionals representing 177 destinations and 1,650 brands, according to organizers.

During his visit, Koumis also met Egyptian Tourism Minister Sherif Fathy. Cyprus and Egypt reaffirmed their tourism cooperation and discussed opportunities to strengthen ties further.

French media interviews covered Cyprus’ tourism offering, infrastructure and services, along with efforts to develop specialized tourism products. Regional instability weighed on arrivals in 2026, particularly during the spring, although the decline narrowed over the summer.

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