Cyprus Confronts Water Crisis: Government Ramps Up Action To Ensure Supply

by THEFUTURE.TEAM

February 3, 2025

As Cyprus braces for another dry summer, the government is ramping up efforts to protect water resources and lessen dependence on unpredictable climate patterns. Authorities are implementing both immediate and long-term measures to safeguard agriculture and secure water access. With dam reserves at just 26% capacity, authorities prioritize immediate and long-term solutions to sustain agriculture and ensure water availability.

Government Strategy To Manage Water Scarcity

Minister of Agriculture, Rural Development, and Environment, Maria Panayiotou, outlined a 28-action strategic plan aimed at reducing reliance on rainfall-dependent irrigation. The five-year initiative focuses on improving water management, expanding desalination infrastructure, and exploring alternative water sources.

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Investment Breakdown:

€109.3 million: Primary sector development (2024-2028)
€2.9 million: Agro-tourism, infrastructure, and circular economy in Arakapas The village of Arakapas benefits from €2.9 million allocated for agro-tourism, infrastructure, and circular economy projects.

Authorities Brace For A Difficult Summer

Deputy Director of the Water Development Department, Yiorgos Kazantzis, warned that irrigation water quotas will be drastically reduced in 2024. To mitigate the impact, priority will be given to professional farmers and permanent plantations.

Authorities are fast-tracking desalination projects. The Paphos desalination plant, currently under repair, is expected to be operational by August. A new 10,000 cubic meter/day desalination facility in Kissonerga is set for completion by October. Officials are also identifying underutilized boreholes and underground sources with the Geological Survey Department.

Encouraging Private Sector Involvement

The Cyprus Cabinet has approved measures allowing hotels and farmers to build private desalination plants, easing pressure on public infrastructure. Authorities are also ensuring that existing desalination plants operate at full capacity, except during maintenance.

Public Awareness And Conservation Efforts

Government-led water conservation campaigns stress the urgency of reducing wasteful consumption. Without public cooperation, Cyprus risks facing stricter water restrictions in 2025, when irrigation quotas could be further tightened.

With climate change exacerbating water shortages, Cyprus must act swiftly. Investments in desalination, groundwater extraction, and efficiency measures offer a proactive approach, but execution is critical. The success of these initiatives will be critical in securing Cyprus’ water future amid growing climate challenges.

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Central Bank Of Cyprus Balance Sheet Reflects Strong Eurosystem Position

by THEFUTURE.TEAM

February 17, 2026

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.

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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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