Breaking news

Cyprus Considers Extending Basic Payment Account Rules To Small Businesses

Legislative Proposals Set For Review

Cypriot lawmakers are preparing to examine proposals that would extend the framework of basic payment accounts to very small businesses. The initiative is expected to be brought before the parliamentary plenary in the coming period. However, the proposals have drawn strong opposition from several institutions, including the finance ministry, the Central Bank of Cyprus (CBC) and commercial banks. The discussion in the House Commerce Committee follows nearly three years of review and consultations.

In-Depth Overview Of The Proposals

The first legislative proposal seeks to redefine the term “consumer” so that very small businesses would fall within the scope of basic payment account regulations. It also aims to improve transparency and comparability of bank charges linked to these accounts.

The second proposal would prevent banks from rejecting an application for a basic payment account simply because the applicant already holds an account with another credit institution. Supporters argue that this change would ensure broader and more equal access to essential banking services.

Historical Context And Regulatory Debates

During the committee session, MP Costas explained that the proposal to expand the definition of “consumer” dates back to amendments discussed in 2020 following the adoption of a relevant European directive. At the time, the proposal was postponed due to concerns that Cyprus could face legal complications at the European level if the directive was not fully transposed into national law. According to Costas and fellow MPs Giannakis Gavriel and Andreas Pasiourtidis, the issue has not been incorporated into a government bill.

Mixed Reactions From Key Stakeholders

Several public authorities have raised concerns about the proposed changes. Avgi Chrysostomou-Lapathiotis, representing the finance ministry, argued that the new provisions could impose additional obligations on banks that are already regulated under EU harmonisation legislation. The consumer protection service also noted that a broader legislative review of the framework remains pending.

A representative of the Central Bank of Cyprus, Artemis Nicolaou, questioned whether the changes are necessary. According to the CBC, the current volume of complaints does not justify expanding supervisory responsibilities without prior consultation with the European Central Bank.

Industry Concerns Over Business Risk Management

The banking sector has also expressed reservations about the proposals. Michalis Kronides, Senior Director of the Cyprus Banks Association, warned that the changes could limit banks’ ability to assess and manage client risk. He argued that financial institutions could be required to serve higher-risk businesses, including companies operating in sectors such as cryptocurrency.

Under the current framework, basic payment accounts are intended to cover routine banking services such as deposits, withdrawals, direct debits, card payments, online transactions and credit transfers. The proposed reforms, therefore, raise broader questions about how to balance financial access with risk management in the banking system.

MENA Venture Capital Stable As International Investor Activity Shifts

A Data-Led Analysis Of Investor Behavior In A War-Affected Region

Venture capital activity in the Middle East and North Africa remained relatively stable one month after the escalation of regional conflict. Early data, however, indicate changes in investor behavior rather than immediate shifts in funding totals. Initial signals are visible in investor participation, capital allocation, and deal pipeline activity.

Venture Markets And The Lag In Response

Funding announcements reflect decisions made months earlier, meaning that today’s figures do not capture the full impact of current events. Investors typically adjust strategies gradually, signaling future shifts long before they are immediately visible in total funding numbers.

International Capital As The Key Pressure Indicator

Participation of international investors remains a key indicator across the MENA venture market. Global capital has historically accounted for a significant share of funding in the region. Following global interest rate increases, international participation declined through 2023. This shift was reflected in lower cross-border deal activity, more cautious capital deployment, and longer fundraising timelines.

Implications For The Broader Startup Ecosystem

Changes in international investor activity affect multiple parts of the startup ecosystem. A recovery in participation was recorded in 2024 and continued into 2025, supporting funding activity and cross-border investment. If uncertainty persists, potential effects include slower investment decisions, reduced cross-border engagement, and extended fundraising cycles. International capital also plays a role in supporting larger funding rounds and access to global networks.

Next Steps For Stakeholders

International capital represents one of several factors shaping venture activity in the region. Its movement often precedes changes in late-stage funding, startup formation, and exit activity. Investors, policymakers, and ecosystem participants rely on data and scenario analysis to assess these trends and adjust strategies.

For A Deeper Insight

Further analysis on venture activity, capital flows, and geopolitical impact across the region is available in the full MAGNiTT report.

Aretilaw firm
The Future Forbes Realty Global Properties
Uol
eCredo

Become a Speaker

Become a Speaker

Become a Partner

Subscribe for our weekly newsletter