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Cyprus Consumers Association Alerts Travelers On Refund Safeguards Amid Agency Disputes

Overview Of The Issue

The Cyprus Consumers Association has issued an urgent advisory following a notable surge in complaints directed at a travel agency that failed to fulfill its refund obligations for undelivered services. Although the agency in question was not specifically named, the inquiry highlights widespread concerns regarding operational accountability in the travel industry.

Legislative And Regulatory Safeguards

Under current legislation, travel organizers are mandated to provide a comprehensive guarantee covering the entire sum paid by customers for services that remain unprovided. The Consumers Association underscored that the Consumer Protection Service, in coordination with the Association of Cyprus Travel & Tourism Agents (the designated approved body by the Minister of Energy, Commerce and Industry), is responsible for supervising and enforcing these guarantees.

Activation Of The Guarantee

In instances where a travel organizer is unable to meet its commitments, the guarantee is triggered automatically. Funds are then allocated promptly to travelers who did not receive the services they had paid for, ensuring prompt restitution without undue delays. This measure is pivotal in maintaining consumer trust and protecting financial interests.

Consumer Advisory And Best Practices

The association advised travelers to meticulously verify that their selected travel agency is a properly registered travel organizer and maintains the legally required insolvency guarantee. Emphasizing the significance of these checks, the advisory noted that a lapse in such due diligence could jeopardize the excitement and security inherent to planned journeys.

Reporting Non-Compliance

Consumers who have been informed that paid services will not be delivered are urged to contact the Cyprus Consumers Association directly via email, providing all pertinent booking details for immediate assistance and investigation.

Wider European Consumer Protection Initiatives

In a related development, the European Commission and the Consumer Protection Cooperation Network have recently secured an agreement with major travel platforms such as Expedia and Lastminute.com. These industry leaders are now obligated to guarantee refunds within 14 days for cancelled flights and ensure transparency in contact information and customer rights. These enhanced measures extend to additional platforms, including Edreams ODIGEO, Etraveli Group, and Kiwi.com, all under the same robust standards.

Conclusion

As the regulatory environment tightens and consumers become increasingly vigilant, the Cyprus Consumers Association’s proactive measures serve as a critical reminder of the importance of compliance and consumer protection in the travel industry. Stakeholders across the sector are urged to uphold these standards to foster a trustworthy and resilient market environment.

Bank of Cyprus Upgrade Signals Fresh Optimism For Greek And Cypriot Banks

Regional Banks Enter A More Favorable Cycle

Bank of Cyprus and Eurobank are well positioned to benefit from a renewed re-rating of Greek and Cypriot bank stocks, according to Cyprus-based investment firm Roemer Capital, which upgraded Bank of Cyprus to a buy rating and reaffirmed its positive view on Eurobank.

The firm cited easing geopolitical tensions, resilient economic growth in Greece and Cyprus, lower funding costs and Greece’s expected transition to developed-market status as the main factors supporting the sector.

Roemer Capital also lowered its cost of equity assumptions, updated its forecasts following first-quarter 2026 results and extended its valuation horizon to the end of 2027, raising target prices across its banking coverage.

Bank Of Cyprus Gets The Largest Upgrade

Bank of Cyprus received the biggest revision, with Roemer Capital upgrading the stock from hold to buy and setting a target price of €11.10, implying potential total upside of 27%.

The firm highlighted the bank’s strong capital generation, profitability and projected 100% dividend payout, describing it as the strongest capital-return story among the banks under coverage. Roemer Capital maintained its buy rating on Eurobank, assigning a target price of €4.90 and forecasting potential upside of 28%. The report said the bank is well placed to benefit from loan growth, improving operating performance and merger-and-acquisition synergies.

National Bank of Greece and Piraeus Bank also retained buy ratings, with expected returns ranging from 25% to 36%. Optima Bank was upgraded to buy, while Alpha Bank remained at hold on valuation grounds.

Why Growth Still Sets The Region Apart

According to Roemer Capital, Greek and Cypriot banks continue to benefit from stronger economic fundamentals than many western European peers. The report pointed to faster economic growth, healthier balance sheets, low levels of non-performing exposures, capital ratios approaching 20% and strong customer deposit bases.

Analysts expect performing loans across the sector to grow at a compound annual rate of 6% to 8% through 2028, supported by private investment, digitalisation, green manufacturing, supply-chain expansion and a gradual recovery in household lending.

The report also said the conclusion of lending under the EU Recovery and Resilience Facility is unlikely to materially affect credit growth, as banks have already shifted back towards traditional commercial lending. Roemer Capital expects Euribor to remain between 2.2% and 2.5%, a level it believes should support both lending activity and net interest margins.

Geopolitics, Valuation And Market Structure Support The Case

The report said improving geopolitical conditions have strengthened the investment outlook, noting that Brent crude prices have largely returned to pre-war levels while Greek government bond yields have stabilised at around 3.5%. Although geopolitical risks remain, Roemer Capital believes the likelihood of a major inflationary shock or significant pressure on bank profitability has eased.

Another important catalyst identified by the firm is Greece’s expected promotion to developed-market status by FTSE Russell, STOXX and MSCI over the coming months.

According to the report, the reclassification should improve liquidity and attract a broader base of international investors. Roemer Capital also said Euronext’s acquisition of the Athens Exchange is expected to strengthen market infrastructure and increase international visibility, particularly for Bank of Cyprus and Optima Bank.

The firm noted that Bank of Cyprus has already benefited from its Athens listing, with average daily trading value increasing from less than €400,000 before its September 2024 move to nearly €6 million afterwards.

Economic Momentum Remains A Core Tailwind

Roemer Capital said both Greece and Cyprus have moved beyond post-crisis recovery and are now supported by private-sector-led growth. For Cyprus, the report highlighted recent tax reform and efforts to simplify the legal and regulatory framework, while also noting that limited foreign banking competition continues to support domestic lenders.

Overall, Roemer Capital expects Greek and Cypriot banks to remain well-positioned for profitable loan growth over the coming years.

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