Breaking news

Cyprus’ Financing Programme On Track Amidst Economic Optimism

by THEFUTURE.TEAM

July 22, 2024

Cyprus is advancing its annual financing programme efficiently, aligning closely with its fiscal targets for 2024. The approved borrowing ceiling stands at €1.3 billion, predominantly sourced from European Medium-Term Notes (EMTN). So far, Cyprus has successfully raised nearly €1.2 billion, including a recent €1 billion, seven-year fixed-rate bond issued in June.

The financing strategy also includes public treasury bills and domestic bonds aimed at individual investors. To date, €87.5 million of the targeted €120 million in treasury bills and €6.4 million of the intended €40 million in domestic bonds have been issued. Furthermore, Cyprus has secured €92.75 million in loans from supranational organisations, progressing towards the €140 million goal.

Follow THE FUTURE on LinkedIn, Facebook, Instagram, X and Telegram

Public treasury bills, set to mature in October 2024, offer an annualised yield between 3.65% and 3.75%, presenting an attractive option for non-professional investors and businesses seeking secure liquidity management.

Sophic, a financial platform, plans to acquire a portion of the upcoming treasury bill issuance, replicating its strategy from June where it, alongside Athlos Capital, acquired over 80% of the €21.5 million issuance for client allocation.

Cyprus’ prudent financial management and structured approach towards funding reflect a robust fiscal framework aimed at maintaining economic stability and fostering investor confidence. This meticulous execution of the financing programme underscores Cyprus’ commitment to strategic fiscal governance and economic resilience, which are vital for sustaining long-term growth.

The ongoing success of Cyprus’ financing programme highlights the nation’s proactive fiscal planning and the effectiveness of its public debt management office. By securing diverse funding sources and maintaining investor engagement, Cyprus continues to bolster its financial stability and economic prospects.

As Cyprus progresses with its financing activities, the focus remains on sustaining fiscal discipline while leveraging favourable market conditions to optimise funding costs. This approach not only ensures the fulfilment of immediate financing needs but also lays a solid foundation for future economic resilience.

The Future Forbes Realty Global Properties

US–Israel Confrontation With Iran To Trigger Significant Decline In Middle Eastern Tourism

Tensions linked to the confrontation between the United States, Israel and Iran are expected to affect tourism across the Middle East. According to estimates by Tourism Economics, international arrivals in the region could decline by between 11% and 27% by 2026. The projection, reported by Reuters, contrasts sharply with forecasts published in December that anticipated a 13% increase in arrivals this year.

Economic Implications Of Declining Visitor Numbers

Updated estimates indicate that the region could lose between 23 million and 38 million international visitors. Tourism-related spending may fall by $34 billion to $56 billion if the downturn materialises. Such figures illustrate how geopolitical instability can quickly influence travel demand and regional economic performance.

Erosion Of Traveller Confidence Amid Heightened Uncertainty

Growing security concerns are already weighing on travel sentiment. Periods of geopolitical tension typically lead travellers to postpone or redirect trips, particularly to destinations located near active conflict zones. As uncertainty increases, tourism-dependent economies in the region may face additional pressure on revenues and investment.

Cyprus: An Alert Regional Hub

Cyprus is closely monitoring these developments due to its geographic proximity to the Middle East. Although the island is not directly involved in the conflict, regional instability can influence booking trends and traveller perceptions. Recent security incidents near the British base in Akrotiri have further highlighted how tensions in neighbouring areas can affect confidence across the wider Eastern Mediterranean tourism market.