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Cyprus Labor Committee Demands Overhaul Of Child Benefit Legislation

Government Under Scrutiny Over Social Exclusions

The House Labor Committee has renewed its call for a comprehensive revision of the child benefit legislation, urging both the government and the Sub-Ministry of Welfare to reform the existing framework. This initiative follows concerns voiced by the Child Rights Protection Inspector, who highlighted key flaws in the current system. Specifically, the residency requirement confined to designated zones in the Republic of Cyprus is effectively excluding many families from receiving critical social benefits.

Inadequate Policies Under Fire

Committee Chair and AKEL MP Andreas Kavkaliás criticized the prevailing legal structure, asserting that it fosters social exclusion by denying families access to benefits closely tied to child welfare—ranging from tuition support to various service discounts. According to Kavkaliás, social policies should focus on the needs of children rather than penalizing families based on the duration of their residence in the country.

Pressure Mounts For Immediate Legislative Amendments

In a decisive move, members of the committee have pressed the government for swift and meaningful legislative changes. Lawmakers have also signaled their readiness to submit a formal legislative proposal should there be an inadequate official response.

Political Divides Emerge

Notably, dissent within the political spectrum has surfaced. ELAM MP Sotiris Ioannou argued that the current benefits system unfairly favors non-nationals such as foreigners and Turkish-Cypriots, cautioning that this approach could inflate costs and ultimately diminish the benefits available for Cypriot citizens. In response, his party is preparing to file a proposal that would limit benefits exclusively to Cypriot nationals.

Addressing Injustices For Returning Cypriots

Adding to the debate, MP Andreas Apostolou condemned what he described as a severe injustice against Cypriots repatriating from non-European nations. Apostolou has secured a meeting with officials from the benefit service and has committed to presenting a legislative proposal by October. His initiative aims to ensure that returning Cypriot families receive child benefit payments from the very first day of their arrival.

Central Bank Of Cyprus Balance Sheet Reflects Strong Eurosystem Position

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.

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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