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Cyprus Narrows Current Account Deficit Amid Mounting External Liabilities

by THEFUTURE.TEAM

January 8, 2026

Improved Current Account Balance

Cyprus demonstrated fiscal improvement in the third quarter of 2025, with its current account deficit narrowing to €95.00 million from €116.10 million recorded during the same period last year. This progress, reported by the Central Bank of Cyprus, underscores a notable stabilization in the nation’s external economic engagements.

Adjusted Deficit Metrics

The central bank’s preliminary statistics reveal that, after adjusting for the effects of special purpose entities classified as non-residents, the current account deficit widened to €304.00 million in the third quarter of 2025 compared with €204.30 million in the corresponding quarter of 2024. This adjustment highlights the significant influence of cross-border financial activities on the overall deficit figures.

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Worsening International Investment Position

In its analysis of the international investment position, the central bank noted a deterioration, with the net liability position rising to €31.52 billion in Q3 2025 from €30.09 billion in Q2 2025. Even when discounting the impact of special purpose entities, the adjusted net liability position increased to €13.39 billion from €11.48 billion, indicating vulnerabilities in Cyprus’ international investment portfolio.

Rising External Debt and Financial Volatility

The upward trajectory of external debt further complicates Cyprus’ economic outlook. Gross external debt climbed to €234.87 billion in Q3 2025 from €232.99 billion in the previous quarter, alongside a modest increase in external financial assets in debt instruments, which reached €224.96 billion from €223.08 billion. Subsequently, the net external debt marginally increased by €6.30 million to €9.91 billion. Adjusted figures reveal a gross external debt of €59.82 billion, up from €59.04 billion, while the corresponding adjusted net external debt indicator slightly improved from -€24.31 billion to -€24.22 billion.

Strategic Implications

These developments have significant strategic implications for policymakers and investors alike. The improved current account balance provides a semblance of fiscal discipline amid escalating external liabilities. However, the persistent challenges reflected in the international investment position and rising external debt underscore the need for strategic reforms aimed at enhancing financial stability and investor confidence in Cyprus.

Conclusion

Overall, Cyprus’ financial metrics in Q3 2025 paint a mixed picture. While improvements in the current account balance are encouraging, the concurrent rise in external debt and liability positions call for a cautious approach. Stakeholders must weigh these factors carefully as they navigate an increasingly complex global economic landscape.

The Future Forbes Realty Global Properties

by News Editor

August 24, 2026

Courts Are Still Applying Old Copyright Rules To AI

AI companies train models on enormous amounts of published material, including books, articles and academic research. Whether using that content without authors’ permission violates copyright law remains unresolved.

Much of the debate centres on fair use, which allows copyrighted material to be used without permission in certain circumstances. Courts consider factors such as the purpose of the use, how much material was involved and its impact on the original market.

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Anthropic Case Sets An Important Precedent

A major case involving Anthropic and a group of authors provided one of the clearest rulings so far. Judge William Alsup found that using copyrighted books to train AI models was lawful, comparing the process to people reading and studying literature before creating something new.

Anthropic was nevertheless ordered to pay $1.5 billion in a settlement. The penalty concerned books the company had obtained from illegal online libraries rather than the AI training itself.

For AI companies, that distinction could prove significant because it separates studying copyrighted material from directly copying it.

Competition Could Be The Key Issue

A case involving Thomson Reuters and Ross Intelligence offers a different perspective. A court ruled that Ross could not claim fair use after using Reuters’ copyrighted material to develop a competing AI-powered legal research platform.

The decision suggests courts may be less willing to consider AI training fair use when copyrighted content is used to build a product that directly competes with the original.

For authors, an unresolved question is whether AI-generated content should be considered competition for the works used to train these models.

The Law Has Yet To Catch Up

US copyright law predates generative AI by decades, leaving courts to apply old principles to new technology. Questions also remain over copyright protection for AI-generated works. In Thaler v. Perlmutter, a court ruled that material created entirely by AI cannot receive copyright protection.

Major AI companies remain involved in copyright litigation, and different courts could reach different conclusions. For now, there is no universal rule: the legality of AI training will depend on the circumstances of each case and how courts ultimately interpret copyright and fair use.