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Cyprus Outperforms EU In Global Trade And Investment Growth, EIB Survey Reveals

Cypriot businesses have proven to be more resilient and globally integrated than many of their European counterparts, according to the latest findings from the European Investment Bank (EIB) Group Investment Survey. The report, which surveyed approximately 13,000 companies across the EU and the United States, highlights the strength and adaptability of Cypriot firms in the face of recent challenges.

Notably, Cyprus has experienced an 18% increase in investment since the pre-pandemic period, a growth that surpasses many other EU countries. This surge is partly attributed to the financial support provided by the EU’s Recovery and Resilience Facility (RRF). Moreover, Cypriot businesses report higher satisfaction with their investment levels compared to the broader EU landscape.

The survey also reveals that Cypriot companies are leading the way in terms of global trade integration. A remarkable 81% of businesses in Cyprus are engaged in global markets, far exceeding the EU average of 63%. This strong international presence puts Cyprus in a prime position for future growth and competitiveness.

In terms of diversity, Cyprus is also ahead of the curve, with 44% of senior management roles held by women. This compares favorably to the EU’s average of just 23%.

However, despite these successes, Cypriot businesses face challenges. The survey identifies a shortage of skilled labor and limited access to financing as key obstacles, more pressing in Cyprus than across the EU as a whole.

Kyriacos Kakouris, EIB Vice-President, commented, “The EIB Investment Survey underscores the remarkable resilience and global outlook of Cypriot businesses. With investment levels above pre-pandemic figures and strong integration into global trade, Cyprus is well-positioned for sustainable growth. I am optimistic that these ongoing investments in innovation and modernization will propel the country’s long-term prosperity.”

The detailed report on Cyprus, along with insights from other EU nations, was released on 12 February 2025. The results will also inform the EIB’s annual Investment Report, which is due for release on 5 March 2025 at the EIB Group Forum in Luxembourg. This event will bring together industry leaders to discuss key topics such as decarbonization, AI, and the capital markets union under the theme “Investing in a More Sustainable and Secure Europe.”

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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