Breaking news

Cyprus Parliament Reviews National Loss Fund Amid Asset Reforms

by THEFUTURE.TEAM

National Loss Fund And Confiscated Assets

In its recent session, the Parliamentary Committee on Refugees revisited the law proposal aimed at securing the National Loss Fund for the Use of Confiscated Assets. A representative from the Ministry of Finance affirmed that the accompanying regulations are under preparation and will be submitted once finalized, while also voicing opposition to the creation of an independent agency.

Legislative Proposals And Fiscal Perspectives

Originally introduced by DISY in September, the law is supported by two amendments tabled by AKEL and anticipates the incorporation of forthcoming regulations from the Ministry of Interior into legislation governing the Central Agency For Equitable Resource Distribution. Committee member Nikos Kettseros emphasized that with funding of €20 million, roughly four in ten confiscated property owners would receive about €2 per month, a figure that remains modest even under a €100 million scenario. The proposed amendments include reallocating unassigned funds from the Agency into a dedicated loss-of-use fund to bolster financial support.

Housing Loan Subsidies And Transition Measures

Additional amendments under discussion involve the subsidization of housing loans at a 0% rate and the establishment of a six‐month transitional period starting January 1, 2027, to integrate older loans into the governing framework. The Ministry of Interior has stated that the regulations will focus on land valuation, clarifying that those who have sought refuge in the committee regarding confiscated assets will not be entitled to compensation. These measures indicate that the fund could operate effectively under the existing structure without necessitating a separate independent body. DISY legislator George Karoulas has advocated for a legally entrenched national fund with sustainable financing, while also expressing concerns about potential delays in finalizing the regulations.

KtiZó Initiative And Housing Regulations

The session also addressed the KtiZó initiative, designed to provide grants for existing multi-family buildings in government housing projects. Senior official Eirini Giannakou from the Department of Urban Planning and Housing announced the completion of a new guide spanning approximately 500 pages, which clearly defines procedures and responsibilities. Despite this progress, stakeholders noted ongoing challenges related to beneficiary contributions and property ownership classifications. Giannis Sofokleous, a senior official from the Ministry of Interior, confirmed that the guidelines are currently under review and will undergo legal scrutiny, with the expectation that minimal further revisions will be required thereafter.

Property Issues In The Industrial Zone

The committee also examined property disputes and delayed contracts affecting displaced residents in the Pane Polemidion Industrial Zone. The committee chair announced that a formal letter will be dispatched to the Minister of Interior, with the matter slated for further discussion on March 17. Local officials from the Municipality of Kato Polemidion and representatives of refugee organizations raised issues regarding access, parking, and property rights, calling for immediate remedial action.

Mercedes-Benz Posts Higher Profit Despite China Slowdown

by THEFUTURE.TEAM

Mercedes-Benz reported stronger-than-expected second-quarter results, lifting its shares on Tuesday despite mounting pressure from Chinese automakers and a weaker outlook for sales and revenue.

The earnings provided a boost for Europe’s auto sector, where manufacturers continue to grapple with tariffs, softer demand and intensifying competition from Chinese rivals. Volkswagen, Mercedes-Benz and BMW have all accelerated restructuring efforts in response.

Cost Discipline Lifts Quarterly Profit

Mercedes-Benz shares rose as much as 5.9% following the results before trimming gains to trade 3.5% higher by 1118 GMT. The company reaffirmed its profit margin guidance for its core passenger car business after reporting an adjusted return on sales of 4.0% for the second quarter, above market expectations and within its 3% to 5% target range.

“In an environment where some automakers are ringing alarm bells on their competitive positioning, Mercedes delivered a clear and confident message,” Morningstar analyst Rella Suskin said.

Second-quarter operating profit increased 22% to €1.5 billion ($1.7 billion), despite a 3% decline in revenue. Lower administrative and research and development costs, together with strong performances from the financial services and vans divisions, supported earnings, while the results also included a €131 million gain related to the planned sale of leasing subsidiary Athlon.

China Remains The Key Pressure Point

Despite stronger profitability, Mercedes continues to face a challenging market environment. Sales in China fell 30% during the second quarter, prompting the company to abandon earlier expectations for stable car sales and group revenue. It now expects both to decline slightly from a year earlier.

BMW also lowered its outlook in June following a deeper-than-expected slowdown in China, highlighting the pressure facing Germany’s premium carmakers. At the same time, Mercedes said Chinese manufacturers are increasingly expanding into European markets, although Chief Executive Ola Kaellenius said their focus remains on higher-volume segments rather than the premium market.

“But that is not a reason to sit back and be relaxed,” he said.

Manufacturing Shift Continues

Mercedes is also reshaping its manufacturing footprint. The company said its German factories will undergo a more aggressive push toward leaner production, although it declined to provide further details while talks with labour representatives continue. Production is also being expanded in lower-cost Eastern European locations, including Hungary, where the company is increasing capacity at its Kecskemet plant, as well as in Poland.

Chief Financial Officer Harald Wilhelm said the full-year margin for the passenger car division is expected to come in at the lower end of the company’s guidance range, reflecting a higher share of electric vehicle sales in Europe, which remain more expensive to produce and continue to weigh on profitability.

“We must continue to work flat out to reduce costs so that we can remain competitive on the prices of our products,” Kaellenius said.

Aretilaw firm
eCredo
The Future Forbes Realty Global Properties
Uol

Become a Speaker

Become a Speaker

Become a Partner

Subscribe for our weekly newsletter