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Cyprus Pushes For Visa Waiver Deal By September As U.S. Experts Complete Security Review

Cyprus is accelerating efforts to join the U.S. Visa Waiver Program (VWP), aiming to seal the deal before September. American officials are in the country this week, conducting on-site security assessments—a key step in the approval process.

The VWP allows citizens from approved countries to enter the U.S. for tourism or business without a visa for up to 90 days. Cyprus, currently not on the list, has been working to meet the strict entry requirements, especially around security standards and visa rejection rates.

U.S. experts arrived on Monday and have already carried out inspections at critical infrastructure points including airports, ports, the Ministry of Interior, the Deputy Ministry of Immigration, and police facilities. According to sources close to the Cypriot Presidency, the visit focuses on evaluating how the country handles border security, identity verification, and overall system integrity.

Additional questions from the American side may follow once the site visits conclude. The outcome hinges on a report the U.S. government will submit to Congress. If the findings are favorable, Cyprus could get the green light.

Even with a positive recommendation, inclusion isn’t immediate. It takes two to three months to update U.S. systems before Cypriot travelers can use the streamlined electronic travel process.

Timing is crucial. While there’s no formal deadline, Cyprus is aiming for September to lock in this year’s impressively low visa rejection rate—a core eligibility requirement. To qualify, a country’s refusal rate for U.S. visas must stay below 3% over 12 months ending in September.

Cyprus currently sits comfortably at 2.16%, the third lowest globally, according to the U.S. State Department. Only the United Arab Emirates (1.46%) scored better among active applicants. Some nations, including Liechtenstein and Monaco, showed 0% rejections—but this may reflect no applications rather than flawless approval rates.

On the other end of the spectrum, countries like Laos (82.84%), Liberia (79.38%), and Somalia (77.02%) recorded the highest visa refusal rates.

If Cyprus secures a spot in the VWP, it would mark a major win for both its government and citizens, who would benefit from easier travel to the United States. The coming weeks will be critical in determining whether that long-anticipated milestone is finally within reach.

Bank of Cyprus Upgrade Signals Fresh Optimism For Greek And Cypriot Banks

Regional Banks Enter A More Favorable Cycle

Bank of Cyprus and Eurobank are well positioned to benefit from a renewed re-rating of Greek and Cypriot bank stocks, according to Cyprus-based investment firm Roemer Capital, which upgraded Bank of Cyprus to a buy rating and reaffirmed its positive view on Eurobank.

The firm cited easing geopolitical tensions, resilient economic growth in Greece and Cyprus, lower funding costs and Greece’s expected transition to developed-market status as the main factors supporting the sector.

Roemer Capital also lowered its cost of equity assumptions, updated its forecasts following first-quarter 2026 results and extended its valuation horizon to the end of 2027, raising target prices across its banking coverage.

Bank Of Cyprus Gets The Largest Upgrade

Bank of Cyprus received the biggest revision, with Roemer Capital upgrading the stock from hold to buy and setting a target price of €11.10, implying potential total upside of 27%.

The firm highlighted the bank’s strong capital generation, profitability and projected 100% dividend payout, describing it as the strongest capital-return story among the banks under coverage. Roemer Capital maintained its buy rating on Eurobank, assigning a target price of €4.90 and forecasting potential upside of 28%. The report said the bank is well placed to benefit from loan growth, improving operating performance and merger-and-acquisition synergies.

National Bank of Greece and Piraeus Bank also retained buy ratings, with expected returns ranging from 25% to 36%. Optima Bank was upgraded to buy, while Alpha Bank remained at hold on valuation grounds.

Why Growth Still Sets The Region Apart

According to Roemer Capital, Greek and Cypriot banks continue to benefit from stronger economic fundamentals than many western European peers. The report pointed to faster economic growth, healthier balance sheets, low levels of non-performing exposures, capital ratios approaching 20% and strong customer deposit bases.

Analysts expect performing loans across the sector to grow at a compound annual rate of 6% to 8% through 2028, supported by private investment, digitalisation, green manufacturing, supply-chain expansion and a gradual recovery in household lending.

The report also said the conclusion of lending under the EU Recovery and Resilience Facility is unlikely to materially affect credit growth, as banks have already shifted back towards traditional commercial lending. Roemer Capital expects Euribor to remain between 2.2% and 2.5%, a level it believes should support both lending activity and net interest margins.

Geopolitics, Valuation And Market Structure Support The Case

The report said improving geopolitical conditions have strengthened the investment outlook, noting that Brent crude prices have largely returned to pre-war levels while Greek government bond yields have stabilised at around 3.5%. Although geopolitical risks remain, Roemer Capital believes the likelihood of a major inflationary shock or significant pressure on bank profitability has eased.

Another important catalyst identified by the firm is Greece’s expected promotion to developed-market status by FTSE Russell, STOXX and MSCI over the coming months.

According to the report, the reclassification should improve liquidity and attract a broader base of international investors. Roemer Capital also said Euronext’s acquisition of the Athens Exchange is expected to strengthen market infrastructure and increase international visibility, particularly for Bank of Cyprus and Optima Bank.

The firm noted that Bank of Cyprus has already benefited from its Athens listing, with average daily trading value increasing from less than €400,000 before its September 2024 move to nearly €6 million afterwards.

Economic Momentum Remains A Core Tailwind

Roemer Capital said both Greece and Cyprus have moved beyond post-crisis recovery and are now supported by private-sector-led growth. For Cyprus, the report highlighted recent tax reform and efforts to simplify the legal and regulatory framework, while also noting that limited foreign banking competition continues to support domestic lenders.

Overall, Roemer Capital expects Greek and Cypriot banks to remain well-positioned for profitable loan growth over the coming years.

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