Cyprus Unveils €363 Million Grant Initiative To Propel Sustainable Business Growth

by THEFUTURE.TEAM

February 20, 2026

Strategic Investment In Business Liquidity

Cyprus has embarked on a transformative funding initiative, allocating €363 million through targeted grant schemes to boost business liquidity and enhance access to finance. Energy Minister Michalis Damianos announced the measure, emphasizing its strategic importance in strengthening entrepreneurship while steering the country toward sustainable growth.

Leveraging European Programmes

During the Cyprus Entrepreneurship Competition at the 10th Annual Innovation and Entrepreneurship Forum hosted by the Anastasios Leventis Council and the University of Cyprus, Minister Damianos detailed the funding structure. Of the total €363 million, €226 million is drawn from the THALEIA programme under the 2021–2027 framework, with the remaining €137 million supported by the European Union’s Recovery and Resilience Facility and the REPowerEU plan.

Follow THE FUTURE on LinkedIn, Facebook, Instagram, X and Telegram

Driving Digitalization And Sustainability

The governmental schemes are crafted to encourage investments in sustainability, digital transformation, and technology adoption. Minister Damianos noted that the shift towards sustainable business models, coupled with accelerated digitalization, is central to modernizing the Cypriot economy. This strategic focus not only boosts competitiveness but also fosters a resilient and forward-thinking business environment.

Empowering Emerging Entrepreneurs

Beyond financial support, the initiative reinforces the importance of nurturing entrepreneurial talent. The Cyprus Entrepreneurship Competition serves as a catalyst, cultivating creativity and equipping participants with critical skills for advancing their ideas. Minister Damianos underscored the necessity of clear guidance and accessible tools, particularly for young entrepreneurs eager to innovate and shape their professional futures.

Commitment To A Future-Ready Economy

Embracing initiatives that fuel innovation and entrepreneurial spirit, the government is committed to building a dynamic and outward-focused business ecosystem. “Through our actions, we seek to empower people who dare to think differently and shape the future,” stated Minister Damianos, affirming the continuous evolution of programmes designed to maintain a competitive market environment.

The Future Forbes Realty Global Properties

Cyprus Central Bank Reports Sharp Decline In New Loans For January 2026

by THEFUTURE.TEAM

March 8, 2026

Overview Of Lending Trends

The Central Bank of Cyprus (CBC) reported a marked downturn in total net new loans for January 2026. The figures reveal a decline of €377.7 million in net new loans compared with the previous month, reflecting broader adjustments in both consumer and housing credit markets.

Detailed Lending Activity

Net new loans in January totaled €247.3 million, based on €495.9 million in total new lending. In December 2025, net new loans reached €625.0 million from €986.9 million in total lending. Changes were recorded across several credit categories. Net new consumer loans increased slightly to €18.9 million from €17.2 million in December. Housing loans declined to €95.7 million from €135.4 million in the previous month.

Follow THE FUTURE on LinkedIn, Facebook, Instagram, X and Telegram

Interest Rate Movements

Interest rates for both consumer and housing loans declined slightly during the period. Consumer loan rates fell to 7.20% from 7.22%, while housing loan rates decreased to 3.70% from 3.78%. Deposit rates showed limited changes. Household term deposits remained at 1.20%, while deposits from non-financial corporations increased to 1.34% from 1.27%.

Comparative European Context

In comparison with other euro area countries, lending rates in Cyprus are close to the median for outstanding loan balances. Margins for households are around 0%, while margins for non-financial corporations stand at approximately 0.4%. The transmission of monetary policy in Cyprus broadly follows developments in the wider euro area, particularly during periods of monetary tightening or easing. However, the pass-through of rate changes to new loans, especially those issued to non-financial corporations, appears lower than in some other euro area markets.

Shifts In Borrower Behavior And Market Dynamics

The CBC report also highlights changes in borrower preferences regarding interest rate structures. The share of new housing loans with variable interest rates has declined from nearly 100% in early 2022 to 11.6%. Fixed-rate loans have become more common in new housing lending, although many of these products later transition to variable rates.

Banking Liquidity And Deposit Rates

In addition to lending trends, the Central Bank of Cyprus noted that deposit rates in Cyprus remain among the lowest in the euro area. High liquidity levels within the banking system contribute to this trend. Cypriot banks reported a liquidity coverage ratio of 319% in December 2025, compared with a euro area median of 192% and an EU average of 161%. These liquidity levels influence the pricing of deposits in the domestic market. Changes in policy interest rates have also shown limited pass-through to new deposits, reflecting the structure of Cyprus’s relatively small banking sector. The CBC report highlights ongoing developments in both lending and deposit conditions within the country’s banking system as economic conditions and borrowing preferences continue to evolve.

Breaking news