High Interest Rates Continue To Put Pressure On Loan Demand

Loan demand continued to decline in the first quarter of 2024, with banks attributing the decline to high interest rates, while the terms and conditions for granting loans to businesses became tighter in the first quarter of 2024 after three consecutive quarters in which they had remained unchanged.

The criteria for lending to households remained stable.

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According to the Central Bank’s Bank Lending Survey for the first quarter of 2024, the credit standards, as well as the terms and conditions for loans to enterprises, tightened in the first quarter of 2024, mainly due to Banks’ reduced risk tolerance, as well as their perception of increased risk about the general economic situation and the outlook for the economy.

On the other hand, the credit standards for loans to households remained unchanged in the first quarter of 2024, for mortgage loans, consumer and other loans.

The terms and conditions for housing loans also remained unchanged while they tightened for consumer credit and other lending to households.

The net demand for business loans decreased, in the first quarter of 2024, and at the same time, the net demand for housing loans as well as for consumer credit and other lending also decreased.

However, the survey notes that increased financing needs for fixed investment, possibly reflecting the positive growth prospects of the Cypriot economy, as well as debt refinancing/restructuring, contributed positively to loan demand.

As far as households are concerned, the net decline in demand for mortgage loans is attributed by banks to higher interest rates, lower consumer confidence and a weakening housing market outlook.

Finally, according to banks’ expectations for the second quarter of 2024, the lending criteria for both businesses and households are expected to remain unchanged compared to the previous quarter. At the same time, a decline in net demand for consumer and other loans from households is expected, while both net demand for business loans and mortgage loans from households are expected to remain stable.

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2025: A Record-Breaking Year For Cyprus Tourism And A Strategic Roadmap For Sustainable Growth

by THEFUTURE.TEAM

January 14, 2026

Cyprus has witnessed an unprecedented surge in its tourism sector in 2025, a record year that has set a high benchmark for the future. At the heart of this success lies the government’s proactive strategy to maintain and amplify this positive momentum, as outlined by Kostas Koumis, the Deputy Minister of Tourism.

Strategic Vision and Regional Collaboration

During a pivotal meeting with regional stakeholders in Paphos, Deputy Minister Koumis elaborated on the challenges facing the tourism industry and unveiled comprehensive plans for 2026. Emphasizing the critical role of the Paphos region, he noted that its contributions have been instrumental in the overall success of Cyprus’s tourism narrative.

Commitment to Quality and Innovation

According to Koumis, the cornerstone of ongoing success is the provision of an outstanding tourism experience. His remarks underscored a commitment to continuous dialogue with local councils and industry participants, ensuring every destination functions seamlessly and upholds high-quality service standards. New initiatives and innovative designs for the upcoming year have been introduced, alongside proposals designed to address longstanding operational challenges.

Infrastructure Investment and Future Projects

The Deputy Minister highlighted the significant performance of Paphos, where tourist arrivals surged by over 30%, underscoring its pivotal role in Cyprus’s tourism framework. Looking ahead to 2026, he discussed the broader challenges, including pressing issues like climate change, which demand a collective response. Koumis reassured stakeholders that there have been no lapses in local coordination. Regular evaluations cover critical aspects of each destination, confirming the government’s unwavering focus on service quality.

Marina Development and Strategic Timelines

Further bolstering the country’s tourism infrastructure, Koumis commented on the progress of the Paphos Marina project. He confirmed that the project is on schedule with contract signings anticipated in the first few months of 2027—a timeline that reflects not only efficient planning but also robust investment interest.

Insights From Faidonas Faidonos

Faidonas Faidonos, another key figure in the local tourism community, described 2025 as “an exceptionally good year,” crediting the favorable data as a strong foundation for future planning. The Paphos Mayor reinforced this sentiment, stating that moving forward, the focus for 2026 and beyond should transition from sheer volume to qualitative enhancements. The goal is not merely to attract tourists but to draw visitors whose spending significantly benefits the economy.

Enhanced Service and Operational Reforms

The Mayor also outlined critical infrastructure projects for the region, including the marina, a connecting road to the Paphos International Airport, and the airport’s expansion. These projects, slated to kick off in 2026, are expected to redefine the tourist experience, ensuring operational excellence and reducing previous service challenges—such as the long queues and high temperatures noted at the airport in 2025.

In conclusion, the strategic roadmap laid out for 2026 emphasizes decisive project implementation over prolonged planning cycles, marking a transformative period for Cyprus tourism. With a clear focus on quality and sustainable growth, Cyprus is positioning itself for enduring success in the global tourism market.

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