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Interest Rate Drops Ignite New Loan Demand in Cyprus

Recent cuts in interest rates by the European Central Bank have spurred interest from borrowers in Cyprus, driving new loan demands to an impressive €1.24 billion in the first quarter of 2025. This surge is reflected in both consumer and business loans, largely orchestrated by the Bank of Cyprus and Hellenic Bank, which dominate 67% of the market.

Despite the dip in interest rates, depositor activity remains robust, indicating a strong trust in the banking sector.

Insights from the Bank of Cyprus

The latest Bank of Cyprus reports show a 16% quarter-on-quarter and 25% year-on-year increase in new loans. This growth is primarily fueled by large corporates, mortgages, and international business loans.

Understanding Hellenic Bank’s Performance

Hellenic Bank reveals a significant uptick in new loans, reaching €404 million in the first quarter of 2025. Notably, 19% of this pertains to green loans, marking a forward-thinking trend.

Liquidity and Deposits: A Growing Trust

Both banks reflect substantial liquidity accumulation, with their market shares at 72.8%. Bank of Cyprus led with €20.70 billion in deposits, showcasing a strategic balance in terms, savings and current accounts. Hellenic Bank captured €15.9 billion in deposits, underscoring a 1% growth.

Outlook for 2025

Bank executives maintain optimism for 2025, buoyed by economic strength and liquidity. Leaders like Panikos Nikolaou and Michalis Louis reiterate their commitment to supporting domestic economic needs while maximizing shareholder returns.

A New Twitter-Inspired Social Network Is Taking Shape

A new social network called Twitter.now is entering the market, with a founding team that includes former Twitter trademark counsel Stephen Coates. The service is being developed by startup Operation Bluebird.

As Ars Technica reported, X sued the company last year and asked a Delaware judge to block the launch. Operation Bluebird argued in a petition that X had abandoned trademarks including “Twitter” and “Tweet.”

Coates has said the project is not an attempt to recreate the original Twitter. In a LinkedIn post, he described the platform as a new public space focused on trust, transparency and user choice.

AI System To Rate Posts

Twitter.now is currently being tested, with early access priced at $20. Its main feature is VERA, an AI system designed to evaluate posts, verify claims and provide sources and context.

Posts receive a trust score, with users eventually able to set a minimum score to filter their feeds. The company says this approach will give people more control over what they see instead of leaving those decisions entirely to an algorithm.

Moderation Remains A Challenge

Scaling moderation will be one of the platform’s biggest tests. Social networks have repeatedly struggled with content moderation as their communities grow, and newer platforms such as Bluesky have faced similar criticism.

Operation Bluebird says VERA will form the basis of its moderation and verification system. A second version is already planned, with expanded tools that would let users set a specific trust threshold for the posts appearing in their feeds.

For now, Twitter.now remains in an early testing phase, combining the familiarity of the Twitter name with an AI-driven approach to evaluating online information.

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