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Larnaca And Manama Set To Establish City Partnership

Larnaca is set to establish a city-to-city partnership with Bahrain’s capital Manama after the Bahraini cabinet approved the proposal, Larnaca Mayor Andreas Vyras announced on Tuesday.

The agreement would make Larnaca the second Cypriot city to establish a formal partnership with a Gulf city, following Nicosia’s twinning with Doha, Qatar.

Expanding Larnaca’s International Links

Vyras described the decision as “another important step for our city”, saying it could open new opportunities for cooperation.

The mayor said the initiative is part of Larnaca’s broader strategy to strengthen its international presence, develop new channels of cooperation and reinforce the city’s position in the wider region.

The partnership comes as Cyprus and Bahrain are also expanding bilateral cooperation in defence, shipping, investment, tourism and technology.

Closer Cyprus-Bahrain Cooperation

The proposed city partnership follows broader efforts to deepen ties between Cyprus and Bahrain.

Cyprus Ambassador to Bahrain Andreas Eliades said the two countries were pursuing closer cooperation amid wider regional security developments. He identified maritime security and freedom of navigation as strategic priorities, while highlighting financial services, fintech, technology, logistics and tourism as areas with potential for stronger economic cooperation.

The Larnaca-Manama partnership could provide an additional platform for developing these links at the local level.

Cyprus Loan Growth Accelerates To 14% In September

Lending in Cyprus accelerated in September, with the annual growth rate of total loans reaching 14%, up from 11.8% in August. Deposits also recorded a stronger monthly increase, according to the Central Bank of Cyprus (CBC).

Total deposits rose by a net €697.1 million to €60.2 billion at the end of September. Total loans increased by €857.8 million to €29.6 billion, according to the CBC’s October 2026 Monetary and Financial Statistics.

Deposit Growth Strengthens

Deposits recorded a monthly increase of €697.1 million, more than four times the €171.5 million rise in August. However, the annual growth rate remained unchanged at 6.5%.

Deposits held by Cyprus residents increased by €639.9 million. Household deposits rose by €93.8 million, while deposits held by non-financial corporations grew by €373 million. Other domestic sectors contributed a further €173.1 million.

Annual Loan Growth Reaches 14%

Total loans increased by a net €857.8 million in September, compared with €114.6 million in August. The annual growth rate accelerated to 14%, up from 11.8% a month earlier.

Lending to Cyprus residents rose by €470.8 million. Loans to households increased by €52.2 million, while lending to non-financial corporations grew by €110.1 million. Other domestic sectors recorded a larger increase of €308.5 million.

The figures cover deposits and loans held by monetary financial institutions in September 2026.

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