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Moody’s Elevates Bank of Cyprus to A3 Rating: A Testament to Financial Fortitude

by News Editor

May 6, 2025

In a significant financial milestone, Moody’s has elevated the long-term deposit ratings for the Bank of Cyprus from Baa1 to A3. This achievement underscores the bank’s ongoing enhancement of its financial health.

The outlook remains stable, reinforcing the bank’s position as a beacon of stability in Greece and Cyprus, a testament highlighted amidst challenges. Moody’s attributes this upgrade to the continuous improvement in the bank’s asset quality and risk management.

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Breaking new ground, the Bank of Cyprus is now the highest-rated establishment among its regional peers, a clear message of reliability and financial robustness.

Crucial contributors to this new rating include an increase in the tangible common equity (TCE) ratio to 17.1% by the end of 2023, and a decrease in non-performing exposures (NPE) to 3.6% from 6.5% in 2021.

Moody’s also notes the bank’s strong profitability, marked by a 21.3% return on tangible equity in 2023, and a cost-to-income ratio that fell to 35%. This financial agility is expected to persist through 2025, even with possible interest rate reductions influencing net interest income.

The report also lauds the bank’s liquidity and robust deposit base, describing its funding as primarily backed by low-cost retail deposits, comprising 88% of total funding. With a liquidity coverage ratio (LCR) at an impressive 341%, the bank’s solid stance is further solidified.

Furthermore, the bank’s counterparty risk ratings have seen a boost, reflecting confidence in its future potential. While the bank’s subordinated debt rating remains unchanged at Ba2, the stable outlook signifies a predicted continuation of solid solvency and profitability over the next 18 months.

If the Bank of Cyprus sustains high profitability combined with low asset risk, it stands on the brink of further upgrades.

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Call for Reform: Cyprus Faces New Challenges with Emerging Tobacco Products

by News Editor

May 31, 2025

In the face of a burgeoning variety of tobacco products, existing smoking laws in Cyprus are struggling to keep pace, as highlighted by Christos Minas, the president of the Cyprus National Addictions Authority (AAEK). On World No-Tobacco Day, there was a push for legislative reforms to comprehensively cover all tobacco forms, including non-nicotine alternatives.

Addressing Rising Trends with Effective Policies

Minas emphasized the surge in popularity of e-cigarettes and flavored products, particularly among the youth. The proposed legal updates aim to enhance enforcement efficiency against these emerging trends.

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In collaboration with the World Health Organization’s (WHO) framework, the AAEK has established the first set of national guidelines for smoking cessation in Cyprus, crafting prevention and treatment strategies based on robust scientific evidence.

Educating Youth and Public Awareness Initiatives

Efforts are underway to raise awareness, with informative materials distributed to secondary schools across Cyprus. A public event in Nicosia highlighted the state’s ongoing commitment, providing carbon monoxide testing and expert advice on new tobacco products.

Recent data from the Cyprus general population survey 2023 indicates that 38% of smokers have used e-cigarettes recently, and the smoking initiation age remains at 18.

A Glimpse into Youth Smoking Patterns

According to the latest European school survey, 14% of Cypriot students aged 15-16 reported smoking traditional cigarettes last month. Although this rate is declining, Cyprus still ranks high in Europe for e-cigarette and hookah use among students.

The concern is global, with WHO reports showing over 37 million children aged 13-15 engage in tobacco use, driven by aggressive marketing in loosely regulated environments.

The urgency for reform is clear: before these trends solidify, proactive measures are necessary to protect future generations from potentially hazardous habits.