Outward Focus Unlocks Strategic Opportunities: Cyprus Poised to Seal Pivotal International Agreements

by THEFUTURE.TEAM

December 11, 2025

International Strategic Partnerships

In a decisive address at the 98th General Assembly of KEVE, President Nikos Christodoulides affirmed that an outward-looking strategy is key to cultivating new opportunities. The President outlined plans to finalize three significant agreements in the near term with a European Union member state, a Gulf country, and an Asian nation. These diplomatic accords are designed not only to attract robust investment into Cyprus, but also to enhance the international footprint of Cypriot enterprises.

Enhancing Competitiveness Through Diplomatic Engagement

The President emphasized that Cyprus’ upcoming EU Presidency is set to prioritize boosting the Union’s competitiveness. He underscored that a production-driven Europe—innovative and export-oriented—will be instrumental in strengthening Cyprus’ own competitive position. With the global trade landscape marked by heightened tariffs and uncertainties, the Cyprus administration is committed to crafting a clear and strategic framework for outward trade and investment.

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Advancing Regulatory Reform and Economic Growth

Central to Cyprus’ economic agenda is the pursuit of regulatory simplification that encourages private enterprise. The government is accelerating efforts to conclude landmark trade pacts, including negotiations with Mercosur, Mexico, key Southeast Asian markets, and enhanced post-Brexit economic arrangements with the United Kingdom. Enhanced dialogue with the United States also aims to mitigate risks associated with unilateral tariffs. These measures are targeted at reducing bureaucratic hindrances and promoting a business-friendly environment.

Modernizing State Administration And Investment Climate

President Christodoulides noted that ongoing state reforms, including the overhaul of tax policies and administrative simplification, are fundamental for a modernized Cyprus. Key initiatives include the digital transformation of government services, reduction in processing times for construction permits, and the establishment of financial instruments such as the Cyprus Equity Fund and a National Business Development Authority. These reforms not only fortify Cyprus’ economic fundamentals but also ensure that the nation can deliver targeted social and infrastructural investments.

Collaborative Approach for Sustainable Growth

The President also expressed gratitude towards labor organizations and the business community for their constructive role in resolving long-standing issues such as the ATA agreement. Highlighting the importance of social dialogue, he underscored that collaborative efforts are vital for maintaining labor peace, economic stability, and fostering future investments. With a surplus fiscal budget and a commitment to comprehensive reforms, Cyprus is set to reinforce its role as a stable and competitive hub in the region.

This proactive stance, anchored in a philosophy of social liberalism, illustrates a clear political and economic vision: one that leverages international partnerships, regulatory reform, and strategic investments to propel Cyprus into a new era of prosperity and global integration.

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Bank of Cyprus Upgrade Signals Fresh Optimism For Greek And Cypriot Banks

by THEFUTURE.TEAM

June 26, 2026

Regional Banks Enter A More Favorable Cycle

Bank of Cyprus and Eurobank are well positioned to benefit from a renewed re-rating of Greek and Cypriot bank stocks, according to Cyprus-based investment firm Roemer Capital, which upgraded Bank of Cyprus to a buy rating and reaffirmed its positive view on Eurobank.

The firm cited easing geopolitical tensions, resilient economic growth in Greece and Cyprus, lower funding costs and Greece’s expected transition to developed-market status as the main factors supporting the sector.

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Roemer Capital also lowered its cost of equity assumptions, updated its forecasts following first-quarter 2026 results and extended its valuation horizon to the end of 2027, raising target prices across its banking coverage.

Bank Of Cyprus Gets The Largest Upgrade

Bank of Cyprus received the biggest revision, with Roemer Capital upgrading the stock from hold to buy and setting a target price of €11.10, implying potential total upside of 27%.

The firm highlighted the bank’s strong capital generation, profitability and projected 100% dividend payout, describing it as the strongest capital-return story among the banks under coverage. Roemer Capital maintained its buy rating on Eurobank, assigning a target price of €4.90 and forecasting potential upside of 28%. The report said the bank is well placed to benefit from loan growth, improving operating performance and merger-and-acquisition synergies.

National Bank of Greece and Piraeus Bank also retained buy ratings, with expected returns ranging from 25% to 36%. Optima Bank was upgraded to buy, while Alpha Bank remained at hold on valuation grounds.

Why Growth Still Sets The Region Apart

According to Roemer Capital, Greek and Cypriot banks continue to benefit from stronger economic fundamentals than many western European peers. The report pointed to faster economic growth, healthier balance sheets, low levels of non-performing exposures, capital ratios approaching 20% and strong customer deposit bases.

Analysts expect performing loans across the sector to grow at a compound annual rate of 6% to 8% through 2028, supported by private investment, digitalisation, green manufacturing, supply-chain expansion and a gradual recovery in household lending.

The report also said the conclusion of lending under the EU Recovery and Resilience Facility is unlikely to materially affect credit growth, as banks have already shifted back towards traditional commercial lending. Roemer Capital expects Euribor to remain between 2.2% and 2.5%, a level it believes should support both lending activity and net interest margins.

Geopolitics, Valuation And Market Structure Support The Case

The report said improving geopolitical conditions have strengthened the investment outlook, noting that Brent crude prices have largely returned to pre-war levels while Greek government bond yields have stabilised at around 3.5%. Although geopolitical risks remain, Roemer Capital believes the likelihood of a major inflationary shock or significant pressure on bank profitability has eased.

Another important catalyst identified by the firm is Greece’s expected promotion to developed-market status by FTSE Russell, STOXX and MSCI over the coming months.

According to the report, the reclassification should improve liquidity and attract a broader base of international investors. Roemer Capital also said Euronext’s acquisition of the Athens Exchange is expected to strengthen market infrastructure and increase international visibility, particularly for Bank of Cyprus and Optima Bank.

The firm noted that Bank of Cyprus has already benefited from its Athens listing, with average daily trading value increasing from less than €400,000 before its September 2024 move to nearly €6 million afterwards.

Economic Momentum Remains A Core Tailwind

Roemer Capital said both Greece and Cyprus have moved beyond post-crisis recovery and are now supported by private-sector-led growth. For Cyprus, the report highlighted recent tax reform and efforts to simplify the legal and regulatory framework, while also noting that limited foreign banking competition continues to support domestic lenders.

Overall, Roemer Capital expects Greek and Cypriot banks to remain well-positioned for profitable loan growth over the coming years.

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