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Travel Agency Under Fire: Over 200 Complaints Ignite Regulatory Review

Investigation Launched Amid Consumer Complaints

More than 200 complaints have been lodged against Limassol-based travel agency Efi Strakottou Travel and Tours Ltd, raising serious questions about consumer protection and compensation protocols when travel services fail to materialize. The Commerce Ministry’s consumer protection service has confirmed the initiation of an investigation into the agency, now deemed insolvent and potentially incapable of fulfilling its contractual commitments.

Warning to Consumers and Mounting Financial Concerns

Authorities have advised that no further payments be made by travelers to the agency. This advisory follows a series of incidents reported as early as late September, when the growing number of complaints highlighted serious lapses in service delivery. Consumers who invested in package travel contracts, only to receive no services in return, have been instructed to submit their claims in writing to the Association of Cyprus Travel and Tourism Agents (Actta) by the specified deadline.

Financial Safety Nets: A Critical Shortfall

Initial findings are troubling: while consumers have collectively paid approximately €103,000, the agency’s financial guarantee barely amounts to €12,000. This glaring disparity has inflamed criticism of state authorities for what is being described as inadequate oversight and delayed intervention. Marios Droushiotis, chairman of Actta, has called for more robust regulatory measures and hinted at the possibility of legal actions to ensure that affected customers receive full compensation.

Legislative Scrutiny and Future Safeguards

The issue has escalated to the parliament, where the House Commerce Committee is set to review how consumer interests are safeguarded in instances of agency insolvency or deception. Central to the discussion will be whether the current protections under the Package Travel and Linked Travel Arrangements Act of 2017 are sufficient to shield travelers when financial promises fall short. The consumer protection service, along with Actta as the administering body for guarantees, will be under close examination as lawmakers debate possible reforms to tighten oversight and reinforce consumer rights.

This case stands as a stark reminder for both consumers and regulators alike: rigorous due diligence and stronger financial safeguards are imperative to prevent future exposures. The outcome of this parliamentary review and potential tightening of regulations could set a new benchmark in ensuring accountability in the travel industry.

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

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.

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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