Cyprus Business Now: weekly wrap-up
Here are the top business stories in Cyprus from the week starting September 9:
Influencers in Cyprus are currently facing increased scrutiny as authorities ramp up checks on tax compliance and transparency in advertising. This initiative aims to protect consumers and follows new EU regulations mandating influencers to disclose their commercial interests in posts. Content creators on platforms like Instagram, Facebook, TikTok, and YouTube are now under the watchful eye of the Tax Department and the Consumer Protection Service (CPS), as social media becomes a dominant medium for brand promotion.
Similarly, in the sphere of research and innovation, Director General of the Research and Innovation Foundation (RIF), Theodoros Loukaidis, recently met with Henrietta Egerth, head of Austria’s national R&D funding agency (FFG). The meeting, which took place on September 5 in Vienna, aimed to strengthen ties between the two agencies while exploring potential areas of collaboration.
Meanwhile, in the legislative arena, Cypriot lawmakers have raised concerns over a proposed bill that seeks to increase the allocation of sports betting profits to football clubs from 1.5 per cent to 3 per cent. This move, spearheaded by the Finance Ministry, has sparked a heated debate in the House Finance Committee, with questions raised about potential state aid issues and fairness in tax debt repayment.
On the financial front, the Bank of Cyprus has launched its latest loyalty reward scheme, Pronomia, aimed at rewarding 20,000 eligible borrowers who have stayed up to date with their mortgage payments. This initiative, according to the bank, is designed to support loyal borrowers who have been impacted by rising European Central Bank (ECB) and Euribor interest rates.
In the tourism and hospitality sector, Chairman of Agros Development Company, Antonis Pissarides, has underscored the urgent need for financial support and compensation for mountain hotels at risk of closure. He warned that without immediate intervention, the Cypriot countryside and local economy could face severe consequences.
Equally important, PwC Cyprus’ Director of Assurance Services – Digital Trust, Michael Solon Kassinis, highlighted the significance of the EU’s updated Network and Information Security Directive (NIS2), which will come into effect in October 2024. The directive is expected to fortify cybersecurity measures across the EU, addressing the increasing threat of cyberattacks.
In banking developments, the Central Bank of Cyprus (CBC) has released its first-ever detailed report on interest rate data for deposits and loans across individual credit institutions. This new monthly report, starting with data from July 2024, aims to provide households and businesses with a clearer understanding of interest rates in the banking sector.
Turning to heritage preservation, renovation efforts are progressing at the historic Berengaria Hotel in Prodromos, a significant mountain resort in Cyprus. Spearheaded by developer BBF, the ambitious project aims to restore the hotel to its former glory by the end of 2027, with phases of repair already completed.
Additionally, in the global maritime sector, the Cyprus Shipping Chamber (CSC) recently represented the country’s shipping industry at a meeting of the International Chamber of Shipping (ICS) in London. Discussions at the event revolved around serious security issues, including the attacks on ships in the Red Sea and Gulf of Aden, as well as emissions reduction targets.
In another financial milestone, Hellenic Bank successfully completed a €100 million Senior Preferred bond issuance under its €1.5 billion Euro Medium-Term Note (EMTN) programme. The bond issuance, which saw a 3.7-fold oversubscription, reflects investor confidence in the bank’s strategy and financial health.
On the scientific front, Cyprus marked its first appearance at the Chief Science Advisors Roundtable (CSAR 2024), held at UNESCO headquarters in Paris. Chief scientist Demetris Skourides attended the event, which focused on advancing open science, reducing knowledge asymmetry, and building science advice capacity globally.
In the labour market, Cyprus’ Human Resource Development Authority (HRDA) projects that one in four employees, approximately 122,315 people, will work in sectors contributing to the green economy. This shift aligns with the European Green Deal’s targets for climate neutrality by 2050, with a skilled workforce being crucial to achieving these goals.
In the hospitality industry, visitor numbers at restaurants, cafes, and bars in Cyprus reached 90 per cent of capacity in August, according to Neophytos Thrasyvoulou, president of the Federation of Leisure Centre Owners (Osika). He noted that the influx of local visitors contributed to this success, with increased flights expected to further boost the sector in September and October.
Expanding on international relations, the Cyprus Chamber of Commerce and Industry (Keve) has established the Cyprus-Baltic States Business Association. This new initiative seeks to enhance economic and trade relations between Cyprus and the Baltic states, with a focus on creating business partnerships and investment opportunities.
Furthermore, in the tech sector, Cyprus-based business intelligence platform Magify has raised €1 million in funding to support product development and expand into new markets. This investment highlights the growing influence of Cyprus in the mobile gaming industry, which now boasts around 268 gaming companies.
Lastly, in the maritime education sector, Deputy Minister of Shipping Marina Hadjimanolis recently emphasised the importance of maritime education during a speech at the Merchant Marine Academy of Chios. She highlighted the vital role of seafarers in global shipping and the need to modernise curricula to train the next generation of maritime professionals.