Cyprus Business Now: bank employee agreement, Jumbo sales, cable survey

Hellenic Bank and the union representing its employees, Etyk, have finalised a new collective agreement, based on the preliminary accord reached in April 2023 with the mediation of the Labour Minister.

This agreement, which marks the renewal of the contract initially due in 2018, will retroactively cover the period from January 1, 2019, to December 31, 2022, impacting roughly 2,200 bank employees.

The agreement aims to align the remuneration of former Cyprus Cooperative Bank employees with the rest of Hellenic Bank’s workforce, creating a consistent structure in terms of duties, obligations, and pay across the bank.

Cyprus is growing as a top choice for foreign direct investment (FDI) in Europe, said Invest Cyprus CEO Marios Tannousis on Thursday.

Tannousis addressed an international audience at the 10th International Funds Summit & Expo in Nicosia, presenting the island’s unique advantages, including financing schemes and incentives for global investors.

“Cyprus is a regional hub for technology and innovation, with an excellent geostrategic position and a favourable business environment,” he said.

Greek retail chain Jumbo Group reported robust sales growth for the first ten months of 2024 at its recent shareholder briefing.

This was driven by strong demand in key markets and strategic expansion across Cyprus, Greece, Bulgaria, and Romania.

In Cyprus, Jumbo shop sales experienced steady growth, with October 2024 figures rising by approximately 2 per cent.

In addition, overall sales in Cyprus for the first ten months of the year showed an increase of about 1 per cent compared to the previous year.

This uptick coincided with the opening of a new hyperstore in Nicosia at the end of October, marking a significant addition to Jumbo’s presence in the area.

Cyprus saw a significant rise in beer deliveries from local factories in October, both in the domestic market and especially in exports.

According to a report from the Cyprus Statistical Service, total beer deliveries reached 4,212,952 litres for October.

This marks a 14.8 per cent increase when compared to the same month in 2023.

Domestic beer deliveries reached 4,084,636 litres, reflecting a 12.1 per cent rise year-on-year.

Meanwhile, beer exports recorded a remarkable surge, climbing 410.9 per cent to 128,316 litres, up from just 25,116 litres in October 2023.

The Cyprus government recorded a reduced deficit of €39 million in the second quarter of 2024, marking a sharp improvement from the €260.8 million deficit reported for the same period last year.

This change, highlighted in preliminary fiscal data from the Cyprus Statistical Service, reflects substantial increases in both government revenue and expenditure from April to June 2024.

Government revenue for the quarter surged by €523.2 million, representing a 19.2 per cent increase year-on-year, bringing total revenues to €3.25 billion from €2.72 billion in the previous year.

Taxes on production and imports showed a notable increase, rising by €173.6 million or 17.4 per cent to reach €1.17 billion.

Hellenic Bank has announced its intention to repurchase existing Convertible Capital Securities 1 and 2 (CCS 1, CCS 2) valued at nearly €130 million.

The buyback, expected to save the bank approximately €13 million in annual interest expenses, is pending approval from the European Central Bank (ECB).

During a meeting on November 5, 2024, the bank’s board of directors approved the submission of an application to the ECB for prior authorisation of the repurchase.

Association of Cyprus Banks head Michalis Kammas met with six organisations representing elderly people this week, according to an official announcement.

The meeting allowed them to discuss the challenges elderly people in Cyprus face in accessing banking services and to explore potential solutions.

Following a recent debate in the House of Representatives on elderly people’s rights, access to information, and banking challenges, the association arranged the meeting to deepen understanding and address these issues.

Representatives from various elderly and senior organisations attended to share their concerns directly with Kammas. 

French company Nexans is conducting a seabed survey as construction of the Great Sea Interconnector cable continues, Energy Minister George Papanastasiou said on Thursday.

Speaking to the Cyprus News Agency after a meeting with company reps in Nicosia earlier in the morning, he said both the survey and cable construction were happening simultaneously.

“They informed us that a seabed survey is ongoing from Cyprus to Crete and from Crete to Cyprus, using two different vessels,” he said.

One vessel is operating in Greece and the other in Cyprus, with both expected to enter international waters in the coming days.

The Cyprus Stock Exchange (CSE) ended Thursday, November 7 with profits.

The general Cyprus Stock Market Index stood at 203.98 points at 13:16, reflecting an increase of 6.40 per cent.

The FTSE / CySE 20 Index was at 124.29 points, reflecting a rise of 6.49 per cent.

The total value of transactions amounted to €3.44 million at the aforementioned time during trading.

In terms of the sub-indexes, the main, alternative and investment firm indexes rose by 8.02 per cent, 0.06 per cent and 10.31 per cent respectively. The hotel index fell by 0.24 per cent.

The biggest investment interest was attracted by the Bank of Cyprus (+1.42 per cent), Hellenic Bank (+11.31 per cent), Logicom (+6.25 per cent), Demetra (+10.41 per cent), and KEO PLC (no change).