Heightened geopolitical instability and mounting global debt levels represent key risks to Cyprus’ financial stability, according to the Central Bank of Cyprus (CBC).

The CBC published its 2024 Financial Stability Report (FSR) on Wednesday, highlighting several medium-term threats to the Cypriot financial system.

These include global uncertainty, inflationary pressures, as well as the impact of climate change and cyber risk on financial institutions.

In a press conference held at the CBC’s headquarters in Nicosia, executive board member Evgenia Christodoulou said the event marked a step towards “establishing the annual publication of the Financial Stability Report as a regular institution to strengthen transparency and build trust between the Central Bank, the public and national institutions”.

Hotel sector unions on Wednesday accused employers of breaching a collective agreement signed in December, prompting Peo to say they were left with no choice but strike measures.

“For months now, we have denounced the attitude of the hoteliers and employers’ associations, who breached the agreement, and requested the intervention of the labour minister,” Peo said.

“Despite our repeated efforts, the situation is going from bad to worse.”

Peo’s board of directors of Peo met on Tuesday to discuss the situation created by the failure of many hoteliers to implement the agreement, which was signed in the presence of the minister.

The dispute concerns provisions for the 13th salary, planned increases to employer contributions to the provident fund, from 5 per cent to 5.25 per cent in 2026 and 5.5 per cent in 2027, and double pay during Easter, Christmas and New Year holidays.

These points were tabled to parliament as regulations – which carry the force of law. The difference arose when employers argued that they had not agreed that these points would be written into regulations.

Cyprus has been classed as a moderate innovator in the European Innovation Scoreboard (EIS) 2025, recording a 17.6 per cent improvement since 2018, the fourth highest growth in the EU over the past seven years.

However, Cyprus fell by 14.6 points when compared with 2024, with its score now standing at 84.1.

According to a statement from the Deputy Ministry of Research, “the island continues to excel in creating an attractive research ecosystem, supported by high-level scientific publications, strong public-private collaborations and its growing ability to attract talent from abroad”.

The ministry explained that this year’s revised assessment framework by the European Commission was a key factor in Cyprus’ new ranking.

The Cypriot banking sector experienced a decline in profitability, an increase in total assets, and a further strengthening of capital adequacy, according to a report from the Central Bank of Cyprus (CBC).

Specifically, the CBC reported on Wednesday that the sector’s profitability fell by €82 million in the first quarter of 2025, dropping from €346 million in March 2024 to €264 million in March 2025.

“This decrease is mainly attributed to a reduction in net interest income,” the central bank said.

Despite the decline in profits, total assets in the banking sector grew by €422 million, a rise of 0.6 per cent, in the first quarter of the year.

Assets rose from €65.60 billion in December 2024 to €66.02 billion in March 2025, the report showed.

The Wellington Management Group has reduced its stake in Bank of Cyprus Holdings Public Limited Company, falling just under the 4 per cent threshold, according to a filing submitted to the Cyprus Stock Exchange (CSE).

The change was formally recorded on July 11, 2025, and the bank was notified on July 14, 2025.

The filing shows that Wellington now holds 3.99 per cent of the bank’s voting rights through direct ownership of shares.

This represents a drop from its previous holding of 4.75 per cent.

Demetra Holdings Plc on Wednesday published its investment portfolio report for the second quarter of 2025, revealing a total asset value of €528.64 million as of June 30, 2025.

According to the report, cash and bank deposits accounted for the largest share of assets, with a total of €408.03 million, representing 77.19 per cent of the company’s total.

The second largest asset category included real estate investments under development and management in Cyprus, Romania, and Bulgaria, totalling €74.65 million, correspoding to 14.12 per cent of the overall portfolio.

Technology investments were led by Logicom Public Ltd, which held a portfolio value of €31.68 million, making up 5.99 per cent of Demetra’s assets.

Cyprus’ industrial production showed no change in May 2025, compared with the same month a year earlier, according to Eurostat, the statistical office of the European Union.

This followed sustained growth in Cyprus during the prior months, including a 5.4 per cent annual increase in April 2025 and a 2.2 per cent rise in March .

In contrast, industrial production in the euro area increased by 1.7 per cent month‑on‑month in May, while the EU as a whole saw a 1.5 per cent rise.

Annual figures also pointed upwards, with output growing by 3.7 per cent across the euro area and 3.4 per cent across the EU compared with May 2024.

SSH Solar Finance Plc on Wednesday announced that it will pay interest to bondholders for the period from January 31, 2025 to July 31, 2025, relating to its listed green bonds.

The annual interest rate for the bonds is set at 8 per cent, composed of a fixed coupon rate of 4 per cent and a variable interest rate of 4 per cent.

“The rate is based on the terms outlined in the announcement dated January 15, 2025,” the company confirmed.

According to a previous announcement by the issuer on March 21, 2025, the interest payment schedule was revised to include two payments per year instead of one.

The Cyprus Chamber of Commerce and Industry (Keve) and the Cyprus Space Exploration Organisation (CSEO) signed a Memorandum of Understanding (MoU) on Wednesday, to strengthen innovation and link the space technology with research.

According to the announcement, the memorandum was signed by Keve president Stavros Stavrou and the CSEO president George Danos.

The chamber explained that the agreement aims to “promote data science, support the development of new technologies and increase public awareness about opportunities in space exploration”.

What is more, the agreement also seeks to “foster educational and social initiatives around the sector“.