Category: Cyprus News Agency

Special Representative of the United Nations Secretary-General in Cyprus and head of the UN Peacekeeping Force in Cyprus (UNFICYP), Khassim Diagne, is expected to brief the UN Security Council in New York, on the situation on the island, during the second week of July, CNA has learned.

According to CNA informatin, the briefing will be held in a closed session.

The dates on which the UN Security Council will meet to discuss the reports of UN Secretary-General Antonio Guterres on his Good Offices Mission for Cyprus and UNFICYP are still to be announced.

Cyprus has been divided since 1974, when Turkey invaded and occupied its northern third. Repeated rounds of UN-led peace talks have so far failed to yield results due to Turkish intransigence. The latest round of negotiations, in July 2017 at the Swiss resort of Crans-Montana ended inconclusively.

After informal meetings in 2025, followed by a hiatus of several months, deliberations are underway for a new meeting in broader format to be held, as the term of the UN Secretary-General Antonio Guterres nears its end. María Angela Holguín, Guterres’ Personal Envoy on Cyprus, is tasked to engage with the parties.

FOR THE PERIOD FROM 0600 24/06/2026 UNTIL 0600 25/06/2026

Atmospheric pressure at the time of issue: 1007hPa (hectopascal)

Seasonal low pressure is affecting the area. Low clouds are expected at times. Risk of local mist over night and dawn.

Visibility: Good, but moderate to poor in mist

Sea surface temperature: 25°C

Warnings: NIL

Department of Meteorology

Today’s weather and temperatures for Cyprus according to the Department of Meteorology

Date 24/06/2026

Station

TEMPERATURE (C) (FROM 20:00 PC of the previous one until the time of the show)

Highest

Lowest

Humidity at

1200 UTC

Nicosia (Athalassa)

38

24

22

Larnaka Airport

36

23

51

Limassol

30

21

54

Pafos Airport

28

21

78

Frenaros

36

25

44

Prodromos

29

17

36

Polis Pafos

34

22

37

The Cabinet held an initial exchange of views on Wednesday on the expertise, qualifications and names of potential criminal investigators to be appointed following the Anti-Corruption Authority’s report concerning the book ‘Mafia State’, Government Spokesman Konstantinos Letymbiotis said, adding that the team will consist of more than one person and will be appointed as soon as possible.

Speaking after the Cabinet meeting, Letymbiotis said the report was delivered on Tuesday and that Cabinet members had a first discussion on the matter on Wednesday. Replying to questions, he did not rule out the possibility that members of the investigative team could come from abroad, saying that the required expertise is being discussed ‘always in relation to the duties they will have under the provisions of the law.’

Recalling that the Attorney General and the Deputy Attorney General have recused themselves from the process, Letymbiotis said the Cabinet has the authority to appoint independent criminal investigators. He clarified, however, that it does not have the power to appoint an independent prosecutor.

Asked about strong public concern over issues of corruption and the delivery of justice, and whether a timeframe should be set for the appointments, the Spokesman said the matter must be approached with seriousness.

He said the persons who will make up the team of independent criminal investigators must be selected after a thorough examination of their qualifications, competence and the absence of any possible conflict of interest.

‘Once this examination is completed, the priority is, of course, for them to be appointed as soon as possible,’ he said.

Letymbiotis said the important thing is for investigations to proceed into all matters included both in the Authority’s announcement and in the lengthy report, so that public confidence in the institutions can be restored through the work of the independent criminal investigators.

Replying to further questions, he said the matter is being discussed by the entire Cabinet and that ‘a first reference to names’ was made during Wednesday’s meeting.

‘This is something that will be examined more extensively in the coming days, and once the team of investigators is finalised, it will be announced,’ he said.

He added that the team will include more than one person, noting that individuals are already being sounded out and that names are under consideration. Asked who proposes the names, Letymbiotis said every Cabinet member may submit suggestions, which will then be examined to determine whether the individuals meet the terms of reference.

Asked about the absence of the Justice Minister from the Cabinet meeting, the Spokesman said the Minister was attending a meeting of a parliamentary committee, but had been in contact with the President of the Republic earlier in the day.

He added that Cabinet members are often absent for various reasons or due to trips abroad, but remain in constant communication with President Nikos Christodoulides.

The need to safeguard Cyprus’ financial stability and economic resilience amid significant geopolitical and domestic challenges was highlighted on Tuesday, during the Annual General Meeting of the Association of Cyprus Banks, held in Nicosia, in the presence of the Finance Minister and the Central Bank Governor.

Speakers at the meeting underscored the country’s positive economic indicators, including GDP growth of 3.8% in 2025 and the strong capital position of the banking sector, while also sending clear messages about the need for long-term strategic thinking over short-term gains.

At the same time, a recurring theme throughout the event was the concern over legislative interventions relating to foreclosures, with several speakers referring to the recent opinion issued by the European Central Bank (ECB), which warned of fiscal risks and a potential erosion of the payment culture.

Addressing the meeting on behalf of the President of the Republic, Minister of Finance Makis Keravnos stressed that the banking sector remains strong and well-capitalised, with the Common Equity Tier 1 (CET1) ratio standing at 25.1% in March 2026. He noted that although profitability declined compared to 2024 due to changes in interest rates, banking sector profits still reached approximately pound 1 billion in 2025.

‘As the Ministry of Finance,’ Keravnos said, ‘we would prefer bank profitability to stem more from healthy lending to businesses operating in productive sectors of the economy and less from interest rate differentials resulting from European Central Bank monetary policy.’

In a message read by Democratic Rally MP Savia Orphanidou, on behalf of House President Annita Demetriou, she stated that Cyprus’ banking sector has demonstrated remarkable resilience in recent years, a high degree of responsiveness to challenges and an impressive ability to adapt to increasingly demanding European and international regulations.

‘The recent positive results, both in terms of financial stability and profitability, strengthen confidence not only in the banks themselves but, consequently, in the Cypriot economy as a whole,’ Orphanidou said.

Governor of the Central Bank of Cyprus Christodoulos Patsalides noted that geopolitical risk, climate change, the challenges of the green transition, cybersecurity threats and the rapid development of Artificial Intelligence are no longer peripheral concerns but critical determinants of banking resilience and financial stability.

‘These risks interact with one another, amplifying existing vulnerabilities and potentially affecting asset quality, operational continuity, business models and ultimately eroding the liquidity position and/or capital adequacy of credit institutions,’ he said.

According to Patsalides, the challenge for banks is not only to manage visible risks but also to prioritise long-term resilience over short-term gains. He stressed that profit distribution policies, capital decisions and resource allocation must take into account not only current profitability but also the need for continuous investment in technological infrastructure, operational resilience, human capital and strategic adaptability.

‘Banks that remain sustainable and competitive will not necessarily be those that maximised short-term gains, but those that chose in a timely manner to invest in their ability to withstand shocks, adapt and evolve,’ he concluded.

Cyprus Banks Association Chairman Panicos Nicolaou stressed that the stability of the financial system is often taken for granted, when in reality it is anything but guaranteed.

He recalled the major economic, geopolitical, social and technological challenges faced by the banking sector in recent years and noted that banks succeeded in managing and limiting their impact.

‘This was achieved because the decisions we took over previous years, the discipline we demonstrated, the sacrifices that were made, including by staff, and the timely investments in technology created a banking system that is far more resilient, mature and better prepared to deal with difficult conditions,’ he said.

Nicolaou added that many people simplistically argue that banks merely benefited from higher interest rates, as if the negative interest rates that prevailed for several years were somehow normal.

The Association’s Director General Marios Skandalis noted that, beyond external challenges, Cyprus has also faced serious domestic crises.

He referred to the devastating wildfire in mountainous Limassol, which affected the environment, local communities and businesses, as well as the outbreak of foot-and-mouth disease affecting the primary sector, describing both as stark reminders that natural risks remain real and carry direct economic consequences.

‘In these crises, banks did not stand idle. They stood by the economy, their customers, society and the affected local communities in a practical and humane manner,’ Skandalis said.

Foreclosures: Risks to financial stability and payment culture

—————————-

Minister of Finance Makis Keravnos, Central Bank Governor Christodoulos Patsalides and Cyprus Banks Association Chairman Panicos Nicolaou all made specific reference to the issue of non-performing loans, legislative initiatives relating to foreclosures and the recent European Central Bank’s opinion on proposed amendments.

Keravnos stated that ‘to address this phenomenon, the government has promoted legislation and regulations that ensure a stable and effective management framework.’

Borrowers, he added, ‘have additional tools at their disposal, while the institutional safety net has been strengthened. At the same time, opportunities for debt restructuring and settlement have been enhanced. Significant additional powers have also been granted to the Financial Ombudsman.’

The Finance Minister also noted the approval by Parliament of legislative proposals ‘despite the expressed views of the Ministry of Finance, the Central Bank and the Legal Service that they may contain constitutional and other legal and institutional issues.’

He noted that this led the President of the Republic to refer the legislation back to Parliament and subsequently to the Supreme Court, while an opinion was also sought from the European Central Bank regarding the suspension of foreclosures and the restructuring of loans and guarantees.

According to Keravnos, the ECB ‘expresses serious concerns about the extension of financial risks that could evolve into fiscal risks, as well as the possibility of worsening borrowers’ problems rather than resolving them.’

Central Bank Governor Christodoulos Patsalides stated that the state should not underestimate the risks arising from legislative measures affecting the banking sector.

Referring to the ECB opinion issued on 12 June 2026, he said it is fully aligned with the Central Bank’s position.

‘The recent amendments to the foreclosure framework may erode financial discipline and undermine payment culture, financial stability and public finances, while also leading to stricter lending criteria and higher mortgage interest rates. While the amendments aim to protect borrowers, they may ultimately produce outcomes contrary to their stated objective,’ Patsalides said.

For his part, Cyprus Banks Association Chairman Panicos Nicolaou stressed the importance of maintaining a stable and predictable institutional framework, strongly criticising populist proposals calling for the suspension of foreclosure procedures.

Also referring to the ECB’s recent opinion, Nicolaou noted that ‘Frankfurt clearly underlines that horizontal interventions without impact assessments, as well as populist proposals to suspend procedures, not only fail to protect genuinely vulnerable borrowers, but undermine financial stability, reward strategic defaulters and ultimately penalise the overwhelming majority of responsible citizens by increasing borrowing costs and depriving the Cypriot market of much-needed liquidity.’

Nicolaou further warned that non-performing loans outside the banking system currently amount to pound 18.2 billion and continue to weigh heavily on the economy.

‘Our view, more than 13 years after the crisis, is that the majority of borrowers face sustainability issues. My appeal to all stakeholders is that we approach the matter from this perspective rather than allowing it to end up in courtrooms years later, when outstanding loan balances will certainly be much higher,’ the Cyprus Banks Association Chairman concluded.

President of the Republic Nikos Christodoulides said on Tuesday that the Government is investing in meeting the needs of the Maronite community through a series of decisions, policies and actions for the common good.

The President was speaking during a meeting on Tuesday at the Presidential Palace with the Maronite Representative in the House of Representatives, Petros Nakouzi.

A Presidency statement said that during the meeting the President, after congratulating Nakouzi on his election, referred to the Government’s interest in issues concerning the Maronite religious group and its determination to resolve them.

He also noted that the Government is investing in addressing the needs of the Maronites through a range of decisions, policies and actions for the public good.

He further highlighted the very good cooperation with the Maronite Church and the Government’s ongoing willingness to maintain close coordination with the Representative of the religious group in the House of Representatives to facilitate his work.

Despite higher energy prices and lower tourism arrivals, Cyprus’ economy remains resilient, with strong growth and fundamentals, according to the conclusions of the International Monetary Fund’s (IMF) 2026 Article IV Consultation with Cyprus.

Cyprus’ Ministry of Finance, in a statement announcing the conclusion of the IMF 2026 Article IV with the country, welcomes the IMF’s observations and recommendations.

The Ministry notes that, under Article IV of the IMF’s Articles of Agreement, the Fund holds bilateral consultations with its member countries. As part of the 2026 Article IV Consultation with Cyprus and following a mission by an IMF staff team to Cyprus between 22 April and 4 May 2026, the IMF has published a country report.

According to the Ministry, the IMF’s conclusions state that, despite higher energy prices and lower tourism arrivals, Cyprus’ economy remains resilient, with strong growth and fundamentals.

‘Strong fiscal performance and falling public debt create room for a gradual and growth-friendly fiscal easing-focused on high-quality investment and efficiency gains’, the IMF said, adding that financial sector soundness should be preserved and credit deepening supported.

The report further notes that sustaining strong growth requires reforms to boost productivity and investment, including through a more efficient judiciary, a better-skilled workforce, wider use of digital technologies, and progress on energy sector reforms.

According to the Ministry, in their assessment, IMF Executive Board ‘commended’ Cyprus’ continued strong macroeconomic performance and resilience, with sustained growth, fiscal surpluses, and declining public debt despite a challenging external environment. Directors cautioned however that near-term risks are tilted to the downside – including from geopolitical tensions and higher energy prices – and that structural vulnerabilities persist. They encouraged the authorities to preserve fiscal sustainability and to press ahead with structural reforms to boost productivity and support long-term growth.

Directors also commended the authorities’ strong fiscal performance, the Ministry notes. They agreed that, as policy space expands, any fiscal easing should be gradual and well-calibrated to avoid overheating, while preserving buffers for rising spending pressures related to ageing, defence, and infrastructure needs.

They stressed the importance of improving the efficiency of spending and taxation, prioritising high-quality public investment and maintaining discipline in public wage growth, while that measures to support households should be temporary and well targeted. Directors welcomed the recent comprehensive tax reform and the proposal to build financial assets in the social security fund, the Finance Ministry said.

The Ministry further said that the Directors agreed that the banking sector remains sound, supported by strong capital and liquidity buffers and improving asset quality. At the same time, it adds, they considered that significant exposure to real estate and remaining legacy NPLs outside the banking sector warrant continued vigilance. ‘Noting that credit intermediation remains subdued, Directors stressed the need to preserve an effective foreclosure framework, strengthen insolvency processes, and improve judicial efficiency to support the resolution of distressed assets, deepen credit markets, and foster investment’, it said, adding that they also emphasized the importance of strengthening risk monitoring frameworks and advancing AML/CFT supervision.

The Directors also agree that continued implementation of structural reforms is key to raising productivity and supporting long-term growth. Priorities, they note, include addressing skills mismatches, strengthening human capital and AI readiness, improving the business environment, and enhancing judicial efficiency. They ‘stressed’ that advancing energy sector reform is critical to reducing costs, strengthening energy security, and supporting the green transition and that timely implementation of measures under the EU-funded Recovery and Resilience Facility would also be important.

The Ministry of Finance said that it welcomes the IMF’s observations and recommendations.

‘In particular, we agree with the assessment that Cyprus’ economy has demonstrated resilience, fiscal performance has been exceptional, and, most importantly, that despite recent disruptions, the outlook remains favourable,’ the Ministry said.

Regarding the recommendations, the Ministry said it agrees that fiscal policy should become more efficient in terms of expenditure, avoid distortions, focus on growth-enhancing investments, and address the long-term challenges facing Cyprus’ economy, especially considering especially in view of the expenditure benchmark that has been agreed under the new European Economic Governance Framework concerning the growth of net primary expenditure, it said.

FOR THE PERIOD FROM 1200 23/06/2026 UNTIL 1200 24/06/2026

Atmospheric pressure at the time of issue: 1007hPa (hectopascal)

Seasonal low pressure is affecting the area. The weather will be mainly fine.

Visibility: Good

Sea surface temperature: 25°C

Warnings: NIL

Cyprus recorded a 13.5% decrease in road deaths between 2019 and 2025, the 12th largest in the EU-27, according to the 20th annual published today by the European Transport Safety Council (ETSC), also noting, however, that in 2025, Cyprus saw a 9.8% increase in road traffic fatalities.

In terms of road deaths per capita, the report notes that Cyprus dropped to 16th place among the 27 EU member states in 2025, down from 14th place in 2024, while Cyprus recorded a road fatality rate per capita of 46 in 2025, with the EU-27 rate standing at 43.

Furthermore, Cyprus has recorded a significantly better reduction in serious injuries during the period 2015-2025, at 29.2%, which was the 7th highest in the EU24

The report published today presents general road safety data as of the end of 2025 for the 27 member states of the European Union (EU27), as well as for Switzerland, Norway, Serbia, and the United Kingdom.

As noted, the Road Safety PIN program marks its 20th anniversary this year since its launch in 2006. Over the course of these two decades, it has become one of the most influential road safety tools, comparing the performance of the 31 participating countries, with the 20th annual report assessing progress toward achieving the EU’s goal of reducing both road deaths and serious injuries by 50% from 2020 to 2030, and reviews recent developments in EU policies that will help determine whether the target is being met.

‘It is estimated that around 19,500 people lost their lives on the roads of the EU-27 in 2025 and more than 100,000 were seriously injured. Unfortunately, there was only a very small decrease in fatalities-just 2.3%-compared to 2024. Cyprus recorded a 9.8% increase,’ the report notes.

It is added that compared to 2019-the base year for the 2030 European target-only 24 of the 31 countries participating in the RIN recorded a decrease in road traffic fatalities by 2025, while the remaining 7 saw an increase in road fatalities.

It is noted that during this period, there was only a 14.6% reduction in road fatalities in the EU-27, a figure that falls far short of the 31% reduction that would have been required to meet the EU’s target of a 50% reduction by 2030, with Cyprus recording a 13.5% decrease in road fatalities during this period, which was the 12th largest in the EU-27.

‘Despite slow progress, more than 31,000 lives have been saved in the EU-27 over the past decade. And if the reduction in road fatalities had been in line with the 2030 target, an additional 42,900 lives would have been saved. The ETSC estimates the additional economic benefit to European societies at pound 77 billion,’ the report notes.

It is also stated that the EU-27 recorded a 20.2% reduction in traffic fatalities over the past decade, while Cyprus achieved a 21.1% reduction-the 16th largest-while in terms of traffic fatalities per capita, Cyprus fell to 16th place among the 27 EU member states in 2025, down from 14th place in 2024. Cyprus also recorded a road fatality rate per capita of 46 in 2025, while the EU-27 rate was 43.

‘The reduction in serious road injuries during the 2015-2025 period in the 24 EU member states (EU24) that provided data was even more modest. During this period, a decrease of only 12.9% was recorded. Cyprus has recorded a significantly better reduction in serious injuries during this period, at 29.2%, which was the 7th highest in the EU24,’ the report continues

According to the report, the annual ‘2026 Road Safety PIN Award’ is presented to Denmark for its long-standing progress in road safety, which reduced road fatalities by 31.7% from 2019 to 2025-the second-best performance in the EU27. Furthermore, in 2025, Denmark ranked third highest in the EU-27 in terms of road fatalities per capita, with a rate of 23.

‘The EU is moving at two speeds when it comes to road safety. Some countries are moving toward achieving the goal of a 50% reduction in road deaths and serious injuries by the end of the decade, while most countries appear to be falling short, and the EU as a whole is off track. ‘None of this is inevitable; it reflects the choices made by governments,’ the ETSC points out.

The report sets out a series of recommendations from the ETSC to the member states and the European Commission.

Specifically, it calls on member states to adopt and implement the ‘Safe System’ approach for road safety, managing all elements of the road transport system in an integrated manner and adopting an approach of shared overall responsibility and accountability between system designers and road users.

It also recommends seeking to accelerate progress by all available means, including the implementation of proven-effective strategies for enforcing relevant laws, in accordance with the European Commission’s Recommendation on Law Enforcement (2004/345), as well as the provision of adequate public funding to enable the establishment of targeted measures and the introduction of procedures for funding and providing incentives at the regional and local levels.

Furthermore, it recommends accelerating the collection of data on the Key Performance Indicators (KPIs) included in the EU Road Safety Policy Framework 2021-2030 and setting specific quantitative targets.

Accordingly, it calls on to the European Commission that, following the adoption of the ‘Safe System’ approach in the EU Road Safety Policy Framework 2021-2030, to ensure that this approach is implemented in a comprehensive manner, in coordination with all Directorates-General (DGs) of the European Commission, as well as the creation of a new European Agency to support safe, smart, and sustainable transport.

Regarding the implementation of the EU Road Safety Policy Framework 2021 -2030 on Road Safety, it recommends scaling up road safety actions in light of the conclusions of the interim evaluation report on the framework’s implementation and continuing to support Member States in collecting harmonized data on KPIs and on serious injuries classified as MAIS3+ according to hospital criteria.

It also recommends encouraging Member States, through a formal European recommendation, to set safe speed limits in accordance with the ‘Safe System’ approach, for the various road categories, such as 30 km/h for urban roads, 70 km/h for rural roads without a median strip, and a maximum speed of 120 km/h or less on highways, as well as the implementation of best practices in law enforcement (police patrols).

On Tuesday, MEPs supported the mobilisation of the European Solidarity Fund to help Romania, Cyprus and Spain following severe floods and wildfires in 2025.

MEPs in the Budgets Committee supported the release of pound 144.1 million in EU aid from the European Union Solidarity Fund (EUSF), by 31 votes, 0 against, and no abstentions. The money is to help Romania, Cyprus and Spain after natural disasters that took place in these countries in 2025.

Romania (flooding): pound 14.34 million.

Cyprus (wildfires): pound 9.21 million.

Spain (wildfires): pound 120.55 million.

Spain and Cyprus have already received advance payments (pound 30 million and pound 2.3 million respectively) to support their initial recovery efforts. The Commission based the proposed amounts on the scale of the damage reported by each country, assessed in line with the fund’s rules and the resources available.

In Cyprus, two major wildfires in July 2025 affected the Limassol and Paphos regions, displacing thousands of residents, killing two people and destroying nearly 900 private properties, while also disrupting education and healthcare services. Romania experienced severe flooding in May and June 2025 following days of heavy rainfall, causing extensive damage across several regions, including to the Praid Salt Mine, where floodwaters compromised critical infrastructure and triggered widespread power outages. Spain faced prolonged drought, intense heatwaves and several major wildfire outbreaks throughout 2025, with the most destructive fires beginning in August 2025 and forcing mass evacuations and causing the death of eight people.

MEPs, in the draft report, highlight the increasing number of severe, destructive and deadly natural disasters in Europe and call on EU countries and the Commission to invest in adaptation measures to avoid deaths and economic losses.

Background

Since its creation in 2002, the EUSF has provided more than pound 10 billion in support for 147 disaster events, including 127 natural disasters and 20 public health emergencies, across 25 EU member states and six accession countries. The 2025 wildfire season stands out as the most destructive on record. The mobilisation of the EUSF requires approval by Parliament and Council, with a plenary vote expected in July 2026. Once approved, the assistance will be disbursed in a single payment to the countries concerned.