NPL ratio unchanged at 1.6% in March 2026, Central Bank data show

Non-Performing Loans (NPL) Ratio, including loans and advances to Central Banks and Credit Institutions, remained unchanged at 1.6% in March 2026, compared with end of December 2025, according to the updated aggregate Cyprus banking sector data, published on Friday by the Central Bank of Cyprus.

According to the data, total NPLs at the end of March amounted to pound 835 million in a total of pound 51.3 billion. In comparison, on December 2025 NPLs were also pound 835 million, in a total of pound 52.1 billion.

In households, NPL Ratio stood at 4.4%. In non-financial corporations at 2.4% and in SMEs it rose to 3.6%.

?he coverage ratio of NPLs with provisions increased to 62.7% at the end of March 2026, compared with 62.3% at the end of December 2025.

Total restructured loans at the end of March 2026 amounted to pound 777 million, of which loans of pound 320 million continue to be classified as NPLs.

Cyprus-Lithuania sign memorandum of cooperation for relocation of applicants of international protection

Cyprus and Lithuania signed a memorandum of cooperation for the relocation of applicants of international protection.

The memorandum was signed Friday, on the sidelines of the Informal Ministerial Meeting on the European Pact on Migration and Asylum, in Nicosia, in the framework of the Cyprus EU Presidency.

An announcement says that the Memorandum was signed by the Deputy Minister of Migration and International Protection, Nicholas Ioannides and Indre Gaspere, Director of the Migration Department under the Ministry of the Interior of Lithuania, in the presence of the Deputy Minister of the Interior, Ana Burkovskiene.

The agreement is part of the solidarity mechanism provided for by the new European Pact on Migration and Asylum and constitutes an essential step for the practical implementation of the principles of shared responsibility and European solidarity.

The announcement says that Cyprus, as a frontline EU member state, continues to face particular pressures due to its geographical location and today’s signing of the Memorandum takes on particular importance, as it is a tangible example of practical support to an EU MS that bears an increased burden.

The relocation of applicants for international protection is one of the main solidarity mechanisms provided for in the new Pact, aiming at a fairer distribution of responsibilities between member states and a more effective management of the pressures faced by first host countries.

Cyprus signs double taxation avoidance agreement with Hong Kong

The Republic of Cyprus signed an agreement for the elimination of double taxation with respect to income taxes and the prevention of tax evasion and tax avoidance with the Government of the Hong Kong Special Administrative Region of the People’s Republic of China on Friday, in Hong Kong.

According to a statement by Cyprus’ Ministry of Finance, the agreement concerns the elimination of double taxation in relation to income taxes and the prevention of tax evasion and tax avoidance between the Government of the Republic of Cyprus and the Government of the Hong Kong Special Administrative Region of the People’s Republic of China.

‘The Agreement establishes a modern and reliable framework for tax cooperation, which is expected to facilitate business activity and enhance investment flows as well as trade between the two jurisdictions,’ the Ministry said. Furthermore, it noted that the agreement ‘will contribute to reducing the overall tax burden and encourage sustainable investment, without creating opportunities for tax evasion or avoidance, while ensuring legal certainty.’

The Ministry added that the bilateral agreement provides for clear tax treatment of transactions between the two jurisdictions, offering certainty and stability to investors. The agreement also provides for the exchange of tax information between the competent authorities and procedures for resolving tax disputes.

‘The signing of this Agreement reflects the importance the Government places on developing strong economic and political ties with international financial and commercial centres, particularly with partners such as Hong Kong, thereby strengthening prospects for cooperation in an ever-evolving global economic environment,’ the statement said.

It is noted that the agreement was signed on behalf of Cyprus by Ambassador of the Republic of Cyprus to China, Koula Sophianou, accompanied by Dr Harindarpal Singh Banga, Honorary Consul of Cyprus in Hong Kong. On behalf of the Hong Kong Special Administrative Region of the People’s Republic of China, the agreement was signed by Christopher Hui, Secretary for Financial Services and the Treasury of Hong Kong.

PRESS RELEASE – EUROPEAN PARLIAMENT

EP Press: Newsletter – 15-18 June 2026 – Strasbourg plenary session

Press service

European Parliament

Available in

12-06-2026

Plenary session

Briefing

Newsletter – 15-18 June 2026 – Strasbourg plenary session

EU-US trade: final vote in Parliament on tariff legislation

On Tuesday, MEPs are expected to give their final approval to two pieces of legislation implementing EU tariff commitments under the August 2025 EU-US joint statement.

Vote on new rules for returning migrants without right to stay in EU

On Wednesday, MEPs will vote on the EU returns policy reform, based on the provisional political agreement reached by Parliament and Council negotiators.

June European Council and EU-China economic relations

In a joint debate on Wednesday, MEPs will discuss the 18-19 June EU summit and the future of EU-China economic relations with Commission and Council Presidency representatives.

2025 Sakharov Prize laureate Andrzej Poczobut to address MEPs

The journalist was awarded the Sakharov Prize together with Mzia Amaglobeli from Georgia in 2025 while both were detained in their countries. Poczobut was released in April 2026.

New genomic techniques for plants to boost innovation in sustainable agriculture

On Wednesday, MEPs are set to adopt new rules facilitating access to new plants that are climate and pest resistant, give higher yields or require fewer pesticides.

Need for de-escalation in the Middle East

On Tuesday, MEPs and EU diplomacy chief Kaja Kallas will discuss recent developments in the ongoing crises in the Middle East and the EU’s role in de-escalation.

Protecting the EU’s eastern border against Russian provocation

Following a growing number of threats and drone incursions on the eastern border, plenary will debate EU sovereignty and security on Tuesday.

Social media: protecting children’s safety and mental health

On Wednesday, MEPs will discuss solutions to improve the protection of children and their mental health from risks attached to social media use.

Digital sovereignty and resilience

On Tuesday, MEPs will debate the EU’s new ‘tech sovereignty package’ and discuss future steps with the European Commission.

AI Act: simplification measures, ban on ‘nudifier’ apps

On Tuesday, MEPs will vote on delaying the introduction of provisions for high-risk artificial intelligence (AI) systems, and on a new ban of ‘AI nudifier’ tools.

Circular economy: new EU rules for the automotive sector

On Tuesday, Parliament is expected to give its final green light to new EU circularity rules that cover the entire vehicle lifecycle, from design to final end-of-life treatment.

Transport sector resilience and electrification action plan

MEPs will debate the situation in the transport sector amid the ongoing energy price crisis and hear from the Commission on its proposal to boost clean electricity usage.

New measures to help farmers stabilise their incomes

On Tuesday, Parliament is expected to give its final green light to new measures to reinforce the position of farmers in the food supply chain.

Recommendations for new EU tax rates on tobacco

On Wednesday, MEPs will vote on their recommendations for an update to common EU tobacco taxation rules.

Enlargement: MEPs to assess progress of seven candidate countries

Parliament is set to adopt annual reports assessing the progress towards EU membership of Albania, Bosnia and Herzegovina, Georgia, Kosovo, North Macedonia, Montenegro, and Trkiye.

President of Montenegro to address Parliament

On Tuesday at noon, Jakov Milatovic, President of Montenegro, will address MEPs in a formal sitting.

Countering transnational repression

A strategy to counter attempts by authoritarian regimes to silence critics beyond their own borders will be put to a vote by MEPs on Tuesday.

Reducing reporting requirements for small and medium-sized enterprises

In a new scrutiny session on Tuesday, MEPs will quiz the Commission about its simplification efforts, especially when it comes to reporting requirements for SMEs.

Cuba: vote on situation and outlook

On Thursday, MEPs are set to adopt a resolution on the humanitarian crisis in Cuba, political repression in the country, and the EU’s role in the island’s future.

The recruitment of children by organised crime

On Thursday, MEPs will outline proposals to counter the recruitment of children by organised crime, including online.

Urban wastewater treatment: concerns about medicine supply risks

In a resolution to be voted on by MEPs on Thursday, Parliament is expected to highlight the impact of EU urban wastewater treatment rules on the pharmaceutical sector.

MEPs to vote on EU support for workers laid off in Belgium

On Tuesday, MEPs are expected to greenlight pound 2 million in EU aid to help Belgian workers who have lost their jobs find new employment.

Resolutions on human rights and democracy

Parliament will hold urgent debates on the following human rights, democracy and rule of law topics on Wednesday afternoon, followed by votes on Thursday.

Cyprus Presidency: EU27 agree to open accession negotiations with Ukraine and Moldova

Under the Cyprus Presidency of the Council of the EU, the European Union is moving ahead with the opening of the first Cluster of Chapters in the accession negotiations with Ukraine and Moldova, within the framework of two Intergovernmental Conferences to be held on Monday, 15 June. The development follows agreement among the Permanent Representatives of the EU member states, who capitalised on the momentum generated after Hungary lifted its two-year veto last week.

The first Cluster covers the fundamental values and principles underpinning the European Union, from the rule of law and democratic institutions to judicial independence. It represents the most substantive phase of the accession process, forming the backbone of the negotiations.

In a statement, the Cyprus Presidency noted it is “proud to have driven forward this historic moment”, adding: “As Presidency, we worked intensively to reach this outcome. This is a milestone and a recognition of the aspirations, resilience and hard work of the two candidates that have chosen Europe and its values. As we take this important step together, we reaffirm that the European Union is strongest when it stands united, principled and open to those committed to its values.”

European Commission President Ursula von der Leyen and European Council President António Costa described the development as decisive for the future of the EU. In a joint statement, they said: “Today, the European Union took a major step forward. All Member States agreed to open the first accession negotiations cluster with Ukraine and Moldova. At the first Intergovernmental Conference on Monday, we will open the cluster on fundamentals, the backbone of the accession process.”

“This is a recognition of the determination, courage and hard work shown by both countries in advancing reforms, even in the face of immense challenges. And a signal that the EU’s offer of peace, stability and opportunity is unmatchable,” von der Leyen and Costa added. The two EU leaders described enlargement as “a strategic choice”.

“By bringing our nations closer together, we strengthen peace, security and prosperity across our continent. In a world marked by growing uncertainty, a larger European Union is in our common interest. Enlargement remains one of the EU’s greatest success stories and our best investment in our shared future,” they concluded.

The Intergovernmental Conferences, the formal bilateral meetings at which representatives of EU member states and a candidate country conduct accession negotiations, will be held at ministerial level in Luxembourg, where EU Councils traditionally convene during the month of June.

Cyprus Department of Meteorology – Forecast for the Sea Area of Cyprus (B)

FOR THE PERIOD FROM 1200 12/06/2026 UNTIL 1200 13/06/2026

Atmospheric pressure at the time of issue: 1011hPa (hectopascal)

Weak low pressure is affecting the area. The weather will be mainly fine, but locally increased low cloud coverage with local mist and/or fog patches are expected, mainly overnight and during dawn.

Visibility: Good, but moderate to poor in mist and very poor in fog

Sea surface temperature: 24°C

Warnings: NIL

US, Greece, Cyprus and Israel launch Eastern Mediterranean Energy Center

Cyprus Minister of Energy Michalis Damianos, US Energy Secretary Chris Wright, Greek Minister of Energy Stavros Papastavrou and Israeli General of the Ministry of Energy Yossi Dayan underlined on Thursday the strategic importance of the launch of the Eastern Mediterranean Energy Center, describing it as a “historic step” for energy security, regional cooperation and the strengthening of ties between the United States, Cyprus, Greece and Israel.

In statements in Houston where the four met, Damianos said that ‘the East Med Energy Centre was just a concept back in 2019,’ when the Eastern Mediterranean Security and Energy Partnership Act was adopted by the US Congress, adding that it was ‘an ambitious idea’ which developed over the years. ‘This day I feel privileged to be present for its historic launch,’ he said.

The Cypriot Minister thanked ‘all those who believed in the idea and work for this,’ describing the Center as ‘unusual and one of its kind,’ since it brings together ‘four allies to work together and seek to strengthen energy and security within our region.’

He said the Center was envisioned as ‘a platform to advance regional energy security, encourage technological cooperation and support the development of Eastern Mediterranean energy resources for the benefit of the region and its partners.’ Damianos also stressed that it would serve as ‘a platform that simultaneously combines research institutions and instruments of regional diplomacy amongst our countries.’

‘Today is a historic day,’ the Cypriot Minister said, noting that the initiative creates ‘the opportunity to bring together our universities, research institutions and private sector partners’ in order to promote ‘collaboration in energy innovation, offshore energy development, technology transfer and the analysis of emerging geopolitical energy challenges.’

Referring to the wider international environment, Damianos said that ‘during the challenging geopolitical times that we are living in, this Centre is an optimistic message for the future cooperation.’ He added that the Center is ‘opening new horizons and cooperation’ and expressed confidence that ‘it will promote the energy security and stability in the ISMET for us and for the generations to come.’

On his part, Wright described the launch as ‘a big day,’ saying that the Center brings together energy and the Eastern Mediterranean, ‘the birthplace of Western civilization,’ which he described as ‘an emerging energy powerhouse.’

‘That is President Trump’s view of the world,’ Wright said, adding that ‘we need to use commerce to suppress and surpass conflict.’ He noted that, while geopolitical tensions are often seen as ‘a zero sum’ situation, commerce is ‘entirely different’ because it is based on ‘voluntary exchange’.

Wright said that when countries ‘develop energy’ and build ‘energy distribution infrastructure,’ they ‘bring countries’ and ‘people together.’ He described the three founding nations as partners who ‘want to develop energy to bring better opportunities to their people,’ while also seeking to ‘bring those three nations together and all of their neighbours as well.’

‘These are generational investments,’ the US Secretary said.

Wright thanked ‘Minister Damianos and the whole delegation traveling from Cyprus,’ saying they came to Washington for meetings and then travelled to Houston. ‘They are partners in launching this thing,’ he said.

Referring to the broader purpose of the initiative, Wright said that Cyprus, Greece and Israel are ‘transforming their country,’ ‘the way they look at energy’ and ‘the energy future of their nations.’ He added that they are doing so ‘in a way to stitch their countries’ and eventually ‘to stitch a region together in commerce, not conflict.’

The US Secretary also said that President Trump is ‘all in on energy abundance,’ adding that he ‘wants more energy because that makes people’s lives better,’ creates ‘more opportunities for people today and their kids and their grandchildren,’ and serves as ‘a force to reduce conflict in the world today.’

Greek Minister of Energy called it ‘a landmark moment,’ saying that ‘the United States, Cyprus, Israel and Greece’ are ‘joining forces’ to deepen strategic cooperation and strengthen regional connectivity.

In his statements, Director General of the Israeli Ministry of Energy and Infrastructure Yossi Dayan said Israel ‘strongly supports this initiative’ and sees EMEC as ‘a strategic platform’ for energy security, technological innovation and regional resilience.

US Ambassador to Greece Kimberly Guilfoyle also described the launch of the center as ‘truly historic”, adding that Congress passed the Eastern Mediterranean Security and Energy Partnership Act in 2019 ‘to comprehensively recalibrate American policy towards the region’ and deepen ties between ‘the United States, Greece, Israel, and Cyprus.’

She said the launch ‘demonstrates the enduring commitment of the United States of America to this region,’ represents ‘tangible progress in the 3-plus-1 process,’ and shows a ‘clear, joint determination’ to turn the shared vision of regional energy cooperation ‘into a reality”.

The event highlighted the Center’s intended role as a platform linking governments, universities, research institutions, private sector partners and investors, with the aim of advancing energy innovation, regional connectivity and cooperation in the Eastern Mediterranean.

Cypriot Dep. Minister and Commissioner Brunner hail the EU migration pact

The recent EU agreement on migrations is a historic achievement and a milestone Deputy Minister of Migration and International Protection Dr. Nicholas A. Ioannides and European Commissioner for Internal Affairs and Migration Magnus Brunner said.

Speaking at a press conference on the morning sessions of the Informal Ministerial Conference on the Pact of Migration and Asylum held in Nicosia, under the Cyprus Presidency of the European Council, both Ioannides and Brunner pointed out that the implementation is crucial for the pact’s success.

Ioannides said consistent implementation across the Union, mutual trust, experience-sharing and close cooperation will be essential in the months and years ahead.

The Deputy Minister noted the legislative framework has been turned into ‘an operational system ready to be applied,’ but stressed that frameworks alone cannot deliver results.

Underlining Cyprus’s role as a frontline member state, the Deputy Minister said the presidency has prioritized a balanced, effective and humane European migration policy based on responsibility and solidarity, protection for those in genuine need, stronger cooperation with partners and practical support for member states under pressure.

He stressed that success would depend on capacity, coordination, political commitment and continued cooperation among member states, and thanked ministers, delegations, EU agencies, international organisations and partners for their contributions.

He also noted that the final working session of the conference on Friday afternoon will focus on the way forward for European asylum and migration policy and on ensuring the new framework remains credible, resilient and future-proof.

European Commissioner for Internal Affairs and Migration Magnus Brunner, in his remarks during the press conference, described the informal Council meeting under the Cyprus presidency as a “milestone” for European migration and asylum policy, while underlining that the pact’s success will depend on implementation, capacity and close international cooperation.

Brunner praised Cyprus’s six-month presidency for securing swift compromises – notably on the return regulation – and for preparing member states to apply the pact’s new rules.

He pointed out that for the first time we have ‘this comprehensive European approach towards migration and asylum. And 10 years ago…we did take a lot of responsibility as a European Union, but we didn’t have any rules, we didn’t have a system. And that’s why we didn’t have control at the end of today, what is going on in the European Union’.

‘And with this big migration reform, with the pact as a basis, as a centrepiece, actually, we now have the rules we didn’t have in the last year’.

Brunner added that the reform provides a comprehensive EU approach that the Union previously lacked and pointed to early indicators of progress: overall arrivals down 55% in recent years, a 90% drop on the Western Balkans route, and a 67% decline so far in 2026 on the Turkey-Aegean route.

The Commissioner said the EU has several partnerships with third countries outside the European Union in place, Egypt, Tunisia, Jordan, Mauritania. However, the EU needs to go further. «We need to work with Morocco, for instance, with other countries as well. And we are also developing quite an ambitious initiative to address the Eastern Corridor. This is the main corridor coming from Bangladesh, Pakistan via the Gulf countries towards Egypt, and then to Libya, and from Libya to the European Union, and reduce illegal arrivals because of that engagement».

He also referred to the agreement with India. ‘So, you see, our comprehensive approach on migration is actually taking shape’.

Answering questions on return hubs, Brunner stressed the Commission only created the legal basis; setting up hubs is voluntary and for member states to negotiate with third countries. He said the return regulation contains safeguards, agreements will be sent to the Commission for monitoring, and international organisations will play a role in oversight.

On which countries might host return hubs, Brunner said five member states – Austria, Germany, Greece, Denmark and the Netherlands – are working together on this. He could not refer to what incentives they provide, noting those are matters for the negotiating member states, while the Commission will monitor compliance and support implementation.

To a question if human rights will be respected, ‘human rights are non-negotiable,’ he said. At this point, Dr. Ioannides clarified that only rejected asylum seekers, individuals who have no right to remain in the EU, will be sent to return hubs. ‘We’re not talking about asylum seekers that their application is pending. So, we need to be careful, and I actually stress that, that only individuals who have no right to remain in the EU and are not cooperating with member states for their return will be sent there, just to be clear’.

Asked why human rights organisations, without exception, are criticising today’s decision, Dr. Ioannides said it is his understanding that these organisations disagree with the gist of this project, with the whole architecture.

‘So, it’s not a matter of lack of control or rules or regulations or safeguards. It’s about the fact that they disagree with the whole endeavour. However, he said the Commission and all are determined to set some rules in order to address this issue. The Cypriot Deputy Minister said ‘we created a comprehensive legal framework in order to be in a position to address any future crisis in a more collective, coherent and efficient manner. Of course, there might be some drawbacks. I mean, it’s the first day today’, adding they will identify problems that might arise in the coming weeks or months.

On his part, Brunner said if somebody says it undermines fundamental rights, “I would argue the contrary. With having clearer and more effective rules and clear rules, we are actually protecting, first of all, people…’ so that they do not actually put their life into danger coming via the Mediterranean Sea or the Atlantic route.

Also, with protecting the rule of law, for instance, reducing abuse of the rules and making sure that we offer protection to actually those in need. ‘But we can only do that if we fight the illegal migration path, which is the business of smugglers and the human traffickers. We can’t support that business model, not at all’.

Ioannides also answered questions on voluntary returns to Syria, saying Cyprus has organised a voluntary return scheme – with EU financial support and dignified arrangements – that has seen roughly 5,000 Syrians return since December 2024. He said changing circumstances in Syria, court rulings upholding rejections and falling asylum applications indicate that returns are increasingly feasible and genuinely voluntary.

‘We believe that it is a very dignified and a proper way for Syrians to go back to the country, especially having in mind that approximately a million and a half, more than a million Syrians have already returned to the country from many countries’, he added.

Cyprus Stock Exchange

The Cyprus Stock Exchange (CSE) All Share Index closed at today`s stock exchange meeting as follows:

MEETING DATE: 12/06/2026

INDICES BASE VALUES: FTSEMed=5000, OTHERS = 1000

EURO (pound )

TRADED VALUE 567,075.20

INDEX

VALUE

%DIFF.

VALUE

FTSE/CySE 20

180.570

1.390

526,549.630

MAIN MARKET INDEX

243.570

1.770

520,045.590

INVESTMENT COMPANIES MARKET INDEX

3,262.320

0.890

72,840.300

CSE GENERAL INDEX

302.460

1.850

565,394.390

HOTELS INDEX

1,967.090

3.350

640.700

ALTERNATIVE MARKET INDEX

1,974.400

1.430

45,348.800

Holguin meets President Christodoulides, says will be back in Cyprus in two weeks

UN Secretary-General Personal Envoy on Cyprus, María Ángela Holguín, said Friday after a meeting with President Nikos Christodoulides, at the Presidential Palace, she will be back in Cyprus in two weeks after contacts in Athens, Ankara and Brussels.

This is Holguín’s second meeting with President Christodoulides since her arrival in Cyprus last Sunday.

In statements to journalists after the around 40-minute meeting, Holguin said she had a ‘very good meeting’ with President Christodoulides and that they were preparing for a 5 plus 1 meeting on Cyprus.

She also said that next week, she will be in Ankara and then in Athens for contacts, and that in two weeks she will be in Brussels before returning to Cyprus.

Asked by a journalist whether she was satisfied with this round of meetings she said ‘yes’.

Earlier on Friday afternoon, at 3.00 pm, Holguín also met again with Turkish Cypriot leader Tufan Erhrman.

In statements after her meeting with Erhurman, which she also described as a ‘good meeting’ she said they were continuing efforts for ‘a good 5+1 meeting in the weeks to come’.

The meeting between Holguin and Erhurman lasted about an hour. The Turkish Cypriot leader made no statements.

Holguín’s meetings with the two leaders follow the initial one she held with them separately on Monday.

According to information, the Personal Envoy of the UN Secretary-General, who is expected to depart the island on Sunday, plans to visit Ankara on Monday and Tuesday and be in Athens between Wednesday and Friday for contacts.

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.

In 2025 the Secretary-General hosted two informal meetings on Cyprus, in March in Geneva and in July in New York, while a tripartite meeting with the Cyprus leaders was also held in late September, at the end of the UN General Assembly High Level Week. An informal meeting in broader format that was expected to take place before the end of 2025, is yet to be announced. María Angela Holguín, the UN Secretary-General’s Personal Envoy on Cyprus, is tasked to engage with the parties.