Category: Cyprus News Agency

The Republic of Cyprus recorded a 92% decrease in irregular arrivals and a 93% drop in new asylum applications in the first half of 2026 compared with the corresponding period of 2022, while the backlog of pending asylum applications has fallen by 41.5% since the establishment of the Deputy Ministry of Migration and International Protection, Deputy Minister of Migration and International Protection, Nicholas Ioannides said on Friday, presenting the results of the government’s migration policy for the first half of 2026 and a review of the Cyprus Presidency of the Council of the European Union.

Speaking at a press conference, the Deputy Minister said the government’s policy had shifted the country “from the passive management of arrivals to the decisive and strict management of migration flows,” based on providing protection only to those who are entitled to it, returning those who have no legal right to remain, and creating organised legal migration pathways.

Referring to pending asylum applications, he said they had fallen from 24,000 in June 2024, when the Deputy Ministry was established, to 14,000 at the end of June 2026, while by the end of July they had dropped below 13,500.

He made particular reference to applications by Syrian nationals, noting that new applications had declined by 96.8% compared with the first half of 2024. At the same time, nearly 2,000 applications had been rejected between the beginning of 2025 and the end of June 2026, while around 5,200 Syrians withdrew their applications or renounced their international protection status and voluntarily returned to Syria following the change of government in the country in December 2024.

The Deputy Minister called on Syrians residing in Cyprus who no longer meet the criteria for international protection to take advantage of the revised assisted voluntary return programme, which runs until October 30, 2026, stressing that those who have no legal right to remain should leave the country, otherwise forced return procedures will be implemented.

Cyprus Presidency review

Reviewing the Cyprus Presidency’s work in the field of migration, the Deputy Minister described the conclusion of negotiations on the European Union’s new Return Regulation as its most significant and politically demanding achievement.

He said the new Regulation establishes faster and more effective return procedures, strengthens member states’ tools for dealing with persons posing a threat to public order and national security, and creates the legal basis for the establishment of return hubs in third countries, in full compliance with international and European law.

He added that during the Cyprus Presidency, the first common European list of safe countries of origin and the revised concept of a safe third country were approved, while the EU Pact on Migration and Asylum entered into force on June 12.

The Deputy Minister said that the successful conclusion of negotiations on the Return Regulation and the launch of the implementation of the Pact from Nicosia demonstrate that Cyprus, despite its size, can play a meaningful role in shaping European migration policy.

The Central Bank of Cyprus (the ‘CBC’), introduces changes to the licensing process for Electronic Money Institutions and Payment Institutions, with effect from 3 August 2026, as part of the implementation of a comprehensive licensing and supervisory strategy.

The CBC noted in a press release on Friday that a new stage is introduced prior to the submission of a licensing application, namely the ‘pre-application exploratory stage’. At this stage, entities interested in obtaining a licence must submit specific information that the CBC considers important for the preliminary assessment of the interested entity. A non-refundable fee of pound 5,000 will be payable by interested companies in the pre-application exploratory stage.

As the CBC noted the objective of the pre-application exploratory stage is twofold: firstly, to enhance transparency and improve interested entities’ understanding of the licensing process, as well as the CBC’s requirements and expectations regarding the operation of Institutions; and secondly, to facilitate the early identification of any issues that may affect the subsequent assessment of a potential licensing application, particularly with regard to the criterion of good repute.

The CBC also noted that, inter alia and independently of the above, the following changes are also introduced to the overall licensing process: the fee for the submission of a licensing application for an Institution is increased from pound 5,000 to pound 10,000, the CBC may, where deemed necessary, require interested entities during the pre-application exploratory stage or applicants during the assessment of an application, to submit an enhanced due diligence report prepared by a firm with relevant expertise, and inactive applications will be deemed withdrawn after a predefined period of non-response to comments or requests issued by the CBC.

The new process will apply as of 3 August 2026. Interested entities intending to submit an application for licensing as an Institution are encouraged to consult the relevant sections of the CBC website for further details or contact the CBC by email at ~LicensingSection@centralbank.cy.

We will work in consultation with the two sides in Cyprus and the guarantor powers to create the conditions for the success of a new informal 5+1 meeting, the UN Secretary-General, Antonio Guterres, stressed on Friday.

Speaking during a press conference in New York and reflecting on his recent visit to Cyprus, the Secretary-General underlined that his visit ‘showed that in a rapidly changing and increasingly volatile region, the search for solutions is more urgent than ever.’

‘Based on our discussions on the way forward, I decided that I would convene another 5+1 meeting, after adequate preparations on confidence building, methodology and substance, taking into account the convergences already achieved.’

He also noted that ‘we will work in consultation with the two sides and the guarantors, to create the conditions for the meeting’s success.’

Responding to a question by the Cyprus News Agency on what would constitute meaningful and adequate preparation for the proposed meeting, the Secretary-General noted that ‘I mean exactly that. We had several meetings at the 5+1 that were not able to reach conclusions because they had not been well prepared. This time, we need to prepare well the next meeting in order to make sure that it leads to the solution,’ he noted.

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.

UN Secretary-General Antonio Guterres, whose term nears its end, announced he would convene another meeting in broader format, after adequate preparation, but gave no timeline. He secured to that end the consensus of both sides and of the guarantor powers. María Angela Holguín, Guterres’ Personal Envoy on Cyprus, is tasked to engage with the parties. Executive Vice-President Raffaele Fitto acts as the European Commission’s Special Representative for Cyprus, succeeding EU special envoy Johannes Hahn.

Cypriot judoka Petros Christodoulides won the bronze medal in the -66kg judo category on Friday, at the 23rd Commonwealth Games held in Glasgow.

According to the Cyprus Olympic Committee, the Cypriot judoka, who ranks 26th in the world, went into the semi-finals on the back of two victories, where he lost in an all-Cypriot clash to Georgios Balarjishvili, but went on to win the bronze medal match against the Australian Middleton, who ranks 30th in the world.

Great result for Sofia Asvesta, who reached the final of the 52kg category, where she lost on points to the Canadian Beaton (1-0), winning the silver medal.

Furthermore, Filippa Fotopoulou will compete during Saturday’s long jump final, having recorded the seventh-best performance with a best jump of 6.56m.

Commission starts enforcing AI Act rules and new transparency requirements on 2 August

From 2 August 2026, the European Commission’s AI Office, together with national authorities, will begin enforcing the Artificial Intelligence (AI) Act. On the same date, new transparency rules will start to apply, requiring certain AI systems to tell users when they are interacting with AI and when content has been generated or altered by it.

Under the new rules, chatbots and other interactive AI systems will have to tell users they are dealing with AI, not a human. Deepfakes (images, videos, or audio that have been edited or generated using AI) will have to be labelled. AI-generated or altered content will also have to carry machine-readable marks so it can be detected more easily.

The measures are intended to reduce deception and manipulation and help people make informed choices. They also give businesses clearer obligations and a practical way to show compliance. The Commission published today a first list of more than 180 organisations that have signed the Code of Practice on transparency of AI-generated content that operationalises the rules on transparency of AI-generated content.

As AI grows increasingly capable and integrated into everyday life, the AI Act helps ensure that AI is developed, deployed, and used safely, giving people and businesses across the EU greater confidence in the technology.

More information is available in our press release.

(For more information: Thomas Regnier – Tel. + 32 2 299 10 99; Nika Blazevic – Tel. + 32 2 299 27 17)

EU adopted support measures for farmers facing fertiliser crisis

Today, the European Commission adopted measures to help farmers facing sharply rising fertiliser costs and to support Europe’s food security. In recent months, geopolitical tensions and supply disruptions have pushed prices of fertilisers up across Europe. Targeted adjustments to the Common Agricultural Policy (CAP) will enable Member States to provide farmers with faster and more flexible support to access fertilisers.

These measures include three main elements. Firstly, a new liquidity scheme under rural development for crisis support, which can be co-financed up to 65% from the European Agricultural Fund for Rural Development (EAFRD). It can include unused funds that may otherwise be lost and Member States may add national financing of up to 200%. To ensure rapid delivery and minimise administrative burdens, support can be paid as a fixed amount per hectare and implemented through the CAP Strategic Plans. Secondly, Member States will have the possibility to provide advanced direct payments to farmers before 16 October with an increased rate of advances, helping them to improve cash flow. Finally, Member States will have further flexibility in addressing the impact of the high fertiliser prices, by adjusting their allocations for direct payments for calendar year 2027.

These measures complement the exceptional financial support package of pound 540 million announced in the Fertilisers Action Plan and adopted on 27 July. The Commission will continue to deliver on the Plan to reduce farmers’ exposure to future crises and, through these actions, strengthen EU food security, strategic autonomy and competitiveness.

(For more information: Louise Bogey – Tel.: +32 2 296 97 76; Katerina Horáková – Tel.: +32 2 299 93 10)

New rights making it easier to repair goods are now applicable

The Right to Repair Directive, which entered into force in July 2024, encourages sustainable consumption by making it easier to repair products instead of replacing them. As of today, the Directive becomes applicable. The Directive will help consumers save money, reduce waste, extend the lifecycle of their products, and reduce greenhouse gas emissions.

Under the Directive, consumers can request that their broken products be repaired such as smartphones, washing machines, or refrigerators, even if the legal guarantee has expired.

Manufacturers will have to offer these repairs at a reasonable price and within a reasonable timeframe. They must also provide clear information on their websites about their repair services and indicative prices. They will not be allowed to refuse repair or use practices that prevent it or deter consumers from availing of it. They will also need to make spare parts accessible and affordable.

Henna Virkkunen, Executive Vice-President for Tech Sovereignty, Security and Democracy, said: ‘Europe should not become a continent that throws technology away. The future is smart, repairable, and circular. By making repair easier, we support innovation, strengthen European industry and reduce our dependence on imported raw materials.’

Michael McGrath, Commissioner for Democracy, Justice, the Rule of Law and Consumer Protection, said: ‘Choosing to repair a product rather than replace it means choosing affordability, circularity, and competitiveness. The Right to Repair Directive delivers on all three. Its full application across the EU will make a real difference for consumers, the environment, and small businesses, while helping us deliver on our ambition for a clean, competitive European economy.”

Member States have to encourage repairs, for example through vouchers or repair funds. The Commission is also currently developing a new European online repair platform, for consumers to easily find repair services near them.

More information is available online.

(For more information: Guillaume Mercier – Tel.: +32 2 298 05 64; Antoine Lomba – Tel.: +32 2 299 32 33)

Belgium, Bulgaria, Denmark, and Slovenia receive more than 1.86 billion under NextGenerationEU

The European Commission has disbursed today more than pound 1.86 billion to Belgium, Bulgaria, Denmark, and Slovenia under the Recovery and Resilience Facility (RRF), the centrepiece of NextGenerationEU.

These payments reflect the successful fulfilment of key milestones and targets linked to reforms and investments set out in the four Member States’ national recovery and resilience plans. They underscore the performance-based nature of the RRF, under which funds are disbursed only once agreed reform and investment commitments have been satisfactorily completed.

The Commission disbursed pound 567 million to Belgium, pound 896 million to Bulgaria, pound 359 million to Denmark – marking the completion of all disbursements under its national recovery and resilience plan – and pound 41 million to Slovenia, following the latest pay requests of each country and the respective fulfilment of the necessary milestones and targets under their national recovery and resilience plans.

With a view to the closure of the Facility at the end of 2026, Member States must implement all outstanding milestones and targets by August 2026 and submit their last payment requests by the end of September 2026.

A press release with more details is available online.

(For further information: Maciej Berestecki – Tel.: +32 2 296 64 83; Anna Wartberger – Tel.: +32 2 298 20 54)

Commission sends Statement of Grounds to Temu over possible obstruction of inspection under the Foreign Subsidies Regulation

The European Commission has sent a Statement of Grounds to Temu’s owner PDD Holdings Inc. (‘PDD’) and its subsidiary WhaleCo Technology Limited (‘Whaleco’), outlining concerns that they may have obstructed an inspection at WhaleCo’s premises in Ireland.

The Statement of Grounds follows an unannounced inspection under the Foreign Subsidies Regulation (‘FSR’), carried out between 2 and 5 December 2025. The Commission conducted the inspections following indications that Temu may have received foreign subsidies that distort the internal market. The aim of the inspection was to gather evidence in support of its investigation into potentially distortive foreign subsidies granted to Temu.

In particular, the Commission preliminarily considers that Temu failed to comply with several basic requests made by the Commission in the exercise of its investigative powers under the FSR. Among other things, those requests concerned the provision of information on the organisation and management of Temu’s activities in the EU and the IT tools and systems used by the company for its activities in the EU, as well as to the provision of specific books and records on the company’s activities in the EU. Such requests are customary in a competition investigation and are typically made at the early stages of the inspection. Not providing the information prevented the Commission from reviewing sources of information that could be relevant for its investigation.

A press release is available online.

(For more information: Siobhan McGarry- Tel.: +32 2 296 47 98; Paula Clara Ritter-Moschtz – Tel.: +32 2 296 40 83)

Commission approves pound 290 million Dutch State aid to support sustainable aviation fuels

The European Commission has approved, under EU State aid rules, two Dutch schemes with a combined budget of pound 290 million to support sustainable aviation fuels (‘SAF’). The schemes will contribute to the objectives of the Clean Industrial Deal to accelerate the decarbonisation of EU industry, as well as of the ReFuelEU Aviation Regulation to boost the supply and demand of SAF and accelerate the transition to climate-neutral aviation.

The schemes will provide support to two promising technology pathways: advanced bio-SAF not produced through the Hydroprocessed Esters and Fatty Acids process (‘non-HEFA advanced bio-SAF’), and synthetic aviation fuels (‘e-SAF’). The Netherlands believes that supporting these two types of SAF now will assist their commercial development, fostering technological diversity in the future.

Under the schemes, the aid will take the form of direct grants payable upon the completion of project milestones. The schemes will cover the period from 2027 until 2031 at the latest.

The Commission assessed the schemes under EU State aid rules, in particular Article 107(3)(c) of the Treaty on the Functioning of the European Union, which enables Member States to support the development of certain economic activities under certain conditions, the 2022 Guidelines on State aid for climate, environmental protection and energy, and the 2025 Clean Industrial Deal State aid Framework.

In particular, the Commission found that the schemes are necessary and appropriate to facilitate the production of SAF, have an incentive effect and limited impact on competition and trade. The aid will also bring about positive effects and proportionality will be ensured

A press release is available online.

(For more information: Siobhan McGarry- Tel.: +32 2 296 47 98; Paula Clara Ritter-Moschtz – Tel.: +32 2 296 40 83)

Commission approves pound 59 million Slovenian State aid scheme to promote battery energy storage systems

The European Commission has approved a pound 59 million Slovenian State aid scheme to promote battery energy storage systems, in line with the objectives of the Clean Industrial Deal. This measure will contribute to the transition towards a net-zero economy. The scheme was approved under the Clean Industrial Deal State Aid Framework (CISAF) adopted by the Commission on 25 June 2025.

The scheme will be financed by the Just Transition Fund and the ETS Modernisation Fund. Under the scheme, the aid will be granted before 31 December 2030 and it will take the form of direct grants for the construction of new stand-alone battery electricity storage systems. The aid amount will be set by Slovenia based on the investment costs of each project.

The Commission concluded that the Slovenian scheme is necessary, appropriate and proportionate to accelerate the transition towards a net-zero economy and facilitate the development of certain economic activities, which are of importance for the implementation of the Clean Industrial Deal. This is in line with Article 107(3)(c) of the Treaty on the Functioning of the EU and the conditions set out in the CISAF.

Executive Vice-President for a Clean, Just and Competitive Transition, Teresa Ribera, said: ‘With this pound 59 million scheme, Slovenia is accelerating the deployment of storage technologies. More storage capacity will enable better integration of the renewable energy sources in the power system and help ensure security of electricity supply for Slovenians.”

A press release is available online.

(For more information: Siobhan McGarry- Tel.: +32 2 296 47 98; Paula Clara Ritter-Moschtz – Tel.: +32 2 296 40 83)

Commission approves amendment of Spanish State aid scheme to support energy-intensive companies

The European Commission has approved, under EU State aid rules, the amendment of a Spanish support scheme for energy-intensive companies in the form of electricity levy reductions.

The scheme was originally approved by the Commission in March 2023. Under the scheme, the aid is granted in the form of reductions of certain electricity consumption levies for energy-intensive companies. The objective of the scheme is to mitigate the risk that, due to these levies, energy-intensive companies may relocate their activities to locations outside the EU with less ambitious climate policies.

Spain notified the Commission of its intention to extend the scope of the scheme to include a reduction in the contribution for energy-intensive companies that arises from the National System of Energy Efficiency Obligations, which aims to achieve Spain’s energy efficiency targets. The amendment leads to a budget increase of pound 50 million over the duration of the scheme, bringing the total budget of the scheme to pound 446 million.

The Commission assessed the amended scheme under EU State aid rules, in particular Article 107(3)(c) of the Treaty on the Functioning of the EU, which enables Member States to support economic activities under certain conditions, and the 2022 Guidelines on State aid for climate, environmental protection and energy (‘CEEAG’), which allow Member States to grant aid in the form of reductions from electricity levies for energy-intensive users.

The Commission found that the amended scheme facilitates the development of economic activities that rely heavily on electricity and are particularly exposed to international competition. In addition, the scheme remains necessary and appropriate to contribute to achieving the Clean Industrial Deal objectives. Moreover, the scheme continues to be proportionate, as the individual aid amounts comply with the CEEAG conditions and the scheme is limited to sectors listed in the CEEAG. The Commission also concluded that the positive effects of the scheme outweigh any possible negative effects on competition and trade in the EU. On this basis, the Commission approved the amendment under EU State aid rules.

The non-confidential version of the decision will be made available under the number SA.123095 in the State aid register on the Commission’s competition website once any confidentiality issues have been resolved.

The legacy of Cyprus’ Presidency of the Council of the European Union and the importance of preserving the expertise, institutional structures, relationships of trust and strong political coordination developed during the six-month term are highlighted by outgoing Deputy Minister for European Affairs Marilena Raouna in a written statement issued upon the completion of her tenure on Friday.

She said the Report on Activities submitted Friday to the President of the Republic reflects the legacy of the Cypriot Presidency and aims to ensure the long-term strengthening of Cyprus’ effective participation in the European Union’s decision-making processes.

According to the statement, the report covers the period from 17 January 2024 to 31 July 2026, the date on which her term in office ended, and documents the work carried out from the beginning of the preparations through to the completion of Cyprus’ Presidency, at both the organisational and administrative as well as the political level. Among other things, it outlines the institutional preparations and coordination of the Presidency, the development of its programme and strategic priorities, the political representation of the Republic of Cyprus within the EU institutions, contacts with member states, candidate countries and third countries, as well as the management of key European policy files, legislative negotiations and the main results achieved during the Presidency.

Raouna described the preparation and conduct of the Cyprus Presidency as “a national mission of particular institutional and political importance” and says that, under the leadership of President Nikos Christodoulides, efforts were focused on achieving tangible results and strengthening Cyprus’ role and footprint within the European Union.

Marking the end of her term, she expressed her gratitude for the opportunity to serve as Deputy Minister for European Affairs and thanks the President, members of the Council of Ministers, the Secretariat of the Cyprus Presidency, ministries, government departments, the Permanent Representation of Cyprus to the EU and all those who contributed to the successful completion of the Presidency.

The European Union wants to play a meaningful role in the UN-led process on the Cyprus issue and believes there is an opportunity to achieve significant progress in the coming months, the EU’s newly appointed Special Representative for Cyprus, Raffaele Fitto, said on Friday after meeting with President Nikos Christodoulides, at the Presidential Palace, in Nicosia. It is the first time the Executive Vice President of the European Commission pays a visit to Cyprus after he was designated Special Representative for Cyprus.

Cyprus Foreign Minister Constantinos Kombos, who attended the meeting, described it as “very important and constructive” and reiterated Nicosia’s long-standing position that the EU has a key role to play in efforts to advance the Cyprus settlement process.

Speaking after the meeting, Fitto described his appointment as significant while stressing that it also carries an important political message from the European Union.

“The European Union is sending a very clear message, that it wishes to play an important role in the UN process on the Cyprus issue,” he said.

According to Fitto, the EU wants “to work and participate with a very important role in the United Nations process” because “it is very important for us to contribute positively to the process.”

He also said that one of the main purposes of his first visit to Cyprus was to hear directly the positions of the parties involved before shaping the next phase of his engagement.

“It is very important for me to listen to the positions,” he said, adding that he plans to return to Cyprus in the coming months to continue his contacts.

The EU official also expressed optimism about the prospects for progress, saying he believes “there will be an opportunity to achieve very important results in the coming months.”

In his statements after the meeting, Foreign Minister Constantinos Kombos said the meeting between President Christodoulides and Fitto focused both on the envoy’s immediate priorities and on the broader framework for future contacts.

“It was a very important and constructive meeting,” Kombos said, noting that discussions covered “the next steps both at the practical level and regarding how we move forward in relation to the various contacts he will have with all those involved.”

The Foreign Minister said the government evaluates Fitto’s visit as very positive, emphasizing that the timing is particularly important.

“The timing is also very important,” he said, noting that it comes only a few days after the visit to Cyprus by United Nations Secretary-General António Guterres.

Kombos reiterated that the Republic of Cyprus has consistently argued that the European Union should play a more active role in efforts to advance the Cyprus issue.

“Our position from the outset has been that the European Union has an important role to play in achieving progress on the Cyprus issue,” he said.

He added that EU-Turkey relations “are an issue that can serve as leverage with regard to Turkey,” stressing that Nicosia remains “a steadfast supporter of this effort, both within the European Union and at the level of the United Nations.”

Referring to Fitto’s immediate programme, Kombos said Cyprus would await the outcome of the envoy’s first meeting with Turkish Cypriot leader Tufan Erhurman later on Friday, while maintaining close coordination with the European Union.

“We will always remain in contact with the European Union, considering that it has a very important and useful role to play,” he said.

Asked whether Fitto also intends to visit Turkey, Kombos said the envoy is currently organizing his next steps.

“He is planning his next moves,” the Foreign Minister said, adding that “a Vice-President of the European Commission already has established channels of contact with Turkey that have existed for quite some time.”

According to Kombos, this is “another reason why the appointment of this particular Commissioner carries particular weight.”

He urged for patience while the European Union completes its internal planning, but expressed hope that very soon contacts will produce positive results.

Asked whether there is sufficient time to make meaningful progress before the end of the current UN Secretary-General’s term, Kombos acknowledged that the timeline is an important consideration.

“That factor does exist,” he said. “However, at the same time there is the political will expressed both by the Secretary-General and by the European Union, together with some very important initiatives that may take place and could produce a positive outcome.”

He said ideas and proposals are already under discussion, while additional proposals are expected on ways “to accelerate some of these issues in terms of timing,” taking into account the approaching end of the Secretary-General’s mandate.

“There is a possibility of achieving progress. We are working to create the conditions necessary for that progress,” Kombos said.

At the same time, he underlined that “to a very large extent, the answer to all these questions lies with Turkey.”

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.

UN Secretary-General Antonio Guterres, whose term nears its end, announced he would convene another meeting in broader format, after adequate preparation, but gave no timeline. He secured to that end the consensus of both sides and of the guarantor powers. María Angela Holguín, Guterres’ Personal Envoy on Cyprus, is tasked to engage with the parties. Executive Vice-President Raffaele Fitto acts as the European Commission’s Special Representative for Cyprus, succeeding EU special envoy Johannes Hahn.

Hungary’s MOL Group has signed an agreement with Shell to acquire BG Cyprus Ltd., Shell’s wholly owned subsidiary that holds a 35% non-operated interest in Cyprus’ offshore Block 12, which contains the Aphrodite natural gas field, the company announced on Friday.

The acquisition marks MOL Group’s entry into Cyprus’ upstream energy sector and, according to the company, represents its largest exploration and production growth opportunity since acquiring a 9.57% stake in Azerbaijan’s Azeri-Chirag-Gunashli (ACG) oil field in 2019.

The Aphrodite field, discovered in 2011 in the eastern Mediterranean, is estimated to contain around 104 billion cubic metres (bcm) of contingent natural gas resources and 8 million barrels of condensate.

Following the transaction, MOL Group will join the Aphrodite consortium alongside Chevron, the operator with a 35% stake, and Israel’s NewMed Energy, which holds 30%.

According to the company, the development plan includes drilling four wells and installing a standalone floating production facility in the eastern Mediterranean. The project also includes the construction of a 250-kilometre subsea pipeline connecting the field to Egypt’s gas transmission network.

A final investment decision is expected in 2027, with first gas production targeted for 2031.

MOL Group said the total consideration for the acquisition could reach up to USD 720 million, subject to closing adjustments and contingent payments linked to key project milestones.

MOL Group Chairman and Chief Executive Officer Zsolt Hernádi said the acquisition strengthens the company’s international exploration and production portfolio while expanding its presence within the European Union.

The transaction is expected to close in early 2027, subject to regulatory approvals and customary closing conditions.

The Meteorological Department issued a yellow warning on Friday for extreme maximum temperatures on Saturday 1 August.

According to the warning, temperatures are expected to reach 41 degrees Celsius in inland areas and 32 degrees in the higher mountain regions.

The warning will be in effect between 1400 and 1630 local time on Saturday.

The recent monetary policy cycle of the European Central Bank (ECB) has significantly altered the composition of bank lending in Cyprus, with longer-term fixed-rate loans becoming the dominant form of new lending, particularly in the housing market, according to a new economic bulletin published by the Central Bank of Cyprus (CBC).

The CBC noted that the ECB’s monetary tightening cycle between July 2022 and September 2023, followed by policy easing from June 2024 to June 2025, was accompanied by a marked shift towards loans with an initial fixed-interest period of more than one year. Together with increased lending secured by deposits, this development contributed to lower lending rates, a convergence of financing conditions with the euro area, and a narrowing of the gap between lending and deposit rates.

According to the analysis, the most significant change was recorded in new housing loans. Until 2022, the overwhelming majority of new mortgages carried variable interest rates or fixed rates with an initial fixation period of up to one year. Since then, however, loans with fixed interest rates for one to five years have become the prevailing option. A similar, though less pronounced, trend was observed in new business lending, while the share of loans with fixed rates exceeding five years also increased gradually.

The CBC attributed this shift both to stronger demand from borrowers seeking greater predictability in debt-servicing costs during a period of elevated interest rates and to banks expanding their range of competitively priced fixed-rate products. At the same time, it noted that the change has reduced the exposure of new borrowers to interest-rate fluctuations, while transferring part of the interest-rate risk to credit institutions.

The bulletin also pointed to a substantial convergence of financing conditions in Cyprus with those prevailing in the euro area. Since May 2025, interest rates on new housing loans in Cyprus have remained below the euro area’s median level. In business lending, the gap has also narrowed considerably, although lending rates remain somewhat higher than the euro area median due to the specific characteristics of corporate financing.

Meanwhile, the spread between lending and deposit rates has narrowed significantly. For households, the difference compared with the euro area median declined from 2.3 percentage points in October 2023 to 0.4 percentage points in April 2026. For non-financial corporations, the gap narrowed from 2.5 to 0.8 percentage points over the same period.

According to the CBC, the remaining differences largely reflect the slower adjustment of deposit rates in Cyprus, owing to the banking sector’s high excess liquidity, stable deposit base and the structural characteristics of the domestic banking system.

The Central Bank noted that the growing use of longer-term fixed-rate loans makes the transmission of ECB interest-rate changes to the cost of financing in the economy more gradual. As a result, it said, the composition of new lending has become an important factor in understanding the transmission mechanism of monetary policy in Cyprus.