Category: Cyprus News Agency

CYPRUS DEPARTMENT OF METEOROLOGY

FORECAST FOR THE SEA AREA OF CYPRUS (C)

FOR THE PERIOD FROM 1800 23/12/2025 UNTIL 1800 24/12/2025

Area covered is 8 kilometers seawards.

Winds are in BEAUFORT scale. Times are local times.

Atmospheric pressure at the time of issue: 1014hPa (hectopascal)

Weak low pressure is affecting the area. The weather will be at times mainly cloudy and local showers, with risk of isolated thunderstorms, are expected.

Visibility: Good, but moderate to poor in showers

Sea surface temperature: 21°C

Warnings: NIL

AREA

PERIOD

WIND

STATE OF SEA

West Coast

Night

Northeast 3

Smooth to Slight

Morning

Northeast to East 3, gradually East to Southeast

Smooth to Slight

Afternoon

Southeast to South 3, locally 3 to 4

Smooth to Slight

South Coast

Night

Northwest to Northeast 3

Smooth to Slight

Morning

Northeast to East 3

Smooth to Slight

Afternoon

East to Southeast 3, locally 3 to 4

Smooth to Slight

East Coast

Night

Northwest to Northeast 3 to 4, later 3

Slight, later Smooth to Slight

Morning

East 3

Smooth to Slight

Afternoon

East 3, at times locally 3 to 4

Smooth to Slight

North Coast

Night

Northeast to Southeast 3 to 4, later East to Southeast 3

Slight, later Smooth to Slight

Morning

Northeast to East 3

Smooth to Slight

Afternoon

Northeast to East 3, locally 3 to 4

Smooth to Slight

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

MEETING DATE: 23/12/2025

INDICES BASE VALUES: FTSEMed=5000, OTHERS = 1000

EURO (pound )

TRADED VALUE 750,615.45

INDEX

VALUE

%DIFF.

VALUE

FTSE/CySE 20

167.160

-0.290

617,365.520

MAIN MARKET INDEX

221.020

-0.790

582,328.990

INVESTMENT COMPANIES MARKET INDEX

3,017.970

-0.940

82,566.060

CSE GENERAL INDEX

275.580

-0.300

617,927.480

HOTELS INDEX

2,136.730

3.260

2,060.000

ALTERNATIVE MARKET INDEX

1,876.690

0.380

105,688.490

* The second column presents the percentage variation of the indices as compared to the last meeting.

The need to resolve outstanding issues regarding the management of the Aphrodite-Ishai gas fields, the possibility of launching the construction of the Cyprus-Israel leg of the Great Sea Interconnector (GSI) project, as well as Turkey’s actions in the region were discussed by the President of the Republic, Nikos Christodoulides, and Israeli Prime Minister, Benjamin Netanyahu, during their bilateral meeting on Monday in Jerusalem, the Cyprus News Agency has learnt.

The purchase of military equipment from Israel and joint ventures between Israeli and Cypriot companies to obtain funds from the SAFE EU programme, were also discussed.

Nicosia assesses as very important the bilateral meeting between President Christodoulides and the Israeli Prime Minister, according to CNA information. The meeting took place before the Cyprus-Greece-Israel Trilateral Summit in Jerusalem.

According to sources, during the meeting, pending issues regarding the management of the Aphrodite-Ishai gas fields were discussed while the intention was expressed to resolve the issue by the end of January. The Republic of Cyprus sent its final comment last week, it was noted.

There was also extensive discussion on the GSI project, with the same sources not ruling out starting the project from the Cyprus-Israel leg, which is smaller, comparing with the Cyprus-Greece leg. Therefore, it is considered that it will take less time and money, according to the same sources.

In this context, the Israeli Prime Minister will discuss this issue with the US President, Donald Trump, during his visit to the White House on December 29, and the interconnection of this project with the India-Middle East-Europe Economic Corridor (IMEC), and specifically with the creation of the Cyprus-Israel-Jordan-Saudi Arabia-India network.

President Christodoulides also suggested Lebanon’s inclusion in the network, the same sources said.

The two leaders discussed about Lebanon, Syria and Iran at length, with the same sources noting that the Israeli Prime Minister expressed concern and strong dissatisfaction with Turkey’s actions and involvement in the region, including through its support for groups such as the Muslim Brotherhood, something that, other countries in the region too, such as Egypt, Jordan and Lebanon are not happy with, and consider dangerous.

Netanyahu’s reference during the three leaders’ joint statements after the Trilateral Summit ‘to those who imagine they can restore their empires and dominate our countries again’, concerned Turkey, the same sources noted. They said that this is the reading of both Nicosia and Egypt, since Turkey tried to derail the agreement of the Republic of Cyprus with Lebanon on the delimitation of their Exclusive Economic Zones through Hezbollah, while it is trying to control Syria.

During the meeting, the possibility of purchasing three types of military equipment, systems that are very important for the National Guard, was also discussed, the sources said.

There was also discussion of joint exercises between Cyprus and Israel and the possibility of Israeli companies forming joint ventures with Cypriot companies to access EU funds under the SAFE programme.

According to the same sources, the Israeli Prime Minister requested assistance from the Cyprus EU Presidency to change Israel’s image in Europe.

He also expressed Israel’s desire to participate in the EU firefighting center that will be based in Cyprus, the sources said.

‘The timing of the Trilateral Summit is crucial for the Republic of Cyprus’

The timing of the Cyprus-Greece-Israel Trilateral Summit is crucial for the Republic of Cyprus, as it takes place a few days before the Cyprus Presidency of the Council of the EU, while it coincides with intense political activity in foreign policy, in the Eastern Mediterranean and Gulf region, sources told CNA.

For the Republic of Cyprus, the Summit underlines its role as a reliable partner, as a pillar of security, while, in view of its the Presidency of the Council of the EU, as a member state that can effectively link the Eastern Mediterranean with European political priorities in energy, interconnectivity, security and resilience, they said.

Noting that this was the first Summit at the level of leaders since the 9th Trilateral in Nicosia a few weeks before the terrorist attacks of October 7, 2023, and the broader regional escalation that followed, the sources said that within these two years, the need is more evident for an Eastern Mediterranean with more stable rules of security, interconnectivity and political understanding, and the Republic of Cyprus functioning as a reliable pillar and European gateway in the region.

The main political objective of the Summit was to reaffirm the strategic framework of the scheme, which extends and covers topics such as energy, economy, defence, cybersecurity, maritime security, civil protection and crisis management, it was noted.

The same sources also said that the prospect of reviving and upgrading the 3+1 cooperation format – among the three countries and the US – is emerging.

In the energy sector and more broadly in the field of infrastructure and interconnectivity, the Summit provided an opportunity for political impetus for electrical interconnection and digital connectivity projects, such as the GSI and submarine telecommunications cables, as well as for synergies that are aligned with the IMEC, they said. The same sources noted that significant momentum is being created by the signing of the Cyprus-Lebanon EEZ Delimitation Agreement on November 26, 2025, a development that, as noted, strengthens regional energy security, supports regional stability and creates conditions for next steps in cross-border arrangements and energy planning.

Regarding Gaza, it was noted that Cyprus is promoting its comparative advantage as a secure European hub, with capabilities in logistics, port services, transportation, storage, and special training, including the utilisation of structures such as CYCLOPS in Larnaka, Cyprus, in synergy with other European states and international organizations. In this context, the ‘Amalthea’ humanitarian corridor is recorded as an operational example of predictability and effectiveness, with recent missions and total quantities that have reached 30,000 tons of humanitarian aid since the activation of the plan, the same sources said.

It was also noted that decisions with implementation horizon within 2026 aimed at strengthening resilience, preparedness and a common operational culture, such as the creation of the Maritime Cybersecurity Center of Excellence in Cyprus, the establishment of working groups for Emergency Preparedness, and for health issues, and a joint exercise within 2026 to address maritime pollution incidents, among other things, strengthen the essence of the scheme and offer substance to areas of direct public interest, from cybersecurity to civil protection and the protection of the marine environment.

CYPRUS DEPARTMENT OF METEOROLOGY

FORECAST FOR THE SEA AREA OF CYPRUS (C)

FOR THE PERIOD FROM 1800 22/12/2025 UNTIL 1800 23/12/2025

Area covered is 8 kilometers seawards.

Winds are in BEAUFORT scale. Times are local times.

Atmospheric pressure at the time of issue: 1014hPa (hectopascal)

Low pressure is affecting the area. Tonight and tomorrow, the weather will be mainly cloudy while local showers and isolated thunderstorms are expected, initially over the west, the northwest and the south and gradually also over the other areas.

Visibility: Good, but moderate to poor in showers

Sea surface temperature: 21°C

Warnings: NIL

AREA

PERIOD

WIND

STATE OF SEA

West Coast

Night

Northeast to Southeast 3 to 4

Slight

Morning

East to Southeast 3 to 4

Smooth to Slight

Afternoon

Southeast to Southwest 3, locally Variable

Smooth to Slight

South Coast

Night

North to Northeast 3 to 4, locally 4

Slight

Morning

North to Northeast 3 to 4, gradually locally 4

Smooth to Slight

Afternoon

Northeast to Southeast 3 to 4, at times locally 4

Slight

East Coast

Night

Northeast to East 3 to 4

Slight

Morning

Northeast to East 3 to 4, gradually locally 4

Slight

Afternoon

Northeast to East 4, at times locally 4

Slight

North Coast

Night

Northeast to Southeast 3 to 4, offshore 4 to 5

Slight, offshore Slight to Moderate

Morning

Northeast to Southeast 3 to 4, offshore Northeast to East 4 to 5

Slight, offshore Slight to Moderate

Afternoon

Northeast to Southeast 3 to 4, offshore East to Southeast 4 to 5

Slight, offshore Slight to Moderate

The Central Bank of Cyprus, based on its annual reassessment of the designation of credit institutions that meet the definition of O-SII institutions for 2025, designated Bank of Cyprus Public Company Ltd, Eurobank Limited (previous name: Hellenic Bank Public Company Ltd), and ?lpha Bank Cyprus Ltd as Other Systemically Important Institutions (O-SII institutions) and set the level of the O-SII capital buffer that they must maintain as a result of their systemic importance.

A press release by the CBC says that notably, the increase in the systemic importance of the above credit institutions-either through organic growth or through mergers and acquisitions-led to an increase in the level of the O-SII capital buffer for each institution designated as an O-SII. By raising the O-SII buffer rate, part of these credit institutions’ profitability is channelled towards strengthening their resilience, thereby compensating for the higher risk they pose to the country’s financial system and the potential consequences that their failure could entail.

It is noted that the CBC, within the scope of its responsibilities as the national macroprudential authority, continuously monitors developments in the financial system in order to identify and assess potential systemic risks. At the current juncture, and in addition to the known risks, the CBC places particular emphasis on the monitoring and assessment of geopolitical risk, country risk and concentration risk, it says.

If deemed necessary, the CBC may activate the additional macroprudential tools it has at its disposal, with a view to limiting the build-up of systemic risks and further strengthening the resilience of the financial sector, it notes.

More specifically, the CBC says that in accordance with its policy for the designation of credit institutions that meet the definition of Other Systemically Important Institutions (O-SII) and the methodology for the determination of the O-SII buffer requirement, concluded on 21 November 2025 its annual reassessment of the designation of credit institutions that meet the definition of O-SII institutions for 2025.

In accordance with the CBC’s reassessment, three credit institutions have been designated as O-SII institutions.

Bank of Cyprus Public Company Ltd, Total O-SII score (Basis Points, the total score of the Cyprus credit institutions sector is 10,000 basis points) 4,068, O-SII buffer requirement applicable as of 1 January 2026, 2.25%, O-SII buffer requirement applicable as of 1 January 2025, 1.9375%, Eurobank Limited (Previous name: Hellenic Bank Public Company Ltd) Total O-SII score (Basis Points) 3,938, O-SII buffer requirement applicable as of 1 January 2026, 2%, O-SII buffer requirement applicable as of 1 January 2025, 1.50%, and ?lpha Bank Cyprus Ltd, Total O-SII score (Basis Points), 1,023, O-SII buffer requirement applicable as of 1 January 2026, 0.50%, O-SII buffer requirement applicable as of 1 January 2025, 0.25%.

On Monday, the leaders of Cyprus, Greece, and Israel expressed their determination to continue and deepen cooperation despite geopolitical challenges, following the Trilateral Summit between the three countries, which took place in Jerusalem.

They also expressed their determination to promote the Great Sea Interconnector (GSI) project, linking it to the India-Middle East-Europe Economic Corridor (IMEC).

Our presence here is substantive, said the President of the Republic of Cyprus, Nikos Christodoulides, noting that this is a partnership of strategic importance also for the region and beyond, “and together we will continue to work in a spirit of trust and cooperation for stability, security and prosperity in the region.”

Israeli Prime Minister Benjamin Netanyahu said in his own statements that Israel, Greece, and Cyprus are three ancient countries with ancient peoples that are very proud of their history, as they see into the future. He sent the message, “to those who fantasize they can reestablish their empires in our lands, I say forget it, don’t even think about it.” He referred to three genuine democracies in the eastern Mediterranean that will work to bring about a better and brighter future, prosperity, and peace through strength.

The partnership that has clearly stood the test of time, has proven resilient and adaptable and continues to contribute significantly to the stability and security in the Eastern Mediterranean, despite the geopolitical challenges that also create a profound window of opportunity to shape a regional security architecture that can deliver peace and prosperity, said for his part Greek Prime Minister Kyriakos Mitsotakis.

According to the publication ‘Population by Income Class’ for 2024, released on Monday by the Statistical Service, 27.8% of Cyprus’ population falls into the lower income class, while 7.6% belongs to the upper income class.

At the same time, 14.6% of the population, corresponding to 139,930 people, lives at risk of poverty, as their equivalised disposable income is equal to or below pound 12,400, which is the monetary poverty-risk threshold.

Based on the methodology recommended by the OECD, the ‘middle income class’ is defined as the share of the population living in households with incomes ranging between 75% and 200% of the national median income. The population living in households with incomes above 200% of the national median income belongs to the ‘upper income class,’ while the population with incomes below 75% of the national median income belongs to the ‘lower income class.’

The national median income for 2024 is estimated at pound 20,666. The 27.8% belonging to the lower income class has an equivalised disposable income equal to or below pound 15,500. The 64.6% of the population belonging to the middle class has a median equivalised disposable income of pound 23,517, while the 7.6% belonging to the upper income class has a median equivalised disposable income of pound 51,316.

The middle income class is divided into lower-middle, middle, and upper-middle segments. The lower-middle class accounts for 22.2%, with equivalised disposable income ranging between pound 15,501 and pound 20,666. The middle-middle class accounts for 30.7%, with equivalised disposable income between pound 20,667 and pound 30,999. The upper-middle class comprises 11.7%, with equivalised disposable income between pound 31,000 and pound 41,332.

According to the Statistical Service, over time the largest share of the population has consistently belonged to the middle income class, remaining above 60%, with the exception of the years following the economic crisis. In 2024, 64.6% of the population belonged to the middle income class.

Of those included in the lower income class, 36.6% are employed and 35.9% are pensioners. Correspondingly, in the middle income class, 68.6% are employed and 14% are pensioners, while in the upper income class, 71.7% are employed and 14.3% are pensioners.

Regarding household composition, 56% of the lower income class consists of households without children. The corresponding proportions for the middle and upper income classes are 45.9% and 57.4%, respectively. Households with one dependent child account for 11.9% of the lower income class, 20.5% of the middle class, and 21.2% of the upper class. Households with two dependent children make up 18.4% of the lower class, 24.2% of the middle class, and 18.9% of the upper class. Households with three or more dependent children account for 13.7% of the lower class, 9.4% of the middle class, and 2.5% of the upper class.

In terms of age, 30.5% of the lower income class are aged 65 and over, 18.1% are children, and 13.1% are young people. Adults of working age account for 38.3%. In the middle income class, the majority are adults of working age (53.6%), with 18.7% children, 15.5% young people, and 12.2% pensioners. In the upper income class, adults of working age account for 59.5%, pensioners for 16.3%, children for 13.9%, and young people (aged 18-29) for 10.3%.

According to CYSTAT, over time, the highest proportion of individuals living in households that have fallen behind on repayments of mortgage instalments for their main residence or rent is found among the lower income class. In 2024, 27% of the lower income class delayed such payments, compared with 9.9% of the middle income class and 3% of the upper income class.

The issues of missing persons and the enclaved are high on the agenda of his discussions with the United Nations and the Turkish Cypriot leader, President Nikos Christodoulides said on Monday.

In a greeting during a luncheon he hosted at the Presidential Palace with his spouse Philippa Karsera Christodoulides for the children of the Cyprus Children’s Aid Committee and children of the enclaved, the President noted that the event is taking place to send messages of solidarity especially during the festive days.

In his address, read by his spouse, he told the children that the state is by their side in order to assist them with their daily needs.

Addressing the children he said that all the state authorities, himself personally and his spouse are making every effort to improve their quality of life.

“We are here to assist in every way so that you do not lack anything and feel strong and ready for the future that awaits you. We are by your side all the time,’ President Christodoulides noted.

He went on to say that the state provides for all its citizens equal opportunities and possibilities, adding that the government has the possibility for social policy for the benefit of the citizens.

The President noted that the social benefits for 2026 have increased by 6.7% compared to this year and amount to 2.3 billion euro.

He also referred to the scheme the state introduced for the resettlement in occupied Karpasia and in the Maronite villages, recalling that the kindergarten and primary school in Kormakitis were able to reopen.

President Christodoulides also referred to the Christmas allowance for students who wish to resettle, the cooperation with universities in the Republic, as well as the facilitation of the movement of young people and the enclave of all ages to the Republic for participation in various events and educational activities.

In his greeting the President reassured once again that the aim is to end the unacceptable status quo and reunite our island.

He also praised the young students who teach us life lessons, as he said.

During the event awards were given to students who excelled in a painting competition.

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.

Shortly after the invasion, some 20,000 Greek Cypriot remained in their home, in the areas Turkey had occupied. The number of these ‘enclaved’ persons has dwindled over the years due to the appalling living conditions and restrictions imposed on them and their daily life. Educational and religious freedoms, in addition to individual freedoms are curtailed by the occupation regime.

The GDP growth rate for 2025 is forecast to rise to 3.5%, compared to the revised rate of 3.9% for 2024, the Central Bank of Cyprus (CBC) says, adding that in the period 2026-28, GDP is forecast to grow by 3% per year.

The CBC published on Monday the December 2025 forecasts for the main macroeconomics of Cyprus for the years 2025-28, specifically for Gross Domestic Product (GDP), unemployment, inflation and inflation excluding energy and food.

The publication also includes an analysis of the potential deviations from the baseline scenario of the GDP and inflation forecasts, respectively.

“The projected path of GDP is mainly due to the expected further increase in domestic demand throughout the forecast horizon. Domestic demand is expected to be supported by the increase in private consumption due to the increase in real disposable income of households and the resilience that the labor market continues to record,” it notes.

The labour market continues to support the Cypriot economy and is showing significant resilience, the CBC says, adding that unemployment in the third quarter of this year is forecast to fall to 4.5% of the labour force in 2025, compared to 4.9% in 2024.

“This is consistent with the positive trend recorded in the European Commission’s Economic Surveys in terms of employment expectations over the next three months, as well as the continued decline in registered unemployed. In line with the expected strong GDP growth, unemployment is projected to stabilise at around 4.5% in 2026-28, reflecting full employment conditions,” the CBC continues.

Inflation (based on the Harmonized Index of Consumer Prices, HICP) is projected to decline to 0.8% in 2025 from 2.3% in 2024. The CBC states that the significant decline in inflation in 2025 is mainly due to deflationary pressures in non-energy industrial prices and energy prices, and, to a lesser extent, to the slowdown in food price increases.

“These deflationary pressures are linked to the impact of the appreciation of the euro against the US dollar, as well as the trade diversion of cheaper Chinese imports to EU countries and Cyprus. The projected rise in inflation to 1.7% in 2026, 2.2% in 2027 and 1.9% in 2028 is due to the expected rise in food prices, as well as the gradual weakening of deflationary pressures in energy prices and non-energy industrial goods prices.” it concludes.

President of the Republic, Nikos Christodoulides, will take part on Monday in the 10th Cyprus-Greece-Israel Trilateral Summit, which will be held in Jerusalem.

Prior to the Summit, President Christodoulides will hold a meeting with the President of Israel, Isaac Herzog, to be followed by a meeting with Prime Minister, Benjamin Netanyahu.

Separate bilateral meetings will also take place between the Ministers of Foreign Affairs and the Ministers of Energy of Cyprus and Israel.

Subsequently, President Christodoulides will participate in the Cyprus-Greece-Israel Trilateral Summit.

?he leaders of the three countries will then make statements to the media.

The objective of the Trilateral Summit is to create security and cooperation conditions in the wider Middle East region, President Christodoulides said on Sunday, in statements on the sidelines of the presentation of the priorities of the Cyprus Presidency of the Council of the EU, in Lefkara village.

The President said that the visit was ‘a very important one,’ while noting that during his meetings with the Israeli Prime Minister and the President of the country they would discuss bilateral relations, particularly in the fields of energy, defence, innovation, and tourism.

Within the framework of the Trilateral Summit, discussions are also expected on the prospect of further strengthening the 3+1 cooperation format with the participation of the United States of America, as part of a broader dynamic of regional integration aimed at enhancing the Eastern Mediterranean’s role as a bridge of strategic, energy and economic connectivity, according to a written statement by Government Spokesman, Konstantinos Letymbiotis.

Emphasis is expected to be placed on the energy sector and interconnected infrastructure, with the aim of providing political impetus to existing and new energy projects, also capitalising on the recent positive momentum created by the signing of the Agreement on the Delimitation of the Exclusive Economic Zone (EEZ) between Cyprus and Lebanon, he said.

It is noted that the Summit takes place two years after the 9th Trilateral Summit, which was hosted in Nicosia on September 4, 2023, shortly before the October 7, 2023 events.