Category: Cyprus News Agency

In October 2025, economic sentiment in Cyprus improved, as the Economic Sentiment Indicator (ESI-CypERC) rose by 2.0 points, compared to September.

According to the Economic Research Center of the University of Cyprus, this increase was driven by stronger business confidence in the services and construction sectors.

The Services Confidence Indicator increased – following two consecutive months of marked declines – as all its components improved, namely assessments of the recent business situation and views on past and expected turnover.

The decrease in the Retail Trade Confidence Indicator was driven by a deterioration in firms’ views on recent sales and stock volumes, along with further downward revisions in sales expectations.

The Construction Confidence Indicator rose, as a result of improvements in firms’ order book levels and upward revisions in employment expectations.

?he small decline in the Industry Confidence Indicator was due to less favourable assessments of the current levels of order books and downward revisions in production expectations.

The Consumer Confidence Indicator declined in October, reversing the course of the previous two months. Consumers’ assessments of their recent financial situation deteriorated and their intentions to make major purchases weakened further.

Additionally, consumers’ expectations about the general economic conditions in Cyprus worsened.

The Economic Uncertainty Indicator for Cyprus decreased in October due to a reduction in business uncertainty across all sectors except industry, where business uncertainty rose slightly. Consumer uncertainty increased but remained relatively low across all income groups.

The Council of Ministers has approved a fifth package of measures addressing Cyprus’ ongoing water challenges, Minister of Agriculture, Rural Development, and Environment Maria Panayiotou announced during a visit to Paphos on Friday. The new plan, she said, marks another decisive step toward ensuring long-term water security for the island amid the escalating effects of drought and climate change.

Panayiotou said that three additional mobile desalination units will be installed in Episkopi, Vasilikos, and the Famagusta district, expanding the network that already includes installations in Kissonega, Garyllis, Moni, and the Limassol Port area. Once all seven units are fully operational, they will add at least 77,000 cubic meters of water per day-a volume exceeding the combined production of Cyprus’ two permanent desalination plants in Vasilikos and Paphos.

She also said that a key component of the plan is the Water Governance Reform Action Plan, which aims to modernize and unify the management of water resources. ‘We recognized the need for a more integrated governance system,’ Panayiotou said. ‘This reform will enhance supervision, improve the technical and administrative capacity of water authorities, and accelerate the completion of infrastructure projects,’ she added.

The government, as the Minister said, has also finalized plans for two new permanent desalination plants one in Famagusta and one in Eastern Limassol adding to the five existing facilities across the island. She said that feasibility studies are set to begin within the year, with operations expected by the end of 2029. The new units will run on renewable energy sources, and once completed, will allow 100% of the country’s drinking water needs to be met through desalinated water.

The Minister noted that these developments will increase desalinated water production by over 32%, significantly improving water security within months while maintaining progress toward full reliance on desalinated sources.

For the first time, she added, the 2026 national budget will allocate more than pound 140 million for the purchase of desalinated water.

In addition to drinking water projects, the Ministry is advancing key recycled water initiatives, including the Larnaca-Tersefanou Reclaimed Water Project, the Western Nicosia (Anthoupoli) Project, and the completion of the Aradippou Dam to support irrigation in the region. Ongoing work continues on irrigation networks in Solea, Kokkinichoria, Larnaca, Akrotiri, Germasogeia, and Paphos.

Panayiotou highlighted that reclaimed water now covers 37% of the agricultural sector’s needs, a 10% increase from 2024, marking the highest contribution to agriculture from non-conventional water sources in the country’s history.

pound 5.25 million fire prevention and land revitalization plan

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The Minister said that the Cabinet also approved a pound 5.25 million package of measures to tackle the dual challenges of climate change and wildfire risk, offering incentives to farmers, citizens, and communities to revive abandoned agricultural land and reduce flammable vegetation in rural and forest-adjacent areas.

The plan includes a pound 4.1 million state aid scheme to support the restoration of abandoned farmland. Financial assistance will be offered at pound 500 per decare for dry permanent crops at altitudes between 200-499 meters, pound 1,090 per decare for vineyards up to 799 meters, and pound 1,414 per decare for vineyards above 800 meters. The aid will cover 65% of replanting and cultivation costs, totaling pound 3.5 million in ‘de minimis’ support.

Additional environmental commitments will be rewarded with up to pound 60 per decare to maintain restored plots, while further participation in agricultural and rural development programs could yield pound 300 per decare for vineyards and pound 86 for other dry crops.

Through the LEADER program, another pound 1.15 million will be allocated, covering up to 100% of costs, for fire protection equipment, fuel management, and controlled grazing in high-risk zones near forested communities.

The Central Bank of Cyprus (CBC) announced on Friday a notable rise in both pure new loans and the total volume of new loans in September 2025, according to data published in the October 2025 edition of Monetary and Financial Statistics. The figures also indicate a stabilization in lending and deposit interest rates applied by monetary financial institutions (MFIs).

Pure new loans rose to pound 447.9 million, up from pound 245.5 million in August, while the total volume of new loans increased to pound 770.5 million, compared with pound 420.4 million in the previous month.

Increase in business and housing Loans

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New loans to non-financial corporations accounted for the largest share of new lending, reaching pound 492.5 million in total, of which pound 246.7 million were pure new loans for amounts over pound 1 million and pound 62.7 million for amounts up to pound 1 million.

Housing loans also rose, with pure new loans rising to pound 112.9 million (from a total of pound 165.4 million), compared with pound 96.3 million (from pound 144.1 million) in August.

Consumer credit showed a smaller increase, with pure new loans reaching pound 21.2 million (from a total of pound 22.6 million), compared with pound 20.4 million (from pound 21.4 million) the previous month.

Mixed trends in interest rates

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Interest rates remained broadly stable in September, showing only limited variations across loan categories.

The interest rate on consumer credit stood at 6.46%, lower than 7.09% in August.

The interest rate on loans for house purchase eased to 3.63%, from 3.91%.

The rate on loans to non-financial corporations up to pound 1 million was 4.32%, compared with 4.19% in the previous month.

The rate on loans over pound 1 million remained steady at 3.79%, down slightly from 4.30%.

Deposit rates showed similar stability, with a minor upward movement:

The interest rate on household deposits with an agreed maturity of up to one year rose to 1.10% (from 1.08%).

The rate on deposits from non-financial corporations increased modestly to 1.24% (from 1.15%).

Comparison with the Euro Area

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The loan interest rate level in Cyprus remains close to the euro area median at 3.93% for households (compared with 3.91% in the eurozone) and 4.22% for non-financial corporations (compared with 3.80%).

In contrast, deposit interest rates in Cyprus remain significantly lower than the euro area median, standing at 0.78% for households (versus 1.74%) and 1.08% for non-financial corporations (versus 1.94%).

The Central Bank of Cyprus has set the reference interest rate at 11.84%, exercising its powers under Article 314A of the Cyprus Criminal Code, Cap. 154.

According to the provisions of the article, this reference rate serves as the legal benchmark for determining cases of excessive interest charges. The law stipulates that any person who, when providing a loan, extending payment terms, renewing or discounting a loan, receives or stipulates financial or property benefits exceeding the reference interest rate, commits an offense.

Those found guilty are liable to a prison term of up to five years, a fine not exceeding pound 30,000, or both penalties.

The Ministry of Foreign Affairs of the Republic of Cyprus issued on Friday, travel advice to Cypriot citizens who are currently in or are planning to travel to Tanzania.

According to an official announcement, the Foreign Ministry advises Cypriot citizens ‘to exercise a high-degree of caution due to the ongoing unrest and the imposition of curfew in country.’

Moreover, Cypriot citizens currently in Tanzania are advised to avoid areas where there are gatherings and demonstrations, remain on high alert, and follow the instructions of local authorities. It is also recommended that they closely follow developments and information from international and local media, avoid non-essential movements and exercise maximum caution.

Cypriot citizens are also invited to register on the online registration platform for Cypriots abroad Connect2CY.

Deputy Minister of Research, Innovation and Digital, Policy Nikodemos Damianou said on Friday that the Deputy Ministry’s budget for 2026 is increased by pound 5.4 million, and amounts to pound 172,864,636, of which pound 70,062,349 is for regular expenses and pound 102,802,287 for development expenditure.

Presenting the budget of the Deputy Ministry before the House Finance Committee, Damianou said that the total budget for 2026 has increased by pound 5.4 million compared to the one of 2025, which corresponds to an overall increase of 3.2%, but with a significant increase of 13.8% in development spending.

He told the members of the House Finance Committee, that innovation and digital transformation are key components of the sustainability, resilience and adaptability of every country, in the context of a constantly changing international environment.

‘The transition to a modern, digital state, which will result in the strengthening of the development perspective and competitiveness of the Cypriot economy, and, at the same time, the facilitation and substantial improvement of the daily life of citizens and businesses, is the immediate priority,’ he stressed.

Damianou referred to the upgrade of the central government portal gov.cy, which records over 500,000 visits per month, a number that together with visits to the connected websites of Ministries and Deputy Ministries exceeds 1 million.

Regarding cybersecurity, he said that governance structures, risk management procedures and incident detection and response readiness have been enhanced.

In addition, the Deputy Minister said that preventive measures are being taken in view of the Cyprus Presidency of the Council of the EU in 2026.

He said that in 2025 the National AI Committee was established, while the ‘Digital Assistant’, the first application of Genetic AI in the Public Sector, was launched.

Damianou said that the Deputy Ministry plans for include the publication of the National Artificial Intelligence Strategy, the expansion of the ‘Digital Assistant’, the integration of AI technologies in large public information systems, and the further strengthening of Cypriot businesses through advanced AI tools and services.

Aspects of daily life in an early Hellenistic military community in Cyprus came to light during this year’s excavations at the Pyla-Koutsopetria Archaeological Project (PKAP) at Pyla-Vigla, located on a steep plateau overlooking Larnaca Bay.

The Department of Antiquities, Deputy Ministry of Culture, announced on Thursday the completion of the 2025 excavation season, conducted during June and July 2025 under the direction of Dr. Brandon R. Olson of Metropolitan State University of Denver, Dr. Melanie Godsey of Trinity University, and Dr. Tom Landvatter of Reed College.

PKAP’s excavations at the site of Pyla-Vigla over the past several years have revealed the presence of an early-Hellenistic fortified site. The military nature of the site is demonstrated by the discovery of an extensive fortification system, projectile points, lead sling bullets, and evidence of weapons production, it is added.

According to the announcement, the architectural, ceramic, and numismatic evidence discovered so far date the occupation of Vigla to the late fourth and early third centuries B.C.

PKAP’s 2025 fieldwork focused on further understanding of the domestic areas of site in the center of the plateau where rooms from at least four buildings have been uncovered.

‘Cooking, fine, and coarse ware ceramics and metal implements indicate a series of domestic activities like cooking, drinking and dining, and personal adornment in all these spaces’ the Department of Antiquities says.

Storage or industrial activities also occurred in these spaces, while many bronze, lead, and iron weapons reaffirm the military community operating here, it is added. ‘Daily life in an early Hellenistic military community on Cyprus seems to have included tasks that bridged small household and larger communal modes of dwelling and working’ the announcement notes.

Japan will continue its contribution to a peaceful and viable solution of the Cyprus issue based on the related UN resolutions, new Ambassador of Japan in Nicosia Satoshi Iwasaki said on Friday, presenting his credentials to President of the Republic, Nikos Christodoulides, at the Presidential Palace.

“I would like to confirm the position of the government of Japan regarding the Cyprus problem. My government will continue its contribution to a peaceful and viable solution based on the related UN resolutions as a member of the G7 and the UN so that the people of Cyprus may live in a secure environment”, the Ambassador stressed.

The Cypriot President said that Cyprus deeply appreciates Japan’s principled position on the Cyprus question and its steadfast support for the sovereignty, unity and territorial integrity of the Republic of Cyprus, in line with the relevant UN Security Council resolutions and international law.

“We also commend Japan’s constructive contribution as a non-permanent member of the Security Council during 2023-2024,” he said.

Referring to the Cyprus Presidency of the Council of the European Union in the first half of 2026, President Christodoulides said that Cyprus looks forward to working together to further strengthen the EU- Japan Strategic Partnership and to contribute jointly to global peace, stability and prosperity.

Concluding, the President said that Cyprus very much looks forward to further deepening the collaboration with Japan through the implementation of existing agreements and the conclusion of those under consideration, including on air services, avoidance of double taxation, academic recognition, and protection of cultural heritage.

In his speech, the Japanese Ambassador also said that as the fourth Ambassador of Japan residing in Cyprus, he is determined to dedicate himself to explore the untapped potential and opportunities for further strengthening the existing friendly relations between the two countries, including in such fields as politics, economy, trade, culture, education, science and technology as well as in people to people contacts.

The Ambassador said that the active high level exchange and visits between officials from both governments and parliamentarians are one of the utmost importance.

Finally, he wished Cyprus every success in fulfilling its duties during the Cyprus Presidency of the Council of the EU.

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. The latest round of negotiations, in July 2017 at the Swiss resort of Crans-Montana ended inconclusively.

Restoration works at the church of Panayia in Turkish-occupied Lysi have been completed, the Greek Cypriot Co-Chair of the bicommunal Technical Committee on Cultural Heritage, Sotos Ktoris has said, while referring to ‘one of the most emblematic monuments of Cyprus’ modern cultural heritage.’

In a post on social media, Ktoris noted that the works are the result of a joint effort of Greek Cypriot and Turkish Cypriot architects, engineers and conservators.

The church is the work of the distinguished master builder Giakoumis (Iakovos Pavlos), and was completed at the end of the 19th century, with Ktoris describing it as a masterpiece of Cypriot church-building.

The implementation of the project was made possible thanks to the contribution of the Lysi community, the assistance of the European Union and the technical guidance of the UNDP, he added.

The team of researchers/conservators consisted of Margarita Petrou from Lysi, Enver Eronen, Despina Athanasiou, Ismael Safkan, Katerina Athienitou and Christos Karis. Fatos Mullaaziz supervised the work on behalf of UNDP.

Leaders from space agencies such as NASA, ESA, astronauts and leading companies in the sector, will be among the participants in the 6th World Space Symposium of COSPAR (Committee on Space Research) to be hosted in Nicosia between 3-7 of November.

The Symposium is organized by the Cyprus Space Exploration Organization (CSEO) in collaboration with COSPAR, the international body for the promotion of scientific cooperation in space.

CSEO President George Danos told CNA that this is the most important world space research conference for 2025, a landmark event that brings Cyprus to the center of the global space community.

International participants

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The Symposium will feature leaders from all major space agencies, including NASA (USA), ESA (Europe), JAXA (Japan), CNES (France), DLR (Germany), ASI (Italy), ISRO (India), as well as representatives from leading aerospace companies, such as Lockheed Martin and Northrop Grumman.

The COSPAR 2025 Symposium has attracted the interest of the global scientific community, with delegates coming from more than 45 countries.

‘This makes Nicosia the global meeting point for space research in 2025,’ Danos said.

Participation, he added, extends across the globe, with researchers from countries such as Canada, Mexico, Argentina, Brazil, South Korea, Saudi Arabia, the United Arab Emirates, Egypt, South Africa, Thailand and Singapore, ‘making the conference a truly global gathering.’

Beyond the geographical diversity, Danos continued, the quality of the participating organizations is impressive, with more than 90 institutions represented. These organizations, he stressed, constitute the elite of global space research and industry. In addition to NASA and ESA, the Japanese agency JAXA, the French space agency CNES and research center CNRS, the German aerospace agency DLR, the Italian space agency ASI, as well as national research institutes from China, Russia, India and many other countries are represented.

In addition, top academic institutions will be represented, such as the University of Michigan, the University of California, Texas A and M University, Imperial College London and University College London (UCL), the National and Kapodistrian University of Athens, as well as universities from Singapore, Belgium, Italy etc.

Moreover, there is a strong private sector presence with companies leading the way in innovation, confirming the importance of the Symposium for the commercial exploitation of space.

“This demonstrates that COSPAR 2025 is not just a conference, but a strategic meeting of the entire global space ecosystem, which will take place in Cyprus. So for the first time in its history, Cyprus is hosting a world space conference of such scale and importance, consolidating its place on the global space map,” Danos told CNA, adding that with more than 330 scientific papers from dozens of countries, the event confirms its global character.

Announcements of major discoveries

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Important scientific discoveries will be announced by the International Space Innovation Center (C-SpaRC), a National Strategic Infrastructure of Cyprus, which in June 2024 was selected to become an international center by COSPAR. The center, which is now a COSPAR Center of Excellence, is coordinated by CSEO, funded by the Research and Innovation Foundation and has multiple prestigious national and international partners, such as NASA and Lockheed Martin. In a special session/presentation C-SpaRC will announce for the first time important scientific discoveries that connect human health on Earth with space phenomena.

The Symposium will also focus on critical issues such as sustainability in space, planetary protection and the use of space technologies to solve problems on Earth.

One of the highlights will be the presentation of COSPAR’s new ‘Roadmap for Space Exploration’, a strategic document that will set the priorities for global space exploration for the next decade.

In addition, important international agreements are expected to be signed that will further strengthen international cooperation, especially on space weather issues, at a time of heightened solar activity.

Moreover, Cyprus is hosting COSPAR’s first global innovation competition, NovaSpaRC, which actively supports startups in Cyprus and internationally. In addition, CSEO is expected to sign important international agreements that will strengthen the Cypriot space industry and research, bringing tangible benefits to the country.

Public participation

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Danos told CNA that CSEO, within the framework of this world conference, is organising specifically for the public of Cyprus, the ‘Space Science Festival’ on Thursday, November 6, at 7pm, in Nicosia, at the ‘CSEO Outreach Centre’.

The event will be open to the public, giving families, young people and all citizens the opportunity to meet astronauts, see space exhibits up close and talk to the scientists who are shaping the future of humanity in space, he went on to say.

Danos noted that the organization of this conference is the result of “a decade’s work and efforts by CSEO that highlight its upgraded international role and its recognition as an International Space Innovation Center (C-SpaRC), which operates in Cyprus under the auspices of COSPAR”.

C-SpaRC, he told CNA, is one of only two COSPAR Centers of Excellence worldwide, placing Cyprus at the core of global space innovation.

CNA is the media sponsor of the COSPAR Symposium.