Category: Cyprus News Agency

The launch of the Competitive Electricity Market is a strategic reform, Government Spokesman Konstantinos Letymbiotis said on Thursday, adding that this is the first step in a broader energy policy plan that the government is implementing with the aim of reducing energy costs.

In statements during a media briefing at the Presidential Palace, the Spokesman said that as of the 1st of October Cyprus has turned a page in the energy sector.

For the first time, he pointed out, citizens and businesses in Cyprus can freely choose their supplier within a competitive environment that includes nine producers.

The Competitive Electricity Market, which is now operational, ‘is a strategic reform’, he stressed.

Referring to the benefits for the citizen, he said that, from today, they will be able to compare prices, choose the supplier that is most beneficial to them, have access to new products and packages, and even green energy options.

From January 2026, he continued, changing suppliers will be done within 24 hours, at no cost and with complete transparency, while consumers will be able to become active participants in the energy market, either as self-producers from renewable energy sources (RES) or as members of energy communities.

The benefits for businesses are equally important, he went on to say, noting that ‘the ability to negotiate with more suppliers allows for better prices and tailored solutions, reducing operating costs”.

Letymbiotis added that participation in savings and RES programs enhances the sustainability and competitiveness of businesses.

The Spokesman stressed that the most important is that the Competitive Electricity Market enhances competition and that this is expected to lead to lower prices, but also to innovative services that will adapt to the needs of households and businesses. He added that the dependence on limited suppliers is reduced and the decentralization of production is promoted.

‘The government proves once again that with a plan, methodical manner and political will, it can solve chronic problems and implement reforms that improve the everyday life of citizens,’ he concluded.

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Date 02/10/2025

President, Nikos Christodoulides, stressed the vital importance of key EU initiatives such as Readiness 2030 and the SAFE Regulation for the security of Europe, during Wednesday’s session of the informal European Council, held in Copenhagen.

According to a written statement by the Director of the President’s Press Office, Victoras Papadopoulos, the President made his remarks during an intervention at the Council’s session on Defence and Security.

President Christodoulides condemned Russia’s recent airspace violations over EU territory, expressing solidarity with the affected member states, stressing that such actions pose a threat to the overall security of the Union.

He underlined that initiatives such as Readiness 2030 and the SAFE Regulation are key tools for achieving the objectives set by the EU in the area of defence and security, Papadopoulos said.

The President further stated that the Cypriot Government is committed to maintaining momentum and achieving further progress in these areas during Cyprus’ upcoming Presidency of the Council of the EU.

He stressed that states posing a threat to the security of EU member states cannot be allowed to participate in EU security mechanisms.

Referring to the Readiness 2030 initiative, President Christodoulides noted that although the Republic of Cyprus is not a NATO member, it supports efforts for closer cooperation and joint action with NATO under this initiative. However, he emphasised that such cooperation must be based on equal treatment for all EU member states.

He also highlighted that the EU must not shift its focus away from other critical regions, such as the Middle East. Cyprus, he said, will do its utmost to strengthen key strategic actors in the context of the Military Mobility initiative.

President Christodoulides further noted that, under the SAFE Regulation, Cyprus plans to upgrade its naval infrastructure and air bases to enhance the EU’s collective security and readiness.

On the war in Ukraine, the President strongly condemned the continued Russian missile attacks and the targeting of civilians.

He underscored the urgent need for a peaceful resolution that respects the fundamental principles of the United Nations Charter, including the sovereignty and territorial integrity of all states.

President Christodoulides reiterated that Cyprus stands ready to contribute constructively to the development of a comprehensive European security framework, Papadopoulos concluded.

President of the Republic Nikos Christodoulides held on Thursday, in Denmark, a series of important meetings with heads of state or government in view of the Cyprus Presidency of the Council of the EU, Deputy Minister for European Affairs Marilena Raouna said.

According to a press release by the Presidency, Raouna, who is accompanying the President of the Republic in Denmark, said that the President of Ukraine was among the leaders and that it was agreed that President Christodoulides would pay a visit to the country in December.

She said that on the sidelines of the European Political Community Summit held today in Copenhagen, President Christodoulides held a series of important bilateral meetings requested by our partners in view of the Cyprus Presidency of the Council of the EU that will begin in January.

This afternoon, she said, a meeting was held between President Christodoulides and President of Ukraine Volodymyr Zelensky, during which they discussed the latest developments in the efforts to end the war and particular the issues of guarantees and security for Ukraine.

During the meeting, Raouna said, Cyprus expressed its support to Ukraine as well as its commitment to work during the Cyprus EU Presidency to promote the accession negotiations.

It was also agreed that President Christodoulides would pay a visit to Ukraine in December, in view of the Cyprus Presidency.

The President of the Republic also had a meeting with the Prime Minister of Denmark, during which they reviewed the progress made during the Danish Presidency on important issues that the Republic of Cyprus will have to take over, such as the crucial negotiations and the EU’s Multiannual Financial Framework, as well as issues related to migration.

The Deputy Minister noted that there are currently important legislative proposals before the Council regarding the return of asylum seekers which the Republic of Cyprus will negotiate.

The President of the Republic also met with the President of Moldova, who expressed her intention to visit Cyprus in November, in view of the Cyprus Presidency.

President Christodoulides also met with the President of Switzerland, since the Cyprus Presidency is expected to complete the EU-Switzerland package of agreements. Finally, the President met with Prince Albert of Monaco.

President of the Republic, Nikos Christodoulides, has stressed that countries that violate in any way the sovereignty and territorial integrity of EU member states can not participate in the Security Action for Europe (SAFE) instrument.

The President participated on Wednesday in the informal European Council Summit in Copenhagen and on Thursday in the Summit of the European Political Community. In the context of the consultations, the President of the Republic stressed three key points, firstly the principle that countries that violate the sovereignty or territorial integrity of EU Member States cannot participate in the SAFE instrument. Secondly, he supported the strengthening of cooperation between the EU and NATO, without imposing restrictions on the 27 Member States, ensuring Europe’s independence in matters of defence. Thirdly, he stressed the need for a comprehensive strategy, where the EU will not focus only on Ukraine, but will also have a leading role in other regions, such as the Middle East, strengthening Cyprus’ defence infrastructure.

According to a press release by the Presidency, in statements upon his arrival at the European Political Community Summit in Copenhagen, President Christodoulides said that they held a very interesting and constructive discussion yesterday, starting with the issues of defence and security, noting that significant work was done by the previous Presidencies, both the Polish and the Danish Presidency.”

Referring to the upcoming Cyprus Presidency of the Council of the EU, President Christodoulides noted that the Republic of Cyprus will institutionally further promote the issue and added that it is important that the European Union has moved forward with concrete actions.

“This is also a priority of our Presidency. So, institutionally, we will further strengthen the EU’s efforts’, he went on to say.

Regarding the SAFE instrument, the President stressed that at the national level, the goal of strengthening the defence and security of the Republic of Cyprus, the deterrent power of the Republic of Cyprus is a key priority. “And within this framework our country will utilize both the SAFE instrument, for which an amount exceeding one billion euro has been determined for the Republic of Cyprus, as well as other collaborations that we have with strategic partners, such as the USA.’

Within this framework, he added, ‘we will work to strengthen the very good, promising Cypriot defence industry, which has enormous prospects for cooperation with both EU member states and countries in the region”.

He noted that it was within this framework that they have decided that the purchase of armament programs of the Republic of Cyprus must also require the participation of Cypriot defence industries at a rate of at least 15%.

‘In the discussions, we raised three issues for which there is a general understanding among the member states. Firstly, countries that violate in any way the sovereignty and territorial integrity of member states of the European Union cannot participate in the SAFE instrument and benefit from the financial resources of the European Union’, he stressed.

The second issue, he continued, is the cooperation between the European Union and NATO, that the Republic of Cyprus supports, but without any restrictions for the 27 Member States of the European Union.

The third issue, he noted, is the need for the European Union to have an overall perspective and explained that the issues of Ukraine are particularly important, but at the same time in the defence and security field in particular, the EU should be a protagonist in other regions as well. He went on to say that he made a specific reference to the wider Middle East, but also to the efforts of the Republic of Cyprus to strengthen both the Andreas Papandreou Air Base and the naval base in Mari, in Cyprus.

As regards the Naval Base in Mari, the President said that he held a discussion with the President of the European Investment Bank who was in Cyprus recently.

He welcomed the fact that the EIB has included issues related to defence and security for financial support of EU member states.

Referring to the meeting he had with the NATO Secretary General Mark Rutte, the President said that they discussed EU-NATO relations adding that the NATO official asked to be informed about the latest developments in the Cyprus issue.

‘We discussed the issue of the participation of NATO member states in the European Union’s SAFE instrument and I reiterated the common position of the European Union that NATO member states that violate the sovereignty and territorial integrity of member states cannot in any way benefit from this specific instrument” he said.

President Christodoulides added that with regard to Turkey, it is up to Ankara to participate in the SAFE instrument provided that there are positive, specific developments in the Cyprus issue, noting that it is up to Turkey to take the next steps.

Concluding, he said that in the context of the Cyprus Presidency of the EU, that will begin in January 2026, he will have meetings with heads of government, specifically of Ukraine, Moldova and other states, who have requested to advance issues related to their relations with the European Union.

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.

The 2026 state budget is a growth budget and continues to maintain the resilience of the economy, Finance Minister Makis Keravnos said on Thursday presenting the budget to President of the House of Representatives Annita Demetriou.

The House President noted the importance of the budget having surplus and growth and added that the debate in Parliament begins on October 13.

“It is a growth budget, which continues to maintain the resilience of our economy with the necessary surpluses so that we can reduce public debt, release the potential and strength of the economy, and be able to offer more development, more social policy and more security for the citizens of our country,” the Finance Minister stressed.

Demetriou expressed satisfaction for the fact that the Minister gives emphasis on social policy adding that the Parliament supports vulnerable groups of the society as priority.

The 2026 budget amounts to pound 10.7 billion, excluding amortization expenses. Revenue for 2026 is estimated at a total of pound 12,681,631,000, while expenses are estimated at pound 10,779,960,000.

There is an additional pound 2,274,500,000 for loan repayments, as well as pound 665,200,000 for interest. The total amount of expenses amounts to pound 13,719,660,000.

The Minister of Finance said that since 2024 the state budget is prepared under the new economic governance decided by the European Commission and added that Cyprus as an EU member state “follows these rules faithfully so that we can give what we have to, to the society, the country and our citizens, in this difficult time of conflicts in our region and with the ongoing war in Ukraine”.

He also stressed that all our actions and decisions take into consideration the national problem of Cyprus until the country is reunited.

Meanwhile, replying to a question, the Finance Minister expressed confidence that, despite the Parliament’s workload, “through good cooperation and good understandings” the tax reform will be approved by the Parliament in a timely manner so that it is implemented by the first of January 2026.

This year’s Cyprus Comic Con will take place on the weekend of October 4-5 at the State Fair Grounds, in Nicosia.

Cyprus Comic Con said in a press release that American singer Jason Paige will be one of its special guests.

The opening ceremony will be held on Friday, October 3, which will also include concerts by the Japanese J-Rock band ?eaL as well as FUSE.

The ceremony will include special appearances from Mayor of Nicosia, Charalambos Prountzos, Deputy Minister of Culture, Vasiliki Kassianidou, Japanese Ambassador, Yoshio Yamawaki, and President of the District Self-Government Organization, Konstantinos Yiorkadjis.

Tickets for this year’s event are already on sale at: www.cypruscomiccon.org

The event is supported by the Municipality of Nicosia and the Deputy Ministry of Culture.

New lending recorded a significant decrease in August 2025, according to data released Thursday by the Central Bank of Cyprus (CBC) on average deposit and lending rates, as well as amounts of new loans. The figures were published in the September 2025 edition of Monetary and Financial Statistics.

The interest rate on household deposits with an agreed maturity of up to one year remained unchanged at 1.08%.

By contrast, the corresponding rate on deposits from non-financial corporations declined to 1.15%, from 1.21% in July.

Lending rates

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The interest rate on consumer credit decreased to 7.09%, compared with 7.40% in the previous month.

The rate on loans for house purchase rose slightly to 3.91%, from 3.87%. The CBC noted that the housing loan portfolio includes different loan types, such as loans for primary residences and holiday homes, which carry varying risks and rates, and this mix affects the weighted average independently of banks’ pricing.

For loans to non-financial corporations, the rate for amounts up to pound 1 million fell to 4.19% (from 4.29%), while the rate for loans over pound 1 million registered a marginal increase to 4.30% (from 4.29%).

New loans

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Pure new loans amounted to pound 245.5 million in August (from a total of pound 420.4 million), compared with pound 445.3 million in July (from a total of pound 743.5 million).

Pure new consumer loans decreased to pound 20.4 million (from a total of pound 21.4 million), compared with pound 24.9 million in July (from a total of pound 26.8 million).

Pure new housing loans fell to pound 96.3 million (from a total of pound 144.1 million), compared with pound 125.1 million in July (from a total of pound 185.9 million).

Pure new loans to non-financial corporations up to pound 1 million dropped to pound 38.1 million (from a total of pound 52.6 million), compared with pound 57.3 million in July (from a total of pound 86.9 million).

Pure new loans to non-financial corporations over pound 1 million decreased sharply to pound 83.9 million (from a total of pound 190.6 million), compared with pound 230.9 million in July (from a total of pound 425.4 million).

It is noted that pure new loans include only new loan contracts, while total new loans also cover renegotiated contracts during the reference month.

Euro area comparison

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Loan interest rates in Cyprus remain close to the euro area median. In August 2025, the interest rate on outstanding household loans stood at 3.98%, compared with 3.95% in the euro area.

For non-financial corporations, the corresponding rate in Cyprus was 4.26%, versus 3.78% in the euro area.

Minister of Energy, Commerce and Industry George Papanastasiou, said on Thursday that the government’s goal is energy adequacy and affordable prices of electricity for the consumers, adding that the Vasilikos natural gas Terminal should be completed as soon as possible and operate safely for many years to come.

Speaking at the Cyprus Forum, in Nicosia, the Minister said that that “this Government must and will finish the Terminal.”

He noted that the Natural Gas Infrastructure Company (ETYFA) which is the owner of the project, has appointed a French energy firm to advise it on how to complete the project. The most critical report, he said, is the gap analysis, that is, to check the design of the project with the construction of the project and with the materials that are ready to be installed. If there is a large gap between design and construction, then the project should be redesigned so that it can be completed as soon as possible but also operate safely, Papanastasiou continued.

The project, the Minister continued, consists of three parts. The first is the vessel, the floating regasification unit, secondly the pier and thirdly the site on land. He explained that the ship “which is the most important asset and which has cost approximately 180 million euros to date, is 99% complete, so it is ready, which gives us very good prospects for having the natural gas as soon as possible.” The pier, he said, and the land part are 45 to 50% complete. These are not difficult projects, he said, noting though that procedures in the public sector create delays.

“The ship is ready and can be used at any time” Papanastasiou noted, adding that there are thoughts of using it with temporary arrangements.

Asked whether the competitive electricity market that was introduced in Cyprus yesterday will reduce prices, he said that the Cyprus market is very small, which often does not create healthy conditions for competition. Whether prices will decrease or increase, or remain the same, he said, will depend largely on the participants. If consumers do not have demands and remain with their traditional supplier, then competitive conditions will not be created, he stressed. For the consumer, the Minister said, a competitive market means that they will be able to choose a supplier that offers the best price at the times they need it. Papanastasiou pointed out that if there are any distortions then the state can regulate the market.

The Minister also spoke about the penetration of Renewable Energy Sources into the electricity mix and said, among other things, that what is needed is production storage such as batteries. We decided, he said, that we will create a central storage system for the stability of the network. In addition, he said that by the end of the year there will be a plan to subsidize batteries for homes so that the power from the photovoltaics can be used back to the homes when needed. For those who cannot install a photovoltaic system, e.g. apartment buildings, he said that there will be energy communities, with the first one in the community of Kato Pyrgos Tyllirias with a subsidy from the European Commission.

The Minister also referred to the electrical interconnection, the Great Sea Interconnector, saying that it is a European project noting that it is not up to us if it is sustainable or not.

Whatever we say, he continued, the project is a European one, it receives 657 million in funding from the Commission. Whether we will be shareholders in this project this is another decision, Papanastasiou said.

The electrical interconnection, he noted, has three challenges. The first is funding. If the project is currently estimated at 2 billion euros, the EU has provided 657 million and provided access to another 100 million, so 757 million, he said, adding that the rest will have to be found from other sources of funding. The second challenge is the technical issue, he said, as the sea between Cyprus and Crete, is 892 kilometers long and 3 kilometers deep. The third challenge is a geopolitical one. This issue requires management and not the cancellation of the project, the Minister stressed.

In relation to developments in Cyprus’ Exclusive Economic Zone, Papanastasiou said that the two mature projects, are in the gas fields of Aphrodite and Kronos that are in development. Kronos is on fast track, he noted, as there is infrastructure next to the Zohr field in Egypt and it is very easy to connect the field to the infrastructure. He said that they have with Egypt a “most crucial agreement”, the host government agreement, according to which the Kronos gas will enter the Zohr infrastructure then go to a processing point in Egypt and from there by a pipeline the gas will be transported to the Egyptian city of Damietta for liquefaction and export. The alternative, he said, “is to pump gas into the local market of Egypt if the parties decide so.”

Regarding Aphrodite, he said that the unit will be located in the sea on the field and the pipeline that will connect it to the land in Egypt (Port Said) will transfer clean gas that can go to the local market and for liquefaction.

Asked if export from Kronos will begin in 2027, the Minister said that it is a realistically optimistic scenario and that all parties are working for that goal but noted that it is a goal that is not easy to achieve.

FOR THE PERIOD FROM 1200 02/10/2025 UNTIL 1200 03/10/2025

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

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

Visibility: Good

Sea surface temperature: 27°C

Warnings: NIL