Cyprus received EUR 76 million from EU recovery fund.

Macro/Political

The Harmonized Index of Consumer Prices (HICP) in July 2025 increased by 3.7% (y-o-y) and decreased 0.3% (m-o-m).
Source: Elstat
The Overall Industrial Production Index in June 2025 recorded an increase of 0.5% (y-o-y). The Overall IPI in January 2024 increased by 9.7%(y-o-y). The seasonally adjusted Overall Industrial Production Index in June 2025 recorded a decrease of 0.3% compared with May 2025 (m-o-m).
Source: Elstat

Markets

Bloomberg, citing people familiar with the matter, reported that Alpha Bank has started the process of selling a significant risk transfer transaction tied to a portfolio of corporate loans. The size of the reference portfolio is about EUR 1.2bn. UniCredit is advising on the transaction. The potential deal is at an early stage, and terms are still subject to discussion with investors.
Source: Bloomberg

Macro/Political

The EU Commission disbursed EUR 76mn to Cyprus, representing the fourth payment under the RRF. This payment covers 17 milestones and 6 targets. They are focused on expanding online government services, improving corporate trust through the introduction of a transparent beneficial ownership registry and digitalising health care services notably in cross-border contexts. The reforms and investments will also simplify the issuance and transfer of title deeds as well as introduce digital solutions, to ease business transactions.
It is noted that the total funds paid out to Cyprus under the RRF now stand at EUR 568mn, which is 46.5% of the total allocation. Cyprus’s overall recovery and resilience plan is financed by EUR 1.22bn in grants and loans.
Source: EU Commission

Data published by the CBC showed that in April 2025 the non-performing loans (aggregate data for all credit institutions) in Cyprus decreased by EUR 32.6mn (m-o-m) to EUR 1,493.2mn (NPL ratio at 5.92%) from EUR 1,525,8mn (NPL ratio at 6%) in March 2025.
Source: CBC