Yesterday, Cyprus’ Minister of Finance, Makis Keravnos, submitted the 2026 Budget to Parliament

Macro/Political:

• Turkey issued a NAVTEX notice on Thursday evening announcing that its research vessel Piri Reis will conduct scientific surveys in the central Aegean, west of Chios and Lesvos, between October 4 and 14. Athens, answered today by issuing an anti-NAVTEX.
  Source: Kathimerini

• Servicer doValue is paving the way for banks to repay part of the guarantees provided by the Greek government under the Hercules securitization scheme through the sale of two loan portfolios. These consist of loans from Eurobank’s Cairo securitizations, which were included in the Hercules program, sold to doValue, and have since been streamlined. The portfolios offered for sale are the Alexandria portfolio, valued at EUR 1.5 billion and comprising restructured loans of 2,700 large and medium-sized enterprises, and the Giza portfolio, worth approximately EUR 200 million, which includes mortgage loans now considered performing. The two portfolios will be transferred to investors, who have already received the relevant information to express interest and subsequently submit binding offers. The goal is to finalize the transactions by the end of the year.
  Source: Kathimerini

• The seasonally adjusted unemployment rate in August 2025 amounted to 8.1% compared to the upwards revised 9.7% in August 2024 (y-o-y) and to the upward revised 8.3% in July 2025.
  Source: ELSTAT

Macro/ Political:

• Yesterday, Cyprus’ Minister of Finance, Makis Keravnos, submitted the 2026 Budget to Parliament. Mr. Keravnos noted that the new budget is developmental and surplus, maintaining the resilience of the economy and contributing to a further reduction of public debt. President of the House of Representatives, Annita Demetriou, emphasized that a surplus and developmental budget should support vulnerable groups and strengthen social policies. The discussion of the budget will begin on October 13, and the voting process is expected to take place in the House of Representatives during the second ten days of December. Finally, Mr. Keravnos expressed his strong optimism that the new tax reforms will be approved by the House of Representatives by the beginning of the new year at the latest and will be implemented within the established timeframes.
  Source: StockWatch

• Minister of Energy, Mr. Georgios Papanastasiou, speaking at the Cyprus Forum yesterday, said that the government’s goal is to ensure energy adequacy and affordable electricity prices for consumers. He added that the Vasilikos Natural Gas Terminal should be completed as soon as possible and operate safely for many years to come.
  Furthermore, when asked whether the competitive electricity market introduced in Cyprus yesterday will be beneficial for consumers, he responded that Cyprus has a very small market, which often does not create healthy conditions for competition. Therefore, any decrease or increase in prices will depend largely on the level of participation.
  Source: StockWatch
  

• The Turnover Value Index of Retail Trade (except of motor vehicles) for August 2025 increased by 4.9% compared to the corresponding month of the previous year. For the same month, the Turnover Volume Index of Retail Trade increased by 8.4% compared to the corresponding month of previous year.
  Source: CyStat