Cyprus Set to Meet Funding Target with up to EUR 1 Billion in Bond Issuance.

Macro/Political:

• The turnover for the enterprises of the economy as a whole in April 2025 amounted to EUR 31.86bn recording a decrease of 3.3% (y-o-y).
  Source: ELSTAT

Macro/Political:

• According to the the Strategic Framework of Fiscal Policy 2026-2028, published by the Ministry of Finance, the annual funding plan for 2025 anticipates a maximum total funding of EUR 1.5 billion. The primary source of funding will be the issuance of a government bond of up to EUR 1 billion under the Euro Medium Term Note programme in global public markets. The remaining funds will be secured through loans from the European Investment Bank and the European Development Bank. On the real economy side, based on the baseline macroeconomic scenario, GDP growth is expected to be around 3.1% in 2026, 3.0% in 2027, and 2.9% in 2028. The unemployment rate is projected at 4.7% in 2026, 4.6% in 2027, and is expected to decline further to 4.5% in 2028.
  Furthermore, the fiscal balance is expected to be in surplus by EUR 1.247 million (3.5% of GDP) in 2025. The primary balance is projected to reach a surplus of EUR 1.701 million (4.8% of GDP) in 2025.
  Source: Ministry of Finance

• In a speech at the annual general meeting of the Banking Association yesterday, minister of Finance Makis Keravnos stated that his personal goal is to reduce the total debt to GDP ratio to below 60% by the end of 2025. Furthermore, he noted that the Cypriot economy has achieved one of the highest growth rates in the European Union, thanks to effective fiscal policies. Finally, he stated that the Cyprus banking system has returned to a healthy trajectory and is now a stable pillar, ready to support the country’s development.
  Source: PhileNews

• Total passenger traffic at Larnaca and Paphos Airport in May 2025 stood at 1,282,882 passengers recording an increase of 12.47% (y-o-y). For the first time in history, passenger traffic in the period of January – May 2025 was more than 4 million (+12.02% y-o-y) compared to the corresponding period in the previous year.
  Source: Government of Cyprus