Greece plans to fully repay the loans (GLF) from its first bailout program by 2031, ten years ahead of schedule.

Macro Political
•  Greece plans to fully repay the loans (GLF) from its first bailout program by 2031, ten years ahead of schedule, according to two government officials speaking to Reuters. The repayments will be made in annual installments of EUR 5bn. The move is part of the country’s effort to leave behind its status as the most heavily indebted EU member. Officials said Greece will use a combination of its EUR 37bn cash reserves, higher-than-expected primary budget surpluses, and new bond issuances to finance the early repayments. In an interview with Reuters, Finance Minister Kyriakos Pierrakakis did not comment on the specifics of the timing or the size of the yearly payments, but did acknowledge that loans would be paid back ahead of schedule. According to Mr. Pierrakakis, Greece’s public debt is expected to drop below 140% by 2027.
Source: Reuters

Macro Political

•  At the request of the Permanent Secretary of the Ministry of Finance of Cyprus, an IMF Fiscal Affairs Department mission visited Nicosia from June 18 to July 1, 2024, to review government employment and compensation and identify policy options to ensure adequate and sustainable compensation spending. The mission found that while the size of Cyprus’s government workforce is moderate, average compensation is high with public-sector employees earn 27% more than their private-sector peers after adjusting for education and other factors. Following a recent increase in compensation spending, the authorities aim to create fiscal space. The mission projects that without reforms or strong economic growth, compensation will remain high as a share of GDP. Among other, the mission recommends prioritizing containment of compensation growth rather than reducing employment levels to ensure fiscal sustainability.
Source: IMF

•  Cyprus is waiting for an official update today after disappointing news from a major offshore drilling project. The drilling at the “Electra” target in block 5 of the island’s exclusive economic zone (EEZ) has not produced the expected results .Energy Minister George Papanastasiou confirmed that the ExxonMobil and QatarEnergy consortium will provide an official statement by Monday, in response to a report suggesting that the drilling had not found marketable quantities of natural gas. The report, published by the Middle East Economic Survey (MEES), said that while gas was present, it was not in the amounts needed for commercial use.
Source: CyprusMail

Markets:

•  Bank of Cyprus announced that it has signed a binding agreement with Ethniki Hellenic General Insurance Company S.A to acquire 100% of Ethniki Insurance Cyprus Ltd. The consideration of the transaction is EUR 29.5 mn in cash. The transaction is subject to regulatory approvals and is expected to be completed in the second half of 2025.
Source: ATHEX