Greece requested escape clause for exclusion of defence spending from fiscal targets.

Macro Political

• Greek Finance Minister Kyriakos Pierrakakis said that Greece submitted a request to European authorities for the activation of the so-called escape clause that allows exclusion of defense spending from fiscal targets. Greece aims to spend EUR 25bn on Defense over next 12 years.
Source: Bloomberg

• The annual growth rate of total credit extended to the domestic economy increased to 6.9% in March 2025, from 6.2% in the previous month. The annual growth rate of total deposits increased to 5.1% from 4.9% in the previous month. The monthly net flow of total credit was positive by EUR 2,901mn in March, compared with a negative net floe of EUR 7mn in the previous month. The monthly net flow of total deposits was positive by EUR 1,359mn compared with a negative net flow of EUR 774mn in February 2025.
Source: BoG

• The Greek PDMA announced that during the 13W T-Bills auction of EUR 500mn which took place yesterday, the total bids reached EUR 892mn and the amount finally accepted was EUR 600mn at a uniform yield of 1.85% (vs 2.03% in the previous 13W T-Bills auction in April 2025).
Source: PDMA

Markets

• Eurobank will announce its 1Q25 financial results on Thursday 8 May 2025.
Source: Eurobank

• Eurobank submitted the application to the CySEC for the exercise of the squeeze out right in order to acquire the remaining shares of Hellenic Bank.
Source: ATHEX

Macro Political

• In March 2025, economic sentiment in Cyprus deteriorated, as the Economic Sentiment Indicator (ECI – CypERC) fell by 2.5 points (m-o-m) and reached 106.5. The decline was mainly driven by weaker business confidence.
Source: UCY

• In February 2025, the Industrial Production Index reached 108.5 units, recording an increase of 4.1%(y-o-y).For the period January – February 2025 the index recorded an increase of 4.3% compared to the corresponding period of the previous year.
Source: CyStat

• Revenue from tourism reached EUR 79.7mn in February 2025, recording an increase of 22.4% compared to the corresponding month of previous year. For the period of January- February 2025, revenue from tourism is estimated at EUR 148.9mn compared to EUR 110.3mn in the corresponding period of 2024, recording an increase of 35%.
Source: CyStat

• Total deposits in March 2025 recorded a net decrease of EUR 66.3mn, compared with a net increase of EUR 498.3mn in February 2025. The annual growth rate of total deposits stood at 7.1%, compared with 7.7% in February 2025. The outstanding amount of total deposits reached EUR 55.9bn. Total loans in March 2025 recorded a net increase of EUR 429.9mn, compared with a net increase of EUR 42.7mn in February 2025. The annual growth rate stood at 3.1%, compared with 1.9% in February 2025. The outstanding amount of total loans reached EUR 25,5bn.

Source: CBC