Positive developments on the Cyprus problem for the first time since 2017, the government says.

Macro/Political
• Preliminary data released by the MoF showed that the State Budget balance on a modified cash basis for January – February 2025 presented a surplus of EUR 629mn, against a target of a deficit of EUR 51mn and a surplus of EUR 1,437mn in the same period of 2024. The State Budget Primary Balance amounted to a surplus of EUR 2,271mn, against the primary surplus target of EUR 2,029mn and a primary surplus of EUR 3,378mn in the same period of last year. It is noted that an amount of EUR 468mn which refers to the time differentiation of payments from ordinary budget and an amount of EUR 473mn which refers to the time differentiation of PIB payments, do not affect the outcome in fiscal terms.
For January – February 2025, State Budget net revenues amounted to EUR 11,663mn, showing an increase of EUR 90mn or 0.77% against the target, which is included in the 2025 Budget introductory report. State Budget expenditures amounted to EUR 11,034mn, EUR 590mn lower than the target.

Source: MoF 

Markets
• Metlen announced that it strengthens its strategic presence in the Defence sector with new expansions at its industrial complex in Volos, developing a significant defence hub in Greece.
Source: athexgroup.gr

• Moody’s upgraded Alpha Bank’s and Piraeus Bank’s long-term deposit and senior unsecured ratings to Baa2 from Baa3, the outlook for Alpha remained positive while the outlook for Piraeus changed to stable. Alpha’s Bank’s long term junior unsecured (SNP) ratings upgraded to Ba1 from Ba2, and the subordinate debt ratings were upgraded to Ba1 from Ba2.While Piraeus Bank’s subordinate debt ratings were upgraded to Ba2 from Ba3.
Source: Moody’s

Macro/Political
• Government Spokesman Konstantinos Letymbiotis stated that, for the first time since 2017, Cyprus is on a trajectory of positive developments following the conclusion of the plenary session of the informal meeting in a broader format. Letymbiotis also reaffirmed the government’s commitment to reunifying the island within the framework of the United Nations and the European acquis

• On basis of provisional data, it is estimated that in 4Q24 hourly labour costs, increased by 5.6% (y-o-y). The two main components of labour costs, wages and salaries per hour worked and non-wage costs per hour worked increased by 5.3% and 7% respectively(y-o-y).
Source: Cystat

Markets
•  According to the press, Bank of Cyprus is in negotiations with Ethniki Insurance of Cyprus for the acquisition of all the companies that the insurer operates in Cyprus. It is important to note that Bank of Cyprus has declined to comment on the matter.
Source: EconomyToday