At the “𝗪𝗵𝗲𝗿𝗲 𝘁𝗼 𝗜𝗻𝘃𝗲𝘀𝘁 𝗙𝗼𝗿𝘂𝗺 𝟮𝟬𝟮𝟱” organised by IMH Business, our 𝗦𝗲𝗻𝗶𝗼𝗿 𝗜𝗻𝘃𝗲𝘀𝘁𝗺𝗲𝗻𝘁 𝗦𝗽𝗲𝗰𝗶𝗮𝗹𝗶𝘀𝘁, Phanos Vladimirou, CFA, highlighted that Cyprus continues to rank among the lowest EU countries in 𝗳𝗶𝗻𝗮𝗻𝗰𝗶𝗮𝗹 𝗹𝗶𝘁𝗲𝗿𝗮𝗰𝘆. This largely explains why Cypriots hold one of the highest levels of deposits relative to their total financial assets, resulting in 𝗹𝗼𝘄-𝘆𝗶𝗲𝗹𝗱𝗶𝗻𝗴 𝘀𝗮𝘃𝗶𝗻𝗴𝘀 and an 𝘂𝗻𝗱𝗲𝗿𝗱𝗲𝘃𝗲𝗹𝗼𝗽𝗲𝗱 capital market. In previous years, this excess liquidity even posed challenges for local banks when 𝗘𝗖𝗕 𝗿𝗮𝘁𝗲𝘀 𝘄𝗲𝗿𝗲 𝗻𝗲𝗴𝗮𝘁𝗶𝘃𝗲. At the EU level, similar structural issues have prompted initiatives such as the 𝗦𝗮𝘃𝗶𝗻𝗴𝘀 𝗮𝗻𝗱 𝗜𝗻𝘃𝗲𝘀𝘁𝗺𝗲𝗻𝘁𝘀 𝗨𝗻𝗶𝗼𝗻 (𝗦𝗜𝗨), aimed at channelling deposits into more productive investments.
Michael Konstantinou, 𝗦𝗲𝗻𝗶𝗼𝗿 𝗣𝗼𝗿𝘁𝗳𝗼𝗹𝗶𝗼 𝗠𝗮𝗻𝗮𝗴𝗲𝗿 at Athlos Capital, also shared his perspective on the major catalysts shaping markets in 2025. He pointed to robust fundamentals consistently 𝗼𝘂𝘁𝗽𝗲𝗿𝗳𝗼𝗿𝗺𝗶𝗻𝗴 𝗲𝘅𝗽𝗲𝗰𝘁𝗮𝘁𝗶𝗼𝗻𝘀, the growing influence of technical and 𝗮𝗹𝗴𝗼𝗿𝗶𝘁𝗵𝗺𝗶𝗰 𝘁𝗿𝗮𝗱𝗶𝗻𝗴, and the unpredictable “𝗙𝗮𝗰𝘁𝗼𝗿 𝗫” tied to the political landscape, particularly developments surrounding President Trump, that continue to fuel volatility. Michael stressed the importance of 𝗱𝗶𝘃𝗲𝗿𝘀𝗶𝗳𝗶𝗰𝗮𝘁𝗶𝗼𝗻 𝗮𝗻𝗱 𝗮𝗰𝘁𝗶𝘃𝗲 𝗺𝗮𝗻𝗮𝗴𝗲𝗺𝗲𝗻𝘁 in such an environment and concluded by outlining his expectations for markets heading into 2026.
Source: Post
