cyprus third-largest — cyprus third-largest — Alpha Bank has completed the acquisition of substantially all assets and liabilities of AstroBank Public Company Ltd, resulting in the establishment of Cyprus’ third-largest bank with total assets exceeding €6.6 billion.
Cyprus third-largest: Details of the Acquisition
The transaction, executed through Alpha Bank Cyprus Ltd and other entities within the Alpha Bank Group, followed the receipt of all necessary regulatory approvals. The deal was officially signed on June 24, 2025, and the transfer of assets and liabilities was completed as of October 31, 2025, in accordance with the Cyprus Transfer of Banking Business and Securities Law.
Significance of the New Bank
This acquisition marks a significant milestone in the Cypriot banking sector, consolidating Alpha Bank’s position and increasing its market share. With total assets now surpassing €6.6 billion, the new entity is poised to play a crucial role in the Cypriot economy, offering a wider range of financial products and services to its customers.
Improvements in the Shipping Sector
Meanwhile, the Deputy Ministry of Shipping has presented a slightly surplus budget for 2026, with expenditures set at €18.7 million and projected revenues of €20.3 million. Director General Stelios Chimonas noted a 20 per cent growth in the Cyprus registry since September 2023, alongside a 4.5 per cent increase in companies under the Tonnage Tax System.
Focus on Sustainable Development
The Deputy Ministry aims to reinforce Cyprus’ status as a maritime state, with a mission to enhance both the economy and the Republic’s international standing. The ministry currently employs 155 staff members, comprising 94 women and 61 men, across various administrative directorates and overseas offices.
Regulatory Changes in Banking
In other banking news, Wellington Management Group LLP has reduced its voting rights in the Bank of Cyprus Holdings Public Limited Company to below the 5 per cent threshold as of October 30, 2025. This change necessitated a mandatory notification to both the issuer and the Central Bank of Ireland, as per regulatory requirements.
Challenges in Poverty Rates Among Workers
New Eurostat figures reveal that 8.2 per cent of workers aged 18 or over in the European Union were at risk of poverty in 2024. In Cyprus, the rate stood at 7.3 per cent, slightly below the EU average, but with a notable gender disparity: 8.5 per cent of working women faced poverty risks compared to 6.3 per cent of working men. This places Cyprus among the few EU countries where women are at greater risk of poverty than men.
Financial Updates from KEO plc
In corporate news, the board of directors at KEO plc has decided to pay an interim dividend of €2,109,096 to its shareholders, translating to €0.05 per ordinary share. This dividend is set to benefit shareholders registered in the CSE records by November 11, 2025.
EU Funding for Cyprus
Finance Minister Makis Keravnos announced that Cyprus has received €568 million from the European Union’s Recovery and Resilience Facility (RRF), with further disbursements expected soon. The Recovery and Resilience Plan aims to inject approximately €1.2 billion into Cyprus by 2026, divided across 135 measures and reforms.
Impact of the Cyprus International Funds Summit
The Cyprus Investment Funds Association (CIFA) recapped the 11th Cyprus International Funds Summit & Expo, where discussions on the alternative investment landscape were prominent. The event brought together fund managers, institutional investors, and policymakers to explore regulatory trends and innovation.
Central Bank Concerns on Eurozone Economy
Central Bank of Cyprus Governor Christodoulos Patsalides highlighted the weak state of the Eurozone economy during the 21st Annual Economist Conference, urging for deeper economic integration and improved competitiveness. He noted that the growth rate of the Eurozone remains around 1 per cent, which he described as low.
Economic Indicators and Stability
October 2025 saw the Euro area annual inflation rate at 2.1 per cent, a slight decrease from September’s 2.2 per cent. In contrast, Cyprus recorded significantly lower inflation at 0.3 per cent, reflecting a stable economic environment. The tax-to-GDP ratio in Cyprus also saw a marginal increase to 37.6 per cent in 2024.
Digital Economy Advancements
Cyprus has been recognised for its strong performance in digital governance through the launch of the Digital Economy Navigator 2025 (DEN 2025). This report highlights the nation’s commitment to secure infrastructure and digital inclusion, further establishing Cyprus as a leading digital economy in the region.
Regulatory Developments in Housing
Those benefiting from the 5 per cent VAT scheme for home purchases will continue to be covered until June 2026, as transitional provisions from 2023 legislation remain in effect. This scheme has allowed buyers who applied for planning permits between June and October 2023 to secure reduced VAT rates.
Revolut’s Operational Expansion in Cyprus
Revolut has selected Cyprus as the hub for its European operations in digital assets after obtaining a Markets in Crypto-Assets (MiCA) licence. This decision underscores Cyprus’ growing importance in the fintech and crypto sectors, attracting investment and fostering innovation.
Unemployment Trends in Cyprus
According to recent data from the Cyprus Statistical Service, the number of registered unemployed persons reached 7,099 in October, reflecting an 8.8 per cent decrease from the previous year. Seasonally adjusted figures indicate a drop to 9,476 unemployed, down from 9,671 in September.
Future of the Digital Euro
The Central Bank of Cyprus is progressing with the digital euro project, with the second phase expected to be completed by 2026. Governor Patsalides emphasised the necessity of adopting the digital euro as digital payments increase globally.
International Collaboration in Investment
At the International Funds Summit, Eurobank highlighted its commitment to fostering investment links between Europe and India through Cyprus, reinforcing the island’s role as a strategic gateway for cross-border investment opportunities.
Tourism Outlook for Cyprus
Deputy Minister of Tourism Costas Koumis reported a positive outlook for winter holiday programmes from British tour operators, anticipating that the island’s successful summer tourism season will translate into increased visitor numbers in 2026.
