
Newsroom
From forest fire probes to banking battles, here’s a look at the week’s biggest developments in Cyprus.
Hotel industry crisis averted, for now
With talks still ongoing at one large hotel group and labor disputes settled at three others, a broader crisis in Cyprus’ hotel sector appears to have been avoided. The focus now shifts to smaller hotel operators, as unions and owners work to resolve disputes over 2024 one-off payments and annual wage increases. The goal: prevent strikes that could undo recent labor peace.
U.S. experts join Limassol arson probe
Ten American investigators from the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) are in Cyprus to help determine the cause of last month’s devastating mountain fires in Limassol. Invited by President Nikos Christodoulides, the team will focus on the suspected ignition point identified by witnesses. The ATF also investigates arson and bombings, alongside its usual jurisdiction over alcohol, tobacco, weapons, and explosives.
Fire response under scrutiny
Lawmakers held an emergency session Tuesday to examine the state’s response to the Limassol fires. Representatives from the fire service, police, forestry department, and civil defense insisted they followed operational plans and did their best with the resources they had. But those plans, critics say, were outdated, ill-suited for the crisis, and lacked a central coordinator, a gap that may have cost thousands of acres of forest.
End of an era in mortgage relief
Between 2019 and 2023, the government launched four schemes to protect primary residences from bank foreclosures, including the “Estia” plan in 2019 and “Rent for Installment” in 2023. Finance Minister Makis Keravnos told parliament no similar schemes will return, citing low borrower interest and the difficulty of securing EU approval. Non-performing loans first spiked in 2014, though many had been in trouble for years.
Southern banks bounce back
Banks in southern Europe, including Cyprus, outperformed expectations in EU stress tests, despite an adverse scenario that shaved 25% off their core capital over three years. Analysts credit strong profits in 2023 and 2024 for their resilience.
Undersea cable déjà vu?
A planned Saudi-Europe undersea fiber-optic link, the East to Med Data Corridor, will pass through Greece and Cyprus. But it mirrors the route of the stalled Great Sea Interconnector, blocked by Turkish objections. Some question whether Greece’s 2023 retreat in the face of Turkish threats over the island of Kasos has doomed similar projects lacking Ankara’s blessing.
Bank union turns up the heat
The Cyprus bank workers’ union, ETYK, is pushing for the reinstatement of pay and benefits cut during the 2013 financial crisis, plus new raises and even a four-day workweek. The union argues bank employees helped save the sector during hard times and now deserve their share of record profits. Critics counter that many private-sector workers also sacrificed during the crisis, often losing jobs entirely, and warn that ETYK’s demands risk fueling public resentment.