Newsroom
Bank of Cyprus shares were delisted from the Athens Stock Exchange following the 2013 financial crisis and the turbulent merger with Laiki Bank, including the depositor haircut. In a bid to usher in a new era with new shareholders and management, the bank applied for listing on the London Stock Exchange, initially seen as a symbolic move. After a prolonged period of uncertainty, the bank is now positioned to pay dividends to shareholders, coinciding with strengthened ties between the Greek and Cypriot business markets. Management is contemplating future moves, with significant developments anticipated.
Domestic Market Challenges
The Cypriot domestic market suffers from a lack of healthy competition in key products and services, leading to high prices affecting middle and low-income households. Cyprus ranks among the ten most expensive Eurozone countries. Increased inflation necessitates proactive measures from the Competition Protection Committee to enhance market competition.
Eurobank's Hellenic Bank Bid
As the public offer deadline approaches, Eurobank, holding a majority stake in Hellenic Bank, faces the task of managing the bank amid board resistance. Upcoming general meetings could bring significant executive and non-executive changes, potentially easing or escalating tensions between new and existing shareholders.
Addressing Staff Shortages
The retail sector faces a shortage of 2,500 jobs, with similar issues in the hotel and bus industries. The government is urged to address these shortages promptly, leveraging immigration to bolster the economy, following Germany's past example.
Tourism and Economic Implications
Tourism analysis reveals a 1% decline in foreign travel by Cypriots as of June, indicating reduced purchasing power. This trend affects the economy’s growth prospects and could influence electoral behavior, pushing citizens towards extreme political options.
