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Cyprus Banking Sector in the Spotlight Amidst Potential Stake Sale

2024-06-25 10:55:02.633000

The potential sale of a substantial stake in the Bank of Cyprus' equity, along with geopolitical developments, took center stage at the Cyprus International Business Association (CIBA) forum. AB CarVal Investors and Caius Capital are interested in selling their shares in the Bank of Cyprus, which together amount to 14.65% of the bank's equity. Demetris Efstathiou, Executive Director of Blue Diagonal and independent board member of Hellenic Bank, emphasized that the Cypriot banking system does not require additional foreign shareholders in terms of capital support. Economist Fiona Mullen noted that the Cypriot banking system has significant liquidity, but the Bank of Cyprus and Hellenic Bank constitute almost 80% of the banking system. She mentioned that additional foreign shareholders in the Bank of Cyprus should not be concerning. During discussions on global economic developments, Mullen suggested that Donald Trump is favored for a return to the White House in the upcoming presidential elections and could influence the Cyprus issue due to his stance on UN peacekeeping operation cost savings. Both Efstathiou and Mullen agreed that the European economy lags behind the US economy, which exhibits strong growth rates despite a high public debt exceeding 100% of GDP. Christos Pashalides, senior economic adviser to the European Commission, said that geopolitical tensions pose a challenge to the EU's model of jointly addressing challenges. He also mentioned the need to improve the governance of semi-governmental organizations and state-owned enterprises based on best international practices. Finally, he underscored the importance of improving the electricity grid to facilitate further integration of renewable energy sources into the country's energy mix. [0d83e1df]

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