Cyprus Company News

According to businessmen and professional service firms in Cyprus, new companies are waiting long queues to open bank accounts in the jurisdiction. Some of them are should wait for 3-4 months and even longer. According to some financial sources, it is not only banks which are to blame for this, but also insufficient Cyprus Central Bank guidance in terms of evaluation of potential account holders, and the vastly increased amount of compliance regulations. Bankers say that there is enormous and growing complexity of regulations, especially for companies with branches in several countries. By words of Chris Boreham, group head of Business Development at the Nicosia-based Highworth, “there is a definite need for improvement, as clients are giving up and going elsewhere because they can’t arrange their finances here.” There is a significant danger to the Cyprus economy, as Cyprus is being judged for its ability to provide good corporate governance. Professional associations in the jurisdict

The Central Bank of Cyprus (CBC) released the data about the performance in Cyprus banking sector in August 2020. Total deposits rose in this period, with the outstanding amount reaching €47.9 billion. This is compared with a net increase of €105,6 million in July 2020. On an annual basis, the deposits remained unchanged, compared with an annual reduction of 0.9 per cent in July 2020. There was a net decrease of €60.7 million of total loans in August 2020, compared with a net increase of €66.9 million in July 2020, with the outstanding amount reaching 31.8 billion. The annual growth rate in August amounted to -4,4%, compared with -3,7% in July 2020. According to the Central Bank of Cyprus, the suspension of instalments which was related to loans from MFIs to households and non-financial corporations amounting to €10.4 billion, had an upward impact on the above changes in loans.

According to the circular issued by the management of the Bank of Cyprus , it is going to reduce staff-related costs with changes in salaries and early retirement and part time employment options. Also, according to the Human Resources Department, about 3,700 employees could be left on unpaid leave. It was stated in the circular: “The coronavirus pandemic has affected us all, ushering in a new reality to the labour sector and indicating that we all have to adjust to a new state of play… Within this framework and with the main goal being the provision of facilities to staff that will lead to a better work life balance, we are immediately proceeding with labour institutions.” The Bank of Cyprus, which is the largest lender on the island, announced a net loss of €70 million for 2019; in view of the pandemic, the Bank has been updating macroeconomic assumptions.

Cyprus-based Alexandrion Group was granted two international awards organized under the publication’s established awards ordinance “ACQ5 Global Awards 2019”. The leading group of spirits in the Romanian market has won the Europe’s company of the year award and the founder and chairman of Alexandrion Group was named Europe’s Gamechanger of the year. The ACQ Global Awards were established in 2006, and are the only industry honours given purely on the basis of voter participation, welcoming and considering any and all submissions to the relevant nomination process. The awards are divided into Company, Practice Area, Individual and Firm-wide categories within the public & private sectors. The awards boast a legitimately independent nomination process, they rely on reader insight and experience to provide nominations and relish hearing about new experts and burgeoning markets.

Privately-owned investment banking company AXIA Ventures Group based in Cyprus was engaged by Greek holding Lamda Development S.A. to act as Joint Global Coordinator for the successful completion of €650 million share capital increase through the exercise of pre-emption and over-subscription rights by Lamda’s existing shareholders. Group Managing Director of AXIA Ventures Group Mr. George Linatsas stated in his comments: “We are honored that Lamda Development has trusted us to have a leading role in such a landmark transaction not only for the Company but also for Greece. The successful completion of this share capital increase enables the Company to essentially kick-start the Hellinikon Project, one of the largest urban development projects in Europe, which will have an unparalleled socioeconomic impact on our country. This share capital increase signals the beginning of a new era for Greece and we as AXIA are proud that we assisted Lamda Development in completing this milestone

Bank of Cyprus has revised its Privacy Statement concerning the processing of personal data of natural persons who are customers or potential customers of the Bank, customers’ representatives and/or beneficiaries of legal entities of customers or potential customers. The renewed Privacy Statement is available at the bank’s website, on its digital channels and at the branches of Bank of Cyprus. The Bank announced that revision of its Privacy Statement became part of its strategy to comprehensively protect personal data, in response to the requirements of Regulation (EU) 2016/679 of the European Parliament and of the Council on data protection and privacy (GDPR) and the Law providing for the Protection of Natural Persons with regard to the Processing of Personal Data and for the free movement of such data.