AGP Executive Report

UN Reform Debate: A fresh push for major UN Security Council reform is back in the spotlight as critics argue the world body has failed to prevent wars and now needs restructuring to match today’s economic and military power. Euro Design & Cash Culture: The ECB’s euro banknote redesign drive is drawing huge public interest, with millions voting on candidate designs—an unusual reminder that money design can still feel political and personal. Revolut & Crypto Regulation: Revolut’s euro stablecoin EURR is rolling out under MiCA rules, while the wider trading industry continues to deal with platform disruptions and tighter CFD protections. Cyprus Housing Pressure: Student accommodation demand is outpacing supply, pushing rents up across Nicosia, Larnaca, Paphos, Limassol and Paralimni—forcing early booking and squeezing budgets. Nicosia Building Safety: The Nicosia district says 711 buildings are officially flagged as dangerous, warning the “visible part” is only the start and calling for sustained funding to tackle the backlog. Energy & Reliability: EAC schedules power cuts in parts of Paphos for medium-voltage network maintenance, urging residents to charge devices and treat installations as live. Fisheries Plan Demand: Cypriot small-scale fishermen are calling for a 10-year national plan to protect stocks, improve monitoring and secure fair access to coastal grounds. Maritime Education Support: Safe Bulkers extends its 2026-27 scholarship deadline to Sept. 7, offering €10,000 awards for students pursuing maritime careers. Culture Funding: Cyprus’ culture ministry will fund Armenian, Maronite and Latin religious groups’ cultural activities via grants4arts.cy starting Sept. 1.

Nicosia Housing & Safety: The Nicosia district says 711 buildings are officially confirmed as dangerous, with 1,495 cases in total, and warns it needs €2m a year for a decade to tackle the backlog. Energy & Business Continuity: EAC schedules power cuts in Paphos communities on Monday for medium-voltage maintenance, urging residents and businesses to charge devices and treat installations as live. Municipal Services: Limassol plans CCTV in six public areas to curb vandalism, with camera placement adjusted after data-protection concerns. Local Economy & Housing: Cyprus’ housing lottery and deposit affordability remain in focus as banks report rising deposit rates and households struggle to meet home deposit requirements. Fisheries & Jobs: Cypriot small-scale coastal fishers demand a formal 10-year national plan, stronger enforcement against illegal fishing, and better market access under the EU common fisheries policy. Regulation & Finance: CySEC tightens rules on trust ownership records, while Cyprus payment fraud losses are reported rising to €3.7m. Geopolitics & Risk: Reports claim UK officials fear a Chinese-linked luxury resort in Greek Cyprus could be used to observe RAF Akrotiri, though no wrongdoing is alleged.

Cyprus–Kazakhstan Business Boost: President Nikos Christodoulides’ official visit to Astana is being framed as a springboard for trade and investment, with cooperation opportunities flagged in shipping, transport, energy, tech, cybersecurity, health and tourism. Nicosia Retail Pressure: Shopkeepers on Makarios Avenue say the area’s “artificial death” is driving traffic away and leaving two out of three shops empty, calling for reopening and restored two-way access. AI for Shipping: The Cyprus Shipping Chamber backs the draft National AI Strategy 2032 ahead of the Aug. 31 consultation deadline, aiming to position Cyprus as an AI services hub in the eastern Mediterranean. Livestock Rebuild Plan: A government report after foot-and-mouth disease recommends restructuring and congestion controls in livestock zones, plus a shift toward more balanced milk and meat production. Maritime Scholarships: Safe Bulkers extended its 2026–2027 scholarship deadline to Sept. 7, offering ten €10,000 awards for maritime-focused studies. Crypto Fraud Alert: Police are investigating a Nicosia case where a 53-year-old lost €65,415 after scammers guided him to install an app and hand over bank access. Halloumi & Kiwifruit Push to the US: EUKIHAL is bringing Cyprus PDO Halloumi and Greek kiwifruit to Miami tastings, targeting new export growth through 2028. Electricity & Deposits Watch: Cyprus deposits jumped €562m as loans fell €69m, while EUR deposit rates in Cyprus broke 3% with new increases from PickTheBank and Lidion Bank.

Electric-scooter crackdown: Cyprus is moving to tighten enforcement, with a draft decree proposing fines and potential 30–90 day impoundment for offences like riding in prohibited areas, under-17 use, or speeds above 25km/h, after a public consultation period running until Sept. 26. Energy & renewables debate: The Electricity Market Association pushes back on claims that solar producers buy low and sell high, arguing market mechanics mean any price drop would only modestly reduce overall bills. Electricity capacity dispute: The EAC denies blocking a private 260MW power plant near Vasiliko, saying outstanding issues relate to permits for seawater discharge pipes. Public finance & pensions: Labour Minister Marinos Mousiouttas outlines a phased pension increase plan, with up to 60% of rises potentially delivered in the first two years, while public-sector groups challenge a 12% early-retirement penalty for workers forced to retire before 63. Banking snapshot: Cyprus deposits rose by €562m in July as loans fell €69m, keeping deposits at €59.2bn and loans under pressure. Tourism/air links: Israel-bound passengers faced Ben-Gurion disruption, while Air Haifa reportedly handled flights more reliably, spotlighting the north’s airport growth potential. EU budget talks: “Frugal” EU leaders again failed to agree on how much to cut the 2027–2034 budget, keeping negotiations in a key phase. Consumer safety: Labour inspectors warn parents about potentially dangerous chemicals in some school supplies, citing substances flagged via the EU Safety Gate system.

Air Connectivity: SkyUp says it will keep running direct Chisinau–Larnaca flights in summer 2027, after Moldova’s passenger traffic on the route jumped 192% in 2025 (to 78,912 travellers). Education & Infrastructure: Authorities are reviewing a “Fasouri School” plan in Kato Polemidia for a 4,500-pupil academy and sports hub, with three school units and a shared sports centre. Maritime Decarbonisation: CYMEPA is urging citizens to take part in the METAVASEA second-wave survey on shipping emissions and alternative fuels. Household Costs & Retail: Cyprus supermarket prices for school supplies are reported as stable, while September holiday pricing is rising elsewhere—still leaving room for bargains. Banking & Skills: The Association of Cyprus Banks expanded financial literacy efforts in 2025 and early 2026, supporting the national strategy led by CyFLEC. Ratings Watch: Cyprus is set for three September credit rating decisions (DBRS Morningstar, S&P and Capital Intelligence), with further reviews by Fitch and Moody’s in November. Crypto & Payments: Revolut begins rolling out its euro stablecoin EURR in Denmark, Poland and Portugal, while Cyprus’ payments sector also faces deal activity as ECM Partners seeks Central Bank approval for its €100m+ payabl. acquisition. Fraud & Compliance: Tax audits targeting influencer wealth found many cases where the “luxury” was mostly photo-and-video branding rather than real income or deposits, and Cyprus regulator actions continue to focus on compliance.

K9 Rescue Spotlight: Cyprus Fire Service marked World Dog Day by praising its K9 team of eight dogs trained to locate people after collapses and in open-area searches, highlighting the handler-dog teamwork behind specialist disaster response. Diplomatic Pressure: Üstel met German Bundestag member Maximilian Krah in the occupied north, urging support to end Turkish Cypriot isolation and calling for any future deal to recognise Turkish Cypriot sovereign equality and equal international standing. Household Cost Crunch: Cyprus readers will feel the wider eurozone ripple as ECB board member Isabel Schnabel warned inflation may stay above target, with “further tightening” potentially needed—raising the odds of higher borrowing costs. Cyprus Credit Ratings Watch: Cyprus is set for three September reviews—DBRS Morningstar (Sept 4), S&P (Sept 18) and Capital Intelligence (Sept 18)—with the next Fitch and Moody’s checks due in November. Regulator Action: CySEC fined Eurotrade Investment RGB €100 for missing a regulatory filing deadline, noting the firm later complied. Payments Deal: ECM Partners’ planned €100m-plus purchase of half of payabl. has been submitted to the Central Bank of Cyprus, with approval expected in October, expanding ECM’s push into electronic money and payments. Arson Probe in Paphos: Police concluded a Chloraka restaurant fire was deliberately set, following a fast response that limited spread but left significant damage. Energy Infrastructure: Greece’s deputy foreign minister said Turkey permission isn’t needed for the Great Sea Interconnector, with planning continuing and seabed surveys expected. Social Support Applications: The government is preparing to open applications in early September for childcare and tuition subsidies for 2026-2027, including the THALIA-funded scheme and SED4+ for children aged four and over. Retail Snapshot: Cyprus shoppers are visiting supermarkets more often and comparing prices, with smaller baskets but solid summer performance despite inflation pressures.

Cyprus Economy & Markets: Cyprus-linked destinations are feeling the knock-on effects of the Iran war, with Gatwick reporting an 18% drop in first-half pre-tax profits as passenger numbers fell 4.7% to 19.1m, and demand for routes seen as tied to the Middle East (including Cyprus) weakening. Energy & Infrastructure: EAC plans new electricity storage at Dhekelia (80MW/160MWh) and Moni (100MW/200MWh) to cut renewable curtailment, with Dhekelia contract signed and expected to start operations next September; total cost estimates put the project around €33.7m for Dhekelia and roughly €50m overall. Digital Policy & AI: Cyprus’ National AI Strategy 2032 is open for public consultation, arguing for a focused approach that builds shared enablers like data, skills and trusted governance; separately, Deputy Minister Nicodemos Damianou says young people must be included in decisions shaping digital jobs and online safety. Regulation & Finance: CySEC updates anti-money laundering rules for express trusts’ beneficial ownership records, streamlining access and compliance; Cyprus Stock Exchange also lists new government bills (per coverage). Business & Trade: A €1.7m grant scheme backs Cypriot firms taking part in international trade fairs in 2027, with applications due by Sept 18. Governance & Compliance: Demetra clarifies its Logicom board appointment is in a personal capacity, not as a Demetra representative. Privacy Watch: The Data Protection Commissioner says cameras in toilets are illegal and will inspect restaurants, hotels and entertainment venues from September. Tourism Resilience: A new report highlights how Cyprus diversified after Russian arrivals collapsed post-2022, using targeted marketing and air connectivity to shift toward other European markets.

Cyprus AI push: The government has opened public consultation on a national AI strategy aiming to make Cyprus the Eastern Mediterranean’s trusted AI hub by 2032, with plans for smarter public services, stronger skills and a safer regulatory environment. Energy & cost pressures: The finance minister says the economy is resilient, with 3.3% growth in H1 and unemployment at 4%, but inflation is still a concern; separately, storage-heater households face higher electricity bills after the long-running subsidy ended. Finance & markets: The Cyprus Stock Exchange has listed €50m in new 13-week government bills, with trading starting Aug. 28. Banking & payments: Viva.com has secured a €1.5bn-a-year state payments contract, while CySEC has tightened rules on Cyprus trust ownership records. Business & tech: Cypris launched an integration bringing its R&D intelligence into Microsoft Copilot, and PickTheBank and Lidion Bank raised EUR fixed-term deposit rates above 3%. Governance & integrity: Former President Anastasiades attacks the Anti-Corruption Authority over its findings, escalating a public row over corruption probes. Regional geopolitics: Turkey’s marine parks move is framed as part of a broader pressure strategy that could extend toward Cyprus, while Greece redeployed a Patriot system to Crete amid Iran-related threat reporting.

Municipal Waste Funding Standoff: Cyprus’ “pay as you throw” rubbish-bag rollout is facing pushback from municipalities, which want clarity on financing, organic-waste processing sites, equipment, inspectors and licensing before they commit—while the plan has already missed two EU deadlines. Housing Permits Pressure: Cyprus’ affordability squeeze is worsening as planning and building-permit delays add major costs and slow new homes to market, alongside rising prices and rents. Property Market Update: RICS/KPMG data shows Larnaca leading Q2 2026 gains across apartments and offices, with residential demand also lifting in Larnaca and Paphos. CySEC Trust Records Tightened: CySEC issued an amending directive updating anti-money-laundering rules for ultimate-owner registries for express trusts, adjusting definitions and access/filing requirements. Electricity Grid Upgrade: Cyprus is moving ahead with a ~€95m EU-backed electricity network modernisation to boost renewables integration, with key substation and digital upgrades due by Dec 2029. Hormuz Compliance Risk: Shipping through the Strait of Hormuz is in a fresh bind as Iran blacklisted 45 tankers and warned of fines, detention and cargo confiscation, while US sanctions concerns add to owners’ uncertainty. Tourism Push in Paphos: Etap Paphos extended its domestic autumn campaign to mid-November after generating 2.6m impressions and reaching 335,000 potential visitors since May. Visa Waiver Still Pending: Cyprus’ US visa-waiver bid remains on hold as Washington reassesses the programme despite confirming Cyprus met technical criteria.

Electricity Grid Upgrade: Cyprus has approved a €95m electricity network modernisation package, co-financed by the EU under THALIA 2021-2027, aimed at boosting capacity and flexibility for higher renewables and reducing curtailments, with works due to finish by December 2029. Central Bank Overhaul: A German-style governance model is being considered for the Central Bank of Cyprus, with an Executive Board approach meant to spread decision-making beyond the governor’s office, and potential ECB review updates expected soon. Property Market Snapshot: KPMG in Cyprus and RICS report Q2 2026 resilience, with apartments leading price growth (Larnaca strongest), offices up moderately, retail lagging, and rentals continuing to rise. Consumer Safety Alert: Cyprus’ Consumer Protection Service flagged 65 unsafe non-food products via the EU Safety Gate, with risks ranging from electric shock and burns to chemical hazards. Energy Dispute Watch: Greece signals it will “fully exercise” sovereign rights in the eastern Mediterranean as cable plans progress, while Turkey’s stance remains a flashpoint for maritime and regional tensions. Local Security: Police recorded 24 attacks and 14 arrests against food delivery drivers in the first half of 2026, with robbery the main suspected motive. Business & Trade Tech: Viva.com has secured a major state payments contract, while Cyprus’ digital identity and border-control upgrades continue to move toward automated systems. Sports & Events: Cyprus sailor Pavlos Kontides is among 141 competitors at the ILCA 7 Men’s World Championship in Ireland, highlighting the island’s presence on the international sporting calendar.

State Payments Digital Push: Cyprus awarded Viva.com a four-year contract to run electronic transaction processing for the Treasury, expected to handle over €1.5bn annually via the gov.cy Payment Gateway, covering taxes, vehicle licence renewals and social insurance contributions. Banking & Community: Eurobank employees backed the “School supplies for ALL children” campaign with donations and equipment for vulnerable families through PCCV ahead of the new school year. Real Estate Affordability: A new analysis says Cyprus home deposits are out of reach for many workers, with a 20% down payment equivalent to about 23 months of average gross pay—and far longer on median and lower wages. Corporate Actions: Demetra Holdings carried out a small share buyback, repurchasing 3,396 shares at €1.44 each. Travel & Sports: Wizz Air became Official Airline Partner of Mountain Games Cyprus 2026, supporting travel for participants ahead of the Troodos event on Sept 23-26. Energy & Geopolitics: Cyprus again protested Turkey’s undersea gas pipeline plans to the UN, while Greece advanced the Great Sea Interconnector with French investor Meridiam. Digital Work Rules: Cyprus’ telework framework law is highlighted as setting rights and cost responsibilities for remote work. Cash vs Cards: ECB survey data show Cyprus has the lowest cash acceptance in the euro area (76%), while digital payments keep gaining ground.

Cyprus–Greece Energy & Investment: Greece’s PM Kyriakos Mitsotakis backed a deal for French asset manager Meridiam to take majority control of the Great Sea Interconnector project, with Nexans set to manufacture and lay the cable—framed as a major step to end Cyprus’ energy isolation and strengthen the regional grid. Pensions Reform: Labour Minister Marinos Mousiouttas said the planned pension overhaul will deliver increases for all retirees, with lower pensions benefiting most; more than 51,000 pensioners are expected to gain over €100/month, phased in over five years. Banking Rules & Inclusion: An EU court ruling in the Jenec case limits banks’ ability to refuse basic-feature accounts solely due to third-country sanctions listings, requiring an individual risk assessment and proportionate measures. Cash vs Cards in Cyprus: An ECB survey shows Greece remains cash-heavy (99% acceptance), while Cyprus has the lowest euro-area cash acceptance rate (76%) and higher uncertainty about keeping cash in the next five years. Cybercrime at Home: A 28-year-old was remanded over an online banking scam after police say €6,800 was stolen from two accounts following a phone call requesting credentials; he was arrested at Larnaca airport. Trade & Renewables Link: Libya’s National Development Authority met Cyprus’ Chamber of Commerce to explore renewable energy, construction, and port/airport modernization partnerships. Regulatory Credibility Pitch: A Cyprus AML/compliance expert argues Cyprus can win as a financial centre by treating EU regulatory standards as a competitive advantage, not just a compliance cost.

Financial Services & Regulation: A compliance expert says Cyprus can win more business as an international financial centre by treating EU regulation as a credibility advantage, not just a cost, as investor focus shifts to governance, transparency and AML resilience. Energy & Grid Reliability: Power cuts across Cyprus were linked to a telecom failure affecting data flows from major solar parks to the Electricity Authority’s control systems, while a separate north-area fault caused another outage. UN & Energy Diplomacy: Cyprus’ UN representative protested Turkey’s natural gas pipeline “memorandum of understanding,” calling it illegal and already backed by preparatory steps such as seismic survey moves. Local Business & Permits: Three Israeli-backed developments in Cyprus are drawing scrutiny over planning and licensing—ranging from a Latchi hotel expansion to permit gaps in Trozena and a planned large Jewish school in Polemidia. Tourism & Community: The Troodos presidential residence will open for the third year with the “Pame Troodos 3” festival, spotlighting mountain producers and supporting an elderly care home. Labour & Hospitality: PASYXE pushed back on hotel employment allegations, saying it has received no substantiated complaints and urging anyone with specific information to report it. Security & Regional Risk: Reports say Iran is considering strikes on US bases in Europe, with Cyprus and other countries mentioned—raising fresh geopolitical uncertainty for the region.

UN Diplomacy: Cyprus’ UN envoy Maria Michael protested Turkey’s planned natural gas pipeline deal with Turkish Cypriot authorities, calling it illegal and already underway via seismic survey steps. Energy & Power: EAC said Cyprus-wide power cuts were triggered by a telecom failure affecting data from major photovoltaic parks, while a separate Saturday outage in occupied areas was linked to a north-side grid fault. Local Economy & Transport: Road freight volumes rose in Q1 2026, but average haul distances fell sharply, pointing to shorter trips despite higher tonnage. Tourism & Business: The Presidential Residence in Troodos will host “Pame Troodos 3” on 6 September, spotlighting mountain producers and small businesses. Regulation & Markets: Cyprus’ CySEC warned funds about an EU-wide risk management review, while the Cyprus Stock Exchange extended suspensions/delisting for treasury bills and other firms. Labour & Hospitality: PASYXE pushed for whistleblowers over claims of illegal hotel employment, stressing lawful use of licensed agencies. Geopolitics & Cyprus: Cyprus also faced renewed regional pressure as Turkey-Greece-Cyprus tensions and Iran-related security concerns continued to dominate headlines.

Power & Grid Reliability: A fault in the north triggered islandwide power cuts in “various areas” on Saturday morning (5:51am–6:09am), with the transmission system operator citing the issue and Turkish Cypriot electricity workers’ union El-Sen pointing to maintenance and insulator problems. Energy Infrastructure Debate: A Cyprus energy systems expert says the Great Sea Interconnector (GSI) discussion must go beyond upfront costs and focus on whether Cyprus can become an Eastern Mediterranean energy hub. Trade & Transport Data: Road freight volumes rose in Q1 2026 (tonnage up 2.3% and cross-border by road up 9.3%), but average haul distances fell sharply, with tonne-kilometres down. Capital Markets: The Cyprus Stock Exchange announced a suspension and delisting of treasury bills, while it extended share suspensions for two firms. Digital Finance & Banking: Cyprus banking association launched a revamped digital platform, and Bank of Cyprus is seeking tech, cybersecurity and digital transformation professionals. Craft & Exports/Branding: Cyprus Handicraft Service invited contemporary craft artists to apply for a Paris biennale pavilion in 2027, with works priced for sale up to €20,000. Business & Tourism Signals: Cyprus prices are climbing faster than most of Europe, while fuel price growth slowed in July, according to Eurostat. Regional Politics With Local Business Impact: The palace praised Cyprus-Greece government coordination across sectors including energy and digital policy, while Kyrenia’s mayor warned that cancelling a music festival could “lay the foundation for division of the island.”

Startup Ecosystem Boost: Plug and Play Cyprus has launched its first cohort of 10 startups, aiming to connect local founders with international markets and investment as Cyprus climbs in global startup rankings. Capital Markets: The Cyprus Stock Exchange suspended trading in a 13-week treasury bill series ahead of its delisting, with the halt running Aug. 25-27. Banking & Talent: Bank of Cyprus is recruiting across technology, security, data/AI and digital product roles as it pushes further digital transformation. Energy Reliability: Widespread power cuts hit Cyprus after a generation failure linked to the occupied areas, raising fresh questions about grid resilience and interconnection safeguards. Local Business & Infrastructure: Cyprus Land Services will begin door-knocking for consents for the Edgewater Broadband Project from Aug. 24, with a Sept. 13 deadline for free fibre drop installations. Consumer & Payments: A new EU customs handling fee could add up to €2 per parcel on top of existing duties, potentially making low-cost Temu/Shein orders more expensive in Cyprus. Regional Geopolitics: Israel’s PM office accused Erdoğan of aggression and of extending influence into Syria, while also targeting Turkey’s role in Cyprus.