As negotiations with the park ramp up, unionized food-service employees claim they’re skipping meals and getting close to missing rent payments: “I would bet money that I'm one emergency away from just ruin.”
The long running legal battle centers on allegations that the league and its teams conspired to reach exclusive deals with broadcast partners for the right to air out-of-market games.
Finance Minister Makis Keravnos on Friday praised outgoing European Central Bank (ECB) president Christine Lagarde’s leadership, expressing appreciation for her contribution to monetary stability and economic resilience in the euro area, including Cyprus, following her announcement of an early departure.
Keravnos said Lagarde had led the ECB through a period of significant economic challenges, helping safeguard monetary stability and strengthen the resilience of the euro area.
“I thank her for her valuable contribution to Europe and Cyprus and wish her every success in her future endeavours,” Keravnos said.
The finance minister also expressed his sincere appreciation for Lagarde’s work at the helm of the ECB, highlighting the importance of her leadership during a period of economic uncertainty.
Middle East conflict threatens Cyprus growth outlook, economics research centre warns
Cyprus’ economy is expected to grow by 3.2 per cent in 2026, up from a previous forecast of 2.7 per cent, as stronger-than-expected economic activity and improving business confidence offset mounting inflationary pressures linked to the conflict in the Middle East, according to a report published by the University of Cyprus’ Economics Research Centre (CypERC) in October.
The latest projections point to economic growth moderating from 4.8 per cent in 2025 to 3.2 per cent in 2026 and 3.1 per cent in 2027, with rising prices and tighter monetary conditions expected to weigh on activity over the coming quarters.
The revised 2026 forecast is 0.5 percentage points higher than CypERC’s July estimate, while the projection for 2027 remains unchanged.
The upward revision reflects stronger-than-expected growth during the second quarter of 2026, alongside favourable developments in the third quarter, including improved economic confidence, low unemployment and continued growth in new housing loans.
However, the research centre warned that the outlook remained vulnerable to geopolitical developments, with the Middle East conflict intensifying inflationary pressures and increasing the risk that economic growth could fall short of expectations.
Inflation is expected to accelerate sharply, rising from 0.1 per cent in 2025 to 3.1 per cent in 2026, before easing to 2.3 per cent in 2027.
The forecasts for 2026 and 2027 are respectively 0.1 and 0.2 percentage points higher than those published in July, reflecting rising international oil prices, strong domestic economic activity and persistently low unemployment.
Economic activity remains robust
Cyprus’ economy continued to expand faster than the European Union average during the second quarter of 2026, despite mounting inflationary pressures associated with the conflict in the Middle East.
Real gross domestic product (GDP) grew by 3.3 per cent year-on-year in the second quarter, accelerating from 3 per cent in the first three months of the year.
Real gross value added increased across all economic sectors, with growth accelerating in most industries compared with the previous quarter.
Information and communication activities remained among the fastest-growing sectors, although their expansion slowed for the fourth consecutive quarter. Growth in real estate activities and professional services also moderated slightly, extending the slowdown recorded during the first quarter.
Consumption growth strengthened further during the second quarter, driven primarily by increased government spending. Private consumption continued to expand above its long-term average, maintaining the pace recorded during the first quarter.
Investment also improved, with gross fixed capital formation continuing to grow on the back of increased spending on machinery and equipment and sustained investment in construction.
Both exports and imports recorded strong annual growth. However, net exports made a negative contribution to overall GDP growth because imports increased faster than exports.
Monthly indicators suggest that economic activity remained robust during the third quarter, although some data pointed to emerging challenges.
Retail trade volumes, card purchases and property sale contracts recorded between July and September indicated continued expansion. However, figures for motor vehicle registrations, new company registrations and tourist arrivals provided mixed signals about the strength of economic momentum.
The number of registered unemployed people continued to increase year-on-year throughout the third quarter, although the construction sector was a notable exception.
Nevertheless, the unemployment rate remained very low in August and well below the EU average, according to Eurostat.
The Economic Sentiment Indicator rose above its long-term average during the third quarter, reflecting stronger consumer and business confidence, particularly in services, retail trade and construction.
Companies’ employment expectations also strengthened, moving above their historical average. Economic uncertainty declined overall, although uncertainty among businesses in services and retail trade increased in September.
Consumers’ and companies’ expectations for future prices remained above their historical averages despite some easing during the quarter. Price expectations among consumers and manufacturing firms rose markedly in September.
Inflation and borrowing costs threaten growth
Consumer price inflation increased to 3.4 per cent in the third quarter of 2026, up from 2.8 per cent in the second quarter.
The acceleration was driven by higher prices for housing, water, electricity, fuels and transport, primarily reflecting rapid increases in international oil prices.
Food inflation also continued to add to domestic price pressures, exceeding the overall inflation rate for the third consecutive quarter.
CypERC warned that Cyprus’ heavy reliance on imported fossil fuels made its inflation outlook particularly sensitive to international oil prices, which are vulnerable to geopolitical developments.
The conflict in the Middle East continued to push up global energy prices during the third quarter, with the effects expected to feed through to the prices of goods and services over the forecast period.
Higher food prices are also expected to sustain inflationary pressures, with international food price indices increasing more rapidly during the third quarter than in the first half of 2026.
The report said rising prices had already put pressure on real incomes and were expected to restrain economic activity, particularly as labour market conditions normalised.
Inflation also increased in the euro area and the United Kingdom during the third quarter, potentially weighing on demand from Cyprus’ main trading partners, particularly for services.
Higher interest rates are expected to exert additional pressure on growth, with the effects becoming more pronounced during 2027.
Euro area key interest rates increased further in September in response to rising inflation linked to the Middle East conflict, while market interest rates had begun edging upwards in March and stood considerably higher in September 2026 than a year earlier.
Domestic interest rates on most loan and deposit categories were also higher in August than in the corresponding month of 2025.
CypERC expects tighter financing conditions to restrain both domestic demand and demand from euro area trading partners, with the effects gradually materialising in 2027 and becoming particularly evident after the first quarter.
The annual contraction in new corporate lending during January to August 2026 is also expected to weigh on growth prospects.
Nevertheless, the research centre said these pressures were being outweighed by the continued dynamism of the domestic economy, supported by recent national accounts data and leading indicators.
Continued growth in new housing loans and the banking sector’s strong liquidity and capital position were also supporting the outlook.
During the first eight months of 2026, the outstanding stock of loans recorded double-digit growth, while deposits expanded strongly, driven by rising domestic deposits.
However, the volume of new loans declined year-on-year over the same period because of contracting business lending, despite strong growth in housing loans.
The ratio of non-performing loans to total loans also declined further in June.
An exception to the broader increase in domestic borrowing costs was the interest rate on new corporate loans exceeding €1 million, which fell significantly in August to its lowest level in more than three and a half years.
Public finances provide support
Cyprus’ public finances remained strong during the first eight months of 2026, with the government recording a substantial budget surplus that exceeded the corresponding figure for 2025.
Government revenue increased robustly year-on-year, outpacing expenditure growth, while the public debt-to-GDP ratio continued to decline.
CypERC said the strong fiscal position was expected to support economic growth by preserving investor confidence amid rising government borrowing costs and helping cushion the effects of cost-of-living pressures.
International and domestic stock market indices also recorded further annual gains during the third quarter, while volatility remained relatively subdued.
The continued positive performance of equity markets was seen as a sign of economic resilience despite geopolitical tensions and elevated inflation. However, the report cautioned that these favourable effects could prove fragile if financing conditions tightened further and cost-of-living pressures intensified.
Growth forecasts remain vulnerable
The research centre said downside risks to economic growth continued to outweigh upside risks, with geopolitical tensions and potentially tighter financing conditions posing the main threats.
A prolonged conflict or further escalation in the Middle East could increase uncertainty, weaken external demand for services and discourage investment.
Further disruption to supply chains could also keep international commodity prices elevated, creating more persistent inflationary pressures and weighing more heavily on economic growth than currently anticipated.
Other risks include weaker-than-expected growth among Cyprus’ trading partners, financial market turmoil that could undermine investor confidence, climate-related events and fiscal challenges arising from higher government borrowing costs.
Conversely, stronger-than-expected growth could result from resilient demand, a longer tourist season, gradually easing inflationary pressures, government measures to mitigate the cost of living and investments not yet reflected in the available economic data.
CypERC’s forecasts remain broadly consistent with those of other institutions, although their projections differ slightly.
For 2026, the Central Bank of Cyprus and the International Monetary Fund expect GDP growth of 2.9 per cent, while the Finance Ministry forecasts 3.1 per cent.
For 2027, the Central Bank projects growth of 3.1 per cent and the IMF 3.2 per cent, while the Finance Ministry expects growth to moderate to 2.9 per cent.
Inflation risks remain tilted upwards
CypERC warned that upside risks to inflation continued to dominate, primarily because of the Middle East conflict and the possibility of further increases in international energy and commodity prices.
A prolonged period of high commodity prices could trigger second-round inflation effects, reinforcing price pressures, particularly while economic activity remains strong and unemployment low.
Other risks include robust wage growth if demand remains resilient, climate-related events that push up food prices and prolonged broad-based fiscal support measures aimed at mitigating the cost of living.
The research centre said such fiscal measures could contribute to higher-than-expected inflation, particularly given prevailing labour market conditions.
Downside risks to inflation include tighter euro area monetary policy and its cooling effect on demand, particularly if higher borrowing costs substantially reduce private and public spending.
Recently introduced fiscal support measures, including cuts to fuel excise duties and reductions in value added tax, could also lower inflation compared with current projections.
The gradual transition towards green technologies in Cyprus was identified as another factor that could help reduce inflationary pressures over the forecast period.
CypERC based its projections on quarterly national accounts data up to the second quarter of 2026, leading indicators covering the third quarter and monthly data available between July and September. The forecasts incorporated revised national accounts figures published on October 20, 2026.
Industrial producer prices in Cyprus rose by 6.2 per cent year-on-year in September 2026, driven mainly by higher electricity prices, according to figures released by the Cyprus Statistical Service (Cystat) on Friday.
The increase came as the Producer Price Index for Industry reached 130.5 points in September, using 2021 as the base year, marking a 2.3 per cent rise compared with August.
For the first nine months of 2026, industrial producer prices increased by 2.1 per cent compared with the corresponding period of 2025, indicating that price pressures across the industrial sector continued to build.
The strongest annual increase was recorded in electricity supply, where producer prices rose by 21.1 per cent compared with September 2025.
Water supply and materials recovery followed with an increase of 10.3 per cent, while manufacturing prices rose by 2.4 per cent and prices in mining and quarrying increased by 0.8 per cent.
The monthly figures also highlighted the influence of electricity costs, with electricity supply prices climbing by 10.5 per cent between August and September 2026.
Over the same period, prices in water supply and materials recovery increased by 1.7 per cent, while manufacturing recorded a more modest rise of 0.2 per cent.
Mining and quarrying prices remained unchanged compared with the previous month.
The figures suggest that electricity was the main contributor to the overall monthly increase, while annual price growth was evident across all four main industrial sectors.
Within manufacturing, several industries recorded particularly pronounced annual increases in September.
The largest rise was in the manufacture of computer, electronic and optical products, where producer prices increased by 13 per cent compared with the same month in 2025.
This was followed by the manufacture of basic metals and fabricated metal products, which recorded an increase of 5.6 per cent.
Prices in furniture manufacturing and repair and installation of machinery rose by 5.2 per cent.
The wood industry, including the manufacture of products made from wood and cork, excluding furniture, recorded an annual increase of 4.5 per cent.
Meanwhile, the manufacture of machinery and equipment, motor vehicles and other transport equipment saw prices rise by 2.9 per cent.
The increases across manufacturing categories indicate that price pressures were not confined to energy-related activities, but were also evident in a range of industrial production and equipment-related sectors.
The overall Producer Price Index measures changes in prices received by domestic producers for their industrial output and provides an indication of cost and pricing developments across the sector.
Cyprus household debt stood at €20 billion, equivalent to 53 per cent of gross domestic product (GDP), at the end of June 2026, while debt among non-financial companies reached €41.7 billion, or 111 per cent of GDP, according to figures released on Friday by the Central Bank of Cyprus (CBC).
The figures show that household indebtedness has fallen by 65 per cent since December 2016, while the debt-to-GDP ratio of non-financial companies has declined by 95 per cent over the same period, pointing to a substantial reduction in borrowing across both sectors.
Despite the improvements, corporate debt remained considerably higher than household debt, with non-financial companies carrying liabilities equivalent to more than the value of the country’s annual economic output.
The CBC reported that household financial assets totalled €67.1 billion at the end of June 2026, considerably exceeding their outstanding debt.
Cash, deposits and loans accounted for 54 per cent of these assets, while shares represented 25 per cent, other financial assets 17 per cent and debt securities the remaining 4 per cent.
The figures provide an overview of the financial position of households, businesses and institutional investors, including insurance companies, investment funds and pension funds.
For non-financial companies, financial assets reached €77.9 billion at the end of June, with shares accounting for the largest portion at 37 per cent.
Other financial assets represented 33 per cent of the total, while cash and deposits accounted for 24 per cent, loans for 5 per cent and debt securities for 0.6 per cent.
Meanwhile, the sector’s outstanding debt amounted to €41.7 billion, with its debt-to-GDP ratio standing at 111 per cent, representing a marginal decrease compared with the previous quarter.
The CBC’s comparison with December 2016 showed that the debt-to-GDP ratio of non-financial companies had fallen by 95 per cent, indicating a substantial improvement in the sector’s indebtedness over the period.
The central bank also provided a breakdown of financial assets held by insurance companies, investment funds and pension funds, highlighting the different ways in which these institutional investors allocate their holdings.
Insurance companies held financial assets worth €6.5 billion at the end of June 2026, with almost half of their portfolios invested in shares.
Equities accounted for 47 per cent of their financial assets, followed by debt securities at 26 per cent and other financial assets at 20 per cent.
Cash and deposits represented 6 per cent of the total, while loans accounted for the remaining 2 per cent.
Investment funds held €7.9 billion in financial assets, with their portfolios heavily concentrated in shares, which represented 80 per cent of their total holdings.
Loans and debt securities together accounted for 13 per cent, while cash and deposits represented 4 per cent and other financial assets the remaining 3 per cent.
Pension funds, meanwhile, held €5.1 billion in financial investments, with shares accounting for 59 per cent of their portfolios.
Other financial assets represented 9 per cent, debt securities 6 per cent, while cash and deposits accounted for 12 per cent and loans for 13 per cent.
The figures underline the significant role played by equities in the investment portfolios of insurance companies, investment funds and pension funds, although the composition of their holdings varies considerably.
Alpha Bank’s international operations recorded a normalised net profit of €79 million in the first nine months of 2026, up 13 per cent year-on-year, while the Greek banking group’s Cyprus operations incurred €17.5 million in provisions linked to a voluntary staff exit scheme.
The international division, which includes the bank’s business in Cyprus, generated a reported profit of €57 million, down 16 per cent year-on-year, while net interest income rose by 64 per cent and fee services income increased by 65 per cent over the same period.
Net loans across the international operations stood at €2.9 billion, while customer deposits reached €6.6 billion, with the division recording a return on tangible book value of 12.9 per cent during the nine-month period.
The group also recorded €0.7 million in integration costs in Cyprus, contributing to total operating expenses of €231.7 million for the group in the third quarter.
The Cyprus-related provisions and integration costs formed part of a wider period of restructuring and integration, as Alpha Bank continues to pursue its transformation and prepares to present its strategic priorities through to 2030 at an Investor Day scheduled for November 5.
At group level, Alpha Bank reported profit after tax of €268.9 million in the third quarter of 2026, bringing its total reported earnings for the first nine months to €766.1 million.
On a normalised basis, which adjusts for certain exceptional items, quarterly profit after tax reached €283.2 million, while nine-month earnings amounted to €778.5 million, representing a 14 per cent annual increase.
The group achieved a normalised return on tangible book value of 15.5 per cent in the third quarter, compared with 14.5 per cent over the first nine months, while earnings per share stood at €0.11.
Its Common Equity Tier 1 (CET1) capital ratio, a key measure of a bank’s ability to absorb financial losses, remained at 14.5 per cent at the end of both reporting periods.
Tangible book value per share stood at €3.52, while total tangible book value reached €7.9 billion, representing an increase of 2.1 per cent quarter-on-quarter and 4 per cent year-on-year, rising to 10.7 per cent before accounting for distributions.
The bank attributed its performance to sustained growth in lending and deposits, higher interest rates and contributions from its recent acquisitions.
Net credit expansion reached €400 million in the third quarter and €2.6 billion during the first nine months of 2026, supported by total loan disbursements of €3.1 billion.
The group’s performing loan book, excluding senior notes, expanded by 1 per cent quarter-on-quarter to €40.4 billion, representing annual growth of 13.1 per cent.
Deposits also continued to increase, rising by 2.5 per cent quarter-on-quarter, equivalent to €1.5 billion, with time deposits accounting for 29 per cent of the total.
The bank reported a deposit beta of 22 per cent, indicating the extent to which changes in market interest rates were reflected in the rates offered to depositors.
Total customer funds increased by 18.7 per cent year-on-year, supported by a 13.3 per cent rise in customer deposits and a 32 per cent expansion in assets under management.
The group’s loan-to-deposit ratio stood at 77 per cent at the end of September, while its non-performing exposure ratio remained at 3.8 per cent.
The cost of risk, which measures the expense of provisions against potential loan losses, stood at 43 basis points in the third quarter and 42 basis points across the first nine months.
Alpha Bank’s capital position remained stable despite the recognition of a €421 million dividend accrual during the first nine months of the year, supported by 124 basis points of organic capital generation.
Net interest income reached €472.2 million in the third quarter, increasing by €35.8 million, or 8.2 per cent, compared with the previous quarter.
The increase reflected higher income from loans and bonds, supported by growth in lending volumes and higher interest rates, while net interest income for the first nine months rose by 10.7 per cent year-on-year.
Chief executive officer Vassilios Psaltis said the latest results demonstrated the resilience of the group’s banking operations and the benefits of its recent acquisitions.
“Net interest income came to €472 million, the highest quarterly figure since the fourth quarter of 2017, reflecting the sustained growth in our loan book, and the step-up in rates,” Psaltis said.
“Fee income increased to €156 million, supported by cards and payments fees, and an uptick in asset management, following a softer second quarter.”
Fee services income amounted to €156.3 million in the third quarter, representing a 16.3 per cent decline compared with the previous three-month period.
However, the decrease largely reflected a higher comparison base in the second quarter, which had benefited from a dividend received from Prodea.
Excluding that contribution, fee services income increased by 6.2 per cent quarter-on-quarter, supported by stronger revenue from cards and payments and a higher contribution from asset management fees.
For the first nine months of 2026, fee income increased by 32.2 per cent year-on-year, or 25.4 per cent when excluding dividends from Prodea.
Total operating income reached €634 million during the third quarter, while the group said its cost-to-income ratio remained comfortably within expectations.
Recurring operating expenses declined by 3.6 per cent quarter-on-quarter to €231 million, reflecting a 9.3 per cent reduction in staff costs and a 7.2 per cent decrease in depreciation expenses.
These savings were partly offset by higher general and administrative expenses, mainly resulting from increased taxes, third-party fees and building costs.
However, recurring operating costs for the first nine months were 12.2 per cent higher year-on-year, largely due to increased staff expenses, alongside higher administrative and depreciation charges.
Psaltis said the group remained confident about its financial position despite an uncertain international economic environment.
“Despite the uncertain macroeconomic environment, we remain confident in the Bank’s financial strength. Our capital position is sound, our provisioning is prudent and our funding base is solid,” he said.
He also pointed to Greece’s economic performance, arguing that the country was in a stronger position than many other European economies.
“Greece currently occupies a distinct position compared to the majority of Europe, characterised by a robust fiscal trajectory, declining public debt and an investment pipeline that continues to expand,” Psaltis said.
He added that these conditions provided confidence that the foundations for the bank’s next phase of growth were firmly established.
The results follow a major rebranding initiative unveiled on October 12, which Psaltis described as marking the completion of an ambitious transformation programme.
“On October 12, Alpha Bank achieved a significant milestone as we unveiled our new brand identity and drew a line under our ambitious transformation,” he said.
“The new brand honours our nearly 150 years of history, is closely aligned with our new Purpose and Values, and accurately reflects our strategic positioning.”
Psaltis said the new identity reflected the bank’s progress in strengthening its operations and its relationships with customers, businesses and communities.
He added that the positive response from customers, employees and business partners had reinforced confidence in the group’s strategic direction.
Alongside the rebranding, Alpha Bank introduced two initiatives aimed at its employees, including a new programme providing medical insurance and home care for employees’ elderly parents.
The bank also announced salary increases for its Gold relationship managers across its branch network, with Psaltis describing the measures as part of its commitment to its workforce.
On the economic outlook, Alpha Bank said the Greek economy had remained resilient during the first half of 2026, with gross domestic product expanding by 1.9 per cent.
The bank expects the economy to grow by just under 2 per cent for the full year, followed by expansion of 1.7 per cent in 2027.
However, it warned that renewed geopolitical tensions had intensified energy-related inflationary pressures, while political and fiscal uncertainty in Europe could weigh on external demand and create tighter and more volatile financial conditions.
Psaltis said the group expected to outline its next strategic phase at its forthcoming Investor Day, where it will present priorities extending through to 2030.
“The financial performance evident in these results, in conjunction with the new identity we unveiled this month, provides a strong foundation upon which to embark on Alpha Bank’s forthcoming chapter,” he said.
“We have much to share, and we eagerly anticipate the dialogue on November 5,” Psaltis concluded.
The Cyprus Stock Exchange (CSE) has ratified the continued suspension of trading in the shares of the Reputation Exchange Plc, keeping the company off the Emerging Companies Market until December 21, 2026, unless it resolves its outstanding obligations earlier.
The decision was confirmed at a recent meeting of the CSE Council under Article 184 of the Cyprus Stock Exchange Law, following the initial announcement on October 15, 2026.
The suspension will remain in place for a further two months, unless the company addresses the issues that led to the trading halt.
These include its failure to maintain the services of a Nominated Adviser, as well as the non-submission and non-publication of its annual financial report for the year ended December 31, 2025 and its half-yearly financial report for the six months ended June 30, 2026.
The exchange said trading could resume before the deadline if the company fulfils these outstanding ongoing obligations.
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