Corporate profit bonanza
After-tax corporate profits reached an all-time high of .8 trillion in the last three months of 2023.
expenditures
Bank of Cyprus: maintaining a leading role in the environmental, social and governance pillars
Bank of Cyprus is focusing its efforts on fighting climate change, which is the biggest challenge that humanity faces.
Positive outlook for Cyprus economy, according to rating agency
Capital Intelligence Ratings has revised its long-term foreign currency rating outlook for the Republic of Cyprus from stable to positive. The government’s debt has been reduced due to consistent primary fiscal surpluses and proactive debt management.
Euro pressure as ECB officials hint at rate cut in June
The EURUSD pair maintained its position around 1.0770 on Friday, facing downward pressure due to the European Central Bank officials suggesting a probable interest rate cut in June. Weaker-than-expected retail sales data from Germany also contributed to the Euro’s decline. Meanwhile, the US Dollar Index (DXY) strengthened, nearing 104.60, driven by annualised economic expansion in the United States and hawkish statements from a Federal Reserve official.
House passes budgets for public entities including CyBC
The House plenum passed the budgets of four public-law entities, including the Natural Gas Public Company (Defa) and the Cyprus Broadcasting Corporation (CyBC). Defa’s budget for 2024 includes €38.4 million in expenditures and €32.8 million in anticipated revenues. CyBC’s budget is €39.3 million, with €26.7 million allocated for payroll. The budgets needed to be approved in order for the organizations to resume normal payment procedures.
Personnel costs and social benefits dominate Cyprus’s budget
The main categories of state expenditures in the Republic of Cyprus for fiscal year 2023 include personnel wages, pensions, and bonuses, social benefits, and transfers. Social benefits also include the government’s contribution to the General Health Plan. The number of personnel has fluctuated over the years, with an increase in wage expenditures. Pensions and bonuses increased by 7% in 2023. The largest part of wage expenditures is for educators in the Ministry of Education, Culture, Sports, and Youth. Social benefits include medical care, emergency grants, emergency humanitarian incidents, and supplementary pension benefits. The total amount of loans as of December 31, 2023, stood at €22.18 billion. State financing is mainly done through European Medium-Term Notes and loans from the European Stability Mechanism. Approved expenditures for 2023 were €12 billion, with actual expenditures reaching €10.92 billion. Total revenues for 2023 were €9.94 billion, resulting in a state budget deficit of €0.98 billion.