President Nikos Christodoulides pointed out the efforts towards restoring Cyprus' reputation during the Annual General Meeting of the Cyprus Investment Funds Association (CIFA).

In his address, President Christodoulides highlighted the government's determination and systematic endeavour to "fully restore and safeguard the reputation and credibility of Cyprus."

He noted that the government was planning to establish in the immediate future the National Sanctions Implementation Unit and the Unified Supervisory Authority. He recalled his remarks made a month earlier at the Parliamentary Assembly of the Council of Europe, acknowledging past mistakes that cost the Cypriot people and defending the longstanding consistent implementation of European decisions regarding Russian sanctions by the Republic of Cyprus.

President Christodoulides stressed that the government's economic policy, including decisions taken at the level of the Council of Ministers, was based on the three pillars, which were "fiscal responsibility, financial stability, and the implementation of bold reforms necessary for the successful transition of the economy into the green and digital era."

He added that despite positive developments in the economy and upgrades by credit rating agencies, the government remained vigilant and did not ignore the challenges faced by the real economy and citizens. For this reason, he said, issues concerning the stability of the financial sector have been placed high on the agenda, resulting in the adoption, after many years, of the framework for managing non-performing loans.

He also referred to measures and actions by the government to mitigate inflation and the cost of living, totalling €196 million. He added that these measures and actions were being evaluated, and new government decisions for targeted measures, especially for citizens facing real challenges, would be announced in the immediate future.

President Christodoulides assured that the government would continue its dialogue with CIFA to attract even more investments. He praised the development and prospects of the investment funds sector in Cyprus, stating that they have much to offer to the Cypriot economy beyond direct revenues from taxation, such as the creation of specialized and well-paid job positions, as well as the potential to enhance alternative financing.

"It is noteworthy that a significant portion of the capital under management, approximately 27%, is invested in Cyprus, in key sectors, such as Shipping, Energy, and Financial Technology (FinTech)," he said. He added that international investment funds significantly benefit from their activity in a jurisdiction with a stable regulatory environment, highly trained human capital, competitive costs, and an attractive tax framework.

Minister stresses efforts to strengthen investment funds sector

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Minister of Finance, Makis Keravnos, said that the continuous growth and enhancement of the investment funds sector in Cyprus was among the priorities of the government's economic policy.

He praised the efforts of CIFA, which have positioned Cyprus to claim a spot among emerging investment capital centers in Europe.

Keravnos noted that the assets under management of investment funds in Cyprus now approach €11 billion, with €2.8 billion invested locally, contributing to development, broadening the productive base, and creating new job opportunities.

The Ministry of Finance, as he said, has developed policies for the continuous growth and effective supervision of the sector, in close collaboration with the Cyprus Securities and Exchange Commission. A series of legislative regulations aimed at regulating the functioning of the financial market are being promoted, aligning Cyprus' framework and procedures with the best European practices.

He also emphasised the significance, of environmental, social, and governance standards as a central pillar of investment decisions, saying that the Ministry of Finance and regulatory authorities, would play a crucial role in incorporating these standards to ensure the sector's compatibility with the best practices and European and international requirements.

Keravnos further highlighted the government's efforts to establish a Business Development Agency to address market financing gaps and improve access to financing for businesses. Based on a study being prepared by the European Commission, a proposal for the establishment of the Agency's Roadmap is expected to be submitted to the Council of Ministers for approval, with its operation expected to commence by mid-2026.