Nicosia, Cyprus. Capital Intelligence Ratings on Monday affirmed Cyprus’ long-term foreign currency rating at BBB+ with a stable outlook and confirmed its short-term rating at A2. The agency cited strengthening public finances, while parliament reviewed bills on a unified credit data exchange framework and a credit scoring system.
Credit rating affirmation and fiscal factors
Capital Intelligence Ratings said its assessment was supported by continued strengthening of public finances, reflected in sustained budget surpluses, declining public debt and low fiscal risks in the short to medium term. It also cited active public debt management that has reduced refinancing pressures and said significant state cash reserves provide a strong buffer against short-term shocks.
The agency added that the ratings reflect the ongoing reduction of contingent liabilities linked to the banking sector, supported by declining macroeconomic imbalances and improved financial system resilience.
Parliament examines credit data and scoring bills
The House Finance Committee on Monday examined a package of seven bills submitted by the Finance Ministry aimed at establishing a unified credit data exchange framework and introducing a credit scoring system for both individuals and businesses.
The proposed legislative package is part of a broader reform to create a digital system for data exchange and creditworthiness assessment, a prerequisite for the disbursement of the seventh tranche under the Recovery and Resilience Plan.
The bills include amendments to laws covering the operations of credit institutions, the sale of credit facilities, consumer credit agreements, housing loans, and regulations affecting credit purchasers and servicers, securitisation and financial leasing. A Finance Ministry representative told the committee the objective is to streamline and harmonise existing provisions and eliminate overlaps between different legislative frameworks.
Paphos projects and planned funding
Transport Minister Alexis Vafeades confirmed during a meeting with local authorities in Paphos district that more than €230 million is expected to flow into Paphos in 2026 and 2027 for a total of 75 large and smaller development and infrastructure projects.
How do you expect the proposed credit scoring system to affect access to credit for individuals and businesses?
