CyprusProfile talks to Angelos Gregoriades, President of CIFA, about how he sees the investment funds sector developing, and what his expectations are for Cyprus in 2018

February marks the beginning of a new era in Limassol, as construction began on the new high-rise development, The Icon, by Limassol’s famous property developer Imperio. The Icon is set to be one of the tallest residential buildings in Cyprus, boasting panoramic views of the city and coastline of Limassol. The project was designed by the established architectural firm UDS Antoniades + Eleftheriou architects.

Cypriot banks relaxed their mortgage and consumer credit standards in the fourth quarter of 2017, for the first time since the end of 2014, and are expected to do the same in the current quarter, the Central Bank of Cyprus said.

Cyprus will present its plans for an asset management company (AMC) to the European Commission’s Directorate General for Competition as it seeks to boost efforts to reduce the high stock of non-performing loans burdening the island’s banking sector.

The Cyprus Cooperative Bank (CCB) said that it will issue covered bonds of €1bn or more through Barclays Capital in an attempt to have its share listed on the Irish Stock Exchange (ISE) in Dublin.

Cyprus’ economy expanded 4% in the fourth quarter of 2017 compared to the respective three-month period last year, the statistical service Cystat said citing a flash estimate.

Strong economic growth in Cyprus and the expectation of policy continuity after the outcome of the recent presidential elections “should underpin” improving public finances, Fitch Ratings believes, adding however that very weak asset quality in the banking sector remains a risk to recovery.

Cypriot banks need to do more to tackle non-performing loans after already making “commendable” efforts and achieving “measurable progress” in recent years, a Single Supervisory Mechanism (SSM) official said.

House prices continued their quarterly recovery for the fifth consecutive quarter in July to September and rose by 0.4% compared with April to June, the Central Bank of Cyprus said.

Tourism Minister Giorgos Lakkotrypis said recently that 2018 is expected to be the third consecutive record year for tourism arrivals.