Cyprus’ harmonised consumer price index fell 0.6% in August 2016, compared to the respective month of 2015, as energy prices continued to drop, the statistical service said.

The head of the retail banking division at Bank of Cyprus, Ηaris Pouangare, said that its non-performing loan rate has dropped to one-third of the respective portfolio.

Cyprus’ economy was the third fastest growing in the euro area, with a quarterly rate of 0.7% in Q2 2016, in which the euro area’s economy grew 0.3%, the EU's statistical division said.

Indirect Tax Update: VAT on Digital Services

Retail trade increased in Cyprus by 1.4% in June 2016 compared to May 2016 and by 5.6% on an annual basis.

The number of registered unemployed fell in August 2016 to 35,786 or 13% compared to the respective month of 2015 mainly on a drop in jobless in the construction sector, the statistical service said.

The number of real estate exchanges in August 2016 rose an annual 50%, the best-performing since 2011, on a strong increase in the number of transactions reported from almost all districts and increased external demand.

Cyprus is pushing a major project to be approved by the EU’s Juncker Plan, with oil storage silos planned for construction in Vasilikos by KODAP.

The Energy Ministry recently announced it would grant a number of scholarships to residents of the Vassilikos area for graduate study programmes in sectors related to energy.

In the first seven months of 2016 the Cyprus government generated a fiscal deficit of €92m on a cash basis, compared to a surplus of €38.5m in the respective period of 2015, the statistical service said.