Cyprus is on track to lose between €50 million and €69 million in European Recovery Fund grants unless lawmakers approve a controversial bill establishing the Cyprus Business Development Organisation (KOAE) next week.
Officials warn that gaps and ambiguities in the rushed legislation have triggered challenges from members of parliament, putting the disbursement of critical EU funds at risk.
Total deposits in the country’s banking sector rose to €58 billion in May 2026, driven by a monthly increase that coincided with stronger lending activity across monetary financial institutions.
The potential loss of these grants comes at a time when the Cypriot economy is showing signs of resilience.
Total deposits in the country’s banking sector rose to €58 billion in May 2026, driven by a monthly increase that coincided with stronger lending activity across monetary financial institutions.
This growth in liquidity underscores the importance of maintaining access to external funding streams for continued economic expansion.
The dispute over the KOAE bill highlights the friction between rapid legislative processes and parliamentary scrutiny.