The Association of Cyprus Banks (ACB) has called for close cooperation with the government and the newly elected House of Representatives, warning that populist measures on foreclosures and lending could jeopardize financial stability. In his address at the ACB annual meeting, chairman Panicos Nicolaou emphasized that the sector’s stance on maintaining a stable foreclosure framework is based on economic realities and supported by the European Central Bank’s recent opinion.

Nicolaou highlighted that attempts to suspend procedures without impact studies risk harming responsible borrowers and the broader economy by increasing borrowing costs and reducing liquidity. He also underscored the need to prioritize depositors, responsible borrowers, and young entrepreneurs seeking finance. Meanwhile, ACB director-general Marios Skandalis noted Cyprus’ economic resilience amid global geopolitical tensions and stressed the banking sector’s commitment to constructive dialogue and professionalism regardless of political changes.

Skandalis further pointed out that the sector’s strong profitability stems from careful restructuring and digital transformation efforts, which enhance institutional resilience and ensure capital obligations. Both officials agreed that financial stability is essential for social prosperity, a healthy economy, and a strong banking system in Cyprus.