Industry News

Standard & Poor’s upgrades Cyprus and Hungary

Standard & Poor’s upgrades Cyprus and Hungary

The rating agencyStandard & Poor’s has upgraded the Cyprus economy in its latest review from BB- to BB with a positive 12-month horizon. S&P forecasts a growth rate of GDP of 2.7% for 2016, up by 35% from an original forecast of 2.0%. S&P notes that the risks for banks have diminished and provided that NPL’s continue their decline Cyprus will be upgraded to ‘Investment Grade’. The Minister of Finance stated that although Cyprus is two places behind the investment grade, foreign investments have been increasing which is a sure vote of confidence in the country and its economy. The upgrading of the national economy will reduce its cost of borrowing thus helping further in its economic development. Yields on the 10-year bonds have dropped to a historical low of 3.606% continuing on a declining trend.

Standard & Poor’s Global Ratings have also raised their long and short-term foreign and local currency sovereign credit ratings on Hungary to ʼBBB-/A-3ʼ from ʼBB+/Bʼ, putting the country back in investment grade. The rating announcement came as a surprise as market players and analysts did not expect an upgrade, but a shift in outlook to positive from stable at best. The move followed an upgrade by Fitch in May, and immediately boosted the forint. It is expected to drive Hungarian government bond yields lower as some investors will shift money into Hungarian assets. After S&P downgraded the Hungarian economy at the end of 2011, due to what it claimed were unpredictable economic policies and restructuring of the management of the National Bank of Hungary (MNB) it said could affect the independence of the financial institution, S&P attributed its latest upgrade decision to the decreasing vulnerability of the economy, improving debt figures and the potential growth outlook.


Cyprus enhances its Citizenship-by-Investment Program

Cyprus enhances its Citizenship-by-Investment Program

2018-02-28
2018-02-28

Cyprus enhances its Citizenship-by-Investment Program

Additional measures of due diligence applied to further boost investor interest February 28, 2018, Limassol,

Cyprus, Industry News
Cyprus Sees Strong GDP Growth

Cyprus Sees Strong GDP Growth

2017-05-20
2017-05-20

Cyprus Sees Strong GDP Growth

The Statistical Service of the Republic of Cyprus has released its flash GDP estimate

Cyprus
It’s Over: Hungarian Residency Bond Program on Moratorium

It’s Over: Hungarian Residency Bond Program on Moratorium

2017-03-28
2017-03-28

It’s Over: Hungarian Residency Bond Program on Moratorium

On March 31, the popular Hungarian Residency Bond Program will be officially over, having

Hungary
Cyprus passport among the strongest in the world

Cyprus passport among the strongest in the world

2017-02-27
2017-02-27

Cyprus passport among the strongest in the world

According to the recently updated (January 4) Passport Index, the rank of the Cypriot

Cyprus