Eurobank’s strategy in Cyprus has entered a transformative new chapter, driven by long-term vision and confidence in the country’s future.
In the summer of 2021, we marked a significant turning point by acquiring a minority stake in Hellenic Bank. That move laid the foundation for a broader strategic commitment, which led to the recent full acquisition of the Bank. At the same time, we expanded our presence in the insurance sector with the acquisition of CNP Cyprus Insurance Holdings, a market leader in the insurance sector in Cyprus. We are now advancing the merger of Hellenic Bank with Eurobank Cyprus, as well as the integration of CNP Insurance Holdings with Hellenic Bank’s two insurance subsidiaries.
Through this transformative process, we are delivering on our vision to create a strong, unified financial institution in Cyprus. Our new entity, Eurobank Ltd, will serve as a fully integrated franchise – well-positioned to become the leading player in the country’s financial services sector.
At the same time, the global environment has undergone a profound shift. We are entering an era of deep geo-economic transformation and the Eastern Mediterranean has become a region of growing strategic significance. This kind of realignment – where global trade routes, alliances and economic power centres are reshaped – occurs perhaps once in a generation.
Amid this global realignment, geopolitics is once again shaping economic policy and protectionism is resurfacing. Tariffs, once considered outdated, are emerging as key tools of trade policy. A full-blown trade conflict between major economies – once unlikely – is now a possibility. The United States, for example, is taking aggressive steps to reduce its dependence on imports – particularly from China – and address its trade and budget deficits. Europe is following a similar path, while also striving to strengthen its strategic autonomy as traditional transatlantic ties evolve.
One major outcome of this rebalancing is the rising importance of India – not only as an export powerhouse but also as a global growth engine. At the same time, the Gulf region is emerging as a major nexus for the global economy – not just for trade but also for the flow of energy, data and capital. In this context, Cyprus’ geopolitical relevance is coming into sharper focus. The island’s position at the crossroads of Europe, the Middle East and Asia offers unparalleled access to some of the most dynamic markets of the future. But Cyprus offers far more than location. It enjoys strong and stable relationships with all neighbouring countries – including Israel, Egypt and the GCC states – built on both historical foundations and modern diplomacy. Looking east, an especially important opportunity is unfolding.
As Indian companies seek a reliable foothold within the European Union, they require an accessible, English-speaking gateway aligned with EU legal and regulatory standards. Before Brexit, the United Kingdom was often the natural choice. Today, Cyprus stands out as a compelling alternative. The ties between Cyprus and India run deeper than geography. Both are members of the Commonwealth and share longstanding cultural and diplomatic links. English is the main language of business in both countries. Cyprus is also the only EU member state – other than Ireland – to operate under a common law legal system, just like India. This creates a high degree of legal clarity and predictability for Indian businesses, while Cyprus’ regulatory framework is fully harmonised with EU standards.
Moreover, Cyprus boasts a highly developed ecosystem of financial and legal services, with the capacity and expertise to support international business at scale. At Eurobank, our strategy is clear: to support and accelerate this emerging opportunity. We recently launched the India-Greece-Cyprus Business and Investment Council (ICG) in collaboration with the Indian Chamber of Commerce, Enterprise Greece and Invest Cyprus. The Council, inaugurated in Limassol in May, is designed to foster economic ties and enable new partnerships across these three countries.
We have also partnered with Fairfax Digital Services and LTIMindtree, a leading India-based technology firm, to establish the LTIMindtree Digital Innovation Hub in Nicosia. This new centre will serve as a collaborative space for designing, testing and deploying advanced digital solutions for Eurobank, Fairfax and their clients across the EU. The initiative supports Cyprus’ national ambition to become a regional centre for technology and innovation. Facilitating business also means enabling mobility. We helped Thomas Cook (India) establish its first presence in the European Union with a new office in Nicosia, opening the door to expanded travel and business connectivity between India and Europe.
At Eurobank, we believe that Cyprus has an exceptional opportunity to thrive in this new economic era but our ambition is not simply to grow our own footprint. Since entering the Cypriot market in 2007, we have remained committed to contributing meaningfully to the country’s prosperity. As the leading financial group on the island, our role is to be a key enabler of Cyprus’ transformation into a regional hub for investment, innovation and enterprise.
Our vision is to create sustainable, long-term value for our stakeholders, for Cyprus and for the broader region we serve.
*Fokion Karavias, Chief Executive Officer, Eurobank S.A.
