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Employers' Federation Warns Against Emergency Bank Tax in Cyprus

Published February 12, 2026, 12:26
Employers' Federation Warns Against Emergency Bank Tax in Cyprus

The Employers and Industrialists Federation of Cyprus (OEB) expresses strong concern about the discussion of an emergency tax on bank profits in Cyprus, warning about potential impacts on the country's credibility as an investment destination. The OEB believes that such a move would create a negative climate for investors. The OEB rejects the characterization of bank profits as “unexpected”, emphasizing that the banking sector has returned to profitability after a decade of restrictions and restructuring. It points out that banks have managed to streamline their finances through spending cuts, innovation, and staff reductions. The Federation warns that such taxation could be unconstitutional and conflict with the recommendations of the IMF and the European Stability Mechanism. Additionally, it estimates that it could lead to a downgrade of Cyprus's credit rating. The OEB calls on political forces to abandon the idea of an emergency tax and reminds that banks have already paid significant amounts in taxes in recent years. The Federation argues that the state can utilize existing revenues for social solidarity purposes, without jeopardizing investment confidence.