NICOSIA: Cyprus approved next year's budget yesterday without releasing any figures because of the country's ongoing bailout talks with potential creditors.
The "tight" budget incorporates additional spending cuts, slashes an additional 1,000 positions from the bloated public sector by hiring to fill only a quarter of jobs vacated by retiring workers, while channeling funds for growth-boosting infrastructure projects, government spokesman Stefanos Stefanou said.
Budget figures were being withheld because they will change once bailout terms and conditions agreed with the European Commission, the European Central Bank and the International Monetary Fund — collectively known as the troika — are adopted, Stefanou said.
Cyprus, whose 18 billion euros ($23.38 billion) economy is one of the smallest in Europe, has been unable to borrow from international markets since last year after its credit rating was cut to junk mainly because of its banks' large exposure to debt-ridden Greece. In June, the country joined fellow euro zone members Ireland, Portugal and Greece in seeking international aid to support its banks.
The government held two rounds of talks with troika officials in the capital in July. The officials are expected back early next month.
Although acknowledging that such cuts are "inevitable," Finance Minister Vassos Shiarly said this week the government wants to avoid steep, across-the-board cuts to public sector salaries, benefits and pensions that the troika is recommending, so as not to trigger a "chill" in the domestic market, prolong the recession and put added strain on low-income earners. Instead, the government would prefer to enact cuts according to an income-based sliding scale.
Shiarly said the government's assessment of how much the country's banks need to recapitalize varies significantly from the troika's own estimate. The government also wants to extend the three-year implementation timeframe of troika-negotiated austerity measures by at least another year to help ease the economy out of recession. Cyprus' economy is projected to contract 1.5 percent of gross domestic product this year.
Stefanou said the government will consult with powerful trade unions and opposition parties on its own austerity proposals before troika officials return.
The budget's approval came in the wake of controversial remarks by the leader of communist party AKEL — from which President Dimitris Christofias hails — that Cyprus' exit from the euro zone in case troika officials insist on "extremely painful" austerity measures should be looked at by experts. The government promptly issued a written statement that there is "no such issue."
Cyprus approves budget as bailout talks continue
Cyprus approves budget as bailout talks continue
PIF-backed AviLease achieves revenue of $664m and 19% growth in 2025
RIYADH: Saudi Arabia’s Public Investment Fund-backed AviLease achieved exceptional performance and sustainable business growth during 2025, supported by the strategic expansion of its global platform.
According to its financial results for 2025, AviLease recorded total revenues of $664 million, an annual increase of 19 percent, driven by disciplined growth in its asset portfolio and strong performance in aircraft remarketing amid sustained global demand for modern, fuel-efficient aircraft, the Saudi Press Agency reported.
Profit before tax doubled compared to the previous year, reaching $122 million. The year witnessed an expansion in AviLease’s portfolio, reaching 202 owned and managed aircraft, leased to over 50 airline companies in more than 30 countries.
The total value of the company’s assets stabilized at $9.3 billion. AviLease maintained a 100 percent fleet utilization rate, reflecting the resilience of its business model, the efficiency of its asset management, and the strength of its strategic relationships with airlines around the world.
AviLease concluded purchase agreements for aircraft from Airbus, including the A320neo family and A350F, and Boeing 737 aircraft, aiming to enhance its future asset portfolio with modern, fuel-efficient aircraft. This step will contribute to supporting future growth and meeting increasing customer demand for the latest aircraft, aligning with the Kingdom’s ambitions to become a leading global aviation hub.
AviLease strengthened its prestigious credit standing by obtaining a strong Baa2 credit ratings from Moody’s and BBB from Fitch, reflecting its financial solidity, managerial discipline, and efficiency in managing leverage. The company also successfully issued senior unsecured bonds worth $850 million last November under Regulation 144A/RegS. This issuance contributed to diversifying its funding sources and enhancing its financial flexibility.
Commenting on the results, AviLease CEO Edward O’Byrne said: “This exceptional performance reflects the quality of the company’s investment portfolio, the strength of its partnerships with airlines, and its strategic focus on responsibly deploying capital into highly sought-after, efficient, modern aircraft assets.”
He added: “As aviation markets continue to grow, AviLease is strategically positioned to continue its expansion plans and deliver sustainable long-term value for shareholders, contributing to the Kingdom’s ambitions.”
Throughout 2025, AviLease continued to play a pivotal role in the Kingdom’s growing aviation sector and contributed directly to the launch and scaling of the new national carrier, Riyadh Air, by completing a sale and leaseback transaction for a Boeing 787-9 aircraft, which thereby became the first aircraft to join the airline’s fleet.
AviLease also established a strategic partnership with Hassana Investment Co. This partnership aims to provide an opportunity for local and international investors to enter the aircraft financing asset class and benefit from AviLease’s technical expertise and operational capabilities to support partnership growth and enhance performance.
Hassana Investment Co. has agreed to acquire an initial portfolio of 10 modern aircraft from AviLease.
