Cyprus ended 2025 with a noticeable improvement in payment discipline and a significant reduction in the volume of so-called bounced cheques. These are payment documents for which there are insufficient funds in the accounts—something traditionally seen as a worrying signal for businesses and the banking sector. According to the Central Bank of Cyprus, the market continues to show a steady decline in this indicator, pointing to more cautious financial behaviour by companies and individuals.
If in 2022 there were 255 issuers of such cheques, in 2023 their number rose to 274, and in 2024 it fell to 202. In 2025, the figure dropped sharply to 113—the lowest level in several years—confirming the stabilisation trend.
Amounts are falling along with the numbers
The decline affected not only the number of bounced cheques, but also their total value. In 2023, their overall amount stood at €1.77 million; in 2024 it was €618 thousand; and in 2025 it decreased to €630 thousand. These figures indicate that even the remaining problematic cases have become less significant in terms of systemic risks to the economy.
As of December 2025, 9 bounced cheques with a total value of €6,445 were entered into the preliminary register of the Cyprus Payments Archive. They were linked to 8 persons, including 6 legal entities and 2 individuals.
Year-end results and the profile of offenders
Over the full period from January to December 2025, 213 bounced cheques were recorded, amounting to €630,249. These transactions involved 114 persons, including 67 legal entities and 47 individuals. In December of the same year, 4 new persons were also added to the register, of whom 2 were legal entities and 2 were individuals controlling companies.
This breakdown shows that the largest share of problematic transactions is still linked to the corporate sector, although here too a marked reduction is observed compared with previous years.
Why this matters for Cyprus’s economy
The sharp fall in both the number and total value of bounced cheques is a positive signal for the Cypriot economy, especially against the backdrop of the active recovery of the real estate market, tourism, and small businesses in 2024–2025. The banking sector is increasingly introducing electronic payments and strengthening oversight of corporate accounts, which further reduces the risks of non-fulfilment of obligations.
Experts note that the continued development of digital payment systems, stricter compliance procedures, and growing financial literacy among entrepreneurs will help ensure that in the coming years the issue of bounced cheques may finally become a rare exception rather than a systemic threat to the market.