The number of bounced cheques in Cyprus continues to decline. This is according to new data released by the Central Bank of Cyprus for May 2026.
According to the regulator, 10 bounced cheques with a total value of €32,026 were added to the preliminary list of the Central Information Register in May. All of the cheques were issued by three legal entities. Experts note that these figures are considered an important indicator of financial discipline within the economy, particularly in the corporate sector.
The Number of Bounced Cheques Continues to Fall
Since the beginning of 2026, a total of 69 bounced cheques worth €210,502 have been recorded in the register. Compared with the same period last year, the situation has improved significantly. The number of bounced cheques has fallen by 32%, while their total value has decreased by 12.8%.
This trend may indicate that companies are taking a more cautious approach to financial planning and that payment discipline is gradually improving following the period of high inflation and rising interest rates that affected the Cypriot economy in recent years.
Who Is Included in the Special Register?
In May, one additional corporate issuer of a bounced cheque was added to the Central Information Register, along with one individual who controls the company responsible for issuing the unpaid cheque.
Since the beginning of the year, a total of 50 issuers of bounced cheques have been entered into the register. These include 20 legal entities, six individuals, and 24 people who control companies that issued cheques without sufficient funds.
Being listed in this register can seriously affect the financial activities of both companies and individuals. Banks and financial institutions use this information when assessing the reliability of clients and making decisions on loans and other financial services.
Financial Discipline Is Improving
Although the use of cheques in Cyprus has gradually declined due to the widespread adoption of electronic payments and bank transfers, they are still commonly used in certain commercial transactions. As a result, data on bounced cheques remains an important indicator of the business environment and the financial stability of companies. Economists note that the decline in such cases reflects a more stable corporate sector and a lower risk of payment defaults between businesses.
Against the backdrop of Cyprus' economic growth, the continued expansion of the tourism sector, and rising investment activity, overall business financial performance remains solid.
The decline in the number of bounced cheques reinforces this positive trend and points to growing confidence within the business community. However, the fact that dozens of companies and individuals remain listed in the special register shows that the problem has not been completely eliminated, and oversight by the banking system and the Central Bank remains important.