Filenews 25 June 2025 - by Eleftheria Paizanou
The deposits and cash that EAC has in banks are decreasing year after year. At the same time, it is making efforts to secure new borrowing.
According to data forwarded by EAC to the Parliament, out of €444.4 million. which were deposits and cash in 2019, decreased to €221.4 million by June 17, 2025.
In detail, in the first half of the year, EAC had cash to banks in the amount of €33.9 million. Investments in money market funds amounted to €167.7 million. and investments in bond funds were €19.8 million. At the same time, the borrowing from the European Investment Bank was €193 million. Therefore, the Authority's net cash reserves are €28.4 million.
Last year, the Authority's deposits and investments amounted to €274.1 million. Specifically, the cash and cash held by EAC in the banks was €48.7 million. while investments in money market mutual funds were €205.8 million. and investments in bond funds were €19.6 million. The borrowing by the EIB amounted to €194.8 million, i.e. its net cash reserves amounted to €79.3 million.
In 2023, EAC's cash and investments amounted to €311.9 million, of which €115.9 million was €115.9 million. were cash in banks, investments in money market mutual funds were €179.1 million. and bond funds were €16.9 million. Also, the loan was €216.6 million. and consequently net cash reserves were €95.3 million. According to the data, in 2022 deposits and investments in bonds amounted to €203.6 million, of which €1 million was invested in bonds in 2022. were short-term deposits, amounting to €161.3 million. were cash, €25.1 million. investments in mutual funds and €16.2 million investments in bonds.
In the same period, EIB borrowing was €162.8 million, i.e. net cash reserves amounted to €40.8 million. In 2021, cash and bond investments amounted to €277.4 million. of which €57.5 million were short-term deposits, €177.7 million. was cash, €25 million. investments in mutual funds and €17.2 million investments in bonds. Borrowing from the EIB amounted to €194.6 million. and net cash and cash equivalents were €82.8 million.
In 2020, cash and deposits and bond investments were €404. 3 million, of which €203.3 million. were short-term deposits, the cash was €201 million. while there were no investments in bonds. Borrowing in this year was €228.6 million. and net cash and cash equivalents were €175.7 million. Finally, in 2019 deposits and bonds amounted to €444.4 million. of which short-term deposits were €334.1 million. and cash in the banks was €110.3 million. EAC borrowing from the EIB was €262.7 million. and net cash and cash equivalents amounted to €181.7 million. At the same time, EAC is in the process of consulting to secure a further loan of €215 million.
The reserve is reduced
The Chairman of the Board of Directors of EAC, George Petrou, said that now the reserve is barely enough for generator investments and not for storage. "EAC must have a strong reserve. When they turn to Cypriot banks, they ask for guarantees, they must be green. A 3% increase in the price of electricity must be introduced," he underlined.
However, during yesterday's debate on the issue of the increase in the price of electricity in the Energy Committee of the Parliament, it was hinted that the increase that the EAC will impose, provided that it is approved by CERA, will be less than 3%. This is due to the pre-purchase of fuel at lower prices. According to the EAC president, 25% of the fuel cargo for the July-December period was purchased in advance at lower prices. Something that was indirectly endorsed by the Minister of Energy, Giorgos Papanastasiou. As he said, with the smart pre-purchase of fuel from EAC, the burden that will be passed on to consumers will be lower.
