Investor Presentaiton

Moderate inflation and rapid reduction in unemployment Low inflationary pressures Subdued inflationary pressures despite growth owing to exogenous factors. CPI inflation at 1% in the first half of 2019 with core inflation excluding energy and seasonal food at 0,3%. Respective figures in 2018 were 1,4% and 0,4%. • Fast correction during crisis years reflecting the wage flexibility of the labour market which led to an internal devaluation and improvement in price competitiveness. Rapid decline in unemployment • Labour Force Survey unemployment in monthly seasonally adjusted terms decreased to 6,5% in May 2019 compared to 8,3 % in May 2018. Flexibility of labour market and strong economic activity contributing to normalization conditions. 6,0 5,0 4,0 3,0 2,0 1,0 0,0 -1,0 -2,0 -3,0 % 18 16 14 12 8 of labour 10 youth Encouraging signs of de-escalation in unemployment while long-term unemployment is correcting faster than total. 6 Source: Cyprus Statistical Service, Eurostat Jan-11 Jan-11 Annual % change Jul-11 Jan-12 Jul-12 Jan-13 Jul-13 Jan-14 Jul-14 Seasonally adjusted unemployment rate Jul-11 Jan-12 Jul-12 Jan-13 Jul-13 Jan-14 Jul-14 Jan-15 Jul-15 Jan-16 Jul-16 Jan-17 Jul-17 Jan-18 Jul-18 Jan-19 8 Jan-15 Jul-15 Inflation (CPI) Jan-16 Jul-16 Jan-17 Jul-17 Jan-18 Jul-18 Jan-19

View entire presentation