ECONOMY

Bank of Cyprus part funds hotels

Two 5-star hotels will be built in Hania, Crete, and Kos at a total cost of 88.6 million euros, some 40 percent of which will be funded by the Bank of Cyprus (BoC), the lender said yesterday. The Hania hotel, offering 769 beds, will employ over 130 people and is expected to be completed by early 2011. It is budgeted at 46.3 million euros, 40 percent of which will be provided by BoC. The Kos hotel, with 570 beds, will employ 200 people and be ready at the end of 2010. BoC will finance 37 percent of the 42.3-million-euro cost of the Kos investment. Lending to businesses has decelerated sharply since the start of the year as the economy slows to a halt. Credit expansion to businesses eased to 7.9 percent in July, from 8.6 percent in June. The figure stood at 18.7 percent in December.