IMF does justice to the Cypriot economy

02.07.2014

International Monetary Fund (IMF) published the work group report, in which it rated measures taken by the Cypriot government in order to improve economic situation in country.

European elections to the Parliament reaffirmed support of the ruling party in Cyprus. So, it is possible to say that political agreements will stay in place. SSM and SRM will provide improve effectiveness of the banking sector in long-term expectations, and as to the short-term expectations – it will improve the legislation and harmonization.

Macroeconomic data from Cyprus overstated the IMF predictions – most of the numbers for the first months of 2014 were higher than the same numbers from 2013.

The growth of economy shall be 0,4% for 2015, that is only a half of the number, which was predicted by the last working group report.

IMF also commented on the Bank of Cyprus situation, solution to which shall be found at the end of the September.

Source: http://www.imf.org/external/pubs/ft/scr/2014/cr14180.pdf

Expert’s opinion

It is good to hear that after “Spring 2013” Cyprus is actively and relatively fast gains its fame back. As jurisdiction Cyprus did not lost its attractiveness: one of the lowest corporate tax rates in Europe (12,5%), relatively simple registration procedure for companies and of its service. Now, the famous banking sectors is coming back to life ready to offer the full range of services to the clients. You shall consider such banks as Bank of Cyprus (especially after its full merger with Laiki - http://hbcomp.ru/about/news_and_mailings/news_jurisdictions/4040/), Hellenic Bank, FBME and other Cypriot banks, that successfully survived crisis and are ready to work with clients.

Alexandra Mihno ( Lawyer, Honest&Bright)