CIPA Addresses Foreign Investor Concerns
The Cyprus Investment Promotion Agency (CIPA) has issued a statement to foreign investors acknowledging the country's recent financial restructurings and assuring them that "Cyprus remains an attractive investment destination."
CIPA Chairman Christodoulos Angastiniotis also submitted an editorial to Cyprus Mail emphaisizing the importance of investment to the country's recovery.
The texts of both documents follow:
CIPA Announcement to Foreign Investors
Apr 30, 2013
The Cyprus Investment Promotion Agency (CIPA) recognizes the unfortunate impact to all investors that were caught up in the restructuring of the Bank of Cyprus and/or the resolution of Laiki Bank. As CIPA, we have for some time now, advocated that penalizing depositors would be an unfair and short-sighted measure. Despite all efforts, unfortunately, this solution was at the end simply imposed on Cyprus.
On the other hand, CIPA being the main point of contact for foreign investors, welcomes the stability that the finalization of the memorandum of understanding between the Republic of Cyprus and the Eurogroup is expected to bring after a long period of uncertainty.
Cyprus remains an attractive investment destination and we expect its economy to benefit from constructive measures that will lead to a more flexible, efficient and ultimately more competitive environment.
Furthermore, the discovery of significant natural gas reserves within the island’s Exclusive Economic Zone (EEZ) promises to make Cyprus one of the key energy players within the European energy market with great prospects to develop as the energy hub of the Eastern European/Mediterranean region.
We consider that the development of the energy sector will prove catalytic in the quick turnaround of Cyprus’ economy.
Finally, we would like to inform all investors and business partners that we remain at their disposal for any assistance they may require while at the same time we are doing everything within our powers to ensure that the temporary exchange controls introduced by the Central Bank of Cyprus are being lifted the soonest.
We remain at your disposal for any support you may require.
The effort to restart the economy must be through attracting investment
THE RECENT adverse developments in the Cypriot economy render foreign investments and efforts to attract them an even more significant factor for the business environment, economic growth and employment in Cyprus.
Within a difficult economic environment, the Cypriot economy is being called to stand up and showcase its advantages. Today, more than ever, every possible effort needs to be made to turn Cyprus into a strong business centre, more effective, more competitive with even more transparent procedures in regards to investments and business activity.
The Cyprus Investment Promotion Agency (CIPA) can play a leading role in this effort. CIPA’s goal is to contribute to the economy’s swiftest possible return to positive growth rates, within the framework of a long-term effort. Specifically, CIPA has set four basic strategic pillars: the reversal of Cyprus’ negative image abroad, the support and service of current foreign investors, the preparation of a comprehensive plan with specific proposals on various levels and the implementation of relevant schemes, with the aim of avoiding temporal weaknesses such as bureaucratic dysfunctions.
Among the many encouraging messages to come out of the Conference “Global Russia Business Meeting 2013”, which was recently hosted by CIPA, was that Cyprus has safeguards in place to recover. The conviction that restarting the economy could be achieved through attracting foreign investment was widespread and it is in this direction the state, the business world but also each of us should contribute in a positive spirit.
The delegates expressed the view that, despite the serious blow to our economy, Cyprus’ comparative advantages remain and the international investment world is observing the significant opportunities that have emerged as a result; especially in view of the structural measures that are being taken, which could make our country more competitive, less bureaucratic and more hospitable to foreign investments.
There is optimism that with precise and calculated steps, Cyprus can enter a new era of stability and growth. There are many opportunities for investment in various fields, such as shipping, tourism, large infrastructure projects, research and innovation, and of course the energy sector, which can accelerate economic growth.
The certainty is that we must move ahead with the necessary infrastructural changes in our public finances straight away, so we can create a more flexible and friendly state. The Cypriot economy today needs serious foreign investments more than ever and any future actions must be centred on improving the business environment and attracting foreign investments.
CIPA, as a modern, flexible and well-networked organisation, can contribute to Cyprus’ effort to create a favourable environment for foreign investments and has repeatedly stated its intention and will to work in this direction.
