The “Capital Link
Invest in Cyprus Forum” aims to raise awareness about Cyprus as an investment
and business destination to a wider investor audience through a prestigious,
high caliber, high impact international summit. The Summit took place in New York on Wednesday, March 22, 2017, at the
Metropolitan Club, with keynote speaker H.E. the President of the Republic
of Cyprus H.E. Nicos Anastasiades. The Forum was organized in cooperation
and with the support of the Cyprus Union of Shipowners, the Cyprus Investment
Promotion Agency and the Cyprus - US Chamber of Commerce. Main sponsors of the
conference are the Cyprus Union of Shipowners and Ernst & Young.
It attracted the highest level of participation from both the government
and the private sectors in Cyprus and the United States. It featured the
President of the Republic of Cyprus, the Deputy Assistant Secretary of the US
Department of State, 3 key Cypriot Government Ministers (Mr. Harris
Georgiades-Minister of Finance, Mr. Marios Demetriades-Minister of Transport,
Communications and Works. Mr. Yiorgos Lakkotrypis-Minister of Energy, Commerce,
Industry and Tourism), international companies and investors currently active
in Cyprus, the Presidents of the Cyprus Union of Shipowners and of the Cyprus
Investment Promotion Agency, the CEOs of major Cypriot banks and senior
executives of Cypriot, US and international companies active in the region.
This was a top level international summit about Cyprus.
H.E. Nikos
Anastasiades President of the Republic of Cyprus delivered the following
Keynote Address:
Dear Mr. Cohen,
Ladies and Gentlemen,
Dear Friends,
It is truly a great pleasure and a privilege to address such a
distinguished audience which holds a strong interest to exploring the business
opportunities that Cyprus has to offer, but which is also ready to work for the
strengthening of the economic, commercial and investment ties between our
countries.
From the outset, I would like to express my appreciation to Capital Link,
the Cyprus Union of Shipowners, the Cyprus Investment Promotion Agency and the
Cyprus-US Chamber of Commerce for organizing this important event.
And, of course, I would like to thank each and every one of you, for your
presence and participation. A presence which aptly demonstrates that our
business communities enjoy a solid and mutually beneficial economic
partnership. A partnership which has a promising and prosperous future.
It is well-known that the diplomatic relationship which the US and Cyprus
enjoy at a bilateral, regional and multilateral level is at an excellent level.
Nonetheless, I strongly feel that we should all aspire to further strengthen
our partnership through expanding and enhancing our co-operation in key
economic fields, such as banking and finance, shipping and transportation,
energy and tourism.
It is for this exact reason that today I am accompanied by the Minister
of Finance, the Minister of Energy, Commerce, Industry and Tourism, the
Minister of Transport, Communication and Works and the Government Spokesman, as
well as by a strong business delegation.
Our aim is to exchange ideas and establish contacts and channels which
will enable us to achieve a substantial and strategic upgrade of our economic,
investment and business partnership.
Ladies and gentlemen,
During the morning sessions of this Forum you have heard about the
impressive recovery of the Cyprus economy.
The deep recession and the severe financial crisis are fortunately behind
us. Cyprus is now one of the fastest growing economies of the EU, currently
just short of 3% of the GDP.
You have been informed that our banking sector has undergone an ambitious
restructuring and now stands at a much healthier footing. At this point, I
would like to highlight the significance of the presence of foreign investors
in our banking sector, including notable investor presence from the US, which
we welcome and support.
The above-mentioned positive economic developments are evidently
demonstrated by the successive upgrades of the sovereign rating by
international agencies of our economy and our investment potential, the last
one only taking place last week, which have placed Cyprus, for the time-being,
just one notch below investment grade.
Taking into account that even before I assumed office our economy was 12
notches below investment grade and at a junk rating, I can proudly declare,
without, of course, neglecting the need to stay clear on our path, that we are
on our way towards the full re-establishment of confidence towards Cyprus by
the international investor community.
this achievement should be attributed to the Government and the
relevant Minister of Finance for the prudent macro-economic management, the
political parties’ constructive support which defied political expediencies,
and, above all, to the people of Cyprus for their sacrifices, hard work and
faith that better days were to come.
Distinguished Friends,
You have had the chance to explore the comparative and, yet unfulfilled
by the US, advantages that our economy has to offer, and particularly the
significant potential in sectors like Tourism, Shipping and Logistics, Business
and Financial services.
You have been also discussing the prospects of new sectors on which
Cyprus is set to play an important role, including the development of the Funds
Industry, the Energy industry and relevant auxiliary services.
From my side, what I feel I should emphasize is the strong commitment of
my Government to continue working so that Cyprus remains firmly on a path of
sustainable growth and to facilitating investment and economic opportunities.
To this end, we have undertaken a series of relevant measures, such as:
providing corporate tax incentives; reducing the time framework for issuing
planning permissions; broadening the range of permitted land development for
large projects, including golf courses; increasing building coefficients; and
facilitating joint tourist developments such as condo hotels.
We recognise the importance of maintaining sound public finances. We are
committed to maintaining a stable and competitive tax regime. We shall continue
to invest in our human capital, supporting higher education and research. And
we shall continue to stand by the local and foreign business community.
In this regard, we fully acknowledge the need to remain focused on the
necessary structural reforms.
A significant number of them have already been completed, whilst at the
same time we are at deliberations with the House of Representatives and social
partners towards adopting further reforms that will enable Cyprus to enhance
even further its position as a business friendly economic and investment
destination.
We are also in the final stages of strengthening the legal framework for
the investment funds sector, which is expected to enrich the financial services
industry in Cyprus and the growth of the economy.
Ladies and Gentlemen,
Following my election in office, one of the main goals of our foreign
policy has been to achieve a qualitative upgrade of our relations with the
United States.
To this end, I am pleased to assess that our partnership has evolved into
one of strategic depth, particularly when dealing with issues of regional and
global concern.
Our relations have notably progressed via our joint commitment, among
others, in the fight against asymmetric threats, such as terrorism, illegal
drugs, proliferation of weapons of mass destruction and development of nuclear
weapons.
In this respect, I avail myself of this opportunity to express my Government’s
and personal eagerness to work closely with the new US administration in order
to explore new areas of beneficial cooperation; as well as deepen and enhance
our existing partnership for the mutual benefit of our two countries and
peoples.
Towards this goal we are vigorously working on building more tangible
economic and investment relations.
A bilateral US–Cyprus dialogue is in progress in order to address a range
of issues of economic co-operation, particularly as regards US investments in
Cyprus. During the last few years we have seen significant US investments
in Cyprus and our aim is to facilitate even more of them.
Our desire and wish is to encourage and support investment and commercial
exchanges in both directions, taking into account the fact that Cyprus, despite
its small size, is a major center of international business but also a base
from which inroads into regional markets can be achieved.
The unique combination of EU membership, the Anglo-Saxon legal framework,
the beneficial tax regime and the highly-skilled workforce contribute to
Cyprus’ establishment as an attractive investment destination; offering
significant opportunities and easy access not only to European markets but also
to those of North Africa, the Near and Middle East, the Gulf region and Asia.
To this end, being fully aware of the strict regulatory framework of the
United States and the need for transparency and accountability in all
investment and business transactions, I am pleased to note that recently our
two countries have signed the intergovernmental Foreign Account Tax Compliance
Act (FACTA).
As such, American entrepreneurs can rest assured that the Republic of
Cyprus provides investment security and protection, in full compliance with
European and international standards.
At the same time, I believe that initiating discussions to conclude
additional bilateral agreements in fields such as air services, maritime and
tourism, will significantly contribute to the further strengthening of our
institutional framework of co-operation.
Distinguished Friends,
There is one area which warrants a special reference, and this is energy.
We warmly welcome and express our appreciation for the presence and involvement
of American companies – Noble and now the energy giant Exxon-Mobil – in Cyprus’
exclusive economic zone, working in partnership with our Government for the
exploitation of hydrocarbon reserves.
This not only marks a new era for our bilateral relations, but it is also
a tangible sign of confidence in the role of Cyprus as a reliable regional
actor who has adopted a stabilizing role in an otherwise volatile region.
Our vision is to transform the Eastern Mediterranean to an energy hub
that would contribute to the region’s stability, through, among others, the
diversification of energy sources and routes.
Cooperation in this field can be the guiding-doctrine for the resolution
of the region’s political problems, contributing to conditions of peace and
security.
Ladies and Gentlemen,
Today, we can all rightfully feel confident and proud because we have
achieved the strengthening of Cyprus’ geostrategic role, not only on
energy-related matters.
A role which we were able to assume due to the fact that we can pride
ourselves as being widely acknowledged not to be guided by hidden agendas, but
by a clear-cut honest foreign policy which does not limit itself to rhetoric
but materializes intentions to real actions.
A foreign policy which is cultivated through exploring synergies,
optimizing resources development and establishing interstate bilateral
and regional cooperation with all our neighbours with whom we share a
perceptive affinity as regards the vision of a stable, peaceful and prosperous
Eastern Mediterranean.
On a bilateral level I have paid to or received visits by almost all
Heads of Governments of our neighbouring countries, such as Israel, Palestine,
Egypt, Jordan, Bahrain, Qatar, United Arab Emirates, Kuwait, with a visit soon
to take place to Lebanon.
Such visits did not only lead to the institutional strengthening of our
traditional historic bonds through the signing of important bilateral
agreements, but to a strategic re-orientation of our partnerships.
For example, the countries of Jordan, Bahrain and Saudi Arabia for the
very first time and after over 50 years since the establishment of the Republic
of Cyprus have inaugurated diplomatic missions to the Republic of Cyprus.
At a regional level we have been pioneers in establishing trilateral
regional co-operation mechanisms between Cyprus - Egypt - Greece and between
Cyprus - Greece - Israel, aiming to further develop both our countries’
economic, energy, maritime, tourism ties and our overall diplomatic
co-ordination on common challenges.
At the same time, tripartite dialogues have already been initiated
between Nicosia – Beirut - Athens and Nicosia – Amman – Athens and soon
meetings at the level of Heads of Governments are expected to take place.
Distinguished Friends,
As regards the efforts to reaching a settlement on the Cyprus Problem, as
you are well-aware we are at a critical juncture in the negotiating process.
Despite the difficulties we are facing, I wish to convey in the strongest
manner that the Greek Cypriot side and I personally remain wholly dedicated to
continue working tirelessly and with determination towards reaching a
functional, viable and lasting settlement; to the benefit of all Cypriots.
Thus said, allow me just to stress that resolving the Cyprus Problem
would amplify even more our role in the region and would positively reinforce
our ability to contribute in a positive and reliable manner to the collective
efforts of addressing the multiple challenges of our region.
In this respect, taking the opportunity of the presence of Mr Jonathan
Cohen, I have no doubt that the United States - recognizing the benefits that a
settlement on the Cyprus Problem would deliver not only for Cyprus but also for
the region and the international community– will continue exercising its
influence towards Turkey to deliver concretely on its verbal commitment to
positively contribute to the negotiating process.
Ladies and Gentlemen,
The business community of the United States can rest assured that Cyprus
will remain a reliable partner and will retain its position as a significant
international business hub and investment destination.
I am also confident that you will all find the opportunity, during the
various meetings and panel discussions which are taking place today, to
exchange ideas and to create contacts which will enable you to act as the main
drivers of the effort for further deepening and enhancing our economic and
commercial relations.
I assure you that my Government stands ready to offer all the help and
assistance deemed necessary and will facilitate every business and investment
initiative involving the US.
Thank you for your attention and I wish every success in your
deliberations and a successful conclusion of the Forum.
