currency.html 06324345646 015020 0

Visit Kypros-Net

CURRENCY
CONTENTS

CURRENCY

Cyprus currency is based on the decimal system and one Cyprus pound (C ) is divided into 100 cent (c). There are banknotes in the following denominations: 50c, CP1, CP5, CP10 and CP20.

Until 1972, the Cyprus pound was equivalent to one pound Sterling, but after this date the value of the Cyprus pound was fixed, by agreement with the IMF at 2.13281 grams of gold. Later, in 1973 the value of the Cyprus pound was pegged to the average value of a basket of currencies representing the currencies of the principal trading partners of Cyprus. On June 19, 1992, the Cyprus pound was linked to the European Currency Unit (ECU). The central rate was set at 1.7086 ECUs per Cyprus pound and the margin within which the Cyprus pound is allowed to fluctuate was fixed at 2.25 per cent above or below the central rate. This implies that the upper and lower limits of the band are 1.7470 ECUs and 1.6702 ECUs for one Cyprus pound, respectively. In September 1993, the average rate of exchange of the Cyprus pound was CP1=US Dollars 2.0079.

EXCHANGE CONTROL

The implementation of policy on exchange control rests with the Minister of Finance. The Exchange Control Law is administered by the Central Bank of Cyprus.

In practice most current transactions are handled by the commercial banks which are vested with the necessary powers. There are practically no restrictions for current payments in foreign exchange. Payments of a capital nature require the prior approval of the Central Bank.

Investments in Cyprus and transactions of a capital nature by non-residents also require the prior approval of the Central Bank.

Non-residents and offshore companies are allowed to maintain foreign currency and external accounts in Cyprus pounds. These accounts are operated freely without any restrictions on their convertibility.

Cypriot repatriates and Cypriots temporarily working abroad are permitted to maintain foreign currency and external accounts. Also, foreign currency accounts may be maintained by resident companies engaged with the manufacture and export of products and by Cypriot companies or individuals engaged with transit or triangular trade and by hotel businesses with loans in foreign currency.

BANKS

The Central Bank of Cyprus, was established in 1963. The Bank regulates the supply of money and credit, manages the international reserves of the Republic, acts as banker and financial agent of the Government, supervises the operation of banks in Cyprus and administers the Exchange Control Law.

Commercial banks are the major source of funds for working capital and for capital investment for enterprises. There are seven commercial banks now operating in Cyprus. Four of them are locally incorporated. These are: Bank of Cyprus Ltd, the Cyprus Popular Bank Ltd, Hellenic Bank Ltd and Lombard NatWest Bank Ltd. Foreign commercial banks operating branches in Cyprus are: Barclays Bank PLC, National Bank of Greece SA and Arab Bank Ltd. The Commercial Bank of Greece SA was also granted a licence in September 1992 to operate branches in Cyprus and is expected to start operations in the near future. In addition to these, the Cooperative Central Bank Ltd, provides finance to co- operative societies, with main emphasis on the agricultural sector. This bank accepts deposits and gives loans to its members which are principally the local co-operative credit societies. It is also an authorised dealer in foreign currency. The Cyprus Development Bank Ltd, a Government controlled institution, provides assistance for economic development by providing finance to the private sector, with emphasis on industry and tourism, but does not accept deposits from the public. The Bank usually backs up the financing of projects with technical assistance, planning and management. The Mortgage Bank of Cyprus Ltd, accepts deposits from the public and provides medium and long-term financing for housing, real estate development, tourist and industrial projects, etc. The Housing Finance Corporation, a Government institution, accepts deposits and provides long-term loan facilities for housing, mainly to low and middle-income households. Yialousa Savings Bank, a designated financial institution, accepts deposits and provides loan facilities and other banking services but is not an authorized dealer in foreign exchange.

In addition to these financial institutions, there are a number of hire-purchase finance companies such as the Bank of Cyprus Finance Corporation, the Cyprus Popular Finance Ltd, Hellenic Bank (Finance) Ltd, Lombard NatWest Ltd and Templar Finance Co. Ltd. The interest rate on any debt or obligation is subject to a maximum legal ceiling of 9% p.a.

PREVIOUS SECTION NEXT SECTION

06324345646 015333 0


Visit Kypros-Net

demography - The Cyprus Problem
CONTENTS

DEMOGRAPHY

1. Population of Cyprus

The population of Cyprus by ethnic group at independence in 1960 and in 1973, the last year before the Turkish invasion, was as follows:

TABLE 1
Population by Ethnic Group in 1960 and 1973
1960 (Census) 1973 (Census)
Number% Number %
Greek Cypriot Community (1) 447,901 78.20 498,511 78.9
Turkish Cypriot Community 103,822 18.13 116,000 18.4
Others 20,984 3.66 17,26 2.7
Total: 572,707 100.00 631,778 100.00

(1) According to the 1960 Constitution, the small religious minorities of Maronites, Armenians and Latins opted to be classified demographically within the Greek Cypriot Community. They are hence presented as one total.

Sources: Census of Population and Agriculture 1961, Vo. 1, Population by Location, Race and Sex, and Demographic Report 1987, Department of Statistics and Research.

The Census of 1973 showed the population of Cyprus to be 631,778, giving an average rate of growth of 0.8% between 1960 and 1973. The ethnic distribution of the population did not really change over this period and the proportion of each community remained stable whilst birth rates declined and Cyprus lost a part of the natural increase of its population through emigration.

The impact of the Turkish invasion on the population was devastating. As a result the total population declined and for a number of years remained below the figure for 1974. Gradually with birth and death rates and migration becoming more normal, population picked up and started growing again. Even so, it was in 1982 that finally the total population of Cyprus exceeded the highest figure reached in mid-1974 as shown in Table 2, which gives a summary of developments in population and other demographic variables after 1974. These are based on the assumption that Turkish Cypriot demographic variables have gone through the same changes as that of the population in the Government controlled areas, as shown in Table 3. However, on the basis of data available from Turkish Cypriot sources the number of Turkish Cypriots must be much smaller as a result of high emigration.

TABLE 2
Population of Cyprus between, 1974-90 (in thousands as at mid-year)
Total Greek Cypriot
Community
Turkish Cypriot
Community
Others
1974 641 506 118 17
1975 618 499 116 3
1976 613 495 115 3
1982 641 513 120 8
1984 657 526 123 8
1985 665 533 124 8
1986 673 539 125 9
1987 680 545 127 9
1988 687 550 128 9
1989 695 556 130 9
1990 702 562 131 9
1992 719 576 134 9

Source: Demographic Report 1992, Department of Statistics and Research.

TABLE 3
Birth and death rates, net migration, and population growth 1973-1990
1973 18.3 9.5 +1.8 1.3
1974 16.5 10.8 -19.0 1.1
1975 16.0 7.9 -14.2 -3.6
1976 18.7 8.6 -7.0 -0.8
1982 20.8 8.5 -0.5 1.0
1984 20.6 8.0 +0.2 1.4
1985 19.5 8.5 +0.3 1.2
1986 19.5 8.4 +0.2 1.2
1987 18.7 8.9 +0.3 1.1
1988 19.2 8.8 +0.3 1.0
1989 18.3 8.6 +0.3 1.0
1990 19.0 8.5 +0.7 1.0
1992 20.0 8.9 +2.4 1.3

Source: Demographic Report 1992, Department of Statistics and Research.

2. Population of Turkish Cypriots and of Turkish Mainland Settlers in the Occupied Areas.

The population statistics given by the Turkish occupation authorities for the occupied area of Cyprus are shown in Table 4 below.

The first figures given for March 1975 are clearly the true figures which agree with those available to the Government of Cyprus at the time. From then on they diverge considerably as the table below clearly shows.

TABLE 4
Total Population in the Occupied Areas ('ooos)
1975 (March) 115 1985 160
1975 (October) 127 1986 163
1976 130 1987 165
1977 145 1988 167
1980 150 1989 169
1982 153 1990 171
1992 175

Source:Turkish Cypriot sources

The higher figures of the Turkish occupation authorities as compared to those of the Cyprus Government indicate the illegal introduction of settlers from Turkey to the occupied area of Cyprus with the aim of altering the demographic structure of the country.

While published data on such demographic variables as crude birth and death rates are similar to those in the Government-controlled areas, Turkish Cypriots do not publish any information regarding migration. They do not give any data in this field, because it will clearly show the loss of indigenous Turkish Cypriots emigrating, being replaced by an even greater number of mainland Turkish settlers, in what is a clear attempt by the occupation authorities to alter the demographic structure of Cyprus.

Indeed, according to press reports and comments by Turkish Cypriot politicians, Turkish Cypriots faced with the problems of unemployment, economic uncertainty and the pressures from Turkish settlers who are given many privileges, continue to emigrate. It is estimated that over 30,000 Turkish Cypriots have emigrated since 1974.

Given the continuing reports of emigration of Turkish Cypriots and the fact that the population in the occupied areas increases every year by more than the birth and death rates justify, it is obvious that the number of illegal Turkish mainland settlers is much higher. According to the Turkish Cypriot daily Yeniduzen of 14.2.1990 and statements by Turkish Cypriot politicians, the number of settlers from Turkey must have by now reached 80,000 while the Turkish Cypriot population is not more than 100,000. Nevertheless, the crucial issue is the illegal presence of Turkish mainland settlers in the occupied areas and its extremely negative impact on the search for a Cyprus solution - much more than the exact number of settlers.

3. Displaced Population

When in 1974 Turkish troops occupied about 37% of the area of Cyprus they evicted all but about 12,000 of the Greek Cypriot population of that area. Since then, most of the Greek Cypriots remaining in the occupied area were also forced to leave their homes and move to the Government-controlled area.

The latest count in June 1992 showed that only a handful of Greek Cypriots remain in the occupied area reinforcing the claim of the forced change of the demographic structure of the country in general and of the occupied areas in particular.

The number of Greek Cypriot refugees and the number of Greek Cypriots remaining in the occupied area since 1974 are given in Table 5. The estimates for the size of the refugee population take into account the natural increase of the population that has taken place since 1974.

TABLE 5
Greek Cypriot Refugees and Enclaved in the Occupied Areas,
Refugees ('000s) Enclaved
1974 162(1) 12,289
1975 166 9,544
1976 173 4,095
1977 176 2,452
1982 187 1,395
1984 192 1,133
1985 194 1,060
1986 197 1,015
1987 199 951
1988 201 902
1989 203 869
1990 205 846
1991 207 816
1992 209 753

(1) In 1974 the actual number of refugees was 201,000. But about 40,000 people who became refugees in 1974 because they lived in dangerous areas close to the line of occupation but within the Government Controlled Area returned to their homes in 1977.

Source: Service for Humanitarian Affairs, Ministry of Justice and Public Order.

THE CYPRUS PROBLEM:
On 20 July 1974, Turkey launched an invasion with 40,000 troops against defenseless Cyprus. Since 1974, 37% of the island is under Turkish military occupation and 200,000 Cypriots, close to 40% of the total Cypriot population, were forced to leave their homes in the occupied area and were turned into refugees.

PREVIOUS SECTION NEXT SECTION

06324345646 014645 0


Visit Kypros-Net

The Economy
CONTENTS

THE ECONOMY

INTRODUCTION

Cyprus has a record of successful economic performance, reflected in rapid growth, full employment and stability almost throughout the post-Independence period. The underdeveloped economy of 1960 has been transformed into a modern economy with dynamic services, industrial and agricultural sectors and advanced physical and social infrastructure. In terms of per capita income, currently estimated at $11.000,(1993) Cyprus is classified among upper middle income countries.These achievements appear all the more striking in view of the severe economic and social dislocation and the loss of resources caused by the Turkish invasion of 1974.

The success of Cyprus in the economic sphere is the combined result of the existence of a dynamic and flexible entrepreneurial community and of a well-educated labour force, the adoption of a market oriented economic system and the sound economic policies followed by the government.

Over the last decade the economy has increasingly become oriented towards Europe. The European Union, with which a Customs Union Agreement was put into effect in 1988, is now the largest trading partner of Cyprus. The application of Cyprus to become a full member of the Union in July 1990 is a clear indication of the European orientation of Cyprus and has led to the adoption of harmonization of economic and social institutions and policies with those of the European Union as a major policy objective.

HISTORICAL OVERVIEW

Developments Between 1960 and 1973

In 1960, the newly formed Government of Cyprus inherited an economy which exhibited most of the symptoms of underdevelopment. The productive base of the country was inadequate and economic activity was dependent upon unstable factors. Agriculture was the dominant sector in economic activity and accounted for 16% of GDP and 45% of gainful employment; manufacturing activity was essentially restricted to the processing of locally produced agricultural raw materials; tourism had not yet taken off; exports had the characteristic structure of underdeveloped countries, with primary commodities, such as minerals (53% of the total) and agricultural products (32%), dominating; unemployment was high, underemployment was widespread and mass emigration was taking place; financial capital was flowing out of the country, a clear indication of the existing uncertainty.

In view of the structural weaknesses of the economy, the Cyprus government adopted the basic principles of indicative planning, according to which private initiative is the basic motive force of the economy and the role of the state is to create the necessary physical and social infrastructure, create a stable and favourable economic environment, guide the private sector towards desired directions and administer social policy. The development strategy and the economic policies of the government were embodied in Five-Year Development Plans.

The years between Independence and the Turkish invasion are characterised by sustained growth, accompanied by conditions of economic stability. GDP grew at an average annual rate of about 7% in real terms and that of per capita national income by almost 10% per annum. Agricultural production doubled, while industrial production and exports of goods and services more than trebled. Tourism became the largest single foreign exchange earner. Unemployment was very low and conditions of full employment were the characteristic of the early 70's. Earnings of employees more than doubled in real terms. Investment in infrastructural projects like dams, roads, ports, airports, communications, etc., reached a very satisfactory level. The rate of inflation was contained to 2,4% on average per annum and the current account of the Balance of Payments was mostly kept in surplus. As a consequence, accumulated foreign debt by 1973 was low, at a level equivalent to 7,5% of GDP.

The Turkish Invasion and its Aftermath

The favourable results of 13 years of planned development were utterly disrupted by the Turkish invasion of 1974, when the Turkish army occupied about a third of the territory of the country and a third of the population became refugees. The displacement of such a large number of people and the seizure of their property and the country's assets inevitably shattered the economy. Moreover, the area under occupation was the most productive and developed part of Cyprus, since it produced the bulk of citrus, the main export item at that time, was rich in mineral and quarrying materials, attracted a heavy concentration of tourist facilities (66% of the total) and included the only deep water port of Famagusta, which handled more than 80% of general cargo. The closure of Nicosia International Airport, now in the buffer zone, was an additional blow.

As a result of the economic dislocation, GDP dropped sharply and in 1975 it was 33% below the level of 1973 in real terms, despite the partial reactivation which took place in the meantime. The size of the economic catastrophe was reflected in the unemployment figure, which during the latter part of 1974 averaged 30% of the economically active population and led to conditions of poverty and increased dependence on the state, at a time when state revenues declined sharply. A small country, which even under normal circumstances was poor in natural resources was deprived of some of its most valuable ones. The dependence of the country on foreign sources for raw materials, consumer goods as well as financing increased. Shortages appeared in all sectors particularly in housing. A climate of political and economic uncertainty was created.

THE REACTIVATION EFFORT, 1976-81

Under the new circumstances of mass unemployment and loss of confidence, the Government adopted a dual approach. On the one hand, the first priority was the provision of relief assistance to the displaced and the needy to meet their basic subsistence needs. On the other hand, the long-term approach necessitated that Government policy arrest the economic slide and lay the foundations for economic recovery and the creation of employment opportunities. Both objectives depended on expansionary, fiscal and monetary policies, the promotion of labour intensive projects and the implementation of a large number of specific programmes and projects. Therefore, although the principles of indicative planning were not abandoned, initially Government intervention was of necessity greater. With reactivation, the role of the private sector was restored.

With well-coordinated and collective action, Cyprus was able to overcome the destabilising effects of the Turkish invasion and to attain a very high rate of economic growth. However, success had its price, since the increased dependence of the country on foreign sources was translated into a large and growing foreign debt and inflationary pressures.

The progress in the economic field is indicated by the impressive rate of real growth, which over the period 1976-81 averaged about 8,5% per annum. This emanated from the excellent performance of exports of goods and services which grew on average by 11% and 18% in constant terms, respectively. The leading sectors were manufacturing, tourism and construction.

Cyprus invested regularly more than 30% of GDP in an attempt to replace lost productive capacity and social and economic infrastructure, particularly in housing, as well as to expand capacity. As a result, a very large number of employment opportunities were created. Gainful employment grew on average by 6% per annum, achieving full employment by 1978: conditions which continued to prevail up to 1981. The unemployment rate in 1981 was 2,6% of the economically active population.

The impressive growth performance was based on a number of exogenous and endogenous factors. Exogenous factors, such as the booming Arab markets, the Lebanese crisis of 1975, favourable weather and high international market prices for some of the major Cyprus agricultural products provided the impetus that lifted the economy. An additional element was foreign aid, which helped bridge the financing gap.

Internally, the aggressive and expansionary fiscal and monetary policies, the acceptance by trade unions of a substantial cut in wage levels, the entrepreneurial ability, which exploited export opportunities that came along, the diligence, perseverance, self-sacrifice and hard work of the people formed the front which led the economy to the path of recovery. The willingness to undertake large investments was also a significant factor. Furthermore, the adoption of a labour intensive strategy and the policy to encourage the temporary employment of Cypriots abroad helped ease the unemployment problem.

However, the rapid recovery of the economy, in conjunction with rising inflation worldwide, led to overheating tendencies and substantial increases of domestic prices (11% in 1981). Moreover, the current account of the Balance of Payments exhibited large deficits, about 160 million or 7% of GDP in 1981. Both accelerating inflation and large deficits in the current account of the Balance of Payments, were clear signs of instability, which required positive action from the Government.

THE FOURTH EMERGENCY ECONOMIC ACTION PLAN, 1982-1986

The rapid recovery of the economy and the attainment of full employment conditions by the end of the '70s brought in surface stability problems and structural weaknesses which threatened further progress. In the context of the Fourth Emergency Plan, 1982-86, it was hence considered necessary to adopt a new strategy, attaching emphasis on capital rather than labour intensive projects and on the restructuring of the economy, while in parallel addressing the problems of external and internal instability, mainly by pursuing a more restrictive fiscal policy.

The basic objectives and targets of the Plan, regarding growth, employment and internal stability were attained. Moreover, the decline of oil prices in world markets, the relatively low real interest rates prevailing at that time and the partial recovery of demand in the industrialised countries, in conjunction with stabilisation measures introduced by the Government, helped to ameliorate, towards the end of the planning period, the problem of external instability and improving the Balance of Payments position of the country.

Despite the poor performance of domestic exports, the economy achieved an average real rate of growth of almost 6% per annum, much higher than the planned target of 4%, basically on the account of the extraordinary performance of tourism. The sectoral pattern of growth was substantially different than planned, as manufacturing output was much below target growth.

More specifically, the tertiary service sectors grew by 7,5% p.a., in real terms during the period 1982-86, compared to 4,6% set in the Plan. Tourism continued to be the dominant sector and its excellent performance had a positive impact on the level of activity in the rest of the services sectors. Manufacturing failed to provide the anticipated impetus to growth, because of problems in the export field, growing by 3,3% per annum, compared with the planned rate of 6,3%.

Gainful employment continued to rise rapidly, by 2,5% per annum - far above target - whilst productivity increased by more than 3%. Nevertheless, unemployment also increased and in 1986 it was 3,7%. Inflation was brought down from 11% in 1981 to 1,2% in 1986.

The progress achieved in the Balance of Payments and in the fiscal sphere was on average less favourable than expected and as a result foreign borrowing and service payments were higher than anticipated. Nevertheless the servicing of foreign debt was low by international standards, at 13% and it did not cause any apparent problems for the economy.

MAIN ECONOMIC DEVELOPMENTS DURING 1987-1988

Despite the reduction in tariffs, in line with the Customs Union Agreement with the E.U. which came into effect in 1988, the Cyprus economy improved further during 1987-88. Average annual real GDP growth exceeded 7,5%, on the strength of continuing fast increases in tourist arrivals and resurgence of industrial exports.

Services continued to constitute the main pillar to growth and recorded an overall real increase of 7% in 1987 and 9.5% in 1988, their contribution to GDP stabilised around 64%. Significant growth was registered in the secondary sectors as well. Manufacturing grew by 8% in real terms, in 1987 and 7% in 1988, on account of the recovery of exports to the Arab markets, the further penetration in European markets as well as the increased spending by tourists. The period 1987-88 turned to be exceptional for the agricultural sector which, benefiting from favourable weather conditions, recorded real growth rates of 3,5% in 1987 and 11% in 1988.

The rapid output led to the further creation of a large number of new employment opportunities and consequently, to a decrease of unemployment to 2,8% in 1988. Inflation pressures remained moderate. The retail price index climbed from the exceptionally low level of 1,2% in 1986 to 2,8% in 1987 and 3,4% in 1988, reflecting mainly international trends.

The current account of the Balance of Payments improved considerably during 1987, exhibiting a surplus of 44 million or 2,5% of GDP, for the first time since the Turkish invasion. The improved performance during 1987 is attributed to the resurgence of exports of goods (especially industrial), the continuing increases in exports of services (mainly tourism), as well as the containment of the rate of increase of imports to a level lower than that of total demand. In 1988, imports rose faster, by more than 20%, a development which almost wiped out the current account surplus achieved in 1987.

A slight improvement was also observed in the operations of the public sector. The fiscal deficit remained stable in absolute figures at 64 million, while it decreased as percentage of GDP from 4% in 1986 to 3% in 1988.

THE FIVE-YEAR DEVELOPMENT PLAN 1989-93
The Five-Year Development Plan 1989-93 incorporate new ideas regarding the procedure of its elaboration and evaluation and constitutes an effort to adapt development planning to today's conditions.

The main innovation was the provision for a systematic follow-up of the Plan on an annual basis and for a revision of its various programmes, measures and objectives when considered necessary. The provision for an annual evaluation of the Plan secured flexibility and adaptability to the rapidly changing conditions and consequently to an efficient materialisation of its provisions.

Another important procedure introduced in this new Plan was the extensive participation of the private sector throughout all the stages of the planning process, including the evaluation of its implementation. This active participation was considered necessary, since the successful implementation of the Plan significantly depended upon the response of the private sector. In general the Development Plan 1989-93 aimed at achieving high growth, balanced sectorally and regionally, under conditions of economic stability in the price level and in the Balance of Payments. Preconditions for the realization of these objectives were the technological upgrading, the improvement of competitiveness in all sectors of the economy and success in the effort to further penetrate the renumerative European market.

Progress in the Implementation of the Development Plan, 1989-93

The major quantitative developmental targets set in the Development Plan 1989-93 have been achieved to a satisfactory extent notwithstanding the adverse conditions faced during the first half of 1991 and the only marginal growth in economic activity in 1993. However significant deviations were observed regarding the structure and stability of the economy.

Demand - Domestic Production (1)

The average rate of growth of the G.D.P. during the period 1989-93 reached 5% in real terms, in conformity with the target set in the Plan. However, towards the end of 1992 and during 1993 the economic growth slowed down reflecting the structural problems and the gradual erosion of the competitiveness of the exporting sectors and particularly of manufacturing and tourism.

The Development Plan provided that the main pillar of development would have been the foreign demand for goods and particularly for services offered by Cyprus, taking into account the small size of the domestic market. In actual fact, however, the contribution of foreign demand to development lagged behind expectations. The exports of goods and services expanded by 5,5% in real terms during the period 1989-93, compared to the Plan target of 6,3%. This was attributed to the adverse conditions, faced in export markets due to the prolonged period of recession in European countries, and also to the problem of competitiveness mainly regarding the exports of industrial and agricultural products. A deviation from the target was also observed in tourism, due to the decrease of the per capita expenditure of foreign visitors in real terms, a development which does not conform with the provisions of the Plan for enriching the tourism product and attracting higher income tourists. In contrast, re-exports and exports of services, apart from those linked with tourism, surpassed the target of the Plan, reflecting the enhanced role of Cyprus as a regional transit trade centre and the progress achieved with regard to the attraction of offshore companies.

Domestic demand growth ranged at the levels forecast in the Plan and has been the main pillar of development. Private consumption expenditure expanded at an average annual real rate of about 5% during the period 1989-93, in line with the target of the Plan, despite the downward trend which was observed particularly in consumption, of certain durable consumer goods during 1993. The expansion of employment and incomes at comparatively high rates, despite the adverse conditions in the first half of 1991 and during 1993, the expansionary impetus which came from the transactions of the public sector, the reduction of the real interest rates and in general the comfortable financing conditions, as well as the expectations which prevailed at times regarding the imposition of new indirect taxes have been the major factors which fuelled consumption.

Public consumption expanded at an average annual rate of about 5% in real terms during the 1989-93 period, slightly higher than the target of 4,5%, set in the Plan. This development was mainly attributed to the significant increase of employment in the public sector, 2,5% compared to 1% annually, which was the target of the Plan. During 1993, corrective measures were introduced which included, inter alia, a freeze in new recruitments within the context of the policy of the new Government to improve public finances.

Investment activity was maintained at satisfactory levels 25% of the G.D.P. in 1993, and compares favourably with the levels of investment activity in the countries of the European Union, which is at 20,5% of the G.D.P. on average. However, at the same time, the structural weaknesses of investment have become more pronounced given that the share of construction in total investment increased in contrast to the provisions of the Plan.

More specifically, gross fixed capital formation expanded by 3,3% in real terms during the period 1989-93, a rate only marginally lower than the targeted rate of 3,4%. Particularly intense activity was observed in the construction of dwellings, Including second homes and tourist accommodation. The public sector played a significant role in the investment activity in construction, through the promotion of various development projects with emphasis on the expansion of road network.

Investment in machinery exhibited continuous fluctuations and expanded at a relatively low average annual rate of about 3,5% in real terms during the 1989-93 period, indicating that the progress in the field of restructuring and technological upgrading did not reach the anticipated levels. It should be noted that the Development Plan, recognising the significance of investment in machinery for the expansion of production capacity and the improvement of the competitiveness of the economy, set an ambitious target for an average annual increase of 5,6% in real terms.

Domestic savings rose in relative terms during the 1989-90 period, fell during the 1991-92 period and rose again in 1993. In total, domestic savings amounted to 23,5% of the G.D.P. on average, during 1989-1993 compared to the target of 24%. The level of savings was not sufficient to cover the financing needs of the economy, consequently the financing resource gap reached 2,5% of the G.D.P. on average during the period 1989-93, and exceeded the level anticipated in the Plan 0,5%.

Major deviations from the provisions of the Plan were also observed in the production sphere. The value added in the sector of agriculture expanded by 2% annually in real terms during the period 1989-93, while the Plan anticipated an average annual increase of 2,5%. The deviation from the target was mainly attributed to the prolonged period of drought during 1989-91. The value added of the manufacturing sector expanded marginally by 0,5% in real terms, which is much lower than the target, 5%, reflecting the adverse conditions encountered in the key export markets of Cyprus and the structural problems faced by the sector.

Growth in the services sectors linked with tourism was also lower than anticipated by the Plan, on account of the adverse conditions encountered in 1991 and the problems experienced in 1993. The value added of the sector of hotels and restaurants increased at a relatively low average annual rate of 6,5% in real terms during the period 1989-93, compared to 7,9% anticipated by the Plan, while the transport sector registered an increase of 2,5% during the same period, as against the targeted 4,5%.

Despite the problems faced at times by the sectors linked with tourism, the tertiary sectors of services as a whole displayed a satisfactory increase of 6,5% the leading sectors were communication (11%, target 9,5%), professional services (11%, target 7,5%), bank services (11%, target 5,5%), and social services (9,5% target 7%). In general, these sectors proved to be more dynamic than anticipated by the Plan. This development was attributed to the high income elasticity of demand of most services and, in terms of the supply conditions, with the high educational standard of the labour force, and the favourable geographic location of Cyprus.

Apart from certain services sectors, the progress during 1989-93 was also based on the intense activity of the construction sector which experienced an average annual increase of its value added of the order of 3,5% in real terms, despite the problems observed in 1993, compared to 1% which was the target of the Plan.

The Labour Market

Developments in the labour market during 1989-93 exhibited fluctuations. The first four years were characterized by an intensive demand for labour and severe shortages in all sectors of the economy. In contrast, during 1993 the demand for labour decreased as a result of the slow-down of economic activity and unemployment rose steeply.

The gainfully employed population increased from 237,5 thousand persons in 1988 to 265,0 thousand in 1993 or at an average annual rate of 2,2%, marginally higher than the target set in the Plan, 1,9%. The overshooting of the provision of the Plan was due to the rapid development of the economy, despite the fluctuations exhibited at times, and particularly of the services sectors, which are labour intensive. The unemployment rate was contained to 2,3% of the gainfully employed population on average during 1989-93, a percentage lower than envisaged in the Plan, 2,7%, while the participation rate rose from the already high, by international standards rate of 47,5% in 1988 to 48,5% in 1993 (1), as provided for by the Plan. The increase in the participation rate concerned almost exclusively women.

The shortages in the labour market, during the first years of the implementation of the Plan led to radical changes of Government policy regarding the employment of foreign workers and to granting of permits for the employment of foreign workers on a large scale, in contrast with the provisions of the Plan which aimed at a balance between demand and indigenous sources of labour. As a result the number of the gainfully employed foreign workers reached 5% in 1993, as against 1,5% of the gainfully employed population in 1988.

Productivity per employed person rose at a satisfactory rate of around 3% on average during the period 1989-93, in line with the target of the Plan, surpassing the average annual rate of the improvement of productivity in the countries of the EU, which fluctuated around 2%. As a result, the gap between Cyprus and the countries of the European Union narrowed. This encouraging development mainly reflects the gradual progress made in the sector of training during the last years. Nevertheless, the gap between Cyprus and the European Union remains quite large, since the level of productivity in Cyprus amounts to 45-50% of the average level in the European Union members countries.

Earnings expanded at an average annual rate of 9,5% in real terms during the period 1989- 93, compared to 8,5% which was the target of the Plan, on account of the acute shortage of labour which affected the results of the Collective Bargaining Agreements and the salary increments granted within the context of the C.O.L.A. system. As a consequence, the unit labour costs expanded at a rate of 6,5%, which is also higher than the target of 5%, and higher than the corresponding increases in the countries of the European Union, leading to a fall of the profitability of business units and a deterioration of the competitiveness of the Cyprus economy.

  1. Most countries of the European Union have lower participation rates than Cyprus, while only Denmark has a substantially higher participation rate.

The Rate of Inflation

The rate of inflation reached 5% during the period of the 1989-93 Development Plan, surpassing the Plan provision which was set at 4,3%. Factors which contributed to the increase of inflation to levels higher than anticipated were, on the demand side, the high fiscal deficits and the great overshooting of the target regarding the money supply, and on the supply side, the adverse weather conditions which affected the production of the domestically produced agricultural goods, as well as the labour shortages which led to high increases of unit labour costs.

The Balance of Payments

The external transactions of the country deviated considerably from the targets set in the 1989-93 Development Plan. The current account balance exhibited an average deficit of the order of 1,5 million Cyprus Pounds compared to an average surplus of 22,5 million Cyprus Pounds which is the target for the five years of the Plan.

Total exports of goods expanded by an average annual rate of 5% compared to the target of 9%. This outcome was mainly due to unsatisfactory developments in domestic exports, as a result both of the low performance of agricultural exports, due mainly to problems in basic agricultural products, such as citrus fruits and grapes, and also to industrial exports which fell by an average of 4% compared to the target set for an average increase of 9%. The significantly poor result vis-a-vis the target in the exports of industrial products reflects both the structural problems of the manufacturing sector which had accumulated and led to a reduction of competitiveness of industrial exports during this period, and also the problems created by the international recession which prevailed during the last years of the Plan.

It is worth noting that a significant diversification took place regarding the geographical distribution of domestic exports, with Europe absorbing approximately 60% in 1993 as against 48% in 1988.

The exports of services increased at an average annual rate of 11,5%, very close to the target of 11,3%. Earnings from tourism increased at a lower average annual rate of 12%, compared to the target of 13,4%, due to the fall by 8% of tourist arrivals in 1993. Exports of all other services as a whole expanded at an average annual rate of 10,5%, overshooting the target of 8%. This reflects the very good performance in services, such as off-shore companies, consultancy, professional, shipping and other services.

Imports of goods and services increased at an average annual rate of 8%, lower than the target of 9,7% set for the five-year period. This is due, to a large extent, to the fact that imports during 1993 exhibited a significant deceleration on account of the low economic activity.

Developments in the current account balance, the surplus in the capital account and the higher inflow of non-residents deposits led to a rise of foreign exchange reserves to very satisfactory levels. Import coverage by foreign exchange reserves reached on average nearly 11,5 months, compared to 9 months which was the target set in the Plan, and more than covered the country's foreign debt by 29%.

Foreign debt as a percentage of the G.D.P. moved in the direction set by the Plan. It dropped from 33,2% in 1988 to about 26% in 1993, while the debt service ratio was confined to 9,5% on average compared to the anticipated 11%.

Public Finances

The fiscal deficit exhibited an upward trend for almost all the years of the Plan, the only exception being 1992 during which there was a great impetus in public revenue due to the implementation of V.A.T. and the tax reforms which took place, and also to the very high rate of economic growth. During 1993, the last year of the Plan, the fiscal deficit as a percentage of G.D.P. rose to 3% (2), a level which diverges from the Plan provision of 1,5%. Nevertheless, it is worth noting that the fiscal deficit on average was 73,5 million Cyprus Pounds during the 1989-93 period, a level which marginally surpasses the provision made by the Plan of 70,4 million Cyprus Pounds and which represents approximately 3% of the G.D.P.

Both total public revenue and total public expenditure increased, during the 1989-93 five year period, at higher average annual rates than those anticipated by the Plan, 13% and 12,5%, compared to 11,5% and 9,5% respectively.

The main reasons for the deviation from the targets, in terms of the public revenue, were the satisfactory yield of direct taxation, the higher receipts from Social Insurance Funds contributions, and also the greater non-tax receipts.

Developments regarding wages and salaries, interest payments, purchases of goods and services, as well as transfer payments played a decisive role in determining the higher realised average annual rate of growth of total public expenditure, 12,5%, compared to the Plan's target, 9,5/%.

The Government's payroll expansion, 10,5% compared to the target of 8,9%, was due to the general increases paid on basic salaries during 1990 and 1991 (4% and 1,5%, target: 0,4% annually), the readjustment of salaries due to C.O.L.A. (4,8%, target: 4,3% annually) and also the higher than originally planned rate of recruitment (2,5%, target: 1%) to cover mainly the needs in the sectors of health, education and defence.

As regards interest payments, the higher rate of growth, 12%, compared to the Plan, 10,6%, was attributed to the higher financing needs of the Government during the last years.

Government investment expenditure, in spite of realising a higher average annual rate of growth than that anticipated by the Plan, 11% compared to 6,8% respectively, in absolute magnitudes reached the level of approximately 4ll,5 million Cyprus Pounds during the five year period 1989-93, a level very close to that anticipated by the Plan 417,4 million Cyprus Pounds. However some partial differentiations occurred in various Budgets. More specifically, the Development Budget and the Social Insurance Funds were lower than those targeted (305,5 million Cyprus Pounds target: 345 million Cyprus Pounds, and 0 million Cyprus Pounds, target: 2,4 million Cyprus Pounds respectively), while investments from the Ordinary Budget and the Cyprus Relief Fund for Displaced and Affected Persons exceeded the target (40 million Cyprus Pounds target: 17,2 million Cyprus Pounds and 66 million Cyprus Pounds target: 52,8 million Cyprus Pounds respectively). The lower investment activities of the Development Budget are basically due to the delay in the realization of some large projects, the most significant ones being the construction work of the Southern Conveyor and also the construction of the new passenger terminal building at Larnaca airport. Furthermore, no expenditure was made during 1989-93 regarding the Computerization Plan of the Social Insurance Fund, despite the fact that this had already begun in mid 1992, since the relevant agreement states that the full amount of nearly all the investment needed is to be paid as soon as the project is completed, and this is not expected to happen before the middle of 1994 (target 2,4 million Cyprus Pounds). The higher Ordinary Budget's investment activity is basically due to the satisfaction of larger needs by the Police Force in machinery and equipment, as well as to the expenditure on computerization for the technological upgrading of the public sector. The Cyprus Relief Fund's for Displaced and Affected Persons investment expenditure is higher compared to the Plan's provisions due to the undertaking of more infrastructural works and the initiation of the scheme for the replacement or repair of unsuitable houses in governmental and self-help housing estates. Moreover, the above Fund also includes investment expenditure realised from the assistance provided by the United Nations High Commission for the Refugees. This expenditure was higher than the relevant Plan's provision, for the first three years, due to the incurring of additional expenditure for new projects regarding both town planning and the agricultural sector.

The financing of the fiscal deficit during the 1989-93 was within the target framework which was set out in order to limit dependence on foreign borrowing. The only divergence from the targets occurred in 1991 when additional foreign borrowing was undertaken due both to the high fiscal deficit and also the almost full coverage of the legal margins of domestic borrowing credit limits.

Monetary - Credit

During the five-year period, monetary developments diverged from the targets set in the 1989-93 Five Year Development Plan. Total money supply expanded during this period at an average annual rate of 15,5%, compared to the target of 9,5% which was set on the basis of a similar forecast regarding the G.D.P. The divergence from the target was mainly due to the larger amount of bank credit to the private sector at a rate of 16,5%, compared to the Plan's target of 9,5%, and to some extent also to the fiscal deficit. These developments contributed to the creation of conditions of overheating in the economy, during the first four years of the Plan, which is reflected in the expansion of imports and the aggravation of inflationary pressures.

The Cooperative Credit Institutions also contributed to the creation of conditions of overheating; their credit increased at a rate of 19,5% during the 1989-93 period, increasing their share in the total cumulative credit of the economy in 1993 to 33% from 31% in 1988.

Conclusions - Prospech

The Cyprus economy is expected to face a more favourable environment during 1994, in comparison to 1993, mainly due to the anticipated further recovery in the E.U. member countries and particularly in Britain. The sectors interlinked with tourism are expected to be the main beneficiaries. A partial rebound of economic activity is also expected in the manufacturing sector, however, the prevailing structural problems are likely to prevent a full exploitation of the improvement of the external environment.

Bearing the above in mind, G.D.P. is projected to attain a respectable growth of the order of 3-3,5%, while full employment conditions will be maintained with the unemployment rate remaining in the region of 2,5-3%. Underlying inflation, (excluding the effect from the increase of the V.A.T. rate and of other indirect taxes), is expected to exhibit a small increase from the relatively low level of 3-3,5% in 1993 to 4% in 1994, which corresponds to the medium term trend of the Cyprus economy. The current account is expected to remain in surplus, albeit lower than in 1993, leading to a further build up of foreign exchange reserves and a decrease of foreign debt and of the debt service ratio. Despite the fact that prospects for 1994 appear to be somewhat more favourable compared to 1993, nevertheless full recovery of the Cyprus economy will involve deep cuts and the cooperation of all social partners.

PREVIOUS SECTION NEXT SECTION

due to unsatisfactory developmenteurope.html 06324345646 014470 0


Visit Kypros-Net

Cyprus - European Union relations
CONTENTS

CYPRUS - EUROPEAN UNION RELATIONS

Cyprus enjoys today one of the most advanced relationships among the third countries that are associated with the European Union.

Cyprus initially showed an interest to establish an Association Agreement with the EEC in the early sixties in parallel with the British application for full membership to the EC. However with the freezing of the British application, its interest remained dormant until 1971 when it was reactivated almost simultaneously with the renewed efforts of the U.K. to join the European Community.

Cyprus entered in 1971 into negotiations with the Community which were to lead to the signing on 19th December 1972 of an Association Agreement between the two parties. The final scope of the said Agreement was the completion in two stages and within a period of ten years of a Customs Union between Cyprus and the EEC.

Unfortunately the Turkish invasion and occupation of 37% of the territory of Cyprus which caused a serious economic upheaval delayed the normal implementation of the Association Agreement and in particular of its second stage.

Finally and after successive extensions of the first stage, a Protocol for the second stage of the Association Agreement was signed in Luxembourg on 19th October 1987, paving the way towards the progressive realization of a Customs Union between the two parties. Under the provisions of this Protocol, the Customs Union between Cyprus and the E.U. should be completed by the year 2002 or 2003 at the latest. Both the E.U. and Cyprus are required to eliminate all tariffs and quantitative restriction on all manufactured goods and a number of clearly defined agricultural products (mainly potatoes, citrus fruit, other fruit and vegetables and wine). In parallel Cyprus will adopt progressively the common external tariff (CET) of the Union with the aim to bring its own customs tariffs into line with those of the E.U. by the end of 1997.

On 4 July 1990 Cyprus submitted an official application for full membership of the Communities and on 30 June 1993 the EC Commission issued its opinion on Cyprus application.

Through the opinion the EC Commission confirmed that the Community considers Cyprus as eligible for membership and added that it is ready to start the process leading to the island's accession as soon as the prospect of a settlement of the Cyprus problem is surer. It also undertook to reassess the situation in January 1995 should the intercommunal talks fail to produce a settlement.

Meanwhile on 19 and 20 July 1993 the EC Council of Ministers heard a presentation by the Commission of its opinion on Cyprus' request for accession to the EC. On 4 October 1993 the Council presented its conclusions:

"3. The Council supported the Commissions approach which was to propose, without awaiting a peaceful, balanced and lasting solution to the Cyprus problem, to use all the instruments offered by the Association Agreement to help, in close cooperation with the Cypriot Government, with the economic, social and political transition of Cyprus towards integration into the European Union. To that end the Council invited the Commission to open substantive discussions forthwith with the Government of Cyprus to help it prepare for the accession negotiations to follow later on under the best possible conditions, and to keep it regularly informed of the progress.

4. The Council also confirmed the Community's support for the efforts made by the United Nations Secretary-General to produce a political settlement of the Cyprus question. If, in spite of these efforts, there was no prospect of a solution in the foreseeable future, the Council agreed to reassess the situation in the light of the positions expressed by each side in the inter-community discussions and to examine in January 1995 the question of the accession of Cyprus to the European Union in the light of this situation".

Financial Cooperation

Since 1977, Cyprus and the European Economic Community, have signed three protocols on financial and technical cooperation providing for a financial aid of a total amount of 136 million ECU. This aid includes loans, grants, special loans and contributions to risk capital formation.

The total amount of the first two Financial Protocols (30 and 44 million ECU respectively) was used to finance infrastructure development projects in Cyprus such as the Sewerage Project of Nicosia Stage II, the Water Development and Supply Project of Vassilikos - Pentaskinos, the Dhekelia Power Project, the Southern Conveyor Project - Phase I and the Nicosia Master Plan - civil works and construction in Ledras / Onassagorou streets in Nicosia and Kyrenia avenue (in the occupied part of Nicosia).

It should be noted that part of the resources of the above Financial Protocols were also used in joint projects, also beneficial to the Turkish Cypriot community.

The third Financial Protocol of a total amount of 62 million ECU which was signed in 1989 is being used for the financing of projects in the productive sectors in order to facilitate their adjustment to the new competitive conditions arising from the Cyprus - E.C. Protocol for Customs Union. The risk capital revenues will be used for the creation of joint ventures with partners of EC countries.

Besides the above Three Financial Protocols, Cyprus benefitted from funds of a total amount of 600.000 ECU from the Community programme "MEDSPA" (Mediterranean Special Programme Action) which was used for the financing of three environmental projects in the coastal area of our country.

EU and the Cyprus Problem

The European Union has repeatedly stated that it recognizes the Government of the Republic of Cyprus as the sole legitimate government with jurisdiction over the whole territory of the island and all its people.

The Twelve Heads of State and Government reaffirmed during their meeting in Dublin on 25th and 26th June 1990 their support to the efforts of the Secretary-General of the U.N. for the promotion of a just and viable solution to the question of Cyprus, a settlement that will safeguard the unity, independence, sovereignty and territorial integrity of Cyprus in accordance with the relevant resolutions of the U.N.

The European Parliament has also adopted several resolutions in favour of a just and lasting solution of the Cyprus problem.

Political dialogue EU - Cyprus

Pursuant to a decision of the European Council meeting in Rhodes, a political dialogue between Cyprus and the EU was introduced in 1989. It foresees at least biannual meetings between the Cypriot Foreign Minister and the President-in-Office of the Council of Ministers of the E.U., in order to exchange views on the Cyprus problem, the Cyprus - E.U. and other bilateral relations, and the Union's stand on current international matters.

Joint Parliamentary Committee Cyprus-EC

In early 1992 the decision was taken for the establishment of the joint Cyprus - E.C. Parliamentary Committee. This Committee is composed of 24 members of Parliament, 12 of whom are members of the European Parliament and 12 are members of the House of Representatives of Cyprus.

Co-chairing this Committee are the British Conservative Member of the European Parliament, Sir James Scott-Hopkins and the President of the House of Representatives, Mr. Alexis Ghalanos.

The first inaugural meeting of the Joint Committee took place in Brussels on the 17th March 1992. The second meeting was held in Nicosia on the 13-16 July 1992 and resulted in the adoption of a Resolution on the Relations between Cyprus and the E.C.

Cooperation between Cyprus and EC in Various Sectors

Cyprus signed last April an Agreement with the EC providing for the former's participation in the Business Cooperation Network (BC-Net).

Cyprus participates since October 1989 in the Audiovisual EUREKA, a programme initiated by France and adopted by the European Council during its meeting in Rhodes in 1988, which provides for cooperation and development of new technologies in the audiovisual sector between EU countries and other European countries. At the beginning of this year Cyprus requested participation in the MEDIA Community which aims at promoting the development of the European Audiovisual Industry.

Cyprus signed on 29th of May 1990, the Agreement establishing the European Bank for Reconstruction and Development whose role is to assist the countries of Central and Eastern Europe in their policy towards reconstructing and developing their economies.

On the 16th December 1991 Cyprus signed at the Hague the European Charter on Energy.

For the time being, Cyprus is considering participating in joint projects with other third mediterranean countries which will be financed by Union funds under the new renovated Mediterranean policy, as well as in several Union programmes and initiatives open to non- EU countries.

PREVIOUS SECTION NEXT SECTION

NEXT SECTION

due to unsatisfactory developmentgeography.html 06324345646 015160 0


Visit Kypros-Net

government - geography
CONTENTS

GOVERNMENT - GEOGRAPHY

The Republic of Cyprus gained its independence in 1960 when Britain relinquished her colonial rule and granted independence to the island.

This was the latest scenario in a succession of major acts in which the island featured, because of its geographical position - attracting foreign invaders and colonisers throughout its history that can be traced back to the sixth millennium B.C.

But it was not destined to be the last act.

Once again, it was foreign intervention that brought it about: in 1974 the dictators who then ruled Greece staged an abortive coup against Archbishop Makarios, then President of Cyprus, and Turkey launched an invasion "to restore constitutional order". Twenty two years on, 37% of the island still remains under the invaders' occupation in defiance of United Nations Resolutions of unequivocal substance. And the "Cyprus Problem" has become a major dispute in the sensitive Middle East. This compilation includes facts and figures, business and general information on Cyprus which should be useful to editors, politicians, diplomats, tourists, economists and business travellers for quick and reliable reference.

Government

Cyprus is an independent sovereign Republic with a presidential system of government. Under the 1960 Constitution, executive power is exercised by the President of the Republic, elected by universal suffrage for a five-year term of office. The President exercises executive power through a Council of Ministers appointed by him. Ministers may be chosen from outside the House of Representatives.

Legislature

The legislative authority in the Republic is exercised by the House of Representatives now consisting of eighty members (56 of whom are to be Greek Cypriots and 24 Turkish Cypriots) elected by universal suffrage for a five - year term. At the time of its establishment the House consisted of 50 members, 35 of whom were to be Greek Cypriots and 15 Turkish Cypriots. According to the Constitution the ratio is 70% Greek Cypriots and 30% Turkish Cypriots.

Following the withdrawal of the Turkish Cypriot members the House has been functioning only with the Greek Cypriot members. The Maronite, Armenian and Latin minorities also elect representatives who attend meetings without a right of participation in the deliberations. They are consulted in matters concerning particular affairs of their respective religious groups.

Parliamentary Committees of the House of Representatives

Every bill which is introduced in the House is referred by the President for examination by the appropriate parliamentary committee of the House. The introduction of the bill in the House is a formal stage intended only to give the House notice that the bill has been introduced.

The Parliamentary committees are set up by the Committee of Selection which consists of the President of the House as chairman, the Vice-President of the House as vice-chairman, and eight other members elected by the House. On appointing the members of the parliamentary committees, the Committee of Selection appoints, at the same time, the chairman of each committee as well as the member who will be replacing him in case of temporary absence or incapacity. The committees of the House are representative in the sense that political parties are adequately represented on them in proportion to the total number of their seats in the House.

The parliamentary committees of the House generally correspond to the Ministries of the Government and are set up to consider every bill or private bill or any other particular matter that may be referred to them by the House.

Judiciary

The administration of justice is exercised by the island's separate and independent Judiciary. Under the 1960 Constitution and other legislation in force, the following judicial institutions have been established:

The Supreme Court of the Republic, The Assize Courts and District Courts.

Independent Offices

In the Republic there are also Independent Offices which do not come under any Ministry. These are: The Law Office, the Audit Office of the Republic, the Public Service Commission, the Planning Bureau, the Educational Service Commission, and the Office of the Commissioner for Administration (Ombudsman).

International Status

The Republic of Cyprus is a member of the United Nations Organisation and U.N. Agencies.

The Republic of Cyprus is a member of the Non-Aligned Movement, being a founder member through the pioneer contribution of its first President, the late Archbishop Makarios.

Cyprus is a member of the Council of Europe and is linked with the European Union through a Customs Union Agreement .

The Cyprus Republic is also a member of the Commonwealth composed of former British colonies.

GEOGRAPHY

Cyprus is the third largest island in the Mediterranean, after Sicily and Sardinia, with an area of 3.572 sq. miles (9.251 sq. kms).

It is situated at the north-eastern corner of the Mediterranean, at a distance of 300 km north of Egypt, 90 km west of Syria, and 60 km south of Turkey. Greece lies 360 km north-west (Rhodes - Crete).

Cyprus lies at a latitude of 34 33'-35 34' North and longitude 32 -16'-34 37' East. The 35th latitudinal parallel traverses it.

The country has two mountain ranges: the Pentadaktylos range which runs along almost the entire northern coast, and the Troodos massif in the central and south-western parts of the island. Cyprus' coastal line is indented and rocky in the north with long sandy beaches in numerous coves in the south. The north coastal plain, covered with olive and carob trees, is backed by the steep and narrow Pentadaktylos mountain range of limestone, rising to a height of 1.042 m. In the south the extensive mountain massif of Troodos, covered with pine, dwarf oak, cypress and cedar, culminates in the peak of Mount Olympus, 1.953 m above sea level. Between the two ranges lies the fertile plain of Messaoria.

Cyprus has a Mediterranean climate, with its typical seasonal rhythm strongly marked in respect of temperature, rainfall and weather generally. Hot, dry summers from June to September and changeable winters from November to March are separated by short Autumn and Spring seasons of rapid change in weather patterns in October, April and May. Summer is a season of high temperatures and cloudless skies.

The average annual rainfall is 500 mm, the fall from December to February being nearly two-thirds of the yearly total. Autumn and winter rainfall on which agriculture and water supplies generally depend is variable from year to year.

What is abundant, however, is sunshine during the whole year, particularly from April to September when the daily average exceeds 11 hours. Winds are on the whole light to moderate. Gales are very infrequent and storms rare.

Snow hardly falls in the lowlands and on the Northern range, but is a frequent feature every winter on ground above 1.000 metres in the Troodos range. From December till April snow is usually in evidence there, but hardly continuous. Yet during the coldest months it lies in considerable depth for several weeks, attracting skiers.

Flora and Fauna

With its approximately 1.800 species and subspecies of flowering plants, Cyprus, is an extremely interesting place for nature lovers and has all the attributes which make it a botanist's paradise. Being an island, it is sufficiently isolated to allow the evolution of a strong endemic flowering element. At the same time being surrounded by big continents, it incorporates botanological elements of the neighbouring land masses. About 8% of the indigenous plants of the island, 125 different species and subspecies, are endemic. The island's great variety of habitats, attributed to a varied microclimate and geology, is the main reason which contributed to this high number of endemics.

The arrival of animals in Cyprus has been a subject of interest to zoologists, since it has always been an island. According to existing evidence, the first arrivals were hippopotami and elephants, both excellent swimmers. They arrived 1,5 mil. years ago and apart from some shrews and mice, were the only land mammals roaming the island prior to Man's arrival 9.000 years ago. The present-day fauna of Cyprus includes some 7 species of land mammals, 26 species of amphibians and reptiles, 357 species of birds, a great variety of insects and mites, while the coastal waters of the island give shelter to 197 fish species and various species of crabs, sponges and echinodermata.

The largest wild animal that still lives on the island is the Cyprus moufflon (Ovis orientalis ophion), a rare type of wild sheep that can only be found in Cyprus. Cyprus is used by millions of birds as a stepping-stone during their migration from Europe to Africa and back, something that has been observed since Homeric times. The main reason for that is the occurrence on the island of two wetlands, with unique and international importance, namely Larnaca and Akrotiri salt lakes. From the numerous wild birds of Cyprus, birds of prey are the most fascinating and amongst them the Eleonora's falcon (Falco eleonorae) and the imperial eagle (Aquila heliaca) are the jewel on the crown. Our sea creatures include seals and turtles, though unfortunately the Monk seal no longer breeds in the coastal sea caves of the island. On the other hand two marine turtles, the Green turtle (Chelona mydas) and the Loggerhead turtle (Caretta caretta) have been found to breed regularly on the island's sandy beaches and are strictly protected.

NEXT SECTION

nnual rate of 8%, lower than the target of 9,7% set for the five-year period. Tgifs/ 06033333575 013207 5 06324345646 015555 0 3j( CŠtq … @   œH“*]Q‚–B @‚FˆGE™•kF>ŠJAFGn•Z 4^<2og- @zUKpDq ]P1ӚnZFK02σ 5v!(Z,QF{iA,\x *̚0^R ܣг @➉ށ ܼnϿ>~hA† ‚<6)o$hav);f\ʘpemz&&%)ds"l_i,食pzgzc8f 1 JXiS*Y)Pw#V槣f׭n kzʩMjtRꭋV )#@Zl)VkF*paNn8. + w!;\@ 2v$Sck)SOR11I)Ԓᜳv~t]ۃH6-TWmXg-Q@ 06324345646 015550 0 ɓGDɲe 9>: ئ?Ϧq- #ȼ+xPKNjcJ O,0]nbV™bE‹ɺװcžM›8o ЪNq‰:n‚ž^Nسk>6YI6| ™ӹ_Ͼ}v›‚œ|N;‹S‡Ÿ? E €X‚R € BƒRh }]}•'ev ‚$’8… .h"Š':(‹0`…|du#([=Š<ƈh'i#j(6v_uugacz&؟x~"dvibed9~tl)d[x.j&xny#ati%c^{_z٧n}g>Š$‹YYa˜b>("Šɧ—XišƒIŸy…vޭޫ8Z:@ѽɩk–:Žaq*F{P^}vœ7“†+–k欺߲A,Yknikrzbwq{c™™^fwœgo—c@p™E2&‡W ogifs/contto.gif 06324345646 015231 0 I :Š2$UͧX!29•jUš ŠU•k‘_†v`Yg –[q‚›5 ]“{ '_wœvažža‚ Fj,0f’žU ӨSF=™I&127;\šf۫s޽빱'ƒp“+_|—‹/–nœسkO^Ym©~‚O W}Ÿž>||6}h8u•{ N&Ÿ‚S=!„ 7sU 8qX{-ž&127;Ihb‰I…8y,` ogifs/republicback.gif 06324345646 016340 0 "Ždižhlp,tmx| pH,Ȥrl:ŸШtJZجvzxL.›zn+A€HsB   ~f€z|}‡ey"dr" …’ar#„ †™_‰‚—Œ]"„ Z›œ|”•$˜Az/€(C"rɽ”(B*r —?:B›;‘Cz;@:4"‰<1;0b@il!kh-4 V'8 %5n4 &$𧱝l7#w h2H.2 cA%RBsTFXV]qtTXyEOi( B>w(Bs•L[™7‰7}_* Lˆ+^̸#0  eU)WV2 l € lEAƒ‡j :Š2$UͧX!29•jUš ŠU•k‘_†v`Yg –[q‚›5 ]“{ '_wœvažža‚ Fj,0f’žU ӨSF=™I&127;\šf۫s޽빱'ƒp“+_|index.html 06324345646 014273 0


Visit Kypros-Net

The Republic of Cyprus - An Overview

THE REPUBLIC OF CYPRUS
An Overview



Government - Geography

Population - Historical Sketch

Demography - The Cyprus Problem

Cyprus - European Union Relations

The Economy

Business Facilities & Incentives

Currency, Exchange Control, Banking

Offshore Banking - Offshore Legislation

Shipping - Telecommunications - National Carrier

Tourism

Cyprus Republic Representatives


Introducing Cyprus
The Cyprus Republic
Cyprus Problem Occupied Cyprus
Daily News
Tourism
Cypriot Culture
Green Cyprus
Sports
Picture Gallery
Mailing lists & pages
Guest Book

Since 23 July 1995: You are visitor number of THE *CYPRUS* HOME PAGE.

This home page is maintained by Panayiotis Zaphiris.
Please send your comments and suggestions to pzaphi01@tufts.edu


Return to THE CYPRUS HOME PAGE.
a member of the Non-Aligned Movement, being a founder member through the pioneer contribution of its first President, the late Archbishop Makarios.

Cyprus is a member of the Council of Europe and is linked with the European Union through a Customs Union Agreement .

The Cyprus Republic is also a membeoffshore.html 06324345646 015012 0


Visit Kypros-Net

OFFSHORE BANKING

CONTENTS

OFFSHORE BANKING

The granting of banking business licences, including ones for offshore banking, is the domain of the Controller of Banks who is the Governor of the Central Bank of Cyprus.

As a rule, offshore banking business licences are granted only to banks licensed in jurisdictions where, in the opinion of the Central Bank of Cyprus, proper licensing and banking supervision are exercised and whose banking supervisory authorities subscribe to the principles embodied in the "Concordat", issued by the Basle Committee of Banking Regulations and Supervisory Practices. In addition, the prospective applicant banks must be institutions enjoying a good reputation internationally and have an established track record of growth and profitable operation.

The Central Bank of Cyprus gives preference to applications received by existing foreign banks, for the establishment of branches as opposed to the local incorporation of new banking subsidiary or associated companies.

All offshore banking licences are subject to certain conditions. The scope and extent of these conditions depend on a number of factors, including the OBU's legal form (i.e. branch of an established overseas bank or subsidiary) as well as the standing and international reputation of the applicant bank concerned.

Offshore Banking Units (OBUs) are expected to operate as fully staffed entities and to transact banking business with non-residents of Cyprus, in currencies other than the Cyprus Pound. They may also engage in banking activities with the Central Bank of Cyprus or with onshore banks which are authorised foreign exchange dealers. OBUs which operate in the form of branches of foreign banks are exempted from any corporate tax liability while Cyprus incorporated OBUs are taxed at the preferential rate of 4,25%.

OBUs may also extend loans or guarantees in foreign currencies to residents of Cyprus, provided that the resident concerned obtains the requisite Exchange Control authority from the Central Bank of Cyprus. The net income earned by OBUs from such onshore activities attracts the corporate rate of income tax applicable to onshore entities (i.e. 20% on chargeable income upto CP100.000 and 25% on chargeable income in excess of CP 100.000) but the Minister of Finance may exempt an OBU from the payment of such tax if satisfied that the activity or transaction is in the best interest of the economy of Cyprus.

OBUs, though exempt from most of the regulatory measures and controls applicable to onshore banks, are subject to supervision and inspection of the Central Bank of Cyprus as well as to the requirement of submitting information to the Central Bank of Cyprus. OBUs are expected to satisfy the Central Bank of their ability to meet their obligations and of their adherence generally to sound banking practices.

At present 21 banks have a banking business licence to operate on an offshore basis from within Cyprus (19 of which are in the form of a branch) and 3 foreign banks maintain a representative office in the Island.

OFFSHORE LEGISLATION

In 1975 the Cypriot Government introduced tax incentives for business entities established in Cyprus but operating overseas.

Offshore entities can take the following forms:-

(a) Limited Company, is a company incorporated in Cyprus but the shares of which belong directly or indirectly to aliens and whose income is derived from activities outside Cyprus. As such an offshore limited company enjoys the following advantages:-
i The net profits of the company are taxed at only 4,25%.
ii There is no tax on dividends.
iii Foreign employees working for the company in Cyprus pay income tax at a rate equal to half the standard Cyprus tax-rates.
iv Freely transferable currency accounts can be kept abroad and in Cyprus.
v There are no exchange control restrictions in dealings with non-residents.
vi Offshore entities which maintain an office in Cyprus and their expatriate personnel are entitled to duty free importation of motor cars, office equipment and household effects excluding furniture.
vii Foreign employees working outside Cyprus but receiving their salaries out of foreign funds remitted through Cyprus are not liable to Cyprus income tax.

(b) Offshore Partnership, can be easily registered in Cyprus, and an exchange control approval of the Central Bank of Cyprus secured, provided that the partners are aliens, and that the activities, other than the administration, should be confined to outside Cyprus. As such an offshore partnership enjoys the following advantages:

i Tax exemption of partnership profits.
ii Foreign employees of partnerships working outside Cyprus but receiving their salaries out of funds remitted through Cyprus are not liable to Cyprus income tax.
iii The salaries of foreign employees can be paid in freely transferable currencies.
iv Expatriate staff employed in Cyprus are liable to Cyprus income tax at a rate equal to half of the normal Cyprus tax rates. Such reduced rates can vary from 0% to a maximum of 20%.

(c) Offshore Branches, are branches of foreign corporations whose shares belong directly or indirectly to aliens and which derive their income from sources outside Cyprus. Their main tax advantages are as follows:
i Companies having their management and control in Cyprus, are taxed on their profits at the rate of 4,25%.
ii Companies not having their management and control in Cyprus do not pay any tax at all.

PREVIOUS SECTION NEXT SECTION

, 125 different species and subspecies, are endemic. The island's great voverview.html 06324345646 015032 0


Visit Kypros-Net

The Republic of Cyprus - An Overview

THE REPUBLIC OF CYPRUS
An Overview



Government - Geography

Population - Historical Sketch

Demography - The Cyprus Problem

Cyprus - European Union Relations

The Economy

Business Facilities & Incentives

Currency, Exchange Control, Banking

Offshore Banking - Offshore Legislation

Shipping - Telecommunications - National Carrier

Tourism

Cyprus Republic Representatives


Introducing Cyprus
The Cyprus Republic
Cyprus Problem Occupied Cyprus
Daily News
Tourism
Cypriot Culture
Green Cyprus
Sports
Picture Gallery
Mailing lists & pages
Guest Book

Since 23 July 1995: You are visitor number of THE *CYPRUS* HOME PAGE.

This home page is maintained by Panayiotis Zaphiris.
Please send your comments and suggestions to pzaphi01@tufts.edu


Return to THE CYPRUS HOME PAGE.
h exempt from most of the regulatory measures and controls applicable to onshore banks, are subject to supervision and inspection of the Central Bank of Cyprus as well as to the requirement of submitting information to the Central Bank of Cyprus. OBUs are expected to satisfy the Central Bank of their abilitypopulation.html 06324345646 015357 0

Visit Kypros-Net

Population-Historical Sketch
CONTENTS

POPULATION

The present population of Cyprus is estimated at 725.000 of whom 580.500 belong to the Greek Cypriot community (81,6%) and 135.800 (18,4%) to the Turkish Cypriot community.

The language of the Greek Cypriot community is Greek and it adheres to the Autocephalous Greek Orthodox Church of Cyprus. According to the Constitution of 1960, the religious minorities of Armenians, Maronites and Latins opted to belong to the Greek Cypriot community.

The language of the Turkish Cypriot community is Turkish and the community adheres to Islam.

HISTORICAL SKETCH

7000-3900 BC NEOLITHIC AGE

Remains of the oldest known settlement in Cyprus dating from this period can be seen in Khirokitia and Kalavassos (Tenta), off the Nicosia-Limassol road. This civilization had developed along the North and South coasts. First only stone vessels were used. After 5000 B.C., the art of pottery was invented.

3900-2500 BC CHALCOLITHIC AGE

Most Chalcolithic establishments are found in Western Cyprus, where a fertility cult develops. The copper of the island begins to be exploited and used.

2500-1050 BC BRONZE AGE

Copper is more extensively exploited bringing wealth to Cyprus. Trade is built up with the Near East, Egypt and the Aegean. After 1400 BC, Mycenaeans from Greece reach the island, perhaps as merchants. During the 12th and 11th centuries several waves of Achaean Greeks come to settle on the island bringing with them the Greek language, their religion, their customs. They build new cities like Paphos, Salamis, Kition. Kourion. The island from now on is progressively hellenised.

1050-750 BC GEOMETRIC PERIOD

There are ten Kingdoms in the island. Phoenicians settle at Kition. The 8th century B.C. is a period of great prosperity.

750-325 BC ARCHAIC AND CLASSICAL PERIOD

The era of prosperity continues, but the island falls prey to several conquerors. Cypriot Kingdoms try to preserve their independence but come variously under the domination of Assyria, Egypt and Persia. King Evagoras of Salamis (who ruled from 411-374 BC) rebels against Persia and unifies the island but, after a great siege has to conclude peace with Persia and loses control of the whole island.

333-325 BC

Alexander the Great defeats Persia and Cyprus becomes part of his empire.

325-58 BC HELLENISTIC PERIOD

After the succession struggles, between Alexander's generals, Cyprus eventually comes under the Hellenistic state of the Ptolemies of Egypt, and belongs from now onwards to the Greek Alexandrine world. The capital is now Paphos. This is a period of wealth for Cyprus.

58 BC - 330 AD ROMAN PERIOD

Cyprus becomes part of the Roman Empire, first as part of the province of Syria, then as a separate province under a proconsul. During the missionary journeys by Saints Paul and Barnabas, the Proconsul, Sergius Paulus is converted to Christianity and Cyprus becomes the first country to be governed by Christian. Destructive earthquakes occur during the 1st century B.C. and the 1at A.D. and cities are rebuilt. There is a great loss of life when the Jews who lived in Salamis rebel in 116, and from the plague in 164 AD. In 313 the Edict of Milan grants freedom of worship to Christians and Cypriot bishops attend the Council of Nicaea in 325.

330-1191 AD BYZANTINE PERIOD

After the division of the Roman Empire in two parts, Cyprus comes under the Eastern Roman Empire, known as Byzantium, with Constantinople as its capital. Constantine the Great's mother, Helena is said to have stopped in Cyprus on her journey from the Holy Land, with remnants of the Holy Cross and founded the monastery of Stavrovouni. More earthquakes during the 4th century A.D. completely destroy the main cities. Cities lose their splendour and remain in ruins. New cities arise, Constantia is now the capital, and large basilicas are built as from the 4-5th century A.D. In 488, after the tomb of St. Barnabas is found, Emperor Zeno gives the Archibishop of Cyprus full autonomy and privileges including holding a sceptre instead of a pastoral staff, wearing a purple mantle and signing in red ink. In 647 Arabs invade the island under Muawiya. In 688 Emperor Justinian II and Caliph al-Malik sign a treaty neutralising Cyprus, but violations are reported, and the island is also attacked by pirates until 965 when Emperor Nicephoros Phocas expels Arabs from Asia Minor and Cyprus.

1191-1192 AD RICHARD THE LIONHEART AND THE TEMPLARS

Isaac Comnenus, self proclaimed governor of Cyprus, is discourteous to survivors of a shipwreck involving ships of Richard I's fleet on their way to the Third Crusade. Richard defeats Isaac and takes possession of Cyprus, marrying Berengaria of Navarree in Limassol, where she is crowned Queen of England. Richard then sells the island to the Knights Templars for 100,000 dinars but they resell it at the same price to Guy de Lusignan, one of the Crusader Knights.

1192-1489 AD FRANKISH (LUSIGNAN) PERIOD

Cyprus is ruled on the feudal system and the Catholic church officially replaces the Greek Orthodox, although the latter manages to survive. Many beautiful gothic buildings belong to this period including the Cathedrals of Ayia Sophia in Nicosia, Saint Nicholas in Famagusta and Bellapais Abbey. The city of Famagusta becomes one of the richest in the Near East, and Nicosia becomes the capital of Cyprus and the seat of the Lusignan Kings. The Lusignan dynasty ends when the last queen Catherina Cornaro cedes Cyprus to Venice in 1489.

1489-1571 AD VENETIAN PERIOD

Venetians see Cyprus as a last bastion against the Ottomans in the east Mediterranean, and fortify the island tearing down lovely buildings in Nicosia to bring the city into a tight encircled area defended by bastions and a moat which can still be seen today. They also build impressive walls around Famagusta which were considered at the time as works of military art.

1571- 1878 AD OTTOMAN PERIOD

In 1570 troops attack Cyprus, capture Nicosia, slaughter the population (20,000) and lay siege to Famagusta for a year. After a brave defense by Venetian commander Marc Antonio Bragadin, Famagusta capitulates to the Ottoman commander Lala Mustafa, who first gives free passage to the besieged but when he sees how few they are, orders the flaying, drawing and quartering of Bragadin and puts the others to death. On annexation to the Ottoman Empire, the Latin hierarchy are expelled or converted to Islam and the Greek Orthodox faith restored; in time, the Archibishop as leader of the Greek Orthodox, becomes their representative to the Porte. When the Greek War of Independence breaks out in 1821, the Archibishop of Cyprus, Kyprianos, three bishops and hundreds of civic leaders are executed.

1878-1960 BRITISH PERIOD

Under the 1878 Cyprus Convention, Britain assumes administration of the island, which remains formally part of the Ottoman Empire until 1914 when Britain annexes Cyprus, after the Ottoman Empire enters the First World War on the side of Germany. In 1923 under the Treaty of Lausanne, Turkey renounces any claim to Cyprus. In 1925 Cyprus is declared a Crown colony. In 1940 Cypriot volunteers serve in various branches of the British Armed Forces throughout the Second World War. Hopes for self-determination now being granted to other countries in the post-war period are shattered by the British who consider the island vitally strategic. An Armed Liberation Struggle, after all means of peaceful settling of the problem are exchausted, breaks out in 1955 which last until 1959.

1960 REPUBLIC OF CYPRUS

According to the Zurich-London Treaty, Cyprus becomes an independent republic on 16th August 1960. It is a member of the United Nations, the Council of Europe and the Commonwealth as well as the Non-Aligned Movement. According to the above Treaty, Britain retains in the island two Sovereign Bases, (158.5 sq km) at Dhekelia and Akrotiri-Episkopi.

The 1960 Constitution of the Cyprus Republic proves unworkable in many of its provisions, and this made impossible its smooth implementation. When in 1963, the President of the Republic proposed some amendments to facilitate the functioning of the state, the Turkish community responded with rebellion (Dec. 1963), the Turkish ministers withdrew from the Cabinet and the Turkish civil servants ceased attending their offices while Turkey threatened to invade Cyprus. Ever since then, the aim of the Turkish Cypriot leadership, acting on instructions from the Turkish Government, has been the partitioning of Cyprus and annexation by Turkey. In July 1974, a coup is staged in Cyprus by the Military junta, then in power in Athens, for the overthrow of President Makarios. On 20 July 1974, Turkey launched an invasion with 40,000 troops against defenseless Cyprus. Since 1974, 37% of the island is under Turkish military occupation and 200,000 Greek Cypriots, 40% of the total Greek Cypriot population, were forced to leave their homes in the occupied area and were turned into refugees. The invasion of Turkey and the occupation of 37% of the island's territory as well as the continuing violation of the fundamental human rights of the people of Cyprus have been condemned by international bodies, such as the UN General Assembly, the Non-aligned Movement, the Commonwealth and the Council of Europe.

PREVIOUS SECTION NEXT SECTION

EF=overview.html>

CONTENTS

POPULATION

The present population of Cyprus is estimated at 725.000 of whom 580.500 belong to the Greek Cypriot community (81,6%) and 135.800 (18,4%) to the Turkish Cypriot community.
Visit Kypros-Net

CYPRUS REPRESENTATIVES THROUGHOUT THE WORLD

CONTENTS

CYPRUS REPRESENTATIVES THROUGHOUT THE WORLD


AUSTRALIA
High Commission of the Republic of Cyprus in Australia High Commission: 37 Endeavour Street, Red Hill, A.C.T. 2603, Canberra. Tel.: (00616) 295.2120, 295.3713, 254.6064 (Res.) Fax: (00616) 295.2892. Telex: 62499 CYHICA High Commissioner: H.E. Mr. Christodoulos Pasiardis Also accredited to: Fiji, New Zealand, Papua New Guinea, Indonesia, Vanuatu, Solomon Islands. BELGIUM
Embassy of the Republic of Cyprus in Belgium Embassy: Square Ambiorix 2,
1040 Brussels. Tel: (00322) 7353510
(Fax) 7354552, Telex: 25172 EMBACY B
Trade Centre Tel: (00322) 7353510, Fax: (00322) 7354552, Ambassador: H.E. Mr. Nicos Agathocleous.
Also accredited to: Luxembourg, The Netherlands, Ireland, European Union. BULGARIA
Embassy of the Republic of Cyprus in Bulgaria Embassy: Block 154A, Flat No.16, G. Gagarin Str., Iztok, Sofia Tel.: (00359) 738.140, Fax: (00359) 739.795 Charg d'Affaires a.i. Mr. Stavros Amvrosiou. CZECH REPUBLIC
Embassy of the Republic of Cyprus in the Czech Republic Embassy: Budecska 36, 125 01 Prague 2
Tel.: (00422) 24247556, 257362, Fax: (00422) 256140 Trade Centre: Tel.: (00422) 256.376, Fax: (00422) 256140 Ambassador: H.E. Mr Christos Psilogenis Also accredited to Slovak Republic, Hungary. CHINA
Embassy of the Republic of Cyprus in the People's Republic of China Embassy: 2-13-2, Ta Yuan Diplomatic Office Building, Liang Ma He Road, Chao Yang District, Beijing 100600.
Tel.: 532.5057, 532.5059 (Ambassador's Office) 532.5248 (Res.), Fax: 532.5060 Ambassador: H.E. Mrs Myrna Kleopa
Also accredited to: Japan, Philippines, Mongolia, Pakistan. EGYPT
Embassy of the Republic of Cyprus in the Arab Republic of Egypt Embassy: 23A Ismail Mohammed Street, 1st Floor, Zamalek, Cairo. Tel.: (00202) 341.1288, 341.0327, 711.508 (Res.),
Fax: (00202) 341.5299, Telex: 92059 CYEMB UN Ambassador: H.E. Mr. George Georgiades
Also accredited to: Sudan, Oman, Ethiopia, Ghana, Qatar. FRANCE
Embassy of the Republic of Cyprus in France Embassy: 23, Rue Galilee, 75116 Paris, Tel.: (00331) 47.20.86.28 , Fax: (00331) 40.70.13.44, Telex: 645664 KYPROX, PARIS Trade Centre: 42, Rue de la Bienfaisance 75008 Paris Tel.: (00331) 42896086, Fax: 42896077
Ambassador: H.E. Mr. Michael Attalides. Also accredited to: Portugal, Morocco, Senegal. GERMANY
Embassy of the Republic of Cyprus in Germany Embassy: Kronprinzenstrasse 58, 53173 Bonn . Tel: (0049228) 363.336, 363.596. 334.748 (Res.). Fax: (0049228) 353.626. Telex: 885519 CYPER D. Telegrams: CYMBASSY BONN.
Trade Centre: 42-44 Friedrich Strasse, 50676 Cologne. Tel: (0049221) 235.160/9. Fax: (0049221) 237013 Telex: 8881581 Hzz Bd.
Ambassador: H.E. Mr. Andros Nicolaides
Also accredited to: Denmark, Austria, Poland. GREECE
Embassy of the Republic of Cyprus in Greece Embassy: 16, Herodotou Street, Athens. Tel.: (00301) 723.2727, 723.9377, 723.7883, Ambassador's Office: 723.0107, Ambassador's Res: 6879700, Counsellor's Office: 7280704, Consular Section: 724.3722, Maritime Section: 4536371/2, Fax: (00301) 4536373 Telex: 215642 CYPR GR.
Trade Centre: 36, Voukourestiou Str., 10673-Athens.Tel.: (00301) 364.6320, 364.6108, Fax: (00301) 364.6420,
Telex: 223961
Ambassador: H.E. Mr. Charalambos Christoforou Also accredited to: Romania, Bulgaria.
HUNGARY
Embassy of the Republic of Cyprus in Hungary Budakeszi ut 55D, P7 Budapest, Hungary. Tel: (00361) 1763334, 1767421, Fax: (00361) 1767449
Charg d'Affaires a.i. Mr. Marios Ieronymides. ICELAND
Embassy: c/o Ministry of Foreign Affairs, Nicosia, Cyprus. Tel.: (02) 302122, Fax: (02) 451.881, 365.313, Telex: 30012 MINAFF CY. Ambassador: H.E. Mr. Tasos Panayides. INDIA
High Commission of the Republic of Cyprus in India Embassy: High Commission: 106, Jor Bagh, New Delhi 110003, Tel.: (009111) 469.7503, 469.7508, 631.391 (Res.), Fax: (009111) 4628828, Telex: 3161788 CYHC IN.
High Commissioner: H.E. Mr. Stavros Epaminondas. Also accredited to: Vietnam, Sri Lanka, Singapore, Thailand, Malaysia, Nepal, Bangladesh, Maldives, Union of Myanmar. IRAN
Embassy of the Republic of Cyprus in the Islamic Republic of Iran 39, Shahid Baghdad St., Zafaraniye, Shemiran, Tehran Fax: 292760, 292297.
Ambassador: H.E. Mr. Christophoros Yiangou. Tel.: (009821) 2577034/5, 2577032 (Amb. Office) Fax: (009821) 2571356 ITALY
Embassy of the Republic of Cyprus in Italy Embassy: 15, Via Francesco Denza, 00197 Rome. Tel.: (00396) 808.8365, 808.8367, 808.8369, 321.5779 (Res.), Fax: (00396) 808.8338, Telex: 621033 CYPEMB I
Ambassador: H.E. Mr. Petros Michaelides. Also accredited to: Malta, Albania, Switzerland, Slovenia, Croatia, San Marino. KENYA
High Commission of the Republic of Cyprus in Kenya High Commission: Eagle House, 5th Floor, Kimathi Street, P.O.Box 30739, Nairobi, Tel.: (002542) 220881, 441954 (Res.), Fax: (002542) 331232 Telex: 22436 CYPROHC.
High Commissioner: H.E. Mr. Michael Spanos. Also accredited to: Seychelles, Tanzania, Uganda, Zambia, UNEP and UN Centre for Human Settlement, Mozambique, Zimbabwe. KUWAIT
Trade Centre: Abdullah Mubarak St., Al Mogil Commercial Centre, 9th Floor, P.O.Box 22034, 13081 Safat Tel.: (965) 2433075, 2448725, Fax: (00965) 2408638, Telex: 23781 LIBYA
Embassy of the Republic of Cyprus in the Great Socialist People's Libyan Arab Jamahiriya Embassy: Shara Al Thel, Ben Ashour, P.O.Box 3284, Central Post Office, Tripoli., Tel.: (0021821) 609.728, Residence: (0021821) 608121 Ambassador: H.E. Mr. Andreas Georgiades. Also accredited to: Mali, Mauritania, Niger, Rwanda. MEXICO
Embassy of the Republic of Cyprus in Mexico Embassy: Sierra Paracaima 130, Lomas de Chapultepec, Mexico, D.F. 11000. Tel: 596.6282, 596.0960,596.2101 (Res.). Fax: 251,1623. Telex: 1763104 CYEMME.
Ambassador: H.E. Mr. Stavros Orfanou
Also accredited to: Colombia, Peru, Uruguay, Bolivia, Dominican Republic, Venezuela, Nicaragua, Costa Rica, Chile.
Cuba. RUSSIAN FEDERATION
Embassy of the Republic of Cyprus in the Russian Federation Embassy: Ul Gertsena 51, Moscow.
Tel: (007095) 290.2154,
290.6523, 291.3726, 291.0174 (Ambassador) 290.3400 (Res). Fax: (007095) 200.1254, Telex: 413477 CYPEM SU. Telegrams: CYPREMB SU.
Trade Centre: Dmitria Oulianova 16, Korpous 2 Kv 127, Moscow Tel.: (007.095) - 1242659, Fax: 1242659
Ambassador: H.E. Mr. Antonis Vakis
Also accredited to: Finland, Belarus, Ukraine, Georgia, Armenia. SPAIN
Embassy of the Republic of Cyprus in Spain Embassy: Calle Serrano 43-45, Oficina No. 19, 28001 Madrid, Tel.: (00341) 4359630, 5765508 (Amb.), 3521218 (Res.)
Ambassador: H.E. Mr. Elias Eliades SYRIA
Embassy of the Republic of Cyprus in the Syrian Arab Republic Embassy: Addel Malek Al Marouan, Jaded Al Rais, Abou Roumaneh, P.O.Box 3853, Damascus., Tel.: (0096311) 3332.804, 3332.919, 6667.909 (Res.), Fax: (0096311) 3332373.
Telex: 411411 CYDAM SY,
Ambassador: H.E. Mr. Constantinos Malliotis Also accredited to: Jordan, Republic of Yemen. UNITED ARAB EMIRATES
Trade Centre: P.O.Box 11294 Dubai, Tel.: 971-4-283762, 282411, Fax: 971-4-275700, Tlx: 46556. UNITED KINGDOM
High Commission of the Republic of Cyprus in the United Kingdom of Great Britain and Northern Ireland
High Commission: 93, Park Street,
London, W1Y 4ET.
Tel.: (004471) 499.8272/4, Office of the High Commissioner: 499.2810, Residence: 351.3989, Consular Section: 629.5350, Cultural Section: 493.6200, Press Section: 491.8568, Welfare Section: 629.1984, Fax: (004471) 491.0691, Telex: 263343 CYPCOM G Telegr: CYPCOM G. Trade and Tourist Centre: 211-213, Regent Street, London W1R 8DA., Trade Centre Tel.: (004471) 734.4791/2, Fax: (004471) 494.0491, Telex: 22540 CYTOUR G.
Tourist Centre: Tel.: (004471) 734.9822, Fax: (004471) 287.6534, Telex: 263068 CYTOUR G. London W1.
High Commissioner: H.E. Mr. Angelos Angelides. Also accredited to: Norway, Sweden. USA
Embassy of the Republic of Cyprus in the United States of America Embassy: 2211 R. Street., Nort West, Washington D.C. 2008. Tel.: (001202) 462.5772, 462.0873, 797.2356 (Res.), Fax: (001202) 483.6710, Telex: 440596 CYPRUS, 440307 CYPRUS.
Trade Centre: 13, East 40th Street, New York, N. Y. 10016, Tel.: (001212) 213.9100, Fax: (001212) 6857316, Telex: 666969 CYPTRADE Ambassador: H.E. Mr. Andreas Iacovides. Also Accredited to: Canada, Bahamas,
Jamaica, World Bank, I.M.F. YUGOSLAVIA
Embassy of the Republic of Cyprus in Yugoslavia Embassy: Diplomatska Kolonija, 11040 Belgrade, Tel.: (003811) 663.725, 663.637 (Res.), Fax: (003811) 665.348, Telex: 12729 YU KIPAR Charg dAffaires a.i. Mr. Pavlos Hadjitoffis

II. MISSIONS TO INTERNATIONAL ORGANIZATIONS

COUNCIL OF EUROPE

Permanent representation of the Republic of Cyprus to the Council of Europe Representation: 20, Avenue de la Paix, Hexagon Building, 3rd Floor, 67000 Strasbourg, France.
Tel.: (003388) 371.818, 367537 (P.R. Office), 316362 (Res.), Fax: (003388) 369.056, Telex: EUROCYP 880313 F.
Permanent Representative:
H.E. Dr Andrestinos N. Papadopoulos
E.U.
Permanent Delegation of the Republic of Cyprus to the European Union Delegation: Square Ambiorix 2, 1040, Brussels. Tel.: (00322) 7353510, 672.4707 (Res.), Fax: (00322) 735.4552, Telex: 25172 EMBACY B. Permanent Delegate: H.E. Mr. Nicos Agathocleous.

C.S.C.E.
Delegation of the Republic of Cyprus to the Conference on Security and Cooperation in Europe
Delegation: A-1600 Vienna, Austria,
Tel.: (00431) 53137521, Fax: (00431) 5339794, Telex: 135171 CAUSA A Delegate: Mr. Tassos Tzionis.

FAO
Permanent Representation of the Republic of Cyprus to the Organisation of the United Nations for Food and Agriculture
Representation: Piazza Farnese, 44, 00186 Rome. Tel: (00396) 6865758, Fax: (00396) 68803756, Telex: 271460 CONGE 1. Permanent Representative:
H.E. Mr. Fotis G. Poulides.
Deputy Permanent Representative:
H.E. Mr. George Poulides.

UNESCO
Permanent Delegation of the Republic of Cyprus to UNESCO Delegation: 86, Avenue Foch, 75116 Paris 16e., Tel.: (00331) 4500.35.05, Telex: 610367 AGL FOCH.
Permanent Delegate: H.E. Mr. Constantinos Chr. Leventis.

I.M.O.
Permanent Representation of the Republic of Cyprus to the International Maritime Organization
Representation: c/o Chandris (England) Ltd., 17, Old Park Lane, London W1Y 3LH
Tel: (004471) 4123900
Fax: (004471) 4120901
Permanent Representative:
H.E. Mr. Michael D. Chandris.
Deputy Permanent Representative: H.E. Mr. Nicholas Lemos St. Clare House, 28-35 Minories, London EC3N IDP. Tel.: 4818921, Fax: 4814177, Telex: 886162

UNITED NATIONS-GENEVA
Permanent Mission of the Republic of Cyprus to the United Nations Office at Geneva and other International Organizations in Switzerland Mission: 34 Chemin Francois-Lehmann, 1218 Grand-Saconnex, Geneva. Tel: (004122) 798.2150, 798,2175, 798.2207 (Ambassador), 3480253 (Res.). Fax: (004122) 791.0084.
Telex: 415511 CYPM.
Permanent Representative:
H.E. Mr. Nicolas D. Makris.
Accredited to: The United Nations Office and other International Organizations in Vienna. Permanent Mission of the Republic of Cyprus to the United Nations Mission: 13 East 40th Street, New York, N.Y. 10016, U.S.A. Tel: (001212) 481.6023/4/5. Fax: (001212) 685.7316, 7790244 Permanent Representative: H.E. Mr. Alecos Shambos Also accredited to: Barbados, Guyana, Panama, Trinidad and Tobago, Argentina, Grenada, Suriname, Saint Lucia.

III. CONSULAR MISSIONS

GERMANY
Consulate General of the Republic of Cyprus in Hamburg Consulate: Rothenbaumchaussee,3,
20148 Hamburg, Germany.
Tel.: (004940) 410.7497, Fax: (004940) 410.7246 Consul-General: Mr. Phaedon Anastasiou

GREECE
Consulate General of the Republic of Cyprus in Thessaloniki Consulate: Leoforos Nikis 37, 1st Floor, Thessaloniki, 54110 Greece, Tel.: (003031) 260.611, 260.625, Fax: (003031) 274,984, Telex: 410.858 CY GR

UNITED STATES
Consulate General of the Republic of Cyprus in New York Consulate: 13 East 40th Street, New York, N.Y. 10016, U.S.A. Tel: (001212) 6866. 016/7/8,
Fax: (001212) 6857316.
Telex: 666969 CYP CGNY.
Consul-General: Mr. Charalambos Kapsos.

PREVIOUS SECTION 122, Fax: (02) 451.881, 365.313, Telex: 30012 MINAFF CY. Ambassador: H.E. Mr. Tasos Panayides. INDIA
High Commission of the Republic of Cyprus in India Embassy: High Commission: 106, Jor Bagh, New Delhi 110003, Tel.: (009111) 469.7503, 469.7508, 631.391 (Res.), Fax: (009111) 4628828, Telex: 3161788 CYHC IN.
High Commissioner: H.E. Mr. Stavros Epaminondas. Also accredited to: Vietnam, Sri Lshipping.html 06324345646 015007 0

Visit Kypros-Net

Shipping - Telecommunications - National Carrier
CONTENTS

SHIPPING

Under the Cyprus Merchant Shipping Legislation, which was enacted in 1963, a ship can be registered under the Cyprus flag only if more than one half of the shares of the ship are owned by a Cypriot or by a corporation established and operating under and in accordance with the laws of the Republic of Cyprus, and having its registered office in the Republic. The mere holding of shares in a Cyprus shipping company by a foreigner does not disqualify the company, since the company is a legal entity independent of its shareholders.

The procedure of registration in Cyprus of a shipping company is quick and can generally be completed in a matter of days through a local representative. An exchange control approval is required from the Central Bank of Cyprus but this is easily secured if the business entity concerned is wholly owned either directly or indirectly by ali ens and the entity derives all its income from sources outside Cyprus (Offshore companies).

Registration and deletion procedures are quick provided that all the necessary documents are in order. Normally five to seven days are adequate for registration and one to two days for deletion. Cyprus Consuls posted in countries all over the world may issue certificates for provisional registration for deletion and for encumbrances.

In 1992 there were 2.316 vessels totalling 22.993.746 GRT registered in the Cyprus Register of Ships.

The Cyprus Merchant Shipping Legislation provides that no income tax is payable on the profits derived from the operation of the ship registered in the name of a Cyprus company. The dividends paid to the shareholders of such a company are tax exempt and no estate duty is payable upon the inheritance of its shares. Also, no capital gains or other tax is payable upon sale or transfer of the ship or of shares in a Cyprus registered shipowning company.

The interests of mortgagees on Cyprus ships are fully protected under the existing law. This fact has been fully appreciated by all main international Banks engaged in granting loans to ships under the Cyprus flag. There is also no stamp duty on ship mortgage deeds.

A significant number of ship management companies have been established in Cyprus and manage a sizeable proportion of the Cyprus merchant fleet as well as a large number of vessels under foreign flags. One of these companies has established a marine training school in Cyprus, following an agreement with the Cyprus Government, training both Cypriot and foreign seamen.

Since December 1978, the Cyprus Government has been taking a series of measures in order to improve the image of the Cyprus merchant fleet in world shipping circles. Thus, an age limit of 17 years was imposed for the registration of ships and strict requirements have to be fulfilled at the time of provisional registration and at any subsequent transaction.

The Cyprus Government attaches considerable importance to the need for safer ships and improved working and living conditions for their crews. Serious work began a few years ago for the review, updating and codification of the Cyprus Merchant Shipping Legislation and a Law Reform Committee has been set up by the Council of Ministers to propose appropriate legislation.

TELECOMMUNICATIONS

The Cyprus Telecommunications Authority is a Corporate Body established by law and is responsible for the provision, maintenance and development of a comprehensive telecommunications service in Cyprus both nationally and internationally.

The island's link to the outside world comes primarily through 7 satellite earth stations, one digital fibre optic submarine cable system and three analogue submarine cable systems. Today 204 countries, to which 99% of the automatic outgoing telephone traffic is directed, are accessed automatically from Cyprus. Telefax, telex and telegraph services are also available, while two new value added services, audiotex and videoconferencing were recently introduced.

Data transmission service is offered both in Cyprus and overseas using either the public switched telephone network, or point-to-point leased circuits, or via the Packet Switched Public Data Network (CYTAPAC), which uses sophisticated switching technology and ensures reliable and secure transfer of data.

A mobile telephone service with an area coverage of more than 90% of the island and island-wide automatic radiopaging service are also available. Additional facilities include a range of maritime services provided on a 24-hour basis to ships at sea.

The telephone network is being expanded by digital switching and transmission systems which now comprise 65% and 84% of the total capacity respectively.

The density of telephone connections for every 100 population currently stands at about 52 and the figure of 65 is aimed for 1997.

The Authority is planning the introduction of the Paneuropean Paging System (ERMES) in 1994, and the Paneuropean Cellular Mobile Telephone System (GSM) and an Integrated Services Digital Network (ISDN) in 1995. Furthermore, new value added services, such as videotex, electronic mail, message handling system X.400 and voicemail will be offered soon.

In line with its policy of establishing Cyprus as an information hub in the Eastern Mediterranean region and a telecommunications centre of advanced services, CY.T.A. is participating together with fifty-three other countries in the SEA-ME-WE 2 project. This is a submarine fibre optic cable system connecting the Far East with the Middle East and Europe and will be ready for service in the second half of 1994. Additional submarine cable systems of fibre optic technology are also being established which will connect Cyprus with Greece, Lebanon, Syria and Israel. The Cyprus-Israel submarine cable has come into operation in April 1994.

It is evident that the advanced, reliable and efficient telecommunication services offered by the Cyprus Telecommunications Authority, as well as its ambitious plans for the future, place Cyprus among the world's developed countries in this field and render it an ideal business centre in the Eastern Mediterranean and Middle East region.

ISLAND'S NATIONAL CARRIER

Cyprus Airways has been playing a significant part in the island's air communications since 1947, the year during which it was incorporated. The company started operations in April 1948, with three Dakota aircraft, to Europe and the Middle East. During the years that followed the company's fleet grew and new services were added to its network.

This expansion, however, was interrupted in the summer of 1974 following the Turkish invasion. Cyprus Airways operations suffered an extreme setback as a result of the destruction of most of its aircraft at Nicosia International Airport and operations were suspended.

Very few airlines, if any at all, could have faced the grim prospects of surviving without a fleet. The months that followed were a struggle for recovery and reconstruction. While Cyprus Airways was trying to rebuild a fleet, the Government was busy with the construction of a new airport in Larnaca.

On 8 February, 1975 Cyprus Airways resumed operations with two Viscount aircraft. In spite of the grim prospects, Cyprus Airways in a very short time became fully operational with a fleet of four B707 and three BAC1-11 aircraft.

Today Cyprus Airways' contribution to the tourist industry and the island's economy in general, is a very significant one since it provides the necessary link with more that 30 destinations in Europe, the Middle East and the Gulf area, hence an important source of foreign exchange. It has more than 1500 employees.

Cyprus Airways, in close collaboration with the Government and other important bodies such as the Cyprus Tourism Organisation, the Association of Cyprus Travel Agents and the Cyprus Hoteliers Association, undertakes joint ventures for the promotion of Cyprus tourism.

The perfect climate, the sun and sea, the hospitality of the Cyprus people and a large number of archaeological sites combine to make Cyprus the ideal tourist destination. As a result, the number of tourist visitors flown each year by Cyprus Airways is increasing continually. In 1992 the company carried more than one million passengers.

To meet the growing traffic demand, Cyprus Airways renewed and expanded its fleet. Cyprus Airways' fleet is one of the youngest in the world and consists of 4 Airbus A310s and 8 Airbus A320s. There are also 3 BAC1-11s for short-haul flights.

The last few years have been critical for the airline and have demonstrated the need for a complete re-orientation of its goals and nature of operations. Cyprus has applied to join the EC and the demands of the single market and an increasingly liberalised aviation environment requires a more competitive market orientation in both the airline's structure and operations.

This was the main target of the changes in the company. Also a change in livery, staff uniforms and in-flight improvements of food, beverages and service took place. Part of the fleet has also been refurbished.

In 1992, Eurocypria, Cyprus Airways' charter subsidiary started operations. Eurocypria is designed to compete with the ever increasing charter market to Cyprus. Its fleet comprises three new Airbus A320s leased from Cyprus Airways.

PREVIOUS SECTION NEXT SECTION

rovided on a 24-hour basis to ships at sea.

The telephone network is being expanded by digital switching and transmission systems which now comprise 65% and 84% of the total capacity respectively.

The densitytourism.html 06324345646 014672 0


Visit Kypros-Net

Tourism
CONTENTS

TOURISM

The economic recession in many European countries, foreign exchange fluctuations and the high accommodation rate which were initially given by the hoteliers compared to 1992 and to other competitive destinations resulted in a tourism flow of 1,841,000 tourists in 1993 as against 1,991,000 in 1992. In 1993 the average expenditure per tourist increased by 8% as compared to 1992 (Cyprus Pounds 379,60 in 1993 and Cyprus Pounds 351,65 in 1992), and receipts from tourism reached Cyprus Pounds 696 million in 1993 compared to Cyprus Pounds 694 million in the previous year.

The growing tourism sector now employs some 35,000 people directly involved in the industry representing 13,2% of the gainfully employed population.

The island's bed capacity has increased from 10,796 in 1973 to 73,657 by the end of December 1993 - no mean achievement, considering the Turkish occupation of 1974 and the occupation of the harbourside town of Kyrenia and the principal resort of Ammochostos (Famagusta) which meant a considerable drop in bed capacity.

What attracts the holiday-maker to Cyprus, in addition to plenty of sun, sand and sea, is the hospitality and friendship of its people, most of whom speak English.

Another attraction is that there is such a variety of things to do for a tourist in Cyprus. Apart from the swimming, wind-surfing and so-on, the holiday-maker can drive up to pine forested mountains along the southern vineyards and indulge in a glance at history by inspecting archaeological excavations which have laid bare ancient settlements, rich burial sites, beautiful mosaics and pottery. Cyprus' history goes back to the 7th Millennium BC.

One particular interesting factor in tourist statistics is that a significant number of holidaymakers who come to Cyprus are "repeat visitors" - the best award a tourist could perhaps give a holiday destination.

One more point: all that the island offers has become during the last ten years, for many holiday-makers in Europe, 100 miles or so closer, with Pafos Airport at the extreme west of Cyprus, direct flights from Europe can now land a few miles from a rapidly developing tourist area in and around Pafos - not to speak of easier access to the Limassol area.

PREVIOUS SECTION NEXT SECTION

urist industry and the island's economy in general, is a very significant one since it provides the necessary link with more that 30 destinations in Europe, the Middle East and the Gulf area, hence an important source of foreign exchange. It has more than 1500 employees.

Cyprus Airways, in close collaboration with the Governmenwelcome.html 06324345646 014617 0


Visit Kypros-Net

The Republic of Cyprus - An Overview

THE REPUBLIC OF CYPRUS
An Overview



Government - Geography

Population - Historical Sketch

Demography - The Cyprus Problem

Cyprus - European Union Relations

The Economy

Business Facilities & Incentives

Currency, Exchange Control, Banking

Offshore Banking - Offshore Legislation

Shipping - Telecommunications - National Carrier

Tourism

Cyprus Republic Representatives


Introducing Cyprus
The Cyprus Republic
Cyprus Problem Occupied Cyprus
Daily News
Tourism
Cypriot Culture
Green Cyprus
Sports
Picture Gallery
Mailing lists & pages
Guest Book

Since 23 July 1995: You are visitor number of THE *CYPRUS* HOME PAGE.

This home page is maintained by Panayiotis Zaphiris.
Please send your comments and suggestions to pzaphi01@tufts.edu


Return to THE CYPRUS HOME PAGE.
he southern vineyards and indulge in a glance at history by inspecting archaeological excavations which have laid bare ancient settlements, rich burial sites, beautiful mosaics and pottery. Cyprus' history goes back to the 7th Millennium BC.

One particular interesting factor in tourist statistics is tha and other important bodies such as the Cyprus Tourism Organisation, the Association of Cyprus Travel Agents and the Cyprus Hoteliers Association, undertakes joint ventures for the promotion of Cyprus tourism.

The perfect climate, the sun and sea, the hospitality of the Cyprus people and a large number of archaeological sites combine to make Cyprus the ideal tourist destination. As a result, the number of tourist visitors flown each year by Cyprus Airways is increasing continually. In 1992 the company carried more than one million passengers.

To meet the growing traffic demand, Cyprus Airways renewed and expanded its fleet. Cyprus Airways' fleet is one of the youngest in the world and consists of 4 Airbus A310s and 8 Airbus A320s. There are also 3 BAC1-11s for short-haul flights.

The last few years have been critical for the airline and have demonstrated the need for a complete re-orientation of its goals and nature of operations. Cyprus has applied to join the EC and the demands of the single market and an increasingly liberalised aviation environment requires a more competitive market orientation in both the airline's structure and operations.

This was the main target of the changes in the company. Also a change in livery, staff uniforms and in-flight improvements of food, beverages and service took place. Part of the fleet has also been refurbished.

In 1992, Eurocypria, Cyprus Airways' charter subsidiary started operations. Eurocypria is designed to compete with the ever increasing charter market to Cyprus. Its fleet comprises three new Airbus A320s leased from Cyprus Airways.

PREVIOUS SECTION NEXT SECTION

rovided on a 24-hour basis to ships at sea.

The telephone network is being expanded by digital switching and transmission systems which now comprise 65% and 84% of the total capacity respectively.

The densitytourism.html 06324345646 014672 0


Visit Kypros-Net

Tourism
CONTENTS

TOURISM

The economic recession in many European countries, foreign exchange fluctuations and the high accommodation rate which were initially given by the hoteliers compared to 1992 and to other competitive destinations resulted in a tourism flow of 1,841,000 tourists in 1993 as against 1,991,000 in 1992. In 1993 the average expenditure per tourist increased by 8% as compared to 1992 (Cyprus Pounds 379,60 in 1993 and Cyprus Pounds 351,65 in 1992), and receipts from tourism reached Cyprus Pounds 696 million in 1993 compared to Cyprus Pounds 694 million in the previous year.

The growing tourism sector now employs some 35,000 people directly involved in the industry representing 13,2% of the gainfully employed population.

The island's bed capacity has increased from 10,796 in 1973 to 73,657 by the end of December 1993 - no mean achievement, considering the Turkish occupation of 1974 and the occupation of the harbourside town of Kyrenia and the principal resort of Ammochostos (Famagusta) which meant a considerable drop in bed capacity.

What attracts the holiday-maker to Cyprus, in addition to plenty of sun, sand and sea, is the hospitality and friendship of its people, most of whom speak English.

Another attraction is that there is such a variety of things to do for a tourist in Cyprus. Apart from the swimming, wind-surfing and so-on, the holiday-maker can drive up to pine forested mountains along the southern vineyards and indulge in a glance at history by inspecting archaeological excavations which have laid bare ancient settlements, rich burial sites, beautiful mosaics and pottery. Cyprus' history goes back to the 7th Millennium BC.

One particular interesting factor in tourist statistics is that a significant number of holidaymakers who come to Cyprus are "repeat visitors" - the best award a tourist could perhaps give a holiday destination.

One more point: all that the island offers has become during the last ten years, for many holiday-makers in Europe, 100 miles or so closer, with Pafos Airport at the extreme west of Cyprus, direct flights from Europe can now land a few miles from a rapidly developing tourist area in and around Pafos - not to speak of easier access to the Limassol area.

PREVIOUS SECTION NEXT SECTION

urist industry and the island's economy in general, is a very significant one since it provides the necessary link with more that 30 destinations in Europe, the Middle East and the Gulf area, hence an important source of foreign exchange. It has more than 1500 employees.

Cyprus Airways, in close collaboration with the Governmenwelcome.html 06324345646 014617 0


Visit Kypros-Net

The Republic of Cyprus - An Overview

THE REPUBLIC OF CYPRUS
An Overview



Government - Geography

Population - Historical Sketch

Demography - The Cyprus Problem

Cyprus - European Union Relations

The Economy

Business Facilities & Incentives

Currency, Exchange Control, Banking

Offshore Banking - Offshore Legislation

Shipping - Telecom