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Cyprus PIO: News Update in English, 03-08-05
From: The Republic of Cyprus Press and Information Office Server at <http://www.pio.gov.cy/>
[01]Tuesday, 05 August 2003 Government Spokesman: The Government has
suggested the complete de-mining of the buffer zone
[02] Central Bank of Cyprus announces lifting of exchange control
restrictions
[01] Government Spokesman: The Government has suggested the complete de-
mining of the buffer zone
Invited to comment, during his daily press briefing yesterday, on the
Turkish Cypriot leader's suggestions regarding the de-mining of certain
areas, the Government Spokesman stated the following: "The Government has
given its suggestions to the United Nations. It suggests the complete de-
mining of the buffer zone and not as Mr Denktash proposes the de-mining of
the Nicosia area only. Furthermore, the Government has submitted its views
on de-mining a long time ago - I remind you that we said this, two or three
years ago - and has included them in the measures it has introduced
recently in support of the Turkish Cypriots. The position of the Republic
of Cyprus - we are also awaiting the positions of the United Nations - is
that we seek the complete de-mining of the buffer zone. I do not believe it
is proper to allow Mr Denktash to be exploiting his position now and to be
suggesting that the de-mining proposal was his initiative."
[02] Central Bank of Cyprus announces lifting of exchange control
restrictions
In the framework of the planned gradual lifting of all exchange control
restrictions necessitated by Cyprus's pending accession to the European
Union in May 2004, the Central Bank of Cyprus announced yesterday the
immediate lifting of the following exchange control restrictions:
"Regarding current international payments, all restrictions concerning
prepayments for imports, foreign currency in cash to be transferred abroad
for local purchases and commission payments to non-residents, are lifted.
As regards personal expenses, all limits regarding the issuing of foreign
currency to residents of Cyprus to be used abroad for personal expenses,
business travel, recreation, study or medical treatment, are lifted.
Furthermore, the issuing of international cards to Cypriot residents as
well as the foreign exchange payments undertaken with these cards are
liberalised.
Regarding personal capital movements (e.g. gifts, endowments, inheritances,
etc.) all restrictions have been removed. Direct investments abroad by
Cypriot residents are free of restrictions. Certain restrictions on
portfolio investments, foreign bank deposits and the purchase of mutual
funds, insurance products and residential property abroad, will continue to
be in effect. Specifically, the limit of C�50.000 per adult, per annum,
will continue in order to facilitate a possible tax amnesty. For the same
reason, the limit of C�200.000 for the acquisition of a secondary residence
abroad will remain in place. The ceiling on the participation of non-
residents in the share capital of domestic banks listed on the Cyprus Stock
Exchange has been lifted. Furthermore, all transfers of shares in banks
will no longer require the consent of the Central Bank of Cyprus, provided
the provisions of other laws are not contravened (e.g. the provisions of
article 17(1) of the Banking Law). Following the lifting of these exchange
control restrictions, the only remaining restrictions will concern the
short-term foreign currency borrowing by residents of Cyprus, borrowing
from non-residents in Cyprus pounds, the free conversion of Cyprus pounds
into foreign currency by residents of Cyprus, and the capital transfers
mentioned above. These remaining restrictions will be lifted upon accession
to the EU in May 2004, at the latest." The Central Bank has noted that the
lifting of these restrictions is occurring earlier than the deadline agreed
with the EU.
From the Republic of Cyprus Press and Information Office (PIO) Server at http://www.pio.gov.cy/
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