Press Releases

It is a great pleasure to welcome you at Hilton Park in the framework of the 7^th Cyprus International Investment Awards event.

An event through which on the one hand we award extroversion, entrepreneurship and innovation as key tools for revitalizing economic growth, and on the other hand we are offered with the opportunity to express our deepest appreciation to all of you, the foreign investors who have brought added value to the Cyprus economy and have helped the country excel as an international investment destination.

At the outset, I wish to congratulate «Invest Cyprus» for this important initiative and to extend my praise to GOLD magazine for its hard work towards its implementation.

But above all, I feel obliged to express my gratitude to our valued investors for their vote of confidence and trust, for their ongoing support and determination to develop their businesses in our country, in line with our common vision: to establish Cyprus as a prosperous, reliable and competitive business hub, keen on providing the conditions under which any investor can thrive.

It is a fact that a few years back, Cyprus made the headlines for all the wrong reasons. A combination of loose fiscal policy, together with lax supervision and bad practices in the banking sector, led Cyprus into a severe economic and financial crisis.

But since then, what has been achieved is nothing short of a remarkable recovery, confirming the resilience and strong foundations of the Cyprus’ economy and the excellent prospects of its key productive sectors.

The excessive public deficit, which for years stood at an unsustainable 5 to 6% of the GDP, has been fully eliminated, through a decisive effort which brought public expenditure under control, whilst 2018 will be the 5th consecutive year with a balanced budget, including primary surplus.

Cyprus currently enjoys one of the highest growth rates in the EU of around 4%, while macroeconomic forecasts show a robust growth of more than 3% in the coming years. Unemployment has also been reduced to 8.6% and is expected to be reduced even further.

Hence, even though Cyprus has yet to reach its full potential in terms of economic growth, I strongly believe that we are on the right track. This is a result of the strong commitment and the joint efforts of the private and public sector.

Our plan was to continuously improve the country’s business environment so as to reinforce the position of Cyprus as a competitive, innovative, stable and fully transparent destination for business and investment.

In this respect, we recognised the importance of maintaining sound public finances, of preserving a stable and competitive tax regime, and of providing incentives for new business and investment.

We have promoted significant reforms, in the welfare system, the health care system, the management of public finances, in tax administration and, very importantly, in the banking sector. We have been actively promoting new investment opportunities, ranging from sea-ports, to Marinas and the largest integrated casino resort in Europe.

Almost four months into our second term, our objective is to solidify the conditions for sustainable growth in a mid and long-term horizon, in favor of all citizens and within conditions of full employment.

In order for this to be achieved, amongst others, we intend to implement strategies for the transformation of the public service and its transition into the digital era.

Areas we are all well-aware of their importance for any investor and in particular as regards creating a business-friendly environment. Our aim is to reform the public service so that it facilitates growth in a modern, knowledge-based, scientific, high-tech and innovative economy.

The holistic digitalisation of the Tax Department, the implementation of an e-justice system and the introduction of e-signature verification and validation are just a few examples of certain steps that have been taken towards the improvement of the public service’s productivity levels. 

Moreover, it goes without saying that we will continue promoting transparency and demonstrating zero tolerance to any kind of mentality that could evoke phenomena of corruption or inexcusable delays in business-related processes.

Further, we do hope that the House of Representatives will approve a series of reform bills we have submitted or intend to submit, such as the one for the establishment of an Under-Secretary for Tourism and the other one for establishing a comprehensive legal framework for Growth and Competitiveness, which, as you understand, will greatly facilitate the ease of doing business.

At the same time, we shall remain committed to our balanced budget policy which has been successful in upgrading our economy’s credit rating and establishing higher levels of confidence by the international investment community.

It has also been vital in helping us maintain the stability and competitiveness of our tax system as a whole, through the elimination of additional taxes and the introduction of tax deductions and incentives for a number of economic sectors.

Regarding the local banking system, I wish to raise an issue for which I have a strong view: Despite any unfounded rumors, I feel Cypriot financial institutions have been very diligent in advancing their corporate governance policies and have vigorously stepped up their efforts to combat money laundering phenomena.

They have been implementing strict procedures for checking and applying loan applications, as well as going thorough and stringent controls over any suspicious accounts. Regulating authorities have been applying stricter rules in their attempt to eliminate unlawful actions and in fact Cyprus’ score was significantly improved in the 2017 Corruption Perception Index issued by Transparency International.

Overall, Cypriot banks are now operating on healthier foundations, even though constant work is still needed to address the remaining challenges, such as the level of non-performing loans.

I wish to assure that we shall remain focused on maintaining and broadening the conditions under which surpluses and high growth rates can be generated.

In this demanding endeavour, we are grateful to have devoted and equally strong-willed allies, such as «Invest Cyprus», the Cyprus Investment Promotion Agency, which has been operating as a credible and reliable partner throughout our efforts.

To this end, I would like to express my appreciation to the Organisation’s Board of Directors for their hard work and commitment, and particularly to its Chairman, Mr Michalis Michael, for his genuine interest in establishing Cyprus as a truly attractive investment destination.

It would be an omission on my part not to also extend my respect and gratitude to the former Chairman and Director General of the Organisation, Mr Christodoulos Angastiniotis, for his successful work during his term.

Before concluding, I would like to congratulate not only all the winners of this year’s awards, but also every single investor who has been a genuinely valuable ally to our vision of turning Cyprus into a world-class business hub and investment destination.

Therefore, I would like to extend my deepest appreciation to this evening’s guests of honour, to all of you, the investors, for your ongoing trust, your positive contribution and your strong support. My Government stands ready to offer any assistance deemed necessary in order to facilitate your business plans and investment initiatives.

Lastly, I take this opportunity to extend special thanks to one of this year’s award winners, the Council of Europe Development Bank and its Governor, Mr. Rolf Wenzel - who has honoured us with his presence at tonight’ event - for their valuable support to the Cyprus economy over the last four decades.

We look forward to an even closer cooperation with the Council of Europe Development Bank, in order to further support worth-while investments that enhance competitiveness, development and sustainable growth in Cyprus.

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