Press Releases

It is a great pleasure and an honor to join and welcome you tonight at the CySEC Conference Dinner 2019.

A dinner which provides a unique opportunity for the industry executives, the Regulators and key government officials to exchange views, hold productive discussions and identify ways and means on further reinforcing the thriving financial services industry of our country.

From the outset, please allow me to praise the Chairman of the Cyprus Securities and Exchange Commission, Mrs. Demetra Kalogerou, as well as the board and personnel of the Commission, for their hard work and efforts in:

• Establishing a well regulated and supervised securities market in Cyprus,
• Ensuring the highest of standards of investor protection, and,
• Achieving the steady growth and development of the securities market.

At the same time, I would like to express my utmost appreciation to all of you present tonight, and especially the Directors and shareholders of the entities, both Cypriot and from abroad, under the supervision of the Commission, since by your business and investment initiatives you have actively supported our efforts for economic growth, particularly at challenging times. 

We greatly value your business and investment endeavors and we look forward to supporting the growth of the financial services sector in Cyprus, a sector that has shown remarkable and dynamic progress in the last decades.

I have no doubt that, through the address by Mrs. Kalogerou and the address by Mr. Steven Maijoor you will be thoroughly informed of changes taking place in the financial services industry in terms of regulation, competition and the use of technology.

Nonetheless, please allow me to briefly share my assessment as regards the economic outlook of Cyprus.

We currently enjoy a growth rate of around 4%, one of the highest in the EU, while macroeconomic forecasts project a robust growth of more than 3% in the years to come.

This year is the 5th consecutive year with a balanced budget, including primary surplus, while unemployment, which in 2013 arose to 16%, has dropped to less than 7.5%, and is expected to be reduced even further.

The banking system, re-focusing its operations and fully adhering to the strictest international transparency and compliance regulations, is now based on a stronger and healthier base in terms of capitalization, liquidity and profitability.

At the same time, we promoted significant reforms, amongst others, in the public administration, the welfare and health care system and in e-Governance. In parallel, we enhanced the position of Cyprus as a competitive, stable and fully transparent business and investment destination, through enhancing our tax and legal frameworks and providing incentives for new entrepreneurial activities. 

As a result, Cyprus, being in the junk category in 2012, has enjoyed successive upgrades by international rating agencies and we have returned to the Investment Grade status, sending a strong message to international investors and allowing Cyprus to borrow from markets at very competitive rates.

Our plan is to remain focused on maintaining macroeconomic stability, strengthening the financial services system and strengthening the already competitive environment for entrepreneurship and investments.

The government's ambitious reform efforts, amongst others, include:

• The reform of the whole judiciary system, with the aim of making the system more effective and speedier, including establishing a commercial arbitration court.
• The establishment of a new Independent Supervisory Authority for the Insurance and Provident Funds with the aim of strengthening regulation and supervision.
• The adoption of the new legislative framework for the management of the Investment Funds, which opens up new avenues for the services sector.
• Implementing a National Strategy for Decentralised Ledger Technology, also known as Blockchain Technology.
• Improving governance in the field of research and innovation. In this regard, the newly established bodies of Chief Scientist and National Research and Innovation Council are fundamental in distributing innovation in business.

With respect to the financial services sector, our EU membership and the European legal and institutional framework provides Cyprus’ investment firms and funds with a credible operating environment and with easy access to markets across the EU and beyond.

This common framework has been reinforced by the recent introduction of supplementary national legislation on the basis of international best practices, and has boosted our financial services industry during the past few years, especially in the area of fund management services. This is the direction we intend to follow for the future.

Credible and efficient regulation and effective supervision is the cornerstone for the future development of our industry, since business people will not invest if there is bad market conduct and weak supervision. 

It is for this reason that the Government has fully supported the strengthening of our national regulator, the Cyprus Securities and Exchange Commission, both in terms of human resources and in any other way deemed necessary, resulting in the significant advancement of the capacity and abilities of the regulator.

Of equal importance for the industry, is the work of the European Regulator, ESMA, the Chair of which, Mr Maijoor, whom we have the honour to join us tonight.  ESMA’s role in assessing the risks to investors, markets and financial stability, in promoting supervisory convergence and guidance on best practices, is a vital component for the sustainable development of the industry. 

Within this framework, I wish to convey my Government’s clear commitment and strong support to the establishment of the Capital Markets Union.

A Union which would provide for the free movement of capital, offering an alternative to banking financing for businesses, and in in this way supporting competitiveness, growth and prosperity for the EU economies.

In concluding, I would like to once more congratulate the organisers of this dinner and express the Government’s appreciation to CySEC for its continuous efforts to further advance the financial services industry and to all of you for your ongoing trust, positive contribution and strong support.

Rest assured that my Government will offer all help deemed necessary towards any new entrepreneurial and business initiatives you might identify, as well as new areas for future co-operation.

(RM/ΜL/II)