Press Releases

It is a great pleasure to join you at the 15^th Annual Forecasting Event, during which we will have the opportunity to be informed by distinguished guests on the latest developments as regards the financial services industry, economic forecasting and the CFA initiatives, as well as investment forecasts for the global and local economy.  

From the outset, I would like to warmly extend my appreciation to the President and the Board of Directors of the CFA Society of Cyprus and their members, for the ongoing trust, support and important contribution to the country’s GDP for the last 20 years, both through being a major employer of thousands of educated professionals and in attracting foreign investments in numerous sectors of our economy. 

Forecasting, as I understand, in the simplest terms, is an attempt to deal with the uncertainty of the future relying mainly on data from the past and present and an analysis of trends. That is why it is an extremely useful tool, not only for businesses but also for Governments, policy - makers and politicians, should they be willing to take advantage of its benefits.

And as a Government we have done exactly that, with the courage to take difficult decisions, either with respect to public finances or the banking sector.

The statistical data speak for themselves:

• A recession of the economy of almost 6% of the GDP in 2013 has been reversed to growth rates above 4% for the last 3 years, with projections of 3% in the medium term.  
• An unemployment rate of almost 16% in 2013 has drastically fallen to less than 7.5%, with a declining trend.
• From budget deficits of 1 billion euros in 2012 and 2013, 2018 will be the fifth consecutive year with significant primary surpluses.
• From being in the junk category in 2012, following successive upgrades, 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.

These achievements were not only the result of the prudent fiscal policy we followed, the strengthening of ours table and competitive tax and legal regime, the implementation of measures which facilitated economic and investment opportunities and the adoption of significant structural reforms:

It was the combination of the above-mentioned in conjunction with the patience and hard work that the people of Cyprus demonstrated, as well as the co-operative stance of the majority of the political partners, the social partners, and in particular the professional business organisations and the private sector .

To this end, I take this opportunity to reiterate our commitment to:

• Remaining focused on maintaining and broadening the conditions under which surpluses and high growth rates can be generated,
• Continuing to improve the country’s business environment through adopting measures and implementing new incentives which facilitate economic and investment opportunities.
• Implementing further significant structural reforms, amongst others, as regards the pension, welfare and labour market system, the health care system, tourism and research and innovation.

At the same time, we will of course continue to actively support the thriving financial services sector, one of the most important and productive pillar of our economy, which has proven truly resilient at challenging times, being a key pillar for the economic recovery, the growth and the job creation we are witnessing.

To this end, in addition to numerous tax and legal incentives we have offered, we have actively supported the development of the industry by strengthening our national regulator, the Cyprus Securities and Exchange Commission, both in terms of human resources and in any other way deemed necessary.

In parallel, we have enhanced the regulatory framework according to the European legislation and on best international practices. 

These initiatives, as well as the hard work of professionals in the industry, have resulted in the strong growth of the sector, especially as regards fund management.

At the same time, we do acknowledge that a fundamental parameter for the proper functioning and sustainable growth of the industry is good market conduct, which can only result from efficient regulation and effective supervision, but also from the competency, expertise and ethics of its professionals.

In this regard, the CFA Institute and its regional societies have a key role to play and they have been doing so, in equipping professionals with the appropriate skills to competently advice clients but even more importantly, in instilling an ethical culture in its members, for the protection of investors and for the progress of the industry as a whole.  

I would also like to take this opportunity to congratulate the Society for the volunteer work it has recently undertaken in schools, informing schoolchildren about the basic aspects of the economy and promoting financial literacy.

Remaining focused on maintaining and broadening the conditions under which surpluses and high growth rates can be generated,

• Continuing to improve the country’s business environment through adopting measures and implementing new incentives which facilitate economic and investment opportunities.

• Implementing further significant structural reforms, amongst others, as regards the pension, welfare and labour market system, the health care system, tourism and research and innovation.

At the same time, we will of course continue to actively support the thriving financial services sector, one of the most important and productive pillar of our economy, which has proven truly resilient at challenging times, being a key pillar for the economic recovery, the growth and the job creation we are witnessing.

To this end, in addition to numerous tax and legal incentives we have offered, we have actively supported the development of the industry by strengthening our national regulator, the Cyprus Securities and Exchange Commission, both in terms of human resources and in any other way deemed necessary.

In parallel, we have enhanced the regulatory framework according to the European legislation and on best international practices. 

These initiatives, as well as the hard work of professionals in the industry, have resulted in the strong growth of the sector, especially as regards fund management.

At the same time, we do acknowledge that a fundamental parameter for the proper functioning and sustainable growth of the industry is good market conduct, which can only result from efficient regulation and effective supervision, but also from the competency, expertise and ethics of its professionals.

In this regard, the CFA Institute and its regional societies have a key role to play and they have been doing so, in equipping professionals with the appropriate skills to competently advice clients but even more importantly, in instilling an ethical culture in its members, for the protection of investors and for the progress of the industry as a whole. 

I would also like to take this opportunity to congratulate the Society for the volunteer work it has recently undertaken in schools, informing schoolchildren about the basic aspects of the economy and promoting financial literacy.

(RM/ML/SCH)