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<NREC>Cyprustoc
Cyprus: Table of Contents <A>=Cyprus COUNTRY
COMMERCIAL GUIDE CYPRUS FISCAL
YEAR 1999 American
Embassy Nicosia,
Cyprus June
30, 1998 COUNTRY
COMMERCIAL GUIDE CYPRUS FISCAL
YEAR 1998 TABLE
OF CONTENTS: I. EXECUTIVE SUMMARY II. ECONOMIC TRENDS AND OUTLOOK III. POLITICAL ENVIRONMENT IV.
MARKETING U.S. PRODUCTS AND SERVICES V. LEADING SECTORS FOR U.S. EXPORTS AND
INVESTMENT VI. TRADE REGULATIONS AND STANDARDS VII. INVESTMENT CLIMATE VIII.
TRADE AND PROJECT FINANCING IX.
BUSINESS TRAVEL X. APPENDICES: A.
COUNTRY DATA B.
DOMESTIC ECONOMY C.
TRADE D.
INVESTMENT STATISTICS E.
U.S. AND COUNTRY CONTACTS F.
MARKET RESEARCH G.
TRADE EVENT SCHEDULE INTERNATIONAL
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DEPARTMENT OF STATE, 1998. ALL RIGHTS
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UNITED STATES <NREC>Cyprus01
Cyprus: Executive Summary <A>=Cyprus I. EXECUTIVE SUMMARY This
Country Commercial Guide (CCG) presents a comprehensive look at Cyprus'
commercial environment, using economic, political and market analysis. The CCGs were established by recommendation
of the Trade Promotion Coordinating Committee (TPCC), a multi‑agency task
force, to consolidate various reporting documents prepared by the U.S. business
community. Country Commercial guides are
prepared annually at U.S. embassies through the combined efforts of several
U.S. Government agencies. Cyprus'
small, services‑based economy has slowed down in the last couple of
years, showing the need for structural re‑adjustments. Growth in 1996 and 1997 was a sluggish 2.0
percent and 2.3 percent respectively, compared to about 5.7 percent in both
1994 and 1995. Foreign exchange earnings
from tourism increased by 6.4 percent in 1997, reaching USD 1.61 billion, while
the trade deficit recorded a small increase to USD 2.13 billion. The current account, although still in the
red, recorded an improvement in 1997: as a percentage of GDP, the current
account deficit went from 5.1 percent in 1996 to 3.4 percent in 1997. Public
finances deteriorated in 1997, with the fiscal deficit and public debt rising steadily. The fiscal deficit rose from 1.0 percent of
GDP in 1995, to 3.4 percent in 1996, and 5.1 percent in 1997, exceeding the
Maastricht target of 3.0 percent. The
public debt as a percentage of GDP was 56.0 percent in 1997 (within the
Maastricht target of 60.0 percent) but, in 1998, it is also expected to exceed
this target and reach 61.5 percent of GDP.
(Note: the Government of Cyprus is currently in accession negotiations
with the EU and thus frequently compares its key economic statistics with the
Maastricht criteria.) Unemployment
continued to increase from 3.1 percent in 1996 to 3.4 percent in 1997. Similarly, the inflation rate increased from
3.0 percent in 1996 to 3.6 percent in 1997.
The average exchange rate between the Cyprus Pound (CP) and the USD in
1997 was CP 1.00 to USD 1.94. In
February 1997, the Government revised its policy on foreign direct investment,
permitting 100 percent foreign ownership in certain cases. Regulations on foreign portfolio investment
in the Cyprus Stock Exchange have also been liberalized. Another important development was the
approval of a modern Banking Law in July 1997, incorporating all the provisions
and directives of the EU for the prudential supervision of credit institutions.
The
commercial environment in Cyprus makes it easy to do business here: the use of
English as a second language is widespread; the cost of living is moderate by
European standards; Cyprus has good business and financial services, modern
telecommunications, an educated labor force, good airline connections, a sound
legal system, and a low crime rate.
Cyprus' geographical location, tax incentives, and modern infrastructure
also make it a natural hub for companies looking to do business with the Middle
East, Eastern Europe, the former Soviet Union and North Africa. As a result, Cyprus has a thriving offshore
sector. Prospects
for U.S. exports to Cyprus are excellent.
Under the new GATT agreement, Cyprus has abolished quotas and other non‑tariff
barriers. The completion of the first
phase of the Cyprus‑EU Customs Union Agreement on January 1, 1998, allows
80.0 percent of goods traded between Cyprus and the EU to have zero
tariffs. Under the same agreement,
Cyprus has adopted the EU's Common Customs Tariff (CCT) for third
countries. For the vast majority of
goods, the CCT provides lower tariffs than Cyprus' previous tariff regime for
third countries, which means that U.S. exports are now more competitive than
ever. Exports from the U.S. to Cyprus
(including goods for re‑export to third countries) have risen almost
tenfold in the last decade, from USD 85.0 million in 1988 to USD 699.0 million
in 1997. This helped keep the U.S.
firmly at the top of the list of Cyprus' leading suppliers of imports for the
third year in a row, with a 19.0 percent share of the market as of mid‑1998. Roughly three‑quarters of U.S. origin
goods exported to Cyprus in 1997 (about USD 527.0 million) were American
cigarettes, the vast majority of which were re‑exported to Eastern
European countries. Full
membership in the EU is one of the Government's foremost political and economic
policy objectives. Cyprus, one of six
countries scheduled for the EU's next enlargement, began accession negotiations
with the EU on March 31, 1998. In view
of this prospect, the Government has embarked on an extensive and far‑reaching
effort to harmonize Cypriot laws, standards and regulations with those of the
EU. Best
prospects for U.S. goods in Cyprus include government and semi‑government
tenders in telecommunications equipment, medical equipment for a major new
hospital, computer services, and desalination plants. Local municipalities are working on long‑term
plans for sewerage projects and plans for new highways and marinas are also
underway. The island's private sector
also has a growing appetite for U.S.‑made office machines, computer
software and data processing equipment.
With the changes in Cypriot tariff regime, many other opportunities are
opening up for exporters. The
political events of 1974 led to a de facto division of Cyprus into the South
and an area in the North which declared itself in 1983 as the "Turkish
Republic of Northern Cyprus" ("TRNC"). This latter area is recognized only by
Turkey. This report covers only the part
of the island controlled by the internationally‑recognized Republic of
Cyprus. Country
Commercial Guides are available for U.S. exporters from the National Trade Data
Bank on CD‑ROM or through the Internet.
Please contact STAT‑USA at 1‑800‑STAT‑USA for
more information. Country Commercial
Guides can be accessed via the World Wide Web at http://www.stat‑usa.gov,
http://www.state.gov, and http://www.mac.doc.gov. They can also be ordered in hard copy or on
diskette from the National Technical Information Service (NTIS) at 1‑800‑553‑NTIS. U.S. exporters seeking general export
information/assistance and country‑specific commercial information should
contact the U.S. Department of Commerce, Trade Information Center by phone at 1‑800‑USA‑TRADE.
INTERNATIONAL
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UNITED STATES <NREC>Cyprus02
Cyprus: Economic Trends and Outlook <A>=Cyprus II.
ECONOMIC TRENDS AND OUTLOOK Major
Trends and Outlook The
performance of the Cypriot economy has been relatively slack during the last
couple of years, with growth rates of 2.0 percent in 1996 and 2.3 percent in
1997 (compared to about 5.7 percent in 1994 and 1995). Most of the growth in 1997 came from the recovery
in tourism. Specifically,
tourist arrivals increased by 6.7 percent in 1997 to 2.08 million compared with
a decline of 7.1 percent and 1.95 million arrivals in 1996. The recorded expansion was primarily
associated with a recovery of tourist arrivals from the United Kingdom and a
sharp expansion of arrivals from Russia.
Expenditure per tourist from these two countries increased, although
expenditure per tourist from other countries did not. Total revenue from tourism reached USD 1.61
billion in 1997, compared with USD 1.67 billion in 1996 (an increase of 6.4
percent in Cyprus Pound terms). Cyprus'
thriving offshore sector provided another valuable source of foreign exchange
in 1997. A total of 5,260 new offshore
companies registered in 1997 (compared to 4,263 in 1996) raising the total
number of offshore companies registered here to 31,739, approximately one‑half
of which are active. About 26.9 percent
of new permits were given to companies from the European Union (EU). The number of offshore companies operating in
Cyprus from fully‑fledged and staffed offices recorded a small decline
for the second year in a row to 1,049 (compared with 1,069 in 1996 and 1,168 in
1995). At least 30 of these fully‑staffed
offshore companies are from the United States.
Cyprus also has the fourth‑largest ship register in the world,
with 2,758 ships and 25.5 million Gross Registered Tons (GRTs). Foreign exchange earnings from offshore and
shipping activities recorded a small increase of 2.0 percent in 1997, reaching
USD 345.7 million. GDP
in nominal terms was USD 8.43 billion in 1997 vs. USD 8.86 billion in
1996. GNP per capita was over USD 13,000
in 1997 ‑‑ one of the highest in the world. Inflation accelerated to 3.6 percent in 1996,
compared with 3.0 percent in 1996. In
recent years, gains in productivity have been lagging behind real wage
increases, undermining Cyprus' competitiveness in many sectors, particularly
manufacturing. For example, productivity
increased by 2.1 percent in 1997, while real wages increased by 2.8
percent. Rising labor costs and strong
unions (about 85.0 percent of the labor force is unionized), have forced many
light‑manufacturing firms to abandon Cyprus in recent years or to shut
down altogether, resulting in the gradual shrinking of the manufacturing sector
from 14.7 percent in 1990 to 11.2 percent in 1997. Even
though full employment conditions have prevailed in recent years, unemployment
has been inching upwards gradually from 2.6 percent in 1995, to 3.1 percent in
1996, to 3.4 percent in 1997.
Substantial employment of foreign labor (estimated at 8.0 percent of the
labor force) continues. The
trade deficit recorded a small increase in 1997 (it reached USD 2.13 billion in
1997, compared with USD 2.29 billion in 1996).
The significant improvement in the invisibles balance resulted in a
small improvement in the current account deficit: from USD 477.0 million (5.4
percent of GDP) in 1996 to USD 381.0 million (4.5 percent of GDP) in 1997. Public
finances deteriorated in 1997, with the fiscal deficit widening to USD 431.0
million (5.1 percent of GDP ‑‑ above the Maastricht target of 3.0
percent), from USD 304.0 million (3.4 percent of GDP) in 1996. This development is attributable to the
subdued growth in public revenue and the fast, though decelerated, growth in
public spending. Restrained consumption
expenditure, sharp reductions in import duties, and income tax breaks accounted
for the slow increase in revenue.
Increases in capital investment outlays, wages and salaries for the
civil service and current transfers, on the other hand, accounted for the
increase in spending. The public debt as
a percentage of GDP was 56.0 percent in 1997 but, in 1998, it is also expected
to exceed the Maastricht target of 60.0 percent and reach 61.5 percent of GDP. The
forecast for 1998 calls for a modest revival in economic activity, fueled by a
further expansion in tourism. Despite
negative publicity abroad, generated by media reports about the increasing
militarization of the island, until the end of June 1998 the forecast for
tourism called for a 5‑10 percent increase in both arrivals and revenue
(i.e. arrivals of around 2.20 million tourists and revenue of around USD 1.71
billion. Based on this prospect, real
GDP growth is forecast to reach between 2.0 and 3.0 percent in 1998. Principal
Growth Sectors The
share of the tertiary sector (services) to GDP has been growing rapidly in
recent years ‑‑ from 54.4 percent in 1992 to 59.5 percent of GDP in
1997, in constant 1990 terms ‑‑ reflecting the fact that Cyprus is
rich in human capital (large numbers of Greek Cypriots have advanced degrees
from U.K. and U.S. institutions of higher learning). Within the broad services sector, the
principal growth sub‑sectors were services other than tourism. In particular, finance, insurance, real
estate and business services recorded healthy gains (from 16.6 percent of GDP
in 1992 to 19.3 percent in 1997) and also community and personal services (from
6.3 percent of GDP to 7.8 percent over the same period). By contrast, the sub‑sector restaurants
and hotels shrank from 10.2 percent of GDP in 1992 to 9.0 percent of GDP in
1997, reflecting the shrinking importance of tourism relative to other
services. (It is estimated that tourism,
which spills over to many sub‑sectors, generated a little over 18.0
percent of GDP in 1997, compared with 21.0 percent in 1992.) The
primary sector (agriculture and mining) shrank from 7.1 percent of GDP in 1992
to 5.3 percent of GDP in 1997 and, similarly, the secondary sector (including
manufacturing, electricity and construction) has declined from 25.9 percent to
21.6 percent over the same period.
Efforts to revive the manufacturing sector have not been successful in
recent years for many industries. The
island's advantageous position in the Mediterranean, its rich history and
friendly people give Cyprus a natural comparative advantage in tourism and
services, while the relative shortage of blue‑collar workers and rising
labor costs make it progressively harder for labor‑intensive
manufacturing operations to flourish. Government
Role in the Economy The
role of the government is still significant by U.S. standards but is
declining. Substantial assets remain in
government hands in the form of Semi‑Government Organizations (SGOs),
such as the Cyprus Telecommunications Authority (CyTA), the Electricity
Authority of Cyprus (EAC), etc. In
1996, the Central Bank of Cyprus spearheaded a campaign to liberalize and
reform Cyprus' financial sector, achieving substantial progress. Monetary policy is now successfully conducted
through a new monetary policy framework, using market‑based
instruments. Repurchase transactions
between the Central Bank and financial institutions constitute the primary tool
of liquidity management and the use of the minimum liquidity requirement has
been totally abandoned. The new monetary
policy framework also includes a lower minimum reserve requirement and two
standing facilities, aimed at providing and absorbing overnight liquidity. The new operational set‑up of monetary
policy is fully in line with EU practices. The
most important structural impediment to full liberalization of Cyprus'
financial sector is the continued existence of an obsolete interest rate
regime. An antiquated law (first
introduced in 1944) fixing an interest rate ceiling of 9.0 percent is still in
effect, even though the maximum interest rates applicable at the present time
(after some recent adjustments by the Central Bank) are 6.5 percent for deposits
and 8.0 percent for loans. A bill for
the liberalization of interest rates is currently being hotly debated by
interested parties. The bill could pass
before the end of 1998, although the government will have a hard time
convincing the unions and communist party AKEL. Despite
certain recent relaxations concerning the amounts involved, residents of Cyprus
are still subject to exchange control restrictions, covering the holding of
foreign currency accounts, investing abroad, travel allowance, etc. Once interest rates are liberalized, or, at
any rate, prior to EU accession, the abolition of foreign exchange controls will follow (first,
for inflowing capital and then for outflowing capital). (Non‑residents are exempt from these
restrictions. Non‑residents may
hold and manage assets and liabilities in any foreign currency and in any
foreign country, including freely convertible and transferable balances with
banks on the island.) Additionally,
the Central Bank has put in effect a more liberal policy on foreign direct
investment since February 1997. Under
this new policy, foreign participation of up to 100.0 percent will generally be
allowed in the manufacturing and services sectors and up to 49.0 percent in agricultural
activities. In some sensitive areas like
banking, insurance and other financial services, as well as publishing and
distribution of newspapers and magazines, applications will be examined on a
case‑by‑case basis. In
"saturated" activities, such as real estate development, tertiary education
and the provision of public utility services, non‑residents will be
discouraged from investing. Since
June 1996, the maximum limit on foreign participation in public companies
(traded on the stock exchange) was raised from 24.0 percent to 49.0
percent. The limit on foreign
participation in public companies has been abolished completely, for non‑residents
of Cypriot origin. Public companies in
the banking sector are exempted: the limit on total non‑resident
participation (Cypriot and non‑Cypriot) in Cypriot banks is now 15.0
percent of their total share capital (compared to 8.0 percent before
1996). (For additional information on
the Cyprus Stock Exchange please refer to Section VII, Para D.) The
relatively large role of government in the economy of Cyprus is being
reconsidered in many areas. For example,
the government's monopoly of telecommunications services is being reviewed,
while the liberalization of air transport in Europe is exerting an increasingly
strong pressure on Cyprus Airways, the national airline, to restructure. Additionally, more people in Cyprus are
questioning the wisdom of practices such as fixed shopping hours, and the Cost
of Living Allowance (COLA) wage indexation system, which have been in existence
for many years but in combination are causing a steady decline in
productivity. Another, long‑lasting
practice in Cyprus used to be fixed sales periods, which was abolished about a year ago on a trial basis despite
protests from small shop keepers. Balance
of Payments Situation The
trade deficit rose by 2.7 percent (in Cyprus Pound terms), from CP 1.07 billion
(USD 2.19 billion) in 1996 to CP 1.10 billion (USD 2.29 billion) in 1997. Total imports rose by 2.2 percent to USD 3.30
billion in 1997, and total exports (FOB, including re‑exports) rose by
1.3 percent, to USD 1.17 billion. The
surplus in the invisibles account‑‑ the lifeblood of the Cypriot
economy ‑‑ registered a 6.5 percent increase, from USD 1.81 billion
in 1996 to USD 1.75 billion in 1997, reflecting
mainly the increase in tourism earnings.
Revenue from offshore and shipping activities increased marginally to
USD 345.0 million in 1997. The
small increase in the trade deficit combined with the substantial increase in
the invisibles surplus resulted in a smaller current account deficit: from USD 477.0 million (5.4 percent of GDP)
in 1996 to USD 381.0 million (4.5 percent of GDP) in 1997. Capital
transactions resulted in a net inflow of USD 175.0 million in 1997, after a net
outflow of USD 12.6 million in 1996, reflecting an inflow of CP 153.8 million
(almost USD 300.0 million) associated with the issue of Government of Cyprus
bonds under the European Medium‑Term Note Program. The overall balance of payments, after
positive net errors and omissions, recorded a deficit of USD 229.9 million in
1997 (2.7 percent of GDP), after a deficit of USD 469.7 million in 1996 (5.3 percent
of GDP). Gross foreign exchange reserves
expanded by USD 694.0 million in 1997, reaching USD 5.06 billion, which was
equivalent to 18 months of imports. If
the forecast for a 5‑10 percent increase in tourism revenue proves
correct, the current account could record a further decrease to USD 350.0
million in 1998. Infrastructure
Situation Infrastructure
in general is commensurate with European standards and is considered
efficient. Semi‑state
organizations handle power generation, telecommunications, management of ports,
marketing of agricultural products and several other areas of economic
life. The
Cyprus Telecommunications Authority (CYTA) provides modern telecommunications
services. Installation of telephones,
telexes and telefax usually takes one week.
Direct dialing is available to the majority of countries in the
world. Postal and courier services are
highly efficient and there are many courier companies in Cyprus, including DHL
and Federal Express. Internet service
including ISDN has been available from a number of providers in recent years
and the number of internet users is growing rapidly. Several
roads connecting the main cities have recently been constructed as dual‑way
highways. Land transport in this small
island is performed by vehicles only (private or company vehicles and
taxis). There is no train, and bus
service is limited but the easy availability of taxis makes up for this. The
Government of Cyprus and Cypriot firms are aware of the Year 2000 (Y2K) problem
and are gradually taking steps to address it.
Many large organizations have already set up their own task forces to
deal with this problem or have their personnel attend special seminars. Many of Cyprus' smaller companies, however,
may not be adequately prepared. INTERNATIONAL
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Cyprus: Political Environment <A>=Cyprus III. POLITICAL ENVIRONMENT Nature
of Political Relationship with the United States The
United States and Cyprus enjoy an excellent bilateral relationship. There is broad cooperation between the two
governments on a host of issues. The
most prominent is the U.S. effort to assist Cyprus find a way to heal the
island's political division. Other
important issues include intellectual property rights (IPR) ‑ Cyprus has
just passed a modern Patents Law ‑ and money laundering, where Cyprus has
made steady strides in meeting international banking standards. Major
Political Issues Affecting Business Climate Political
events in 1974 resulted in a de facto division of Cyprus into a Government‑controlled
area in the South ‑‑ Greek Cypriot (population about 655,000) ‑‑
and a Turkish Cypriot area in the North (population about 190,000). Since 1983, the Turkish Cypriots have
declared the northern area to be the "Turkish Republic of Northern
Cyprus" ("TRNC") ‑‑ an entity recognized only by
Turkey. Approximately 30,000 Turkish
trtroops are stationed there. The
following parts of this section, as well as the rest of the report, however,
covers only the part of the island controlled by the internationally recognized
Republic of Cyprus. The
United Nations Force in Cyprus (UNFICYP) polices a buffer zone between the
Greek Cypriot and Turkish Cypriot communities.
Except for occasional demonstrations or incidents along the buffer zone
(which resulted in five deaths in 1996), there has been no violent conflict
since 1974. At present, there is
essentially no movement of goods, persons, or services between the two parts of
the island. Foreign products sold in the
North (including many U.S. products) are handled by agents in Turkey or trading
companies in the Turkish Cypriot community.
The ports and airports of the Turkish Cypriot community are considered
illegal by the government of the Republic of Cyprus. As a result, visitors who enter Cyprus from
the "TRNC" are not allowed to visit the part of the island in the
South. The U.S. plays a significant role
in supporting the U.N. Secretary General's efforts to negotiate a political
solution to the Cyprus problem. Richard
Holbrooke, nominated in 6/98 to be U.S. Permanent Representative to the UN, is
one of many distinguished U.S. diplomats involved with the Cyprus issue as
Special Presidential Emissary for Cyprus.
Political
System, Schedule for Elections, and
Major Parties Cyprus
is a democratic and independent Republic with a presidential system of
government. The elected President of the
Republic (who serves for five years) appoints the Council of Ministers, which
is the main executive instrument of the Republic. Ministers are responsible for the initiation
of legislation and administration of matters falling within their domain. Legislative power lies in the hands of the
House of Representatives, which consists of 56 elected members (who serve for
five years). Presidential
elections held in February 1998 brought Glafcos Clerides and the political
right to power for a second consecutive term.
In
the parliamentary elections of May 26, 1996, the right‑wing Democratic
Rally (DISY) remained the largest political party, supported by roughly 34.0
percent of the electorate. Second in
strength was the island's oldest political party, communist AKEL, which
commanded 33.0 percent support. Next
came the centrist Democratic Party (DIKO) with 16.0 percent, followed by
socialist party, EDEK, with just over 8.0 percent and the left‑of‑center
Free Democrats, with under 4.0 percent.
Traditionally, the Greek Cypriot Orthodox Church has also played an
important role in Greek Cypriot politics, although its influence has waned
considerably in recent years. The
President of the House of Representatives is the country's second‑ranking
government official and becomes Acting President in the absence of President
Clerides. Closer
Ties with the EU The
Republic of Cyprus applied for full EU membership on July 4, 1990 and began
formal accession negotiations with the EU on March 31, 1998. The island's political problem, presents the
greatest challenge for both sides in this accession course. In view of this reality, the Government of
Cyprus has been working to eliminate as many other potential sticking points as
possible. A far‑reaching and
intensive campaign, involving virtually all Cypriot ministries, has been in
progress in recent years, aimed at harmonizing the Cypriot economy with that of
the EU to the greatest possible extent.
The
earnestness of the government's efforts can be seen in the rapid, extensive,
and fundamental steps taken so far.
Since 1993, a total of 23 government Working Groups have been tracking
the implications of EU accession for different sectors of the economy and
coming up with suggestions, many of them already implemented. These efforts are being coordinated by the
Government of Cyprus Planning Bureau. Some
of the important changes which have already taken place include completion of
the Customs Union agreement (which entails zero tariffs on most EU products and
adoption of the EU's Common Customs Tariff for most products from third
countries); adoption of a modern banking law in 1997 which conforms completely
to the EU's directive for banking supervision; more liberal provisions on
competition; lifting of import permit requirements; and abolition of price
controls on many categories of products sold in Cyprus. These changes have resulted in increased
competition and are putting pressure on Cyprus' manufacturing and agriculture
sectors. Cyprus
still hasn't faced some of the most difficult challenges such as the issue of
obtaining derogations for its thriving offshore sector and the shipping
sector. Even if it does obtain such
derogations, the EU has in similar cases granted them for a limited time of up
to 15 years. Cyprus will also have to
liberalize protected state monopolies in air transport, telecommunications, and
other sectors. The sheltered sector of
financial and other services as well as the current policy on exchange controls
and interest rates will all come under fire as a result of the drive for
harmonization and will challenge traditional ways of doing business in all of
these areas. The
government's target is to harmonize completely with the EU over the next five
years. Even though this process is not
yet complete, it should be noted that Cyprus was at a more advanced stage of
harmonization with the EU when it began accession negotiations on March 31,
1998 than either Greece or Spain were at the start of their accession talks. INTERNATIONAL
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UNITED STATES <NREC>Cyprus04
Cyprus: Marketing U.S. Products and Services <A>=Cyprus IV. MARKETING U.S. PRODUCTS AND SERVICES Distribution
and Sales Channels; Use
of Agents/Distributors; Finding
a Partner It
is relatively easy to find qualified Cypriots to serve as agents and
distributors and hundreds of U.S. companies are already represented here on an
agency/representative basis. Cypriot
agents/ representatives normally market U.S. products and services under
binding agency agreements based on commissions.
In general, the Embassy's experience has been that Cypriot agents are
reliable and pursue their work objectives aggressively and with a keen business
sense. In Cyprus, a Commercial Agent has
to register with the Council of Commercial Agents and receive a license with a
registration number. Importers/
distributors/dealers are free of any registration. Franchising U.S.
franchises, particularly in the food business, have been extremely successful
in Cyprus in recent years. The following
companies have opened franchise outlets in Cyprus since 1990: Blimpie's,
Domino's Pizza, McDonald's, Pizza Inn, Pizza Hut, Dairy Queen, Kentucky Fried
Chicken, Kenny Rogers Roasters, Henry J. Beans, TGI Friday's, and Subway
sandwiches. Non‑food U.S.
franchises, such as Athlete's Foot and Gold's Gym, are also to be found in
Cyprus. Most
American franchises in Cyprus have proven extremely successful in their
fields. Successful operation of these
ventures results in a substantial outflow of capital in the form of licensing
fees and royalty payments (estimated at around USD 20.0 million a year for all
foreign franchises, not just American ones). Present
trends suggest that the franchising sector has great prospects for growth in
Cyprus. A recent delegation of U.S.
franchise companies to Athens, Greece was successful in attracting interest
from Cypriot businessmen as well. Joint
Ventures/Licensing; Steps to Establishing
an Office A
partnership or a joint venture/licensing agreement with a Cypriot individual or
organization is another channel for selling U.S. goods in Cyprus, depending on
the nature of business concerned. Non‑residents
wishing to participate in a Cypriot business enterprise are required to obtain
the services of a lawyer or accountant practicing in the Republic who must
submit, on their behalf, an application to the Central Bank with the requisite
information. This information includes
share capital for the proposed investment, economic activities, financial
requirements, confidential references, and a four‑page questionnaire,
which can be obtained from the Central Bank. All
applications for direct investment by non‑residents require the prior
approval of the Central Bank, which considers them in consultation with
appropriate government departments.
Registration, re‑organization and liquidation of businesses must
be undertaken through attorneys or accountants practicing on the island. Businesses with non‑resident
participation must prepare and submit to the Central Bank of Cyprus and to the
Department of Inland Revenue annual financial statements audited by accountants
practicing in Cyprus. (See also Investment Climate, Section VII.) Selling
Factors/Techniques; Direct Marketing; Advertising
and Trade Promotion Marketing
has been a growth industry for Cyprus in recent years, to the point where many
local firms offer their services to customers in the region. Advertising methods for the local market have
become sophisticated and the choice of available media is approaching those
available in other developed countries. Direct
marketing involving telephone calls to households has been used in recent years
and so has tele‑marketing (advertising through the TV, with call‑in
numbers to order directly). The
rapid growth in the number of Internet users in Cyprus also provides another
alternative means for advertising through the web. Several Internet providers specialize on
designing web‑pages. More
traditional advertising channels, such as bill‑boards, or the print
media, are also used extensively.
General and product‑specific trade shows take place year‑round. Most newspapers are affiliated with
particular political parties. The major
Greek language newspapers are Phileleftheros, Alithia, Simerini, and Haravghi. The major English language newspapers are the
Cyprus Weekly, Cyprus Mail and the Cyprus Financial Mirror. There are numerous
radio channels and seven television channels: two Government‑owned, three
private and two paid subscription TV channels. Pricing
Product The
intense effort to harmonize the Cypriot economy with that of the EU in recent
years is making the Cypriot market place more open and more competitive. For example, over the last two years, the
government has slashed the number of staples subject to price controls from 40
to just ten. The products still subject
to price controls are the following: potatoes, common bread, pasteurized cows'
milk, imported beans, coffee, cement, timber, pesticides, fertilizers, and
pasta. Additionally, the implementation
of the Uruguay Round agreement since January 1, 1996 has meant abolition of
import permits, quantitative restrictions and other non‑tariff barriers
to trade. When
considering pricing strategy, U.S. exporters should bear in mind that the
Cyprus market is small and orders are usually in limited quantities. The usual method of transactions is by Letter
of Credit, with 90‑days credit. Sales
Service/Customer Support U.S.
companies bidding on various projects in Cyprus should bear in mind that a
local representative is a necessity.
When evaluating tenders, Government and Semi‑Government
Organizations will take into consideration the reliability and reputation of
the local agent/representative. The
Commercial Section of the U.S. Embassy in Nicosia can help U.S. firms locate
reputable local agents. Also taken into
consideration, are after‑sales service, maintenance contracts, and the
availability of spare parts. Selling
to the Government The
procurement practice of the Government is to announce international or local
tenders, depending on the size of the procurement. All tenders of over USD 45,000 must be put
out to international tender. U.S.
companies may bid directly or through a local agent on any tender. Information on upcoming tenders is available
through the Department of Commerce in Washington, the National Trade Data Bank
(on CD‑ROM or through the Internet: www.stat‑usa.gov), or the
American Embassy in Nicosia (E‑mail address: amembass@spidernet.com.cy). Evaluation
of government tenders is done by committees.
Bids are evaluated first on cost and then on technical merit. Bidders on government contracts are advised
to offer products/services that exactly meet tender specifications. "Overbidding" ‑‑
providing additional technical capabilities or services ‑‑ only
adds to the cost thus risking low ranking by the financial committee. The Government is required by law to choose
the lowest‑cost bidder among technically qualified proposals. A number of U.S. firms have had their bids
disqualified by quoting prices in currencies not listed in the tender
documents. Protecting
Your Product from IPR Infringement The
adoption of a new Copyright Law in Cyprus in January 1, 1994 and a modern Patents Law on April 2, 1998
were important milestones in the island's course towards better protection of
intellectual property rights (IPR). The
new Patents Law is consistent with Cyprus' obligations under the European
Patent Convention and the World Trade Organization (WTO) TRIPs agreement. As a result of these improvements, in 1998
(for the first time since 1990) the United States Trade Representative (USTR)
removed Cyprus completely from the "Special 301" list of countries
which effectively deny adequate protection of IPR. Need
for a Local Attorney A
local attorney must prepare the constitution of the company and submit the
application for registration to the Registrar of Companies. A list of local attorneys is available from
the Consular Section of the Embassy. INTERNATIONAL
COPYRIGHT, U.S. & FOREIGN COMMERCIAL SERVICE AND U.S.
DEPARTMENT OF STATE, 1998. ALL RIGHTS
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UNITED STATES <NREC>Cyprus05
Cyprus: Leading Sectors for U.S. Exports & Investments <A>=Cyprus V. LEADING SECTORS FOR U.S. EXPORTS AND
INVESTMENT Best
Prospects for Non‑Agricultural Goods and Services The
Cyprus Five‑year Development Plan (1994‑98) emphasized the need for
technological upgrading, enhanced competitiveness, and harmonization with the
EU. (The new Five‑Year Development
Plan (1999‑2003) is expected to be ready by early 1998). Best prospects for U.S. firms generally
center in the services and high technology sectors: computer equipment and data
processing services, financial services, environmental protection technology,
medical and telecommunications equipment, desalination plants, sewerage
treatment plants, and tourism development projects. In addition, opportunities exist for U.S.
firms for the supply of equipment for the following ongoing and upcoming
projects (the exchange rate used is the 1997 average of CP 1.00 equals USD
1.94): ‑‑‑1. Electrical Power System (ELP). Construction
of the first phase of the Vassiliko 240 MW power station started in 1996. Tenders for the first phase of the project
(for USD 69.0 million) were awarded to non‑American companies. New tenders for fiber optics, underground
cables and heavy fuel oil will be issued by the end of 1998. The approximate value for the new tenders
will be USD 30.0 million. ‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑ DaData
Table (USD Million) ‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑ 1997 1998 1999 ‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑ A.A.
Total Market Size 69.0 30.0 30.0 B.
Total Local Production 0.0 0.0 0.0 C.
Total Exports 0.0 0.0 0.0 D.
Total Imports 69.0 30.0 30.0 E.
Imports from the U.S. 0.0 N.A. N.A. ‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑ NoNote:
The above statistics are unofficial estimates. ‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑ ‑‑‑2. Desalination Plant (DSL). The
first desalination unit in Cyprus was put in operation in April 1997. This tender, for USD 20.0 million, was
awarded to Cataqua Co. of Spain. Tenders
for a second desalination unit are currently being evaluated. Two American companies are among the
bidders. A decision on the second
desalination unit is expected by August 1998.
Additionally, new tenders will be issued by the end of 1998 for the
supply of small‑to‑medium size portable desalination units. ‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑ DaData
Table (USD Million) ‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑ 1997 1998 1999 ‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑ A.A.
Total Market Size 20.0 20.0 25.0 B.
Total Local Production 0.0 0.0 0.0 C.
Total Exports 0.0 0.0 0.0 D.
Total Imports 20.0 20.0 25.0 E.
Imports from the U.S. 0.0 N.A. N.A. ‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑ NoNote:
The above statistics are unofficial estimates. ‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑ ‑‑‑3. Medical Equipment (MED). A
new Nicosia General Hospital (450 beds) will need the latest technology in
medical and surgical equipment. The
construction and equipment for the hospital will cost about USD 150.0 million
over a period of four years beginning end of 1997. Initial tenders for equipment for about USD
50.0 million will be announced over the next two years. It should be noted that U.S. companies have
had an excellent track record in the past in government tenders for medical
equipment. ‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑ DaData
Table (USD Million) ‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑ 1997 1998 1999 ‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑ A.A.
Total Market Size 20.0 25.0 35.0 B.
Total Local Production 0.0 0.0 0.0 C.
Total Exports 0.0 0.0 0.0 D.
Total Imports 20.0 25.0 35.0 E.
Imports from the U.S. 7.0 12.0 18.0 ‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑ NoNote:
The above statistics are unofficial estimates. ‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑ ‑‑‑4. Computers Peripherals (CPT), Computer
Software (CSF) and Computer SeServices (CSV). The
government will spend about USD 60.0 million over the next few years for the
gradual computerization of all departments and automation of different
services. One big tender for the
computerization of the Merchant Shipping was just announced and another one is
expected to be announced soon for the computerization of the Courts Department. The
private sector also has a growing appetite for computers and peripherals. U.S. products in this field enjoy a very good
reputation in Cyprus and have a market share of almost 50 percent (USD 30.0
million, out of total imports of around USD 68.0 million). ‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑ DaData
Table (USD Million) ‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑ 1997 1998 1999 ‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑ A.A.
Total Market Size 70.0 80.0 90.0 B.
Total Local Production 2.0 2.0 3.0 C.
Total Exports 0.0 0.0 0.0 D.
Total Imports 68.0 78.0 87.0 E.
Imports from the U.S. 30.0 35.0 40.0 ‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑ NoNote:
The above statistics are unofficial estimates. ‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑ ‑‑‑5. Telecommunications Equipment (TEL). The
Cyprus Telecommunications Authority (CyTA) is planning continued upgrading of
the telecommunications network, including procurement and launching of two
communications satellites (one for broadcasting and the other for mobile
telephones). This will be a regional
project, covering areas from Africa to the Mediterranean, the Balkan countries
and the Middle East. This is considered
Cyprus' biggest telecommunications project ever at about USD 100.0
million. Additionally, it is possible
that some aspects of the national telecommunications system may be privatized
over time. ‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑ DaData
Table (USD Million) ‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑ 1997 1998 1999 ‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑ A.A.
Total Market Size 30.0 40.0 60.0 B.
Total Local Production 0.0 0.0 0.0 C.
Total Exports 0.0 0.0 0.0 D.
Total Imports 30.0 40.0 60.0 E.
Imports from the U.S. 10.0 20.0 25.0 ‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑ NoNote:
The above statistics are unofficial estimates. ‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑ ‑‑‑6. Pollution Control Equipment (POL). The
Sewerage Board of Nicosia will issue tenders this year for the
design/engineering of the pumping stations and treatment plants of the Greater
Nicosia Sanitary Sewerage System (USD 7.0 million). At a later stage, tenders will be announced
for the construction of the sewerage system.
The total cost for this project will be USD 170.0 million. Additionally,
other municipalities will issue tenders over the next two years for pollution
control equipment valued at over USD 5.0 million. The Ministry of Commerce and Industry has
also announced that it will provide grants to manufacturers for the
establishment of systems for the control of industrial pollution. The Chamber of Commerce is actively
recruiting environmental technology firms to come to Cyprus to demonstrate new
products/techniques. ‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑ DaData
Table (USD Million) ‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑ 1997 1998 1999 ‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑ A.A.
Total Market Size 5.0 12.0 50.0 B.
Total Local Production 0.0 0.0 0.0 C.
Total Exports 0.0 0.0 0.0 D.
Total Imports 5.0 12.0 50.0 E.
Imports from the U.S. 0.5 7.0 25.0 ‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑ NoNote:
The above statistics are unofficial estimates. ‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑ ‑‑‑7. Air Traffic Management Facilities ‑
LEFCO (APG). Tenders
were invited for the supply of Air Traffic Management facilities for the new
Area Control Center of Nicosia and Larnaca airports. Estimated value is USD 20.0 million. Partial
privatization of the Airports is being considered. Tenders will be invited for international
consulting firms to take over the management of the Larnaca and Paphos
airports. Best
Prospects for Agricultural Products ‑‑‑1. Cereals. By
far, the best prospect for agricultural exports to Cyprus is cereals. In 1998 the U.S. exported cereals (wheat,
barley and maize) to Cyprus, valued at USD 33.2 million. All imports of cereals go through the Cyprus
Grain Commission. ‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑ DaData
Table (USD Million) ‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑ 1997 1998 1999 ‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑ A.A.
Total Market Size 107.0 113.0 120.0 B.
Total Local Production 37.0 38.0 40.0 C.
Total Exports 0.0 0.0 0.0 D.
Total Imports 70.0 75.0 80.0 E.
Imports from the U.S. 33.2 40.0 45.0 ‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑ NoNote:
The above statistics are unofficial estimates. ‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑ ‑‑‑2. Animal or Vegetable Oils and Fats, Animal
Feeds and Oil Seeds. Other
prospects for agricultural exports to Cyprus include animal or vegetable oils
and fats, animal feeds and oil seeds. ‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑ DaData
Table (USD Million) ‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑ 1997 1998 1999 ‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑ A.A.
Total Market Size 64.0 69.0 73.0 B.
Total Local Production 46.0 47.0 48.0 C.
Total Exports 16.0 18.0 20.0 D.
Total Imports 18.0 22.0 25.0 E.
Imports from the U.S. 4.0 6.0 8.0 ‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑ NoNote:
The above statistics are unofficial estimates. ‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑ INTERNATIONAL
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DEPARTMENT OF STATE, 1998. ALL RIGHTS
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UNITED STATES <NREC>Cyprus06
Cyprus: Trade Regulations & Standards <A>=Cyprus VI. TRADE REGULATIONS AND STANDARDS Trade
Barriers Cyprus
began full implementation of the Uruguay Round agreement January 1, 1996. Under this agreement, the Government of
Cyprus eliminated quantitative restrictions and other non‑tariff barriers
to trade. This opened up the Cypriot
market to most U.S. goods, most of which previously had been severely
limited. Additionally,
completion of the first phase of the EU‑Cyprus Customs Union agreement on
January 1, 1998 liberated the island's trade regime further, allowing most
goods to be traded between Cyprus and the EU with a zero tariff rate. Under the same agreement, Cyprus has also
adopted the EU's Common Customs Tariff (CCT) for most products from third (non‑EU)
countries. Significantly, the preference
now given to EU products under the CCT is less than the preference Cyprus gave
to EU countries under its previous tariff regime. These developments are helping U.S. exports
to Cyprus become more competitive than ever.
Customs
Valuation Customs
duties are regulated by a tariff system based on the harmonized commodity
description and coding system (HS).
Goods are classified according to their composition, description and
purpose and carry various rates of duty.
Luxury items carry the highest duties.
Other than import tariffs, there is an 8.0 percent value added tax
(VAT). The Temporary Refugee Levy (TRL),
a temporary tax on imports introduced in 1974 in addition to tariffs, has been
abolished for most products as of January 1, 1998 (a very small number of
"luxury" products such as cookies and whiskey still carry a 5.0‑6.0
percent TRL). Import
Documentation The
following documents should be presented at Customs at time of clearing goods:
delivery order for the goods; an invoice; and a Packing List. Various
other documents according to the nature of each import will be required. A Health Certificate and Listing of
Ingredients are required for imported food products. Temporary
Entry The
temporary entry of goods allows the importation without payment of duty. Other than the temporary importation of motor
vehicles, this facility is extended to goods for processing or repair prior to
their re‑exportation, goods for exhibition, and commercial samples,
provided they do not change their form or character. The initial temporary permit is valid for
three months and can be extended by application to Customs headquarters. Labeling,
Marking Requirements In
1995, Cyprus adopted a stricter law on the labeling of food products, requiring
that the product name, ingredients, net contents and country of origin be in
the Greek language. A sticker with a
Greek translation on the product is acceptable, provided it does not conceal
the original label and it has the approval of the Ministry of Commerce,
Industry, and Tourism. Implementation of
this law has been mandatory for all food products since February 1, 1997. The
"Safety of Consumer Products Law" of 1994 outlines the legal
responsibilities of those involved in the production or distribution of
consumer products requiring safety warnings (including household appliances,
pharmaceuticals, and many other products).
One of these responsibilities concerns the proper labeling and packaging
of consumer products to render them completely safe to the public. This includes having the necessary safety
warnings for consumer products in Greek.
The government has re‑doubled efforts for stricter enforcement of
the law. Prohibited
Imports The
importation of certain items is prohibited.
The principal ones are listed below: ‑‑ Rifles and repeating firearms, automatic and
semi ‑a‑automatic,
repeating and semi‑repeating shotguns, airguns,
air rifles and air pistols of a caliber exceeding 0.177
inches. ‑‑ Narcotics. ‑‑ Seditious Publications. ‑‑ Counterfeit or false coins or currency notes. ‑‑ Goods bearing a false trade mark. ‑‑ Agricultural products such as fresh
vegetables, frfruits
and plants. ‑‑ Dogs, cats, tropical fish, parrot and other
birds can bebe
imported into Cyprus after the issuance of a special permit
from the Director of the Veterinary Services. Standards Increasingly,
Cypriot standards and regulations are being harmonized with corresponding EU
provisions, in line with the Government's efforts to remove all potential
obstacles to EU accession. A
good example of this policy was the recent adoption by Cyprus of legislation
requiring "CE" marking on certain products. (Note: "CE" certification stands
for "Communaute Europeuenne."
This is the standard used in EU countries to indicate conformity to
European standards for a number of products which are critical to consumer
safety. Currently, 18 product categories,
including, toys, home appliances, construction products, telecommunications
terminal equipment, and medical devices are required to bear the CE mark in the
EU.) Cyprus approved legislation on
March 1, 1998 requiring "CE" certification for two of the 18 product
categories (toys and low‑voltage appliances) and is currently drafting a
similar law for home appliances. Over
the next year or so, Cyprus is planning to adopt a requirement for CE marking
for the remaining 15 product categories, in line with EU practice. This is something that U.S. exporters of
these products need to bear in mind for the future: CE marking will soon be
mandatory for many imported products. Other
examples of how the Government's efforts to harmonize the Cypriot economy with
the EU have been affecting Cypriot legislation and standards include the
adoption in 1997 of a modern banking law which conforms to the EU's directives
for banking supervision, adoption of a modern patents law, as well as adoption
of minimum EU programming requirements for television stations. On
the issue of standards in general, it should be noted that many companies in
Cyprus have achieved the ISO standard.
Semi‑government organizations such as the Cyprus
Telecommunications Authority and the Electricity Authority request tendering
companies to meet ISO requirements. Free
Trade Zones/Transit Trade In
recent years, transit trade through the island has become an increasingly
important source of business for Cyprus.
This business is transacted through free trade zones in the two ports of
Limassol and Larnaca or through bonded warehouses where goods are kept for
onward transshipment. Permission for
foreign participation in transshipment activities through Cyprus is usually
granted easily by the Central Bank. The
total value of goods re‑exported through Cyprus to neighboring countries
has increased from USD 378.6 million in 1990 to USD 815.3 million in 1997. (During the same period, Cyprus' domestic
exports declined from USD 575.3 million in 1990 to USD 426.2 million in
1997.) Safe port facilities, reasonable
storage rates, safety of storage facilities in free port areas, and good
business connections are the leading reasons behind this booming trade. Re‑exports
of U.S.‑origin tobacco to Eastern European countries (primarily Russia
and Bulgaria) have accounted for more than half of Cyprus' total re‑exports
in recent years. The value of this trade
has increased from USD 298.9 million in 1995, to USD 494.6 million in 1996, and
USD 526.9 million in 1997. Of these, all
but USD 10.0‑13.0 million were re‑exported. Membership
in Free Trade Arrangements On
March 31, 1998 Cyprus began formal accession negotiations for entry into the EU
and is currently one of six countries scheduled for the EU's next
enlargement. A Customs Union Agreement
initiated in 1972 and partially completed in 1998, allows 80.0 percent of the
goods traded between Cyprus and the EU to have zero tariffs. Under the same agreement, Cyprus has adopted
the EU's Common Customs Tariff (CCT) for third countries on most products since
January 1, 1998. INTERNATIONAL
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UNITED STATES <NREC>Cyprus07
Cyprus: Investment Climate <A>=Cyprus VII. INVESTMENT CLIMATE (A1)
Openness to Foreign Investment In
February 1997 Cyprus introduced a more liberal policy on foreign direct
investment, replacing the previous policy which had been in effect for a
decade. The government expects that the
new policy will gradually expand direct investment in Cyprus and help promote
Cyprus as an international business center. The
new policy minimizes bureaucratic intervention and opens up opportunities for
investment by non‑residents in most sectors. Non‑residents can invest in Cyprus
after obtaining permission under the Exchange Control Law from the Central
Bank. The Exchange Control Law makes a
distinction between residents and non‑residents, as opposed to between
Cypriot nationals and aliens. Non‑residents
are Cypriots living abroad, aliens and foreign companies. Non‑residents
wishing to invest in Cyprus should apply through an appropriate professional
(advocate or accountant) practicing in Cyprus.
The professional will submit to the Central Bank an application
containing the requisite information, i.e., share capital, economic activities,
etc. Applications are classified into
three categories: ‑‑ Direct Investment, covering Cypriot firms
which may bebelong
partly or wholly to non‑residents and which may carry
on business and derive income from within Cyprus; ‑‑ Offshore Enterprises, covering Cypriot firms
which bebelong
entirely to non‑residents and which carry on business
and derive income exclusively from outside Cyprus;
and ‑‑ Shipping Businesses, covering Cypriot firms
which may bebelong
entirely to non‑residents and which limit their activities
to the ownership, bareboat chartering and operation
of ships outside Cyprus. Permits
for offshore enterprises and shipping companies are normally issued by the
Central Bank within a few days, if all the information is complete. The Government considers offshore enterprises
and shipping companies as making a positive net contribution to the national
economy without competing with local firms.
Non‑residents
who are interested in investing in Cyprus need to apply to the Central Bank for
permission. The Central Bank considers
such applications (sometimes, in consultation with appropriate government
departments) and normally responds within 30 days. The applicant is notified in cases where the
procedure cannot be completed in that period.
After the permit is issued, the non‑residents' shares or
participation must be registered in their names or in the names of their
nominees at the Department of the Official Receiver and Registrar under the
Companies or Partnerships Laws. These
laws are based on the corresponding Acts of the United Kingdom. Registration,
re‑organization and liquidation of businesses must be undertaken through
attorneys or accountants practicing on the island. Businesses with non‑resident
participation must prepare and submit to the Central Bank of Cyprus and to the
Department of Inland Revenue annual financial statements audited by accountants
practicing in Cyprus. Non‑residents
wishing to take up employment in Cyprus require work permits by the Immigration
Department. Permits are readily issued
to the senior executives of companies as well as to other foreign personnel
when administrative or technical staff of the same caliber cannot be found in
Cyprus, or when the employment of the non‑resident is absolutely
necessary for conducting the business of the enterprise. In the case of offshore enterprises,
arrangements have been made for the Ministry to issue and renew the permits of
expatriate employees upon the recommendation of the Central Bank. The
screening mechanism used by the Central Bank for prospective foreign investors
is routine and non‑discriminatory.
In general, the new policy allows up to 100.0 percent foreign
participation in manufacturing and services and up to 49.0 percent in
agriculture, provided some prerequisites are met ‑‑ concerning an
adequate level of investment, environmental considerations, national security
matters, etc. Following is a summary of
the new screening criteria, currently used by the Central Bank for foreign
direct investment: (i)
In the primary (agriculture) sector, foreign participation of up to 49.0
percent is allowed, provided the minimum level of investment is CP 100,000
(currently, the exchange rate between the Cyprus Pound (CP) and the USD is
about CP 1.00 = USD 1.90). (ii)
In the secondary (manufacturing) sector, foreign participation of up to 100.0
percent is allowed. (For investments up
to CP 750,000 and participation up to 49.0 percent, the Central Bank approves
the investment on its own, but for larger projects and more foreign
participation it consults with the Ministry of Commerce, Industry and Tourism.) (iii)
In the tertiary (services) sector, the following regulations apply: ‑‑ Foreign participation of up to 100.0 percent
is alallowed
for up to 70 types of services. These
services have
been grouped into two categories, those with a minimum
investment capital of CP 50,000; and those with a minimum
investment capital of CP 100,000. The
first category
includes professional services, computer‑related services,
research and development services, other business
services, courier services, entertainment services
and new agencies. The second category of services
(for investments of more than CP 100,000)includes business
services, communications services, construction services,
educational services, environmental services, sporting
and other recreational services, and transport services. ‑‑
For investments of less than CP 50,000,
the Central BaBank
has the discretion to approve any application for up to
24.0 percent foreign participation. ‑‑
Investments in hotels, tourist villas,
etc. Are susubject
to a maximum level of foreign participation of 49.0
percent, although other tourist investments which enrich
Cyprus' tourist product (e.g. golf courses, theme parks,
etc.) may have up to 100.0 percent foreign participation. (iv) For a small number of business activities,
including the
establishment of new banks, insurance and financial services
companies, publication of newspapers and magazines
and new airline companies, applications (and the extent
of foreign participation) will be considered on a case‑by‑case
basis. (v) Direct investment by non‑residents
continues to be discouraged in several "saturated" sectors. The list of "saturated" activities
has been substantially reduced from previous years and it includes real‑estate
development, tertiary education, travel agencies, and public utilities such as
telecommunications and postal services.
(vi) The Cyprus Stock Exchange (CSE) began operation
on March
29, 1996, replacing the unofficial, over‑the‑counter stock
market which existed previously. Since
June 1996, foreign
investors are no longer required to obtain the Central
Bank's permission to invest in the CSE, provided the
money comes from an external account and maximum foreign
participation conforms to these rules:
maximum foreign
participation may be up to 49.0 percent for public companies
other than banks and up to 6 for public companies
in the banking sector. The maximum
allowable share‑holding
for individual non‑resident companies or investors
is 5.0 percent for non‑bank public companies and 0.5
percent for banks. Foreign investors
need to buy or sell
their shares through one of the 30 or so licensed members
of the CSE (stock brokers), just like local investors. Cyprus
is a signatory to the Convention of the Settlement of Disputes between States
and Nationals of other States, the Multilateral Investment Guarantee Agency
Agreement (MIGA), and the Convention on the Protection of Industrial Property. Additionally, Cyprus signed an Investment
Guarantee Program with the United States in 1963. This program is essentially unused but, in
principle, makes it possible to insure long‑term U.S. investments abroad
against the possibility of non‑commercial risks. For
further information on foreign investment regulations, the Central Bank may be
contacted directly at: 80 Kennedy Ave., P.O.Box 5529, Nicosia, Cyprus, tel: 357‑2‑379800,
fax: 357‑2‑378153. (A2)
Conversion and Transfer Policies Exchange
Control. The Exchange Control Law does
not distinguish between Cypriot nationals and aliens but rather between
residents and non‑residents. The
residential status of physical persons is normally determined by their places
of residence and employment. The
residential status of firms is normally determined by the place of
incorporation. Currently, residents are
subject to exchange control restrictions, covering the holding of foreign
currency accounts, investing abroad, travel allowance, etc. Restrictions
on outward investment for residents of Cyprus were somewhat relaxed in February
1997. Applications by Cypriot residents
to invest abroad must meet the Central Bank's revised criteria, which generally
aim to improve the prospects for the Cypriot economy. These criteria are as follows: (i)
The investment abroad should benefit the Cypriot economy in the form of,
say, the inflow of foreign exchange from increased exports of goods, provision
of services to people residing abroad, patents, management fees, etc. (ii) The
profitability of the investment is such that it ensures coverage of probable
future additional needs from own funds or foreign loans. (iii) The investment enhances tourism to
Cyprus, particularly quality, conference or special interest tourism, and
facilitates penetration of new tourist markets. (iv)
The applicant's experience in the field of the proposed investment. (v) The percentage of participation in the
foreign company. It will be considered
an advantage if the foreign company is controlled by the applicant investor. (vi)
The repatriation of capital and profits is allowed by the country where
the investment will take place. Irrespective
of whether the proposed investment satisfies some or all of the above criteria,
the Central Bank's final decision will also take into consideration the amount
of capital to be exported or any guarantees to be extended from Cyprus. Specifically, the direct foreign exchange
cost for each investment should not exceed CP 0.5 million. If only the issue of guarantee is required
(rather than the export of capital), the guarantee should not exceed CP 1.0
million. Within
its overall liberalization of the financial system, we expect the Government's
exchange control policy to be relaxed in the future. For now, however, these restrictions remain
in place. Non‑residents
are exempt from exchange control restrictions.
Non‑residents may hold and manage assets and liabilities in any
foreign currency and in any foreign country, including freely convertible and
transferable balances with banks on the island.
Cypriot
firms which belong partly or wholly to non‑residents and which carry on
business or derive income within the island are considered residents for
exchange control purposes. Cypriot firms
which belong exclusively to non‑residents and which carry on business and
derive income exclusively outside the island are exempt from exchange
controls. Persons who are not permanent
residents of Cyprus are also exempt from exchange controls. Once
the non‑resident investor has obtained the approval of the Central Bank,
he/she is free to go ahead with an investment project and repatriate freely
capital, profits, dividends and interest arising from the investment. The savings of expatriate employees may be
transferred abroad monthly or credited to a freely convertible or foreign
currency account in Cyprus. There is no
prescribed maximum percentage of profits that may be repatriated each year, or
minimum period before which the non‑resident may dispose of his investment. On both counts the foreign investor may act
freely. (A3)
Expropriation and Compensation Nationalization
has never been government policy and it is not contemplated in the future. Private property is only expropriated for
public purposes in a non‑discriminatory manner and in accordance with
established principles of international law.
In cases where expropriation is necessary, due process is followed and
there is transparency of purpose.
Furthermore, investors and lenders to expropriated entities receive fair
compensation in the currency in which the investment is made. In the event of any delay in the payment of
compensation, the Government is liable to the payment of interest based on the
prevailing 6‑month LIBOR for the relevant currency in addition to the
amount of compensation. (A4)
Dispute Settlement There
have been no cases of investment disputes or outstanding
expropriation/nationalization cases in recent years. Effective means are available for enforcing
property and contractual rights. Under
the Arbitration Law of Cyprus, arbitrators are appointed by the parties to an
agreement and an umpire is usually appointed in the case where a dispute cannot
be settled by the arbitrators of the two parties. An arbitral award may be enforced by the
court in the same way as a judgment. In
1979, Cyprus became a signatory to the New York Convention on the Recognition
and Enforcement of Foreign Arbitral Awards and a foreign award may be enforced
in Cyprus by an action in common law.
Cyprus is also a signatory to the Convention of the Settlement of
Disputes Between States and Nationals of Other States. (A5)
Performance Requirements/Incentives Cyprus
does not have a rigid system of performance requirements for foreign
investment. Each application for
investment is judged on its own merits and any conditions are negotiated and
agreed before the investment is approved.
Transfer of technology, for example, although not a requirement, is
definitely considered a "plus" in the initial evaluation. Investment
incentives. Investment incentives
currently available in Cyprus are summarized in the following paragraphs: I.
Direct Investment Incentives: ‑‑
Relatively low corporate tax; resident companies are taxed at the rarate of
20.0 percent for chargeable income up to CP 40,000 and 25.0 percent for
chargeable income in excess of CP 40,000; ‑‑
Initial investment and annual depreciation allowances; ‑‑
Carry‑forward of losses for five years; ‑‑
Exemption from customs and excise charges for operations in the LaLarnaca
Industrial Free Zone; and ‑‑
Salaries of foreign employees working in the Industrial Free Zone are tataxed
at one‑half of the standard rates. II.
Offshore Investment Incentives: ‑‑
Offshore companies are taxed on income at a rate of 4.25 percent. ‑‑
Offshore branches which are managed and controlled from abroad and ofoffshore
partnerships are totally exempt from income tax. ‑‑
Beneficial owners of offshore companies, branches and partnerships arare not
liable to tax on dividends or profits other than that paid by the firms
themselves. ‑‑
Expatriate employees of offshore enterprises living and working in CyCyprus are
taxed at half the standard rates applicable to personal income, i.e. from 0 to
20.0 percent, instead of 0 to 40.0 percent. ‑‑
Foreign employees of offshore enterprises living and working outside ththe
island are exempt from Cyprus income taxes if paid through any bank in Cyprus,
and taxed at 10.0 percent of the standard rates if paid directly abroad. ‑‑
No capital gains tax is payable on the sale or transfer of shares in anan
offshore company. ‑‑
No estate duty is payable on the inheritance of shares in an offshore
cocompany. Additionally,
Cyprus has concluded 26 treaties for the avoidance of double taxation
(including one with United States, effective January 1, 1986). These treaties offer significant
possibilities for international tax planning. III. Incentives to Shipping: Fees
payable by Cypriot vessels compare favorably to those paid under other open
registers. Registration is inexpensive,
annual fees modest and services excellent.
For example, the Cyprus Department of Merchant Shipping responds quickly
to requests by foreign ship owners for technical support or assistance in
dealing with the authorities in foreign ports (such as obtaining an exemption
certificate for a crew member who falls sick during a journey). Other important incentives are: ‑‑
Zero tax on profits from the operation of a Cypriot registered vessel anand on
dividends received from a shipowning company; ‑‑
Zero capital gains tax on the sale or transfer either of a Cypriot reregistered
vessel or of the shares of a shipowning company; ‑‑
No estate duty on the inheritance of shares in a shipowning company; ‑‑
No income tax on wages and benefits of officers and crew; and ‑‑
No stamp duty on ship mortgage deeds or other security documents. (A6)
Right to Private Ownership and Establishment Approval
of foreign investment in Cyprus is subject to a set of pre‑conditions set
out by the Central Bank, as described in the previous section (A1). The right of foreign entities to establish,
acquire or dispose of interests in business enterprises is subject to these pre‑conditions. (A7)
Protection of Property Rights Investment
in real estate is treated differently for residents and non‑residents. Non‑residents may buy a single piece of
real estate for private use (normally a holiday home). The Central Bank verifies that non‑residents
buy real estate with funds from abroad.
The Council of Ministers, which must approve such purchases, does so
routinely. Non‑residents are
allowed to sell their property and transfer abroad the amount originally paid,
with the remainder being released from a blocked account at the rate of CP
50,000 per annum from the capital plus the whole amount of interest earned that
year. The
legal requirements and procedures for acquiring and disposing property in
Cyprus are complex but professional help by real estate agents and developers
often helps foreign investors deal with the bureaucracy. Once a property title is issued, its security
is iron‑clad. The government's
Department of Lands and Surveys prides itself for keeping very meticulous
records and following procedures which have changed little since British
colonial times. Protection
of intellectual property was upgraded in Cyprus with the adoption of a new
Copyright Law on January 1, 1994 and of
a modern Patents Law on April 2, 1998.
These two laws have helped Cyprus comply with its obligations under the
World Trade Organization (WTO) TRIPs agreement.
As a result of these improvements, in 1998 (for the first time since
1990) the United States Trade Representative (USTR) removed Cyprus completely
from the "Special 301" list of countries which effectively deny
adequate protection of IPR. (A8)
Transparency of the Regulatory System Existing
regulations and policy concerning investment are completely transparent. Similarly, bureaucratic procedures are
transparent and sufficiently streamlined.
(A9)
Efficient Capital Markets and Portfolio Investment The
permit issued by the Central Bank to non‑resident investors specifies the
activities of the firm and imposes certain conditions with regard to financing
arrangements. One of these conditions is
that equity capital issued to non‑resident investors must be funded from
abroad. Total
capital must be commensurate with the total cost of the project. Loan financing must be raised from local and
foreign sources in proportion to the equity participation by residents and non‑residents. For example, if non‑resident ownership
is 40.0 percent, 40.0 percent of the loans must come from abroad. This requirement is waived if non‑resident
participation is 24.0 percent or less. Terms
for foreign loans must be approved by the Central Bank. Interest and other costs must be at market
prices. Royalties and other payments for
the use of patents, know‑how, brand names, etc., must be approved in
advance, but then may be readily remitted abroad. The
launching of the official Cyprus Stock Exchange (CSE) on March 29, 1996 (which
helped enhance the security of stock trading transactions) and the relaxation
of regulations on portfolio investment by non‑residents (outlined in
Section A1), have not produced the anticipated result of increasing foreign
portfolio investment substantially.
Total foreign portfolio investment in the CSE (most of which came before
the transition to an official market) is estimated currently at no more than
USD 300.0 million, out of a market with a total capitalization of around USD
3.2 billion. The
euphoria which preceded the launching of the official stock market pushed daily
trading volumes to a high of CP 3.4 million and the Cyprus Investment and
Securities Corporation (CISCO) index to a high of 522 points on February 15,
1996. Subsequently, the market
experienced a downward correction which lasted until the end of 1997. Following a four‑month bull‑run
during the first part of 1998 and another small correction since then, the
CISCO index stood at 432.0 points on June 19, 1998. Steps such as passing new draft legislation
against insider dealing and introducing a fully‑computerized system of
transactions (expected by mid‑1999), should help increase transparency
and attract foreign investors. (A10)
Political Violence There
have been no incidents over the past few years involving politically‑motivated
damage to foreign projects and or installations. Except for occasional demonstrations or
incidents along the buffer zone (which resulted in five deaths in 1996), there
has been no violent intercommunal conflict since 1974. (A11)
Corruption In
Cyprus, corruption by public officials is not a serious problem. Cyprus' democratic regime, transparent
procedures and open, lively press act as a deterrent against corruption in the
civil service. The Embassy is not aware
of any U.S. firms identifying corruption as an obstacle to foreign direct
investment in Cyprus. Following is some
information on Cyprus'
anti‑corruption legislation and administrative controls. Law
Number 65 of 1965 provides for the prosecution of persons holding public office
who "acquire property by abuse of power." However, this law has never been used because
there have never been any formal complaints and because the law does not
address the procedure for investigating into the assets of such persons. The inefficiencies of this law are being
addressed by two pieces of draft legislation, currently pending before the
House: the first bill will oblige government officials and politicians to
disclose personal financial details every year as long as they hold office and
for three years thereafter. The second
bill provides detailed rules and regulations for government tenders and for
evaluating progress in public contracts. Under
Cyprus' Constitution, the Auditor General controls all disbursements and
receipts and has the right to inspect all accounts on behalf of the
Republic. In his Annual Report, the
Auditor General identifies specific instances of mismanagement or deviation
from proper procedures in the civil service.
Since 1991, Cyprus has also introduced the institution of the
"Ombudsman," who oversees the acts or omissions of the
administration. (B)
Bilateral Investment and Double Tax Agreements Cyprus
has ten bilateral agreements for the encouragement and reciprocal protection of
investments with the following countries: Armenia, Belgium, Bulgaria, Belarus,
Greece, Hungary, Poland, Russia, Romania and the Seychelles. Another 23 bilateral investment agreements
are currently under negotiation. Cyprus
does not have a full‑fledged investment protection agreement with the
United States other than an exchange of letters on reciprocal protection of
investments in the two countries between the Cypriot Ministry of Foreign
Affairs and the U.S. State Department many years ago. Additionally,
Cyprus has entered into bilateral double tax treaties with a total of 26
countries. The main purpose of these
treaties is the avoidance of taxation of income earned in any of these
countries. Under these agreements, a
credit is usually allowed against the tax levied by the country in which the
taxpayer resides for taxes levied in the other treaty country. The effect of these arrangements is normally
that the taxpayer pays no more than the higher of the two rates. Cyprus has such agreements with Austria,
Bulgaria, Canada, China, Czech Republic, Denmark, Egypt, France, Germany,
Greece, Hungary, India, Ireland, Italy, Kuwait, Malta, Norway, Poland, Romania,
Russia, Slovakia, Sweden, Syria, United Kingdom, United States and
Yugoslavia. Treaties with Belgium,
Singapore, and Thailand are at various stages of negotiations. (C)
OPIC and Other Investment Insurance Programs The
U.S. Overseas Private Investment Corporation (OPIC) is not active in Cyprus,
but OPIC finance and insurance programs are open and may be useful when bidding
on build, own, operate and transfer (BOOT) contracts. The government has started a campaign to
attract U.S. corporate investors. Cyprus
is a member of the Multilateral Investment Guarantee Agency (MIGA). (D)
Labor At
the end of 1997 the local labor force comprised 285,000 persons. Of these, 10.2 percent worked in agriculture,
14.7 percent in manufacturing, 8.6 percent in construction, 27.1 percent in
trade and tourism, 6.6 percent in transport and communications, 8.4 percent in
finance and business and 24.1 percent in community, social and personal
services. Since
1977, the rate of unemployment in Cyprus has not exceeded 4 percent, which is
much lower than the EU average rate of unemployment of more than 10.0
percent. In recent years, though,
unemployment has been inching upwards, from 2.6 percent in 1995, to 3.1 percent
in 1996, to 3.4 percent in 1997. Even
so, conditions of full employment can be said to exist, requiring continued
employment of a substantial number of foreign workers. Cyprus
has a high rate of college graduates per capita, and offers an abundant supply
of white collar workers and college degree‑holders. One side‑effect of Cyprus' experience
as a British colony (until 1960) is the widespread use of the English language. In
response to labor shortages in recent years, more women have joined the labor
force (women are now about 39.0 percent of the labor force, compared with 33.4
percent in 1980) and a growing number of Cypriots are repatriating from abroad. There are also about 25,000 legally‑registered
foreign workers in Cyprus and another 5,000 estimated to be working
illegally. Existing legislation ensures
that foreign workers receive minimum wages.
The minimum wage for sales assistants, clerks, paramedical staff, and
child care staff is currently USD 450.00 per month (USD 485.00 after six
months). For live‑in housemaids,
the minimum wage is about USD 300.00 per month, plus room and board. More
than 85.0 percent of the labor force is unionized. As a result, unions have a strong say in
collective agreements. Head‑on
confrontations between management and unions occur frequently, although long‑term
work stoppages are rare. Offshore
companies are not required to hire union labor.
The current economy‑wide practice of giving all employees twice‑yearly
Cost of Living Allowance (COLA) increases has been under fire by employers for
a while and may soon be revised, if the government (itself, the largest
employer in Cyprus) can find a compromise formula that will satisfy both unions
and employers. In
recent years, gains in productivity have been lagging behind gains in real
wages, undermining Cyprus' competitiveness, particularly in manufacturing. This situation was particularly pronounced in
1996, when productivity increased by only 1.0 percent, while real wages
increased by 3.1 percent. In 1997, the
gap became somewhat smaller, with productivity increasing by only 2.1 percent
and real wages increasing by 2.8 percent increase. (E)
Foreign Trade Zones/Free Ports In
recent years, transit trade through the island has become an increasingly
important source of business for Cyprus.
This business is transacted through free trade zones in the two ports of
Limassol and Larnaca or through bonded warehouses where goods are kept for
onward transshipment. Permission for
foreign participation in transshipment activities through Cyprus is usually
granted easily by the Central Bank. (F)
Foreign Direct Investment Statistics The
Government of Cyprus did not establish an official policy on foreign direct
investment until 1986 and it was not until after that year that significant
investments started taking place. In
February 1997, the government relaxed its policy on foreign investments. Administrative procedures have become simpler
and, in most cases, the applications are assessed and approved by the Central
Bank directly, without any (time‑consuming) consultations with other
government departments. Depending on the
sector of the investment, up to 100 percent foreign ownership is allowed, even
in many "traditional" sectors of the economy, including wholesale and
retail trade. In some instances, the
proposed foreign investment should be of a certain level in order to receive
Central Bank approval. (Please see section (A1) for additional information on
foreign investment regulations.) Since
1986, the Central Bank notes it has issued 1,255 permits for foreign equity
participation amounting to USD 359.0 million in projects costing around USD
754.0 million. In 1996 the Central Bank
issued 175 new permits for foreign investment of USD 27.0 million in projects
costing around USD 104.0 million. By
comparison, in 1996 the Central Bank issued 145 permits for foreign investment
of USD 36.0 million. Additionally,
since January 1, 1976, non‑residents have established 31,739 offshore
companies for the management of their overseas affairs and 11,431 companies for
the registration of ships under the flag of the Republic. There are currently 1,049 offshore companies
with fully‑fledged offices on the island, at least 30 of which are from
the United States (including two oil companies, two computer companies, several
accounting firms). Breakdown
of direct investment by country of origin and names of specific foreign
investors are unavailable ‑‑ this information is strictly
confidential. In terms of sector
destination, foreign investor interest in 1997 was mainly focused on trading
and services, particularly tourist, computer and consulting services. U.S.
investment in Cyprus traditionally consisted of relatively minor projects,
mostly by Greek Cypriot expatriates.
U.S. owned offshore companies in Cyprus (including accounting firms,
computer firms, and oil companies), have increased the level of U.S. capital
investment in Cyprus. In the
manufacturing sector, the only major project involving direct U.S. equity
investment in Cyprus in recent years was a 51.0 percent, USD 1.6 million
investment by PepsiCo in a local snacks factory (through a Greek
subsidiary). The venture has been
extremely successful and has helped establish the local company as the island's
leading snack manufacturer. INTERNATIONAL
COPYRIGHT, U.S. & FOREIGN COMMERCIAL SERVICE AND U.S.
DEPARTMENT OF STATE, 1998. ALL RIGHTS
RESERVED OUTSIDE OF THE
UNITED STATES <NREC>Cyprus08
Cyprus: Trade and Project Financing <A>=Cyprus VIII. TRADE AND PROJECT FINANCING Banking
System The
standard of banking services in Cyprus compares well with European countries
and the United States. The Central Bank
of Cyprus supervises closely private banks and requires them to meet Bank for
International Settlements (BIS) standards as well as corresponding directives
by the European Union. Bank financial
statements are in compliance with international standards and audited by
internationally‑recognized auditors. Currently, loans to the government
and semi‑government sector make up 54.0 percent of the banking system's
total assets. The new Banking Law of
1997 provided for a properly‑funded deposit insurance scheme. However, the specific provisions and
regulations for this scheme are still pending before the House of
Representatives (they are expected to pass in the Fall of 1998). Currently,
there are six active domestic banks in Cyprus offering all types of services,
including deposit accounts, lending advances, leasing, credit card facilities,
automatic banking machines, etc., while some of them have subsidiaries dealing
with insurance services, investment banking, and other related services. All domestic banks have correspondent
arrangements with U.S. banks. Cyprus
banks have received very high ratings from international rating agencies. Foreign
Exchange Controls Affecting Trading Current
regulations for exchange control do not affect or hinder international
trade. The Central Bank actively
encourages cross border financing activity and grants permission freely to
businessmen to meet their international obligations. In general, there is no problem with credit
availability. General
Financing Availability/ Types
of Available Export Financing and Insurance Cypriot
businesses generally have to rely on local sources of financing. However, the Central Bank has already started
liberalizing the financial system and will proceed with full liberalization in
the near future, allowing locals to borrow from abroad as well. Companies
with foreign participation are required to borrow from external sources in
proportion to the non‑resident participation in their capital. This requirement is waived if the non‑resident
participation is less than 24.0 percent of the share capital. Cyprus
enjoys an excellent credit rating internationally (Standard and Poor's rates
Cyprus' long‑term credit AA and
its short‑term credit A1+). Banks
in Cyprus employ all modern methods of cross‑border financing, including
letters of credit, bills for collection, documentary credit, cash against
documents, etc. U.S. Eximbank financing
could also be applied in Cyprus for U.S. source equipment purchases. Eximbank is open for short‑ and long‑term
trade financing. Cyprus graduated from
World Bank borrowing in 1992. List
of Banks with Correspondent U.S.
Banking Arrangements The
following banks offer correspondent U.S. banking arrangements in Cyprus: ‑‑
Bank of Cyprus, tel: 357‑2‑37800, fax: 357‑2‑378327; ‑‑
Cyprus Popular Bank, tel: 357‑2‑450000, fafax:
357‑2‑449831; ‑‑
Hellenic Bank, tel: 357‑2‑360000, fax: 357‑2‑454074; anand ‑‑
National Bank of Greece, tel: 357‑2‑441412, fafax:
357‑2‑369349. INTERNATIONAL
COPYRIGHT, U.S. & FOREIGN COMMERCIAL SERVICE AND U.S.
DEPARTMENT OF STATE, 1998. ALL RIGHTS
RESERVED OUTSIDE OF THE
UNITED STATES <NREC>Cyprus09
Cyprus: Business Travel <A>=Cyprus IX. BUSINESS TRAVEL Business
Customs Business
customs in Cyprus are not very different from the U.S. Despite the long and hot summer, the
conventional business dress code usually calls for a suit and tie for men and
conservative attire for women. More
casual wear is usually worn when entertaining business guests, depending on the
venue. Air
and Sea Connections Air
traffic is served through the island's two international airports situated in
Larnaca and Paphos. Cyprus Airways is
the national carrier of Cyprus. Many
international airlines including Cyprus Airways offer daily flights to major
destinations in Europe and the Middle East.
The port of Limassol serves the country's external trade and seaborne
passenger traffic, acting also as transshipment centers for the region. The port of Larnaca has recently been closed
for restructuring. Travel
Advisory and Visas Cyprus
enjoys a low crime rate, good hygienic conditions, and a modern array of goods
and services. Visitors can call the
Consular Section of the U.S. Embassy for travel advisories for the area (tel.
357‑2‑776400) or the U.S. State Department (tel. 202‑647‑0518). Any foreigner arriving in Cyprus must possess
a valid passport. U.S. citizens do not
need visas to enter Cyprus. Persons
arriving with the intention to work must obtain special work permits. Holidays The
list of holidays observed by businessmen in Cyprus for 1998 are: January
1 (New Year's Day) January
6 (Epiphany Day) March
2 (Clean Monday ‑ Start of Lent) March
25 (Greek Independence Day) April
1 (EOKA Day) April
17 (Good Friday) April
18 (Holy Saturday) April
28 (Easter Monday) June 8 (Holy Spirit Day) August
15 (Assumption Day) October
1 (Cyprus Independence Day) October
28 (OHI Day) December
24 (Christmas Eve) December
25 (Christmas Day) December
26 (Boxing Day) Businessmen
should avoid making appointments on the above dates. Business
Infrastructure Traveling
within Cyprus is by taxi and bus service or rental car. Taxis are metered. There is a satisfactory taxi service system
between cities, and prices are considered reasonable. The cost for a taxi from the airport to
Nicosia is around CP 15.00 (USD 30.00).
Rental cars cost between CP 15.00 to CP 20.00 (USD 30.00 ‑ 40.00)
per day with unlimited mileage, depending on the season. The
principal languages on Cyprus are Greek and Turkish. Greek is spoken in the government‑controlled
area and Turkish is mainly spoken on the northern part of Cyprus. English is
very widely spoken and understood, particularly in commercial and political
circles. The
island's telecommunications system is quite advanced and efficient. More than 190 countries can be reached on a
fully automatic direct dialing.
Installation services are offered within a few days notice. Telefax service is available, as is the
Internet. Housing
is available in various categories at relatively low prices by European
standards. There are many good
restaurants on the island. The food and
water are considered safe. Please
note that the "Guide for Business Representatives" is available for
sale by the Superintendent of Documents, U.S. Government Printing Office,
Washington, D.C. 20402; tel. (202) 512‑1800; fax (202) 515‑2250. Business travelers to Cyprus seeking
appointments with U.S. Embassy Nicosia officials should contact the Commercial
Section in advance. The Commercial
Section can be reached at 357‑2‑776400 or by fax at 357‑2‑781663.
INTERNATIONAL
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Cyprus: Country Data <A>=Cyprus X.
APPENDICES A. COUNTRY DATA The
following statistics concern the government‑controlled area of Cyprus,
unless otherwise noted. Source:
Government of Cyprus Department of Statistics and the Central Bank. ‑‑
Population (1997): 655,800 in Republic of Cyprus area (in the nonorthern part
of the island, according to unofficial sources, the population is around
190,000) ‑‑
Population Growth Rate: 1.3 percent ‑‑‑‑
Religion(s): Greek Orthodox, Muslim, Maronite, Roman Catholic ‑‑
Government System: Democratic, elected president ‑‑
Languages: Greek, Turkish, English ‑‑
Work Week: Government:
7:30 AM to 2:30 PM Offices:
8:00 AM to 5:30 PM with a lunch‑break from 1:00 PM to 2:30 PM Shops:
Same as offices in the winter but in the summer 8:00 AM to 7:00 PM with a three‑hour
siesta from 1:00‑4:00 PM INTERNATIONAL
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Cyprus: Domestic Economy <A>=Cyprus B. DOMESTIC ECONOMY (in
USD million, except where noted) ‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑ Item 1997 1998(proj.) 1999(est.) ‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑ GDP 8,432.0 8,684.0 9,032.0 Real
GDP Growth (pct) 2.3 3.0 4.0 GDP
per capita (USD) 13,004.0 13,480.0 13,800.0 Govt.
Spending (pct of GDP) 37.3 38.9 39.5 Inflation
(pct) 3.6 3.0 3.0 Unemployment 3.4 3.1 2.8 Foreign
Exch. Reserves 5,060.0 5,540.0 6,000.0 Average
Exchange Rate ‑‑ (USD 1.00 = CP) 0.51 0.52 0.50 Foreign
Debt (CP) 754.0 938.0 950.0 Debt
Service Ratio (pct) 8.2 7.0 8.0 U.S.
Economic Assistance 15.0 15.0 15.0 INTERNATIONAL
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Cyprus: Trade <A>=Cyprus C. Trade ‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑ ItItem 1997 1998(proj.) 1999(est.) ‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑‑ ToTotal
Country Exports 1,242.0 1,300.0 1,400.0 Total
Country Imports 3,685.0 3,750.0 3,900.0 U.S.
Exports 699.0 770.0 900.0 U.S.
Imports 14.0 15.0 17.0 U.S.
Share of Imports (pct) 19.0 19.4 19.8 ‑‑
Trade Balance with three leading partners in 1997: U.U.S.,
(‑) USD 685.0 million; U.K., (‑) USD 304.0 million; and Italy, (‑)
USD 287.0 million. ‑‑
Principal U.S. Exports: tobacco and cigarettes, office machines and dadata
processing equipment, cereals, electrical equipment, and passenger cars. ‑‑
Principal U.S. Imports: clothing, hunting rifle cartridges, canvas, dadairy
products, and plaster. INTERNATIONAL
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Cyprus: Investment Statistics <A>=Cyprus D.
INVESTMENT STATISTICS In
1997 the Central Bank issued 175 new permits for foreign investment of USD 27.0
million in projects costing around USD 104.0 million. By comparison, in 1996 the Central Bank
issued 145 permits for foreign investment of USD 36.0 million. The stock of foreign equity participation in
Cyprus since 1986 is estimated at USD 359.0 million in projects costing around
USD 754.0 million. For more details,
please refer to Section VII, Paragraph F.
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Cyprus: U.S. and Country Contacts <A>=Cyprus E. U.S. AND COUNTRY CONTACTS: Ministry
of Foreign Affairs Minister: Dr. Yiannakis Kasoulides, tel: 357‑2‑300700 Permanent
Secretary: Alecos Shambos, tel: 357‑2‑300713 FAX:
357‑2‑461881 Ministry
of Finance Minister: Mr. Christodoulos Christodoulou, tel: 357‑2‑454309
FAX: 357‑2‑367471 Permanent
Secretary: Mr. Antonis Malaos, tel: 357‑2‑803511 FAX: 357‑2‑366080 Ministry
of Commerce and Industry Minister: Mr. Nicos Rolandis, tel: 357‑2‑304972 FAX:
357‑2‑375323 Permanent
Secretary: Mr. Michael Erotokritos, tel: 357‑2‑304964 FAX: 357‑2‑375120 Ministry
of Communications and Works Minister: Mr. L. Ierodiaconou, tel: 357‑2‑302199 FAX:
357‑2‑441022 Permanent
Secretary: Dr. Vasos Pyrgos, tel: 357‑2‑302278 FAX:
357‑2‑475024 Ministry
of Agriculture and Natural Resources Minister:
Mr. Costas Themistocleous, tel: 357‑2‑302245 FAX:
357‑2‑781156 Permanent
Secretary: Mr. Symeon Matsis, tel: 357‑2‑300817 FAX:
357‑2‑781156 Ministry
of Health Minister:
Mr. Christos Solomis, tel: 357‑2‑309503 FAX:
357‑2‑434189 Permanent
Secretary: Mr. Achilleas Patzinakos, tel: 357‑2‑309508 FAX: 357‑2‑434203 Electricity
Authority of Cyprus President:
Mr.Costas Constantinides tel:
357‑2‑444518 FAX: 357‑2‑454966 Cyprus
Telecommunications Authority General
Manager: Mr. Sparsis Modestou, tel:
357‑2‑701202 FAX: 357‑2‑494940 Cyprus
Ports Authority Acting
General Manager: Mr. Michalakis Vasiliades tel:
357‑2‑756100 FAX: 357‑2‑765420 Country
Trade Associations/Chambers of Commerce The
Cyprus Chamber of Commerce and Industry is the major contact for business
orientation and is located in Nicosia, Cyprus.
Contact: Mr. Panayiotis Loizides,
Secretary General (tel: 357‑2‑669500, FAX: 357‑2‑669048). Regional Chambers of Commerce are also
located in four other towns. There
are also trade associations governing most professions. Most of these associations are housed within
the Chamber's building. Contact: Mr. Thasos Katsourides, Secretary, tel: 357‑2‑669500,
FAX: 357‑2‑667593. Recently,
the Cyprus‑American Business Association was established under the Cyprus
Chamber of Commerce and Industry to handle matters relating to trade with the
United States. For information, contact
Mr. Andreas Nathanael, tel: 357‑2‑669500, FAX: 357‑2‑668630. Country
Market Research Firms There
are many market research bureaus operating in Cyprus. Listed below are a few that can be used by
U.S. businessmen: ‑‑
Middle East Marketing Research Bureau Ltd., P.O.Box 2098, Nicosia, CyCyprus
(tel: 357‑2‑335333). ‑‑
AMER World Research Ltd., 2 Limassol Road, Nicosia, Cyprus (tel: 35357‑2‑334131
or 756600). ‑‑
RAI Consultants/Research, 16 Kyriacos Matsis Street, Eagle Tower, NiNicosia,
Cyprus (tel: 357‑2‑317258) ‑‑
M. & R. Euroresearch Ltd., 5 Chytron Street, 1075 Nicosia, Cyprus (t(tel:
357‑2‑761142). COUNTRY
COMMERCIAL BANKS The
commercial banks operating in Cyprus are the following: ‑‑
Bank of Cyprus, 51 Stassinos Street, Ayia Paraskevi, NiNicosia
(tel: 357‑2‑378000, fax: 357‑2‑378327) ‑‑
Cyprus Popular Bank, 39 Arch. Makarios III Ave., Nicosia (tel: 35357‑2‑752000,
fax: 357‑2‑811491). ‑‑
Hellenic Bank, 92 Digenis Akritas Ave., Nicosia. (t(tel:
357‑2‑768000, fax: 357‑2‑754074) ‑‑
National Bank of Greece, 36 Arch. Makarios III Ave. NiNicosia
(tel: 357‑2‑751412, fax: 357‑2‑758923). ‑‑
Arab Bank, 28 Santaroza Str., Nicosia (t(tel:
357‑2‑767111, fax: 357‑2‑760890) ‑‑
Lombard Natwest Bank, St. Lenas Square, Nicosia. (t(tel:
357‑2‑474333, fax: 457870) The
local banks are open to the public five days a week from 8:15 a.m. to 12:30
p.m. The facilities offered by them are
the same as by European banks and include cash points, credit cards and checking
accounts. The offshore banks are open to
the offshore community only, from 8:30 a.m. to 5:30 p.m. A list of offshore banks can be obtained from
the Central Bank of Cyprus, P.O.Box 5529, Nicosia, Cyprus, Tel: 357‑2‑379800,
Fax: 357‑2‑378152. U.S.
EMBASSY TRADE PERSONNEL The
Embassy Commercial Department and the Commercial Library are in the main
compound. An American Commercial officer
is assigned to the Embassy for a three‑year tour. A Cypriot Commercial Specialist, a Cypriot
Economic Assistant, and a Cypriot Commercial Librarian are available to assist
U.S. Businessmen. The Embassy's
telephone number is 357‑2‑776400 Ext. 2520. FAX number: 357‑2‑781663. The Embassy has its own website on the
Internet (http://www.americanembassy.org.cy) and may also be reached by e‑mail
(amembass@spidernet.com.cy). Washington‑Based
USG Country Contacts Washington‑based
USG country contacts include the Cyprus Desks at the Department of State (tel:
202‑647‑6113) and Department of Commerce (tel: 202‑482‑3945),
the Overseas Private Investment Corporation (OPIC) (tel: 202‑336‑8474),
Eximbank (tel: 202‑566‑8990), and Trade and Development Agency
(tel: 703‑875‑4357). INTERNATIONAL
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Cyprus: Available Market Research <A>=Cyprus F.
Market Research At
present there are no Industry Sector Analysis reports (ISAs) available in
Cyprus. List
of USDA/FAS/Commodity Reports and Market Briefs There
is no Agricultural Officer assigned to cover Cyprus in the region. Agricultural problems from Cyprus are
referred to Washington. Commodity
Reports and Market Briefs should be referred to USDA Washington at the
following address: U.S. Department of Agriculture Director, AgExport Services Division Foreign Agricultural Service Washington DC 20250‑1052 Tel. (202) 690‑3424 Fax: (202) 690‑4374 INTERNATIONAL
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Cyprus: Trade Event Schedule <A>=Cyprus G.
Trade Event Schedule The
major trade events scheduled on a yearly basis are: (A)
The U.S. products pavilion at the Cyprus International Trade Fair which usually
takes place the last week of May and first week of June. This is an exhibitor‑financed event. (B)
The State Fairs Authority organizes specialized exhibitions such as the Office
Equip. October 14‑18, 1998;
Motorshow November 4‑8, 1998;
International Education Fair February 25‑28, 1999; 24th Cyprus
International Fair June 3‑13, 1999; Agrifair October 6‑10,
1999; Watertech and Machinery &
Tools Exhibition October 6‑10, 1999; Ideal Home October, 23‑31,
1999. Some
U.S. companies participate at these specialized exhibitions. Listings of these fairs are sent to the
Department of Commerce and are available from the Desk Officer (tel. 202‑482‑2177).
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