Balance Sheet of the Cyprus Economy - Do We Have Hope?

Dear readers, we have prepared for you an- We are improving the tax system on offshores and
"accountancy based balance sheet" regarding Cyprusespecially shipping, which will make Cyprus perhaps
future in terms of real estate development. This is athe top destination for Shipping Cos.
road map of "things to be done", in order to offer- Investments in exchange of permanent residency
some sort of hope, but at the same time, not toand investments for passports is a major attraction
dream that everything is OK. Cyprus being such afor wealthy 3rd countries residents. Already initial
small economy, little things, make the economy turnresults are most positive.
around (our reservations on the handouts of money- The building amnesty is coming (but a bit late) but
to all sorts of people by this Government has beenat least is coming and this will address to an extent
criticised in a previous article of ours).the real estate lack of title issue.
- Two new airports are completed and operational -- We still need a change of local attitudes (see
be it expensive for tour operators. New privatedecision of Hilton Hotel to leave the island because
executive lounge for private jets under way pending.they did not receive an operation permit since 1999!!).
- Limassol marina is under construction with heavyThe relation between the private investment and red
financial contribution.tape is attrocious.
- Larnaca marina - unknown execution- A P.R. Cypriot president is another asset to note.
- Paphos marina - Still pending - Time unknownNot normally found in the E.U. and bearing in mind our
- Ayia Napa marina on target with investors going"Communist" president, this is a pleasant "shock" to
ahead.remember for investors.
- One new golf project has received a permit- A doer Minister of Interior who has our sympathy
(Larnaca), another one under construction (Pafos)for his desperation in the Civil Services procedures is
and another 3-4 pending (out of the 10 but wean added asset. He is trying at least.
record those which we think they will actually be- Etc etc
built).Regrettably those of us who are at a "mature" age,
- Limassol old town is undergoing numerousit will take time to realise the benefits of most of
renovations including the old town and the castle areathese and other projects, but we estimate that it
- Also under way is the old fishing harbour withmight take 2-3 years to see the economic benefits,
construction timing within the year 2011.but at least the policy is there and there is hope
- New/reviewed town planning regulations on high riseespecially for the new investors and the younger
buildings have shown their positive results in Limassol.generation to have jobs. We have watched a BBC
Other projects follow and the revised approach willprogramme on Singapore and Hong Kong about
provide an international image for this and other"good" living and we can tell you that living in a 2
towns.bedroom apartment of 60 sq.mts. on the 17th floor
- Investment funds of a large scale from abroad,does not encourage us to go there.
including Dubai, Israeli Cos and others (Qatar inSmall is beautiful, as we always say, but people must
addition) will cause others to follow, showing interestalso have an income and security of their investment
for little Cyprus, including the latest three deals of(see Spain with compulsory acquisition with no
land purchases (€18.0 mil + €14.0 mil. + €7.0compensation and 20% unemployment). Surely, as
mil.) at Nicosia.Cyprus, we have numerous problems, but we can
- We have internal political harmony (a major asset)look at the immediate future with some hope.
to the extent "allowed" by democracy.