EDITORIAL
ISSUE 25
APRIL 14 - MAY 13, 2013
PRICE €4.95
5 291295 000577
00001 >
POWERED BY:
Yes We Can…
and We Must
I
t is the former British Prime Minister Harold Wilson who is credited with first uttering
the saying “A week is a long time in politics”. Here in Cyprus we have had extraordinary
proof of the truth of Wilson’s words over the past month and, in particular, during the
period 15-25 March when the country’s banking sector came crashing down in spectacular fashion following a week of tough negotiations with the Troika of international
lenders on the terms of a financial assistance package.
Somewhat ironically for Gold, our March issue, featuring a cover story/interview with the new
President, was published on 14 March, just one day before the world of Cyprus changed so dramatically. In that issue, Nicos Anastasiades spoke about the importance of the professional services
sector: “It is probably the only one that has proved resilient in this recession and this resilience indicates
that, if we actively try to change things for the better, the possibilities are almost unlimited.”
Today, the sector is being called upon to show just how resilient it is, following the extraordinary events surrounding the island’s two main banks and the effect that the resolution of Laiki and
restructuring of Bank of Cyprus may have on professional services, investors, high net worth individuals and Cyprus-based companies. As you will see in our latest cover story, opinions are divided
on how easily and how soon the sector will recover but the overall view of the professionals, experts
and commentators with whom we spoke is that, despite the blow that has undoubtedly been dealt
to the island’s reputation, Cyprus retains most – if not all – of the attractions and advantages that
have been its main selling points for investors over the past decade.
Flexibility is a key quality in business and while, for the past two years, business leaders and
experts have repeatedly told Gold that any attempt to change the 10% rate of corporate tax would
spell disaster, they are now – unanimously – expressing the view that the rise to 12.5% will not
have a noticeable effect on investment decisions. Fears that major companies would relocate or
take their funds elsewhere have also proved to be unfounded, at least for now. Restrictions are still
in place, so it is difficult to judge but, for example, many lawyers and accountants are happy to
report that their foreign clients are not rushing to Malta or Luxembourg and, on page 36, you can
read how at least one leading Russian businessman, Andrey Dashin, views the situation.
To say that the Cypriots are still in shock is an understatement. As Dashin says in our exclusive
interview, “It