Gold Magazine June - July 2013, Issue 27 | Page 54

CYPRUS SHIPPING DIRECTORY

CURRENT FINANCIAL
DEVELOPMENTS &

THE CYPRUS SHIPPING INDUSTRY
By Thomas Kazakos, Director-General, Cyprus Shipping Chamber

he recent Cyprus-Troika
loan agreement has,
admittedly, brought an
end to the financial uncertainty surrounding the
country’s banking system
but the strict austerity
measures imposed on
Cyprus and the temporary banking restrictions
have, to a certain extent,

affected the smooth operation of shipping
companies based here.
However, despite a limited number
of cases where local shipping companies
have been directly affected by the banking
system’s problems, shipping’s overall operational and taxation infrastructure remains
intact. Indeed, the strength of the shipping
taxation system is one of the main reasons
why these companies remain fully committed to Cyprus, as the base for their opera-

52 Gold THE INTERNATIONAL INVESTMENT, FINANCE & PROFESSIONAL SERVICES MAGAZINE OF CYPRUS

tions. The shipping industry stands united
and remains loyal to Cyprus and its flag.
Similarly, the country’s Maritime Administration, through the Department of Merchant
Shipping, continues to work normally with
no interruptions and restrictions.
The temporary banking restrictions are being eased day by day and the Government is
in the process of introducing new measures so
that all the restrictions can be lifted as soon as
possible. While implementing the appropriate urgent financial measures, it is taking into
account the needs of the Cyprus economy,
including those of the shipping industry.
Moreover, the Cyprus Shipping Chamber
(CSC), through a coordinated plan of action
and close contact with various state agencies,
has intensified its efforts to alleviate any operational problems that might occur, thereby
enabling shipping companies in Cyprus to
continue trading as normal and to meet their
obligations towards seafarers and business associates alike. There has been a gradua l return
to normal business for Cyprus-based shipping
companies, in terms of local banking transactions, and this is contributing to the reinstatement of trust between the banks and their
clients. The Government has also publicly
acknowledged its appreciation to the shipping
industry for its continuous loyalty, its substantial financial support and high standards
of professionalism, and has pledged its commitment to work with the CSC – now, more
than ever – on promoting the advantages of
Cyprus as a reliable and competitive maritime
centre.
In the wake of the first Eurogroup decision,
the CSC launched a positive PR campaign
under the banner “Shipping remains in Cyprus and continues to support the Economy”.
The aim of this initiative is to promote in
Cyprus and abroad the fact that, despite the
global depression in shipping freight rates and
the recent Cyprus banking problems, Cyprus’
overall shipping infrastructure remains solid
and fully operational. Between the two Eurogroup meetings, when the country’s banks