Gold Magazine June - July 2013, Issue 27 | Page 61

surely creates additional business opportunities.
Owners who preferred (never mind the
higher operating costs they run in comparison
to shipmanagers) to carry out their own
management have turned to Shipmanagement
companies trying for their own survival in the
industry. The major challenge for us Ship
Managers is to make sure we do not shift their
cashflow problems our way. We need to make
sure that for any business project we undertake
a rigorous risk assessment is carried out.
Has BSM been affected by recent
developments in Cyprus, regarding the
restructuring of the banking system and the
bailout of the economy?
It has actually been a bail-in! A bailout would
have been much easier to deal with and the
Cyprus banking system would have not
suffered the way it did! BSM has not in any
way been affected by the recent developments.
Our business has not been affected either, as
our clientele is of international background.
Apart from the appointment of an UnderSecretary to the President for Shipping, are
there other measures that the Government
could and should take to further upgrade
and enhance the Cyprus shipping industry?
The commitment by the President to
appointing an Under-Secretary for Shipping
is very much appreciated and welcomed.
The need for such a position is something
for which the shipping industry in Cyprus
has been campaigning for the last ten years.
Additionally, as the Government seeks to reestablish Cyprus as a leading nation within
Europe, we do see an urgent need to clarify
the current structure and appointment of key
personnel within the Department of Merchant
Shipping. By accomplishing this we will
establish strong bonds within Cyprus as well as
with other flag states and associated members
of the shipping industry. We simply must
move forward in the progressive marketing of
the worth of Cyprus and the shipping industry
worldwide.

BERNHARD SCHULTE
SHIPMANAGEMENT
(CYPRUS) LTD

Is Cyprus still the most attractive
jurisdiction for a company like BSM or are
the island’s competitors gaining ground?
Cyprus will undoubtedly always be a
key maritime centre with a tremendous
commercial importance in the maritime
trade. Organisations can clearly define the
advantages that Cyprus offers with its high
standards of capabilities and competences,
its geographical location, and of course
the existing double tax treaties. Approval
by the European Commission for the
taxing of Shipmanagement companies
under the tonnage tax system rather than
with corporation