Gold Magazine March - April 2013, Issue 24 | Page 19

S

COVER STORY

N
icos Anastasiades, the newlyelected Cypriot President, is
aware that allegations of money laundering and the efforts
by competing jurisdictions
have taken their toll on the
island’s reputation as a leading regional professional and
financial services centre and
he intends to play a leading
role in ensuring that Cyprus
regains its lost lead as soon
as possible. In this exclusive
interview with Gold, President
Anastasiades sets out his
priorities for attracting new
investment and improving existing public and private sector
services.

Gold: Do you endorse the view that the
professional and financial services sector
has the potential to become the area of
the economy which will boost growth
and create further prospects amid what
has been the worst financial crisis ever
experienced by the island?
Nicos Anastasiades: The professional and
financial services sector has been the most
dynamic sector of the Cypriot economy
during the last 20 years. It is currently the
fastest-growing sector and is indisputably
a major source of future growth. International services grew on average by 8.3%
per year in 2007-11 when almost every
other sector of the economy was contracting. 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. The further
enhancement of the sector is at the top of
my agenda. I intend to devote as much of
my personal time as necessary to meeting
with leading professionals to discuss current problems and to agree on a mutually
accepted strategy to resolve them.
Gold: Do you have specific issues in
mind?
N.A.: As a priority we shall address the
damage done to the island’s reputation as
a financial centre – I’m referring to the
totally unfounded allegations of money
laundering – and to the economy which is
currently ranked below investment grade
by the credit rating agencies. We want our
economy to be assessed as an AAA economy and not as a junk.
Measures such as improving services at
the office of the Registrar of Companies,
reducing bureaucracy in the civil service,
setting up specialised teams at the Ministry
of Finance to work with the private sector
on drafting new legislation will definitely
help Cyprus develop further as a regional

business centre. But you must bear in
mind that it is not only the public sector
that needs to change. The private sector
also needs to realise that it has to adhere to
strict regulations and rules. This will also
improve our reputation as a quality place
to do business.
Gold: How do you plan to restore Cyprus’ reputation? Recent developments
have caused immense harm to the island’s prestige. Is the damage irreversible?
N.A.: The damage is not irreversible. If I
considered it so I wouldn’t be doing this
job! It is, though, an extremely difficult
task. How I will do it? Well, I will get on
a plane and travel whenever and wherever
necessary, I will meet whoever I need to, no
matter how high- or low-ranking he or she
might be, and prove that we mean business
and that we are ‘clean’ and reliable. Our
government has no qualms about defending
its businesses and its financial sector and
no ideological obsessions at all. If I have
to speak on behalf of Cyprus’ banks I will
do so. If I have to make interventions to
attract investors, to open doors for our businesses and the financial sector I will do so.
I intend to invest time and money in this.
Restoring confidence is at this point in time
of the utmost importance.
Gold: You also need to correct the country’s macroeconomic imbalances.
N.A.: We should balance the budget as
soon as possible by reducing public spending rather than imposing new taxes or
changing our tax regime. Public spending
has risen from around 35% of GDP 15
years ago to almost 55% of GDP today.
This inevitably undermines confidence
and the growth potential of the economy.
Restoring and maintaining the liquidity
and capital adequacy of the banking sector
is also a priority. Measures to strengthen

competitive business
we are operating,
efficiency are imperative

In the
environment in which
and

speed

THE INTERNATIONAL INVESTMENT, BUSINESS & FINANCE MAGAZINE OF CYPRUS

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11/03/2013 08:48