Gold Magazine May - June 2013, Issue 26

6 EDITORIAL 8 up front 14 FIVE MINUTES WITH… 16 issue 26 may 14 - june 13 2013 A Diamond Exchange could raise state revenues, boost the economy, encourage tourism and make the most of the country’s strategic location. ideLoo uts XXXX THE VIEW FROM BUSINESS g In kin O Diamonds Are For… RICHARD BUITEMAN T, THE . EMEN T AGRE ROM HERE BANK FOREIGNERS’ V F IEW OF HE CYPRUS BAILOU ING RE STRICTIONS ANDTWHERE THE ISLAND GOES 22 T here has been a great deal of talk about how the deal struck with the Troika to bailout the Cyprus economy and restructure its banking sector will affect foreign investors and companies on the island. Most of the talk has been by Cypriots – lawyers, accountants, advisors. In this issue we present the views of the foreigners themselves and while they partly echo local optimism about the future, they are also quite critical of the Troika’s approach to the island’s problems and to how previous governments have ignored them. The Russian view comes direct from Moscow from accountant Igor Makarov but also from closer to home: Natalia Kardash, Editor-in-Chief of several Russian-language publications in Cyprus, is Vice-President of the Association of Russianspeaking residents and she has We have a holding company for our online gaming business and we have been here for two years. The things that attracted me and my fellowdirectors to Cyprus are still in place: the high standard of living, the climate, a more relaxed lifestyle and laid-back way of doing business. I love Cyprus and I am not considering moving my business anywhere else but what has happened will certainly have made some people reconsider their plans to come to Cyprus and take advantage of what the country has to offer as an international business centre. They may start looking at Malta or Honduras instead. The Government now needs to do two very important things: It must make sure that there will be no further change to the corporate tax rate – 12.5% is still attractive but any further increase will make companies start looking elsewhere – and it must take steps to revive the banking sector and give investors a reason to regain their confidence in Cyprus. I think a key issue on which it should work is transparency. This is incredibly important and if the country wants to regain investor confidence, it needs to make everyone realize that the present measures have been taken out of necessity, they will soon be lifted and they won’t happen again. We all know that Iceland imposed similar restrictions on the movement of capital and they are still in place five years later. The restrictions in Cyprus are being described as ‘temporary’ but no-one knows how long they will stay in place. The Government and the Central Bank need to take the risk and lift them, otherwise the uncertainty surrounding the issue will have a negative impact on the country’s efforts to regain its reputation. What has happened will certainly have made some people reconsider their plans to come to Cyprus ANIL KUMAR CHAIRMAN, RANSAT GROUP, UK By John Vickers her finger on the pulse of the Russian community here. She proposes some simple steps that will make her compatriots feel more comfortable about the idea of staying. We also hear from a variety of foreign businessmen and international media, and we recall what Members of the European Parliament had to say last month when they debated the Eurogroup’s treatment of Cyprus. RESTORING CONFIDENCE IS THE KEY The local and international media have made a disaster out of the situation and right now the island has a very bad name. People think that it’s an offshore tax haven, etc., forgetting that it’s an EU country and held the Presidency less than 12 months ago. The ﬁrst thing that the Government needs to do is regain people’s trust and restore conﬁdence. This is the key. I met the President brieﬂy he told me that he is already working very hard to restore conﬁdence. If he manages this, the country will be ﬁne. Cyprus hasn’t lost as much as other countries. Both Ireland and Greece were much worse off. Here, the shipping model is good and tourism is on the rise again. Of course, if you depend entirely on tourism and outside money you cannot consider your economy to be sustainable. The Government has to take initiatives but the private sector should also take responsibility too. To this end it needs to bring in a new model. The business community needs to come together and create a new structure to help the country get back on its feet. I fail to understand why Cyprus wants to depend on Russia. The Russians need Cyprus more than Cyprus needs them. This is the only country in Europe that “SHIPPING REMAINS IN CYPRUS AND SUPPORTS THE ECONOMY” At the 24th Annual General Meeting of the Cyprus Shipping Chamber last month, the President of the Chamber, Capt. Eugen Adami, emphasised that, irrespective of the effects of the recent banking problem on a number of shipping com

Gold Magazine May - June 2013, Issue 26 | Página 4