March 2016


Cyprus Economy Review


Cyprus Exits Economic Adjustment Program


The Eurogroup commends the Cypriot authorities for the overall successful implementation of the programme and the important achievements made in the past three years, and also thanks the institutions for their vital contribution owards this end.

The Eurogroup welcomes the fact that economic activity has continued on a positive trend, and the banking system has further healed.
Contact us

Costas Christoforou CPA, TEP
General Manager costas.christoforou@cpm.com.cy

Rodoula Demetriades MS, CPA
Senior Manager
Business Development rodoula.demetriades@cpm.com.cy

Cyproman Services Ltd
www.cpm.com.cy
info@cpm.com.cy





The commitment of the authorities and the Cypriot people to the overall programme agreements has lso been essential to a fiscal perform ance that has exceeded expectations. These positive developments have been instrumental in regaining investor confidence in the Cypriot economy, with the sovereign returning to the international markets.

The Cypriot banking system in particular has under gone a deep transformation. The ground covered since March 2013 has been significant and the reform measures, which have been executed or are underway are essential to restoring the Cypriot financial system to viability. However, work must continue with determination to secure the reduction of the non-performing loan ratio to healthier levels. This includes the rigorous and swift implementation of the insolvency framework and foreclosure laws adopted in 2015 together with further measures including the legislation on sale of assets and effective use of the full range of the available non-performing loan management tools.
(Source: www.goldnews.com.cy)
GDP Growth Rate - 4th Quarter 2015

Τhe GDP growth rate in real terms during the fourth quarter of 2015 is positive and estimated at +2.5% over the corresponding quarter of 2014. Based on seasonally and working day adjusted data, GDP growth rate in real terms is estimated at +2.7%.

The increase of the GDP growth rates is mainly attributed to the sectors: "Hotels and Restaurants", "Professional, Scientific and Technical Activities", "Retail and Wholesale Trade", "Manufacturing", "Construction", "Transport" as well as the "Financial Service Activities".
(Source: CYSTAT)
Increase in applications for the registration of new companies

Applications for the registration of new companies in Cyprus accelerated by 38% year on year in February, figures released by Companies Registrar show.

Applications reached 1.104 in February compared with 798 in February 2015. This is the sixth consecutive monthly increase in applications. Compared with January 2016, new company registration increased by 19%.

The number of applications for new name approval reached 2,305 compared with 1,732 in February 2015. In the first two months of 2016 it was recorded at 4.371. Total registered companies in the Registrar in end-February amounted to 201.554. New registrations in the first two months reached 1.838 whereas total new registrations amounted to 11.270 in 2015.
(Source: www.cna.org.cy)
Tourism

Revenue from tourism marked an increase of 4.4% in 2015, according to the Statistical Service of the Republic of Cyprus. According to a press release, for the period January–December 2015 revenue from tourism is estimated at €2,11 billion (€2.112 million) compared to €2,02 billion (€2.023 million) in the corresponding period of 2014, recording an increase of 4,4%.

On the basis of the results of the Passenger Survey, revenue from tourism reached €52,6 million in December 2015 compared to €43,7 mn in the corresponding month of the previous year, recording an increase of 20,4%.
(Source:www.cna.org.cy)

On the basis of the results of the Passengers Survey, arrivals of tourists reached 78.348 in December 2015 compared to 56.863 in December 2014, recording an increase of 37,8%. An increase of 43,7% was recorded in tourist arrivals from the United Kingdom (from 17.995 in December 2014 to 25.856 in December 2015), 38,0% increase from Greece (from 8.263 to 11.399) and 65,3% increase from Russia (from 4.956 to 8.191 this year). On the other hand a decrease of 32,8% was recorded in tourist arrivals from France (1.324 in December 2015 compared to 1.969 in December 2014).

For the period January–December 2015 arrivals of tourists totaled 2.659.405 compared to 2.441.239 in the corresponding period of 2014, recording an increase of 8,9%.

Arrivals of tourists reached 48.607 in January 2016 compared to 41.799 in January 2015, recording an increase of 16,3%. An increase of 18,0% was recorded in tourist arrivals from the United Kingdom (from 12.334 in January 2015 to 14.552 in January 2016), 17,3% increase from Greece (from 6.057 to 7.104) and 10,5% increase from Russia (from 4.799 to 5.304 this year). On the other hand a decrease of 31,2% was recorded in tourist arrivals from France (618 in January 2016 compared to 898 in January 2015).
(Source: CYSTAT)
Forthcoming 3rd Licensing Round

The Republic of Cyprus is in the process of launching the 3rd Offshore Licensing Round. The invitation, the available Blocks, the timetable and the criteria, which shall be used for granting exploration licenses, will be published in the Official Journal of the European Union soon.

A detailed guidance note concerning the submission of the applications will be made available from the Ministry of Energy, Commerce, Industry and Tourism, upon the publication of the above mentioned information in the Official Journal of the European Union.
(Source: www.mcit.gov.cy)
Increase in property sales

Annual property sales were up by 54% in February compared to the same month of 2015, data published by the Land Registry on Monday show.

In particular the data which relate to sales contracts submitted to the Registry island wide came to 501 in February compared to 325 in February of the previous year.January saw an increase of 2% compared to January 2015.

In the first two months of the year the contracts submitted came to 828 compared to 646 in the first two months of 2015, recording an increase of 28%. In Nicosia district sales contracts for property were up by 76%, 79 instead of 45 in February 2015. In Limassol the increase of the order of 85%, 179 compared to 97 last February.

In Larnaca property sales were up by 52% at 108 in February this year compared to 71 in February 2015, reversing a drop of 13% in January. In Famagusta district property sales were up by 30% and in Paphos by 18%.
(Source: www.cna.org.cy)
CPM
Copyright 2016 © Cyproman Services Limited. All Rights Reserved.

All newsletter content provided by KPMG Cyprus.
No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by means, electronic, mechanical, photocopying, recording or otherwise, without the prior written permission of Cyproman Services Limited. The information provided in this publication does not constitute legal, tax or investment advice and no responsibility is accepted for any loss occasioned directly or indirectly as a result of persons acting, or refraining from acting, wholly or partially in reliance upon it.