Cyprus stands to loose from a prolonged negotiating round with the Troika, General Manager of the Cyprus Institute of Certified Public Accountants (ICPAC) Kyriakos Iordanou told CNA, adding that this situation favours some EU member-states that eye Cyprus’ position as an international business centre.
Invited to comment on information that some EU member-states exploit Cyprus’ application for financial support from the EU bailout mechanism in a bid to attract foreign capital and companies which otherwise would choose Cyprus, Iordanou said “it is no secret that some countries are promoting their interests in the fields of attracting capital, businesses and business activities with various ways,” adding there are some information which are being evaluated.
Cyprus’, which has the lowest corporate tax of 10%, main rivals are Luxemburg, Malta, Ireland and the Netherlands.
Commenting on press reports that Slovakia has requested from the Troika mission to investigate the flow of foreign capital in Cyprus, Iordanou said he is not aware of these information, noting however that during their two meetings with the Troika auditors in Cyprus “they have showed interest on the operating framework of Cyprus as a business centre and made many questions on money laundering.”
He noted that Cyprus’ low corporate tax “provides an easy excuse for someone to create impressions” against Cyprus.
Invited to comment on the decline of deposits of foreign nationals in Cyprus, Iordanou said that there is concern over the situation of the Cypriot economy.
He underlined that the protracted negotiations between Cyprus and the Troika on the Memorandum of Understanding associated with the financial assistance “is not helpful whatsoever.”
“This abeyance is not helpful to our image as an international business centre and yes other EU partners are eyeing our position. Therefore we believe that efforts to strengthen our country as an international business centre should be intensified and we should assist the Cyprus Investment Promotion Agency and we should not give them any excuses,” he said.
Cyprus has applied for financial assistance from the EU bailout mechanism to assist the recapitalization of its two main banks, which have been severely hit from the haircut of the Greek sovereign debt and to secure its fiscal needs.