Address
by the Minister of Energy, Commerce, Industry
and
Tourism at the Cyprus-Russia Business & Investment Forum
It
is a great pleasure to be addressing today’s distinguished audience, gathered in
Limassol for this exceptional event targeting the further enhancement of the
historical relations of sincere friendship and mutually beneficial collaboration
between Cyprus and Russia.
Today’s
forum takes place at a turning point concerning both the new era that the Cyprus
economy is entering, as well as the deepening of the cooperation between the
governments of the two countries.
I
wish to begin my address by stressing the importance attributed by President
Anastasiades and his government to the outcome of the recent visit in Moscow,
which we feel succeeded in solidifying further the deep political, commercial,
cultural and religious links between our countries and peoples. Links that have
truly proved sincere and resilient through time and a number of different
challenges.
Taking
this opportunity, I would like to express the President’s gratitude to President
Putin and Prime Minister Medvedev, as well as to the President of the State
Duma, Mr Narushkin, for their tangible demonstration of support towards Cyprus
through their approval of the restructuring of the loan granted to our
country.
Distinguished
participants,
What
was traditionally one of the fastest growing economies in Europe was led into a
double dip recession. Unemployment was on a steep rise, the country faced
successive rating downgrades, and eventually lost access to the international
capital markets. In 2013, Cyprus was faced with a severe banking crisis and at
the same time with an equally severe fiscal crisis.
Two
years later, I
can state with confidence and certainty that Cyprus has turned the page and that
our economy is now on the road towards full recovery.
The
financial sector has been restructured and recapitalized and our credit
institutions have passed with success the recent European stress tests. Fiscal
imbalances have been addressed and important structural reforms are well
underway.
International
lenders have themselves recognized the continuous improvements and have praised
Cyprus on numerous occasions, while the international rating agencies have
upgraded the economy and its outlook. And on top of that, Cyprus has been able
to return to the international markets, far earlier than anyone predicted.
Leading
spreads reported huge decrease, as the yield on the government 10-year bond reached
yesterday a 4-year record low at 3.95%, having peaked two years ago at 16.4%.
Tourism,
shipping and professional services have proved to be the economy’s most
resilient sectors, outperforming predictions. The number of registration of new
companies has been steadily increasing pointing towards the road of
recovery.
Having
maintained a stable and investment friendly tax regime, the government is
determined to develop a comprehensive growth reform strategy, limiting
bureaucracy, simplifying procedures and creating a friendlier business and
investment environment.
Our
main objective is to boost the country’s international competitiveness and
established reputation as a centre of excellence for international investment
and business activities and to make Cyprus one of the best places globally to
start and grow a business.
Tangible
opportunities exist in numerous economic sectors; shipping, tourism and the
hospitality industry, land development, information and communication
technologies, education, health, professional services, and, of course, the
energy sector.
Ladies
and Gentlemen,
Today’s
Cyprus-Russia Business and Investment Forum takes place at a critical moment for
the Cyprus hydrocarbons sector, as we are preparing to declare the commerciality
of the Aphrodite gas field and to receive the Field Development Plan.
I
cannot emphasize strongly enough the significance of this development, as it
would be the very first time that Cyprus is moving from the exploration to the
exploitation phase of its natural resources. This development can in fact
transform the country into a regional energy-producing player, offering new
growth opportunities for the entire economy.
Beyond
the gains arising from the exploration and exploitation of its indigenous
hydrocarbon recourses, Cyprus also has a unique opportunity to benefit from the
regional oil and gas developments. Utilizing its excellent long-standing
relations with neighboring countries, together with its strategic location,
business friendly environment, stable investment climate and favorable tax
system, Cyprus is well positioned to become an energy center for the region,
hosting industries across the entire oil & gas value chain.
In
this context, Cyprus could prove a valuable partner to the Russian energy
industry players, with regards to utilizing the existing and upcoming
opportunities in upstream development and gas infrastructures.
Dear
friends,
Our
Government has its priorities clearly set out, aiming at achieving positive
results and further improving investor confidence. I am certain that this forum
will provide additional insight regarding the business environment in Cyprus and
ultimately lead to the identification of new and exciting investment
opportunities.
In
closing therefore, I would like to thank the organizers and express my sincere
appreciation for their effort and hard work in further enhancing the
traditionally strong relations between the business communities of the two
countries.
Finally,
I wish participants joining us from abroad a pleasant stay in Cyprus and to all
of you every success in your current and future business endeavours
.
Thank
you for your kind attention.
