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International shipping companies remain in Cyprus

07 February, 2014

Despite the setbacks of the decisions of Eurogroup international shipping companies continue to support the Cypriot economy contributing around 7% of GDP, said Director General of the Cyprus Shipping Chamber, Thomas Kazakos.

A delegation of the Chamber met Wednesday with technocrats of Troika, which was briefed on the situation in the shipping industry, in the context of the third review of Cyprus’ economic adjustment programme.

"We explained -answering their questions- the developments and the current situation in the Cyprus shipping sector, within the broader state of the economy," he said in a statement after the meeting. He added that the questions of Troika’s technocrats were whether shipping companies were affected by the decisions of Eurogroup and what the prospects to further develop the industry are. They also discussed the requests of the Shipping Chamber.

"Although haircut on deposits had implications affecting also the shipping sector, the industry remains firmly committed in Cyprus and the Cypriot flag and continues to support Cyprus economically and socially" he added.

Kazakos pointed out that there are also prospects for further development based on specific measures they have suggested to the state, such as solving the problem of the Turkish embargo for Cyprus ships, further development of the tax system and upgrading maritime administrations.

Replying to a question, Kazakos noted that although the global shipping industry came under pressure in recent years, the turnover of Cyprus shipping is stable and expected to remain around 7% of GDP in 2013.

For 2014, Kazakos said international shipping is expected to grow, affecting positively the Cypriot shipping.

The Cypriot authorities and the Troika (EC, ECB and the IMF) agreed last March on a €10 billion bailout, featuring haircut of uninsured deposits. So far Cyprus has received two positive reviews on the implementation of the Memorandum of Understanding, covering the conditions of the financial assistance.