Cyprus made difficult and costly decisions to put the economy back on track but red tape remains one of the country’s biggest problems, President Nicos Anastasiades said.
Addressing the Invest Cyprus Annual General Meeting, Anastasiades recalled that five years after the 2013 economic crisis, Cyprus is enjoying 4% GDP economic growth, registers fiscal surpluses, unemployment is down to 7%, while the island`s credit rating returned to investment-grade status.
“To achieve these results, we had to implement bold decisions, many of which had a high political cost, which we did not weigh,” the President said.
He said that Cyprus had to rationalise public expenditure, adopt tax incentives to foster growth and to attract investments but acknowledged a lack of success in reducing red tape, despite the implementation of structural reforms.
“Red tape constitutes one of our country’s greatest disadvantages. I hope the political powers will understand that leaps are necessary and that we need to reform the public sector, so it becomes more efficient,” Anastasiades said.
He pointed out that no one would expect Cyprus to exit the crisis of the magnitude of 2013 without any wounds remaining open.
“We are focusing on addressing problems of vulnerable groups of the population with additional social welfare measures for the fairer distribution of growth, achieved through the cooperation of the public and private sector.”
Michalis Michael, Invest Cyprus Chairman said the Agency’s tenth AGM coincides with the return of Cyprus’ credit rating to investment-grade.
“The government’s efforts in the last six years, prudent economic governance, putting the banking sector on a healthier footing and attracting investments were the key elements that turned the economy to growth,” said Michael.
Angelos Gregoriades, President of the Cyprus Investment Funds Association, said Cyprus has the capacity to operate as an attractive base for investment funds and fund managers.
Referring to the investment funds sector, Gregoriades said in recent years investment funds in Cyprus have increased by 70% while funds under management reached €5.7 bln marking an increase of 90%.
