More government support for financial services sector

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The government will further support the growth of the financial services sector by bolstering the regulatory framework, strengthening supervision, and ensuring effective enforcement, said President Nikos Christodoulides.

He pledged on Wednesday evening at the inauguration of MUFG Investor Services new offices in Limassol.

“Creating favourable conditions for the financial services sector is at the cornerstone of our governance program and our vision for the economy,” said Christodoulides.

He said the government will prepare a study, providing recommendations for enhancing the governance and supervision of administrative services providers.

“Establishing a Single Supervisory Authority for these services will be examined within this framework.

“In these challenging times for the global economy, the government remains committed to a three-pillar policy approach: fiscal discipline with government budget surpluses, a stable and healthy banking sector, and continuous structural reforms to increase our competitiveness.

“Our actions are guided by Vision2035, the long-term strategic plan for the economy, aiming to promote entrepreneurship and innovation and attract investment in high-growth sectors.”

The President said safeguarding the reputation of Cyprus as a credible financial centre is a matter of “highest priority”.

“Following the secondary sanctions imposed by the US and the UK last April, our government took immediate action, including the Council of Ministers’ decision on five specific measures based on a zero-tolerance policy.

“We are working on a comprehensive and coherent brand for Cyprus, showcasing Cyprus as a reliable, forward-thinking, and attractive destination for diverse opportunities and experiences.

“We also strive to maintain open channels of communication with the existing investors in Cyprus, aiming to create a truly attractive business environment that promotes transparency, efficiency, and a level playing field for all.

Immediately after assuming the Presidency, Christodoulides organised the first roundtable discussion with investors.

Challenges raised during the discussion included the reputation of Cyprus, difficulties in attracting and retaining talent, and the lack of schools and affordable residential options.

“Next month, we will revert to the issue and report on the steps we have taken to streamline doing business in Cyprus.

“We place significant emphasis on the satisfaction of existing investors in Cyprus because, ultimately, we consider you our best Ambassadors”.

Efforts to improve the business environment are made through the Strategy for Attracting Investment and Talent launched by the previous government in 2022.

“We are constantly evaluating its implementation and looking for ways to further improve it.

“In this respect, we will be approving changes to the Strategy soon to make it even more attractive.”