MAP S.Platis - Articles and news items

A favoured location for the retail FX industry

July / August 2012 / 13 July 2012 / Steve Shaw, Editor, FX-MM

Cyprus has made a considerable effort in recent years to establish itself as an important regional financial centre. Of late, the problems in nearby Greece have begun to impact the island significantly, making for an increasingly uncertain future. In the wake of Cyprus’ recent request for EU/IMF bailout funds, Steve Shaw looks at the benefits on offer to financial firms which establish a presence in Cyprus and considers the island’s future economic prospects.

Cyprus is the easternmost outpost of the European Union and currently the only EU member state with a U.N. peace – keeping force deployed on its territory. This has kept the larger Greek-speaking part of the island separate from the Turkish enclave since a war in 1974. Nicosia, the capital, remains a divided city.

With a population of around one million, and a well-developed infrastructure, Cyprus has an economy which is dominated by tourism and financial services – the island’s services sector contributes around 80% of GDP. Since 1 January 2008 the euro has been the country’s national currency (albeit not in the Turkish administered part of Cyprus, which uses the Turkish lira). The Turkish part of Cyprus is less well developed, and has been handicapped by a lack of private and public investment. (more…)

Cyprus – A great place to do business

July / August 2012 / 13 July 2012 / Steve Shaw, Editor, FX-MM

FX-MM asked Dr. Stelios Platis, Managing Director of financial services consultancy firm MAP S.Platis, for his thoughts on the future outlook for the financial sector in Cyprus.

FX-MM: How is the financial sector in Cyprus coping with the effects of the Eurozone sovereign debt crisis?

Dr. Platis: Cyprus’ economy is probably the one most intimately linked to Greece amongst its Eurozone peers, through Cyprus’ banking sector. Given that Greece today is in the midst of the Eurozone crisis, Cyprus as well as its banking sector are subject to significant shocks. At the same time, however, on the investment firms’ front and especially with regards to Forex and Binary Options, Cyprus today is increasingly becoming a hub for the sector, apparently not affected by the debt crisis. This is made possible by the European harmonising regulations which allow the use of other EU banks for Cyprus’ Investment Firms.

FX-MM: What initiatives are under way, or planned, which are aimed at further developing Cyprus’ capital markets?

Dr. Platis: As an EU member, Cyprus’ tax system is in line with EU Law. Also, the OECD includes Cyprus on its “white list” as one of 45 countries that have implemented agreed standards. (more…)