Insider Business Mixed messages for Cyprus economy as Greece ends capital controls

Mixed messages for Cyprus economy as Greece ends capital controls

Greece has fully lifted its remaining capital controls and the messages for the Cyprus economy are mixed, according to analysts who told Phileleftheros that economic ties between the two countries are long-standing and strong. But they have also been tested through the years.

The lifting is a move signalling the Greek economy’s continuing return to stability after the tumult of three international bailouts since 2010.

And Demetris Vakis who heads the Institute of Certified Public Accountants of Cyprus (ICPAC) said: “This development is positive for the economic activity in Greece, since it will allow Greek businesses to use their resources in a more effective way when it comes to their protection and growth.”

As for the impact of this development on the Cyprus economy, Vakis said there are some financial activities going through Cyprus which may partially change.

“Those activities concern movement of capital…But the wider presence of Greek interest companies in Cyprus may increase now that restrictions have been lifted,” he added.

Another analyst said the key word following 50 months of capital restrictions is trust. The lifting is a sign of confidence in the Greek economy which is now expected to attract foreign investors and upgrade its credit ratings.

The return of deposits, not only by individuals but also from companies who preferred to keep funds abroad, is also a must.

Athens imposed capital controls in June 2015, when Greece was embroiled in a dispute with lenders over how to prop up an economy overwhelmed by a mountain of debt and its banks were bleeding cash.


Read more:

Top Stories

One death from covid announced on Sunday, 303 new cases

Health authorities in Cyprus on Sunday announced one death from covid-19 and 303 new cases out of a total of 46,544 tests. The PCR and...

Cyprus eighth from bottom in EU as far as women holding a parliamentary seat goes

Cyprus ranked eighth from the bottom in the EU with just 22% of women holding a seat in parliament in 2020, according to data...

Safeguarding public health top priority, says Cyprus President

One year after the outbreak of the coronavirus pandemic and Cyprus President Nicos Anastasiades on Sunday sent the message that top priority for his...

Police issue 214 fines in 24 hours for breach of covid measures

Police in Cyprus booked 213 citizens and a coffee-shop owner over the past 24 hours for breach of measures aiming to curb the spread...

Headmaster Lambon: The English School still a leader in education (PHOTOS)

The English School has always been an innovator with a reputation as a leader in education but the coronavirus pandemic has proved it is...


Squash soup

Ingredients: 1 kg pumpkin, cut into small cubes, approximately 5 cups 2 medium (400g) sweet potatoes, cut into cubes, approximately 2 ½ cups 1 chopped leek, only...


No visit to Cyprus is complete without enjoying the traditional meal of many small dishes known as ‘meze’. This large feast, which has been a...

Prawns with fried cheese, barley shaped pasta

Put the barley shaped pasta into a small pan with salted water, bring to a boil and when tender, drain. Peal the prawns leaving...

Salmon and shrimp sheftalies

Mix all ingredients for tabbouli in a bowl and keep to one side so flavours can combine. Prepare the sheftalies: wash and soak the casing...