InsiderBusinessCyprus received information from US about sanctions, President says

Cyprus received information from US about sanctions, President says

President Christodoulides announced that the US has delivered the first set of information on natural and legal persons named in the US sanctions list, with two more packages expected soon.

The President was confirming a story published by Stockwatch, saying that an 800-page dossier arrived from the US, with the names of entities and individuals based in Cyprus, who are on sanctions lists.

Speaking at the 13th Nicosia Economic Congress, the President emphasised the importance of safeguarding Cyprus’ reputation as a business and financial hub following recent sanctions imposed by the US and UK on Cypriot service providers.

The President stressed the significance of the matter and noted that he had spoken to the Attorney General about the information sent from the US, and would receive the necessary details for authorities to begin examining them. He also spoke of the need to tackle the issue to ensure that the name of Cyprus is not tarnished.

“I am certain that you, who represent the economy of our country, understand and share the need to conclude the matter and move on to a new era,” he told participants at the conference.

Cypriot economy strong despite challenges

Despite the COVID-19 pandemic and the difficult political climate caused by the Russian invasion of Ukraine, the Cypriot economy demonstrated remarkable resilience and a strong recovery in 2021, Christodoulides told the conference, noting that the real GDP growth in 2022 was 5.6%, following an expansion of 6.6% in 2021.

“Sectors such as tourism, trade, accommodation and food services have shown remarkable growth, along with the information and communication technology sector, while labor market has shown improvement, with the unemployment rate falling to 6.8% in 2022, compared to 7.5% in 2021” he said.

Looking ahead, the government’s macroeconomic projections forecast continued positive growth of around 2.8% in 2023, despite potential risks related to the international economic environment. Additionally, inflation is expected to slow to approximately 3.2% in 2023, compared to 8.1% in 2022.

The President expressed confidence that a comprehensive approach that encourages the attraction of quality investments and develops the entrepreneurial spirit, along with a supportive infrastructure, will strengthen the transition to a new development model.

He also announced that the government is currently in advanced consultations with several countries, and “significant investments” are expected in Cyprus in 2023.

“With our political relations with the countries of the wider Middle East, the Eastern Mediterranean and the Gulf, as well as India and Japan, but also within the framework of our now strategic relationship with the USA, and using these excellent political relations, we will also have some important investments to announce in the next period,” he stressed.

The President also discussed the National Recovery and Resilience Plan, which he said could lead to economic growth and an increase in GDP by about 3% in the short term and 7% in the medium term until 2026, compared to the base growth scenario without its implementation. The plan is also expected to create more than 11,000 new quality jobs by 2026.

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