NEW 4 Day Viewing Trips or Cash Back Offer! - tell me more! - NEW !! Members features - Bookmark properties into your own Cyprus-Ideal portfolio - tell me more !  NEW !!Save A Search - Save unlimited property lists and view the latest matching properties at any time - tell me more !    NEW !! Email Alerts - Receive daily alerts on new properties matching your search criteria direct to your inbox ! - tell me more !
home search properties livechat call back

UK FREEPHONE : 0800 081 1969

Cyprus Financial Update

Due to the prevailing economic crisis over the past few years in the whole of Europe the Cyprus government has asked for financial support from the Eurogroup and the International Monetary Fund (IMF), similar to the one other European countries have done recently like Spain, Greece, Portugal and Ireland.

On Monday, 25 March 2013, the Eurogroup had approved a financial help of €10 billion to Cyprus, with the involvement of both the Eurogroup and the IMF. This loan comes with some other changes that need to be implemented like increasing the company tax from 10% to 12.5%, stricter fiscal policy, increasing the tax on interest from deposits from 20% to 25%, but most importantly the EU and IMF required that Cyprus raise 5.8 billion euros from its banking sector towards its own financial rescue. This will be done by capitalising all deposits over 100.000 euros from Laiki Bank and at the same time levy an one off tax on deposits over €100.000 in Bank of Cyprus. All deposits under 100.000 euros will not be affected irrespective which bank they are deposited. The individual deposits held in Laiki Bank which are under 1000.000 euros will be transferred to a "good bank" and will be taken over in due time by Bank of Cyprus.

What we would like to stress here is that the problems that the Cypriot Economy is facing are mainly due to the big haircut that it was imposed to the Cypriot Banks due to their exposure on the Greek Government Corporate bonds. The good news is that Europe have agreed and will help Cyprus, like they have done in other European countries, in order to boost back the confidence and the trust of all foreign investors have for Cyprus and its future economy and real estate. The head of the EU rescue fund said Cyprus should receive the first emergency funds in May.

We are confident that with the new developments Cyprus will soon find its way to bring a financial stability to the country, and will help to have a new start with very good prospects in light of the high demand in real estate investments from both big institutions as well as from people aiming to take advantage of the immigration scheme of Cyprus as well as new big investments in the Gas and energy Industry in light of the upcoming gas exploration. The above arrangements will of course lead to a stable and secure financial environment and to a more conservative business approach by the Cyprus banks as well as lower interest rates for loans. This will also lead to the diversification of capital to alternative investments particularly real estate.

The positive news is that a deal finally has been agreed with Cyprus and Europe and soon, as it has happened with other countries all this bad publicity of the last 2 weeks will soon be forgotten.In a way this whole crisis that we have passed might turn as a great opportunity for our future business!

We would also like to assure you that Cyprus Ideal and associates are here for any questions or issues you might have.