Cyprus was in a deep crisis in 2013 and in just 4 years exceeded all possible positive scenarios and overcame bank default. Today Cyprus is one of the most attractive countries for investors in the world, “catching” their attention not only with low rates of corporate tax, but also the opportunity to acquire citizenship of the European Union by meaning of buying real estate on more than acceptable conditions for them.
Recently, international publications reported an early payment of Cyprus to the IMF – one of the creditors of the troika – 288 million euros (according to the memorandum of 2013, the island was given 1 billion euros to restore the economy).
Early payment of part of the debt occurred after Cyprus managed to raise 850 million euros for seven-year bonds in June 2017 with a record low yield of 2.75%. Now the country pays 3.52% per year for debt servicing to the IMF. The balance of funds received from the placement of bonds was sent to redeem bonds with a higher yield (the total amount of about 500 million euros). Savings on debt servicing are 2% without increasing the amount of public debt.
The General Accounting of Cyprus summed up the following verdict: both the revenues and expenses of the island increased. In the first half of the year, the state received revenues amounting to 2.8 billion euros (against 2.6 billion in the first six months of 2016). Expenditures for the period from January to June 2017 reached 2.9 billion euros, compared with 2.7 billion in the first half of 2016. The expenditure part of the budget for the current year is planned at the level of 6.7 billion euros.
According to the statements of Cypriot officials and Cypriot financiers, it can be concluded that Cyprus still emerged from the crisis, despite the fact that the debt to creditors is still about 700 million euros.
According to local officials, Cyprus managed to cope with the problems due to the development of tourism and the formation of priorities for the interests of private investors. Now Cyprus invests in infrastructure such as sailing and marina, golf courses, and an integrated casino-resort.
Source: Successful Business, Gold News Economy, RuCy and Vintage KZ