Cypriot Finance Minister Upbeat On Economic Prospects

by Lorys Charalambous, Tax-News.com, Cyprus

10 September 2002

Cypriot Finance Minister, Takis Klerides was upbeat on the state of the jurisdiction's economy last week, announcing that Cyprus should return to higher rates of growth from 2004, and should be averaging 4.5% annually between 2003 and 2005.

However, speaking at a press conference on Thursday, Mr Klerides explained that external factors such as last year's terrorist attacks and the ensuing economic downturn have meant that the 2004 target date for eliminating Cyprus's fiscal deficit has been rethought. Based on the government's consolidation programme, the low tax jurisdiction's budget should be balanced by 2005, the Finance Minister told reporters.

Mr Klerides also outlined the main points of the government's annual pre-accession economic programme (PEP), at the press conference. However, this year the release of the plans to bring the country into economic convergence with the EU coincides with the final stages of the accession process itself.

'As such, the PEP covers policy issues which Cyprus will face when it becomes a member of the EU, and more specifically preparations for the speediest possible participation in the EMU (economic and monetary union),' he explained.

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