Cyprus PIO: News Update in English, 98-11-24

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From: The Republic of Cyprus Press and Information Office Server at <http://www.pio.gov.cy/>

Tuesday, 24 November 1998

CONTENTS

• [01] President Clerides does not expect standstill in Cyprus problem to last long
• [02] Cyprus as a regional business centre
• [03] Latest Trade Figures

[01] President Clerides does not expect standstill in Cyprus problem to last long

Speaking in London at a conference on "Cyprus. a Regional Business Centre', President Clerides said he had indications that an effort was imminent for Cyprus negotiations to be restarted.

"I believe that we are at the moment at a situation of standstill which I do not expect to last for very long," said Clerides.

Explaining that the present impasse was created when Turkish Cypriot leader Rauf Denktash tried to change the basis of negotiations, he said Mr Denktash wanted to create a separate sovereign state for the Turkish Cypriots and a very loose confederation.

"We oppose this idea because it abolishes the independence of Cyprus and creates a Turkish protectorate in the north and a Greek protectorate in the south," President Clerides said.

He said that previous agreements and UN resolutions stipulate that a solution in Cyprus must be based on a bicommunal bizonal federal republic, with one single sovereignty, single international personality and single citizenship.

However, he underline, "this new attempt by the Turkish side to delay the negotiating process has not found any international response either from the EU, the US, the permanent members of the UN Security Council, or the Non-Aligned Movement countries."

Cyprus, he went on, was still seeking a peaceful solution to the Cyprus problem through the good offices of the UN Secretary-General as provided by Security Council resolutions.

Some 100 business people took part in the conference, organised by the Cyprus Chamber of Commerce and Industry and the Confederation of British Industry. It was aimed at encouraging investment in Cyprus.

[02] Cyprus as a regional business centre

Addressing the participants of the conference in London on "Cyprus: A regional business centre", they pointed to the island's strong economy and the incentives offered to attract investments.

Mr Rolandis said the island's economy this year is expected "to show a higher rate of growth, 4.7 per cent in real terms, reaching 5.64 billion pounds sterling, with inflation at 2,5 per cent and unemployment at 3.2 per cent".

"The growing importance of Cyprus as a business and distribution centre in the region is underlined by the performance of exports and re- exports," the Minister said.

He described the UK as "Cyprus' most important trading partner" adding that trade exchanges reached 333 million pounds st. in 1997, 22 per cent of which represented Cyprus' exports to the UK.

He said that attracting foreign investment is amongst the primary objectives of Cyprus' development policy, adding that "exchange controls are being phased out and over the last years there has been a further relaxation regarding investments by non-residents".

Moreover, the Governor of the Central Bank, Afxentis Afxentiou, on his part said that the "World Development Indicators" of the World Bank had put Cyprus' per capita Gross Domestic Product at $20,500.

He added that "at this level Cyprus ranks 16th internationally, while in comparison with EU member states our GDP per capita exceeds the level of eight countries."

GDP growth, he continued, averaged at 6.1 per cent per year throughout the 1980s and 4.4 per cent in the 1990-98 period.

Mr Afxentiou also said that "an evaluation of the recent macroeconomic performance, judged with respect to the EU convergence criteria, shows that the Cyprus economy meets the criteria on price stability, exchange rate stability as well as the criterion on long-term interest rates."

[03] Latest Trade Figures

This rise appears to be mainly as a result of a rise in imports for home consumption, reached L1.15 billion in the first nine months of 1998, compared to L1.11 billion in the same period in 1997.

Total exports also fell to L438,4 mn in relation to L486,6 mn last year.

From the Republic of Cyprus Press and Information Office (PIO) Server at http://www.pio.gov.cy/

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