Cyprus PIO: News Update in English, 02-07-19

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

Friday, 19 July 2002

CONTENTS

• [01] Peter Hain: British Government committed to UN Security Council Resolution 1250 on Cyprus
• [02] "Kommunalkredit International Bank Ltd" becomes a licensed IBU in Cyprus

[01] Peter Hain: British Government committed to UN Security Council Resolution 1250 on Cyprus

This statement was made by the Secretary of State for Foreign and Commonwealth Affairs Mr Peter Hain, replying to a question posed by MP Mr Tom Cox in the House of Commons on 16 July 2002.

"It is for the two sides in Cyprus to agree the terms of a settlement", Mr Hain added pointing out that Britain is working hard to help all involved in the current direct talks to move negotiations forward and urging both sides to co-operate fully in such an effort, in particular to work with the Secretary-General's Special Adviser, Alvaro de Soto.

Replying to another question on Britain's policy regarding the resolution of the European Parliament of 13 June that only a single sovereign Cyprus state should be permitted to accede to the European Union, Mr Hain said:

"The Government fully supports the Conclusions of the Seville European Council, which state that 'as a member State, Cyprus will need to speak with a single voice and ensure proper application of European Union law'."

[02] "Kommunalkredit International Bank Ltd" becomes a licensed IBU in Cyprus

"Kommunalkredit Austria AG" was established in Austria in 1958 as a special purpose bank to provide low interest and long term finance for Austrian local authorities. "Kommunalkredit Austria AG" is a highly rated bank by international standards and its current activities include the financing of Austrian and other European local authorities in connection with infrastructural projects, the management of trust funds and the provision of consulting activities in relation to environmental projects and treasury activities.

"Kommunalkredit International Bank Ltd" will deal primarily in foreign currencies and transact business with natural or legal persons who are non- residents of Cyprus, situated either in Cyprus or abroad. As an exception, medium and long-term lending in foreign currencies to Cyprus residents has been allowed, within the framework of liberalising Cyprus's financial system, as from 1 January, 2001. The main purpose of the new bank will be the finance of public sector entities in Austria, Switzerland, Central and Eastern Europe in relation to environmental and energy projects. "Kommunalkredit International Bank Ltd" will be subject to the supervision and inspection of both the Central Bank of Cyprus and the banking supervisory authorities of Austria.

"Kommunalkredit Austria AG" is the first bank from Austria which has been allowed to establish an International Banking Unit in Cyprus. Its decision to carry on banking business from within Cyprus through a wholly owned subsidiary is another indication of our country's success in attracting international banks and financial institutions as a result of Cyprus' international recognition as a reputable regional banking/financial centre and of the business opportunities which are expected to arise with the accession of Cyprus to the European Union.

Currently, there are 29 IBUs operating from within Cyprus and 3 Representative Offices of foreign banks in Cyprus. Other foreign banks have expressed a similar interest to establish IBUs in Cyprus and more banking business licences are expected to be granted in the near future.

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

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