Crises Induce New Opportunities ... I Encourage Cypriot Businessmen to Visit Egypt Cyprus is Egypt's Ambassador in the EU ... Takes More Balanced, Fair Decisions on Egypt's Favor Cyprus Plans to Lift Restrictive Measures on Capital Movement by Jan. 2014 Cyprus Hopes For Egypt, a Compromised Democratic Ruling System Soon Demarcating Borders of Egypt, Israel, Cyprus Is Settled And Identified The Cyprus-Egypt relations have been always based on mutual respect and strong friendship, to remain for over 50 years in fields of politics, economics, trade, and energy, a message the President of Cyprus H.E. Nicos Anastasiades was keen to convey and confirm during receiving a senior-level Egyptian media mission at the presidential headquarters in Nicosia. A group of high-profile editors-in-chief of major newspapers in Egypt were among the Egyptian media mission that visited Cyprus with a special presence of representatives of business community in Cyprus and Mr. George Partou – the Chairman of the Cyprus-based IPC International. President Anastasiades also stressed on the vital role which could be played by both Egypt and Cyprus to cement the joint ties and mutual understanding between the European Union and the Arab world. The Cypriot president asserted that his country will work on reinforcing relations with Egypt as a neighboring country putting into consideration its ties with the EU. The Cypriot-Egyptian relationship will always remain to be a strong solid one on all levels since Cyprus understands the reasons behind the outbreak of June 30 Uprising which has ousted the former president Mohamed Morsi for the purpose of establishing a democratic ruling system that would meet the hopes and aspirations of the Egyptian people, he noted. President Nicos Anastasiades has also highlighted the constant efforts exerted by both Egypt and Cyprus to explore as well as exploit gas and oil reserves which can be found in the economic zones lying in the territorial waters. He pointed out that the delineation agreement signed in 2003 to demarcate the maritime borders of Egypt and Cyprus has paved the way towards new opportunities to boost strategic ties between the two countries in energy sector, notably the hydrocarbons. Such strategic ties shall have positive impact in terms of ensuring economic development and prosperity for both nations and of reinforcing peace and security in the Eastern Mediterranean region afterwards. - Mr. President, In the light of the deeply-root relationship between Egypt and Cyprus, would you tell us how do you see the bilateral relations after the outbreak of June 30 Uprising? and what about your future visions about the Cyprus-Egypt ties? President: The relationship between Egypt and Cyprus will always remain to be a strong solid one on all levels since Cyprus understands the reasons behind the outbreak of June 30 Uprising which has been erupted against the former president Mohamed Morsi for the purpose of establishing a democratic ruling system that would meet the hopes and aspirations of the Egyptian people. Currently, we are working on reinforcing our relations with Egypt as a neighboring country putting into consideration its ties with the EU. Also bear in mind that on the top of agenda of Cyprus' foreign policy is to maintain ongoing solid relations with Egypt; both nations have a long history of constructive bilateral relations. We are confident that Egypt's future will be much better within the upcoming phase. Based on the strong friendship, the bilateral relations between the two countries have bloomed in a number key fields since both countries have been witnessing a large number of official visits in which many treaties were signed, notably the delineation agreement to demarcate the maritime borders of each country signed in 2003. -Cyprus has been always a great ally for the Arab world, but currently there are growing concerns over the latest developments in the nature of the Cyprus-Israel relations, notably in the wake of the recent visit of the Israeli high-profile officials to Cyprus , what will happen to the demarcation of maritime borders between Egypt, Cyprus and Israel? President: Enhancing Israeli and Cypriot relations have never been and will never be on the expense of other countries, specially Egypt. Our meetings with Israel can act as an advantage point for the three countries in all fields, notably in the economic sector. By having good relations with Egypt and Israel, Cyprus can play the role of the mediator between the two countries The maritime border demarcation has not been facing any problems for Egypt has signed in February 2003 a delineation agreement to demarcate the maritime borders. The point is that some countries had tried to drive a wedge between Egypt and Cyprus through circulating baseless rumors about the latter's takeover of joint wells and sold them to Israel and this was not true. Being an EU state member will not make Cyprus forgets its old deeply-rooted relations. In fact, Cyprus is looking forward to bolstering ties with its old friends in the Arab world and the EU out of its concern for the all parities' interests. -Cyprus has become an EU member country in May 2004, yet EU is taking a hostile stance towards June 30 Uprising describing it as a coup, can Cyprus as an EU member mediate to correct the EU's negative views about the situation in Egypt? President: By virtue of being an EU member, Cyprus always adopts more balanced and fair position towards Egypt to the extent that we can describe our relations with the North African country as saying that Egypt can consider Cyprus as its ambassador in the EU. Cyprus has never described what happened recently in Egypt as a military coup, we have adopted a clear position that only the Egyptian people have the right to determine their destiny. Our country hopes that Egypt will reach enough understanding between all the existing political powers in order to reach the political stability that the country deserves through effective negotiations and agreements. As an unbiased party, I would neither like to comment nor interfere in the internal affairs of Egypt. However, I feel worried about the situation in Egypt. Over the course of many years, we have seen discrimination against Christians as an example. I do hope that Egypt would reach a compromise soon and have democracy applied as a rule. We support the Egyptian initiative for disarming mass destruction weapons for the ultimate goal of peace and eliminating violence. -Egypt and Cyprus are currently facing quite similar economic situation putting into consideration the reasons behind each country's crisis. The current crises of the two countries have reversely affected the economic bilateral ties, what are your plans to restore bilateral economic relations? President: We must pay more attention to the constant efforts exerted by Egypt and Cyprus to explore as well as exploit gas and oil reserves which can be found in the economic zones lying in the territorial waters. Cyprus and Egypt have signed in 2003 a delineation agreement to demarcate the maritime borders of the two countries and which in turn has paved the way towards new opportunities to boost strategic ties between the two countries in energy sector, notably the hydrocarbons. Such strategic ties shall have positive impacts in terms of ensuring economic development and prosperity for both nations and of reinforcing peace and security in the Eastern Mediterranean region afterwards. Despite the recent economic crisis in Cyprus and the political developments in Egypt, I believe that crises induce new opportunities. This is what made the officials in Cyprus willing to encourage Cypriot businessmen to visit Egypt and explore new investment opportunities. At the same time, there are new opportunities for Egypt to use Cyprus as a gateway to the EU to boost more economic and cultural cooperation between the two countries. - What about Cyprus' plans regarding the energy file in the light of the new gas explorations announced in the country's waters in the Mediterranean Sea? President: Cyprus and its exploration partners Noble Energy announced in October a new gas discovery of an around 5 trillion cubic feet (tcf) natural gas find, lowering the initial estimate of 7 tcf made in late 2011. Cyprus is planning within the upcoming phase to carry out joint projects in field of energy, seeking to deliver the newly-discovered natural gas of the Eastern Mediterranean to the European markets in cooperation with Greece and Israel. Cyprus also welcomes an Egyptian willingness to take part in the tripartite gas delivery deal. Also, the Cypriot authorities have started conducting feasibility studies in order to establish a natural gas-powered electricity grid linking between three countries; Israel, Cyprus and Greece. They are also planning to build a gas pipeline that will connect Israel, Cyprus and Greece in addition to a LNG storage port, which would eventually provide strategic reserves for other countries. The natural gas-powered electricity grid is a Cypriot private-sector initiative launched last year which also includes the establishment of a gas pipeline that can be used as a supply to generate electricity of 2000 megawatts. The pipeline is on a space of 1000 km connecting Israel to Cyprus and Crete then on to the Peloponnese peninsula. -Could you tell us about the recent outcomes of the EU rescue plan for Cyprus' financial crisis which includes the application of multiple precautionary measures and yet was endorsed by the Cypriot parliament last April? What are the rules the Cypriot government adopts to attract direct foreign investments? President: In April, the Cypriot government has endorsed the EU rescue plan for Cyprus' financial crisis. As pursuant to the EU plan, Cyprus would obtain a rescue package worth € 10 billion from the European Union and the International Monetary Fund (IMF). In return, Cyprus shall then generate € 13 billion through adopting strict banking reform measures. According to the EU-IMF plan, Cyprus will need to restructure its banking sector with its largest bank, Bank of Cyprus, absorbing the island's second-largest Laiki Bank. Cypriot authorities also agreed that all bondholders, investors and savers with over €100,000 in country's two biggest banks would lose up to 60 percent of their deposits under the bailout's terms. In addition, in accordance with the EU-IMF plan, Cyprus was forced to raise corporate income tax rate to 12.5% from 10%. This plan was proven to be the sole method to avoid Cyprus going through bankruptcy. The European Commission, the European Central Bank and the International Monetary Fund, a group known as the "Troika," had released a positive report after making the first assessment of Cyprus' efforts. Representatives of Troika are expected to arrive in Nicosia within days to carry out a second assessment. Cyprus' investment strategy currently focuses on the utilization of the country's various privileges backed by the island's attempts to reform the banking system in order to apply the terms and regulations set by the tripartite committee which has been formed by the Cypriot government to investigate the reasons behind the banks breakdown in Cyprus. Cyprus is seeking to promote both the local and foreign investments by the virtue of the island's strategic location and the EU membership. We are also planning to benefit from calibers who have great expertise in order to get through the current financial crisis. -What about the restrictive measures on the free movement of capital enforced last March to avoid the collapse of banking system? President: Cyprus is planning to lift all the restrictive measures on the free movement of capital by January 2014. The Cypriot authorities had to enforce in March restrictive measures in order to prevent the collapse of the banking institutions as potential repercussions of the conditions set by the EU-IMF rescue program. On our new investment plan, Cyprus is set to utilize its existing privileges, notably the stable political and security circumstances as well as the geographical location by the virtue of being in the heart of 3 key continents alongside its double taxation treaties signed with 50 nations and the continuation of the state austerity plan to reduce costs and external debts.
