On February 5 1997 the Council of Ministers of Cyprus approved the Central Bank's new policy on foreign investments. The main provisions of this policy appeared in our briefing in the February issue of International Financial Law Review (see page 58). We hope to be able to provide a detailed analysis of this new policy in the coming months.
Cyprus Stock Exchange
The Cyprus government has recently decided to allow the free transfer of shares in Cyprus offshore companies listed on the Cyprus Stock Exchange. The terms and conditions of the issue of the initial permits for registration under the Companies Law, as provided by the Exchange Control Law, will be identical to those which apply to any offshore company, ie:
- its shares will belong directly or indirectly to non-residents;
- its income must be derived from abroad;
- the company must not obtain any finance from local sources;
- all local expenses of the company must be covered from funds imported from external sources; and
- the company must submit to the Central Bank its annual accounts as at the end of each financial year, together with any other information requested by the Central Bank of Cyprus.
The Cyprus government believes the new policy will contribute to a substantial upgrading of the Cyprus Stock Exchange and the recognition of Cyprus as an international financial centre.