Corvus
03-27-2013, 01:46 PM
Financial services operators in Malta, as well as other countries such as Luxembourg and Lichtenstein are trying to persuade wealthy depositors to transfer their assets out of Cyprus, The Guardian has reported.
In a report of how the beleaguered island is trying to save its financial services sector, it reported how officials are working to have capital controls in place before banks reopen tomorrow, thus preventing a flight of capital.
Amid signs of a massive capital flight from the island in the past week, former Foreign Minister Nicos Rolandis said it was imperative that crisis-hit Nicosia tried to salvage its financial services industry.
"The big challenge now is to keep as many foreign companies as possible in Cyprus," he said. "We still have many advantages … taxation is still low, the infrastructure is already there."
Finance Minister Michalis Sarris admitted that capital controls would soon be implemented. Among the draft proposals being considered, ahead of banks reopening, are weekly limits on cash withdrawals, curtailing euro transactions abroad and a prohibition on cheques.
The controls were confirmed as experts working in the financial sector confided that they were being approached by officials in Malta, Luxembourg and Lichtenstein to persuade wealthy depositors to move their assets out of Cyprus.
"I've received three emails today and that's just from Malta," said Christos Neophytou, a lawyer who specialises in registering foreign companies on the island. "They're even offering financial incentives to try to convince clients to move out of Cyprus"
The developments came as the bleak mood turned to anger with furious bank employees demonstrating outside the Bank of Cyprus headquarters in Nicosia. Earlier, high school students took to the streets to denounce the troika's policies. "You have destroyed our future," said one banner held aloft by protesters as they demonstrated against the stringent austerity measures imposed by the EU, IMF and ECB.
In a report of how the beleaguered island is trying to save its financial services sector, it reported how officials are working to have capital controls in place before banks reopen tomorrow, thus preventing a flight of capital.
Amid signs of a massive capital flight from the island in the past week, former Foreign Minister Nicos Rolandis said it was imperative that crisis-hit Nicosia tried to salvage its financial services industry.
"The big challenge now is to keep as many foreign companies as possible in Cyprus," he said. "We still have many advantages … taxation is still low, the infrastructure is already there."
Finance Minister Michalis Sarris admitted that capital controls would soon be implemented. Among the draft proposals being considered, ahead of banks reopening, are weekly limits on cash withdrawals, curtailing euro transactions abroad and a prohibition on cheques.
The controls were confirmed as experts working in the financial sector confided that they were being approached by officials in Malta, Luxembourg and Lichtenstein to persuade wealthy depositors to move their assets out of Cyprus.
"I've received three emails today and that's just from Malta," said Christos Neophytou, a lawyer who specialises in registering foreign companies on the island. "They're even offering financial incentives to try to convince clients to move out of Cyprus"
The developments came as the bleak mood turned to anger with furious bank employees demonstrating outside the Bank of Cyprus headquarters in Nicosia. Earlier, high school students took to the streets to denounce the troika's policies. "You have destroyed our future," said one banner held aloft by protesters as they demonstrated against the stringent austerity measures imposed by the EU, IMF and ECB.