A NCIIAL MII ROR THIISS WEEK
companies, as well as reports from banks, lawyers and audit firms, which are now making much more money from foreign clients than from local business. The Inland Revenue said that in the 11-month period, revenue from offshore companies surged by 13.6% year-on-year to CYP 58.6 mln, far outstripping the 10% increase in corporation tax from local companies and the 6% increase from all sectors.
Central Bank Governor Christodoulos Christodoulou has granted a Christmas wish to the Bankers Association postponing the implementation of strict criteria on the suspension of interest on problematic loans by a year. Thus, tough rules on loans overdue for more than three months will come into effect in January 2006 instead of the original date of January 2005. Banks were supposed to suspend interest income on problem loans overdue for more than three months and set aside provisions for such loans from January 2005.
Real GDP growth will reach 3.$ for the whole of 2004, based on revised forecasts from third-quarter data, lowering the recent government forecast of 3.6% growth.
The first estimates of agricultural income for 2004 show a year-on-year increase of 3.3% in the European Union, mainly due to the addition of nerw member states that pushed farming income up by 54%, but not so in Cyprus which saw a 1.4% decline, the only country to do so. The Cyprus real agricultural income per worker in 2004 is seen at 97.3% of the EU 25 average.
Leader of the five trade unions accepted a second revised proposal by Labour Minister Christos Taliadoros, saving about CYP 22 mln in pay concessions, with pilots earning up to CYP 30,000 agreeing to a 5% cut, and those above the threshold an 8% cut.