Financial Mirror (Cyprus) - - FRONT PAGE -

of their self-in­vested per­sonal pen­sions, with a se­ri­ous im­pact to buy­ers on the is­land, as Cyprus was one of the few coun­tries that recog­nises trusts, un­like hol­i­day home des­ti­na­tions France and Spain.




In­ter­na­tional bank­ing units (for­merly “off­shore” banks) are rush­ing to buy Cyprus pounds in or­der to com­ply with a Cen­tral Bank di­rec­tive or­der­ing them to hold 2% of their de­posits as Min­i­mum Re­serve with the cen­tral bank as from Jan­uary 1, 2006. The de­mand for CYP 42-45 mln dur­ing De­cem­ber will put up­ward pres­sure on the al­ready strong Cyprus pound.

CSE profit stalls:

The profit per­for­mance of the 21 pub­lic com­pa­nies re­port­ing their nine month re­sults showed a me­diocre per­for­mance with to­tal prof­its ac­tu­ally de­clin­ing, if the spec­tac­u­lar re­sults of Bank of Cyprus and Laiki are ex­cluded. The 21 re­ported a to­tal of CYP 109.8 mln in prof­its, up 34% from CYP 82 mln a year ago, but this in­cludes CYP 50.5 mln from BOCY and 30.4 mln from CPB.

A mas­sive over-sub­scrip­tion in the 10year and 52-week T-bill auc­tion caused a plunge in bond yields, with the first drop­ping from 4.22% at the Septem­ber auc­tion to 4.08%, while the 52-week pa­per was down from 3.51% in Septem­ber to 3.12%.

Fi­nance Min­is­ter Michalis Sar­ris said that prospects for the econ­omy seem “en­cour­ag­ing” with in­come of CYP 2.3 bln (EUR 4 bln) and ex­penses CYP 3.3 bln (EUR 5.7 bln) in the 2006 Bud­get, with the fis­cal deficit drop­ping to 3.7% of GDP.

Bond yield:


deficit down:

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