23/08/2013 07:41
The arrival of foreign companies in Cyprus after the decisions for the bail-in of depositors fell, signaling a contraction in revenues in the sector of international services.
These developments were a blow to the field of international business services, which was the main pillar of economic growth.
According to the latest Companies’ Superintendent’s data, the applications for registration of companies in July 2013 decreased to 902 compared to 1594 in July 2012 showing a sharp decline of 43.4%.
In June 2013, the decrease amounted to 55.8%.
According to KPMG Chairman, Angelos Gregoriades, today "it is difficult to find new customers and Cyprus to be selected as a destination for investment."
“For the foreign investors, the issue with Bank of Cyprus has not closed since restrictions on the movement of capital are still maintained”, he said.
Mr. Gregoriades stressed that the reduction in the number of companies does not imply shrinkage of activity of the accounting offices, however, there is a lack of new customers.
CEO of Baker Tilly, Marios Kleitou added that the decline in registrations has not affected the turnover of the companies so far, however, it will affect the results of the companies in the sector in 2014.
"With the completion of the consolidation of Bank of Cyprus and the granting of additional funds of €1,5 million to CIPA, it is up to us to convince foreigners on the attractiveness of Cyprus regarding business activities”, Mr. Kleitou said.
Mr. Gregoriades said that the decrease in the number of new customers is not observed in Cyprus only but also in other EU countries due to the crisis in the eurozone.
He estimated that the increase in the registration of companies is not expected before mid-2014.
The new decline in registrations in July leads to shrinkage of applications for registrations by 39.8% in the first seven months of 2013. Applications for registrations are limited to 6656 against 11,054 in the corresponding period of 2012.
These developments were a blow to the field of international business services, which was the main pillar of economic growth.
According to the latest Companies’ Superintendent’s data, the applications for registration of companies in July 2013 decreased to 902 compared to 1594 in July 2012 showing a sharp decline of 43.4%.
In June 2013, the decrease amounted to 55.8%.
According to KPMG Chairman, Angelos Gregoriades, today "it is difficult to find new customers and Cyprus to be selected as a destination for investment."
“For the foreign investors, the issue with Bank of Cyprus has not closed since restrictions on the movement of capital are still maintained”, he said.
Mr. Gregoriades stressed that the reduction in the number of companies does not imply shrinkage of activity of the accounting offices, however, there is a lack of new customers.
CEO of Baker Tilly, Marios Kleitou added that the decline in registrations has not affected the turnover of the companies so far, however, it will affect the results of the companies in the sector in 2014.
"With the completion of the consolidation of Bank of Cyprus and the granting of additional funds of €1,5 million to CIPA, it is up to us to convince foreigners on the attractiveness of Cyprus regarding business activities”, Mr. Kleitou said.
Mr. Gregoriades said that the decrease in the number of new customers is not observed in Cyprus only but also in other EU countries due to the crisis in the eurozone.
He estimated that the increase in the registration of companies is not expected before mid-2014.
The new decline in registrations in July leads to shrinkage of applications for registrations by 39.8% in the first seven months of 2013. Applications for registrations are limited to 6656 against 11,054 in the corresponding period of 2012.