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New liberalization allows investment abroad by Cypriots

18/02/2002 10:05
The Central Bank of Cyprus announced that as of 1 March 2002, investments by Cypriots abroad are further liberalized. In particular, Cypriots over 18 years of age will be entitled to transfer CYP 20.000 per year abroad under the conditions that these will be invested as follows:

1. Deposits in foreign banking institutions
2. Purchase of titles or other instruments including government bonds listed in recognized European Union stock exchanges.
3. Investments in foreign investment funds or mutual funds which are in accordance with EU Directive 85/611/EU and its amendments, of the 20 December 1985 (UCITS)

4. Insurance premium payments to foreign insurance companies, or payments for participation in investment schemes of insurance companies.

Through the new extended liberalization, the export of exchange is purely for investment purposes and not for consumer or other purposes, in accordance with current Foreign Exchange legislation.

The Central Bank draws attention to the fact that investments in foreign investment plans should be carefully considered before proceeding, as some which promise very high returns may finally prove not to be so.