TO:  MEMBERS - U.S.-UKRAINE BUSINESS COUNCIL (USUBC) 

RE:  CYPRUS FINANCIAL DEVELOPMENTS

           Information from USUBC member, Kinanis LLC, Nicosia, Cyprus

Kinanis LLC, Nicosia, Cyprus

Dear colleagues, associates and clients,

You are aware of the difficult times that Cyprus undergoes under the auspices of European Union (EU) and the International Monetary Fund (IMF). It is something which was even beyond anyone’s imagination.

There was a demand by EU and IMF in consideration of a loan to be granted to Cyprus, Cyprus to impose a particular levy on all deposits kept in bank accounts situated in the island. In order for such a measure to pass, the positive vote of the members of the Parliament was needed so that a law will be enacted.

Today, the Parliament of Cyprus has taken a significant decision to reject the proposed law as demanded by the authorities of the EU and the IMF relating to the imposition of a levy on deposits in Cyprus banks.

Despite the huge and unprecedented pressure from the EU and IMF, Cyprus Parliament has recognized the importance of the island remaining an attractive financial and economic centre and has decided to protect the Cypriot and International depositors and investors doing business through Cyprus. The Parliament made it clear that such measures disturbing the long established status of Cyprus as a Financial centre will not pass either now or in future. 

We, at Kinanis LLC, are determined to stand by and fully support our clients, and we are ready to accommodate any of your needs, both in Cyprus and abroad.

Despite the developments directed  and planned by EU and IMF affecting Cyprus and our clients and investors, we strongly believe that the position of Cyprus as an International Business Centre is strengthened and along with its flexible tax and legal framework and excellent network of double tax treaties, remains and will remain one of the best jurisdiction to accommodate lawful tax planning.

We shall follow the events and keep you regularly informed.

Kind Regards

Christos P. Kinanis, Advocate (LL.M Cantab.)
Managing Director

Main Office:
KinanisLLC
Lawyers’ Limited Company
12 Egypt Street, 1097 Nicosia, Cyprus - P.O. Box 22303, 1520 Nicosia, Cyprus
Central Line:- + 357 22 55 88 88, Direct Line:- + 357 22 55 89 59, Fax:- + 357 22 45 81 95
E-mail:- KinanisLLC@kinanis.com, Christos.Kinanis@kinanis.com,
Website:- http://www.kinanis.com

Malta Office: 
Kinanis (Malta) Limited
Consulting Firm
7A, Sir Luigi Camilieri Street, Sliema, SLM 1843 Malta
Central Line:- + 356 27 54 00 24, Fax:- + 356 27 54 00 25
E-mail:- malta@kinanis.com, 
Website:- http://www.kinanis.com

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KINANIS LLC, Nicosia, Cyprus, is a member of the
U.S.-Ukraine Business Council (USUBC)