Sovereign Trust (Cyprus) Limited

 

About Cyprus

Background: Independence from the UK was approved in 1960 with constitutional guarantees by the Greek Cypriot majority to the Turkish Cypriot minority. In 1974 a Greek-sponsored attempt to seize the government was met by military intervention from Turkey, which soon controlled almost 40% of the island. In 1983 the Turkish-held area declared itself the Turkish Republic of Northern Cyprus, but it is recognized only by Turkey. Cyprus talks resumed in December 1999 to prepare the ground for a comprehensive settlement.

Location: Middle East, island in the Mediterranean Sea, south of Turkey.

Economy - overview: Economic affairs are dominated by the division of the country into the southern (Greek) area controlled by the Cyprus Government and the northern Turkish Cypriot-administered area. The Greek Cypriot economy is prosperous but highly susceptible to external shocks. Erratic growth rates in the 1990s reflect the economy's vulnerability to swings in tourist arrivals, caused by political instability on the island and fluctuations in economic conditions in Western Europe. Economic policy in the south is focused on meeting the criteria for admission to the E.U. As in the Turkish sector, water shortage is a growing problem, and several desalination plants are planned. The Turkish Cypriot economy has about one-fifth the population and one-third the per capita GDP of the south. Because it is recognized only by Turkey, it has had much difficulty arranging foreign financing, and foreign firms have hesitated to invest there. The economy remains heavily dependent on agriculture and government service, which together employ about half of the work force. Moreover, the small, vulnerable economy has suffered because the Turkish lira is legal tender. To compensate for the economy's weakness, Turkey provides direct and indirect aid to tourism, education, industry, etc.

Time

Cyprus is two hours ahead of Greenwich Mean Time (GMT).