During these difficult times that the global economy is experiencing, the Cyprus Government has adopted a similar plan that Canada adopted when Hong Kong ceased to be a British colony some years ago. Canada was offering nationality/passports to the local Hong Kong residents provided they deposited US Dollars 500.000 for a certain period of years. So it did not particularly surprised us when we studied a rather recent change of policy by the Cyprus Government to adopt a similar approach. This “new” policy, is not published widely and few people came to know about it. We, who are dealing with real estate [and the lack of financing – liquidity in some respects] we are all for such a policy, because, in addition to the much needed cash in the economy [and by projection in the building sector] Cyprus will attract wealthy individuals who [hopefully] will require housing/office etc., a much needed boost, again for the real estate. This policy which was adopted on 11.7.07, has attracted so far only 15 wealthy individuals, but we hope that this will catch up and we will attract more. Most of those who opted for the scheme so far, are Russians and Ukrainians.

The scheme basically stipulates the following.

• A deposit at a local bank is required of €17.mil. [minimum] and without the right to withdraw for a period of 5 years.

• As an alternative to the above deposit, an applicant may undertake to set up a business in Cyprus, whose turnover should be in excess of €85.0 mil, p.a.

• Applicants must be at least 35 years of age and without a criminal record.

• Those who do not meet these requirements and provided they live as permanent residents in Cyprus for a period of at least 7 years [continually] can apply for Cyprus passport.

• A detailed check is carried out by the Government and those who have business in the Turkish occupied areas are not accepted as such under the scheme.

The report refers also of the interest that an Israeli multi-millionaire [38 years old whose assets exceeding US Dollars 1 bil. and who is already active in the Cyprus local Jewish community] has expressed under this scheme.

Obviously we might attract tax-dodgers and others with a not too clear source of income, but, other things being equal, this is a “detail” during these difficult times. We have already a number of mainly German ship management companies and international stockbroking firms who are based in Limassol and in their attempt to be “accepted” by the local community, these firms have contributed considerably [in terms of millions] both in sports [mainly football] infrastructure and future projects and most of them they employ numerous local, professional people and others.

Who said that the Cyprus Government is not market orientated? It reminds us also of the “questions for cash” and more recently “made to measure private members bills for cash” in the U.K. [House of Parliament and Lords]. Admittedly the U.K. situation is far from being comparable to our Government’s approach, but it shows the trends.

We do hope that small politics will not discourage this [and others] much needed measures to help the economy, since we do not expect that applications will reach thousands but more, 1-2 hundreds [we hope]. Politics being what they are, we studied with much worry the objections that some political parties have for those measures that have been decided by the Government and which refer to the improvement of the local infrastructure and the touristic sector [see delays on marinas, golf etc.]. These political parties require that normal democratic procedures are undertaken in all actions and the Government to be precluded from entering into direct deals with third parties. A recent example to be considered is the dispute that has now come up referring to the Qatari Investment fund, who expressed its interest to build a multi million project comprising of offices/hotel/ apartments in the center of Nicosia. If the normal tender procedures are followed, the project will not come about even after 5 years.

During the Arch.Makarios era, “things were done” speedily, but then, democracy at that time, did not work to the same extent that is is now. As Winston Churchill said “….democracy is not a good system, but it is the best system that we have so far….”.

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