Cyprus Officials Affirm 'Business As Usual'
Both the Cyprus Department of Merchant Shipping and Shipping Chamber have issued statements affirming they will remain open for business despite public questions raised by the state's current financial situation.
The Department of Merchant of Shipping has stated:
The Department and the Registrar of Cyprus ships have been and will continue to operate as usual.
The Cyprus tonnage tax scheme is “locked” for ten years. Unlike the other tonnage tax schemes, the Cyprus scheme is one of the schemes for which the European Commission has determined that it complies with the European Union State Aid policy. The situation which has emerged has no direct or indirect effect on the Cyprus tonnage tax scheme. The Government would like to take this opportunity to express appreciation to those who have committed themselves to the Cyprus tonnage tax scheme. The date for the payment of the Cyprus registry maintenance annual fee and the tonnage tax, for the 2013 tax year, has been extended to 15 April 2013 (instead of 31 March 2013) and thus those who make payments by then will not incur any surcharges. Such payments could be effected, as always, either in Cyprus or at any one of the Diplomatic or Consular Mission of the Republic of Cyprus abroad.
Although the Cyprus flag fleet ranks amongst the 10 largest in the world, the banks in Cyprus, historically, have not been active in ship financing. Thus, the recent developments are not affecting and have no impact on the financing of Cyprus ships.
The Department will continue monitoring the situation and will promptly and proactively deal with any matters stemming from the circumstances.
The Government, the Central Bank of Cyprus, the Cypriot maritime cluster, the organized groups representing shipowners, managers and seafarers and those providing services to the shipping industry are already in close liaison. They will continue to work together in a proactive, constructive and non-discriminatory manner.
The aim is to ensure that the situation eventually causes the least and, hopefully, no problems to seafarers and/or to Cyprus ships, as well as, to seafarers and/or to ships of flying the flag of other States which enjoy the management or ancillary services provided by Cyprus.
The Department deeply regrets the fact that the situation gave rise to concerns to the registered owners and registered bareboat charterers of Cyprus ships and to seafarers serving on them and stands ready to provide any assistance which may be needed.
The Cyprus Shipping Chamber stated:
The Cyprus Shipping Chamber, during this period, has been in continuous contact with the Cyprus Government, the Central Bank of Cyprus and other professional organisations in Cyprus and has offered its expert knowledge in the huge joint effort made, so that on-going discussions on the implementation of the Eurogroup Agreement to be completed the soonest possible, for the benefit of the overall Cyprus Economy, which also includes the Shipping Industry.
In this connection, the Chamber, through a coordinated plan of action and close contact with various state agencies, will continue and intensify its efforts to alleviate any operational problems that might occur, thus allowing Shipping companies in Cyprus to continue trading as per normal, meeting their obligations towards their seafarers and stakeholders. Whilst remaining vigilant on the on-going financial developments in Cyprus, we feel optimistic that the Cyprus Government will promptly implement the appropriate urgent financial measures taking into account the needs of the Cyprus Economy including those of the Shipping Industry. It is also pointed out that the overall Shipping operational and taxation infrastructure in Cyprus remains intact.
The Cyprus Flag Administration also, through its Department of Merchant Shipping, is working normally and without any interruptions and restrictions.
Latest Update: Banks reopened for business this morning under some temporary restrictions on transactions. The re-opening of the banks signals the gradual return to normal business in Cyprus.
Cyprus Shipping Chamber
28 March 2013
