- The Financial and Banking Sector;
- Fiscal Policy;
- Fiscal and Structural Measures;
- Labour Market;
- Goods and Services Markets;
- Non of the tax advantages of Cyprus tax system are under policy consideration in accordance to the MOU. More specifically all the tax policies target primarily local tax payers. The only deviation to that principle is probably the abolition of exceptions for the payment of Euro350 annual levy. These exceptions however were not particularly used by international investors using Cyprus for international business purposes.
- The reputation and safe status of the Banking sector is re-instated following the MOU.
- The institutions will receive a full third party appraisal by 1/3/2013 and will be recapitalized fully with an agreed Euro 10 billion recapitalization loan;
- The non performing assets of the banks shall be bought by a government led Asset Management Company (AMC);
- The enlargement of the financial sector is achieved. The inclusion of Cooperative Credit Institutions under the umbrella of Central Bank of Cyprus changes the financial sector in Cyprus considerably. International business was for many years out of reach for such institutions but it seems that now the new regulatory regime will change that dynamic towards a more extrovert approach.
- The agreed modernisation of the regulative regime relating to Public Private Partnerships (PPP) together with the privatisation of state owned enterprises (SOE) will create new opportunities for international investment for large projects.
- The restructuring of Professions and Services sector will further open up the market for new international investments in these sectors.
- The necessary restructuring of the Public Sector will create a trend of abolishing red tape in the public sector creating efficiencies which will certainly benefit fast track licensing, registration and approval of actions related to international investment and routing.