Global Forum on Tax Transparency and Exchange of Information for Tax Purposes and Cyprus

taxThe Global Forum is the international body within which work in the area of transparency and exchange of information has been carried out by both OECD and non-OECD economies since 2000.

On 21st and 22nd of November 2013, the Global Forum released the ratings for the jurisdictions for which the latest round of reviews was completed. Cyprus underwent the Phase 1 review in the 2nd half of 2011 and the Phase 2 review in the 2nd half of 2012, and was awarded an overall rating of “non-compliant” together with other jurisdictions (including Luxembourg).

The Cyprus Ministry of Finance press release on the assessment of Cyprus mentions the following:

During the Global Forum meeting in Jakarta, Indonesia, on the 21st and 22nd of November 2013, the Global Forum released compliance ratings for 50 jurisdictions which had both phases of their assessments completed: a) legal and regulatory framework, and b) practical implementation of the framework. Read more

S&P boost for Cyprus, Netherlands downgraded

standard and poorStandard & Poor’s raised its long-term sovereign debt rating on Cyprus to B- from CCC+ on Friday, saying immediate risks to debt repayments on the bailed-out Mediterranean nation appeared to have receded.

“The stable outlook reflects our view of the implementation risks that remain as the end of the three-year European Commission, International Monetary Fund, and European Central Bank program approaches, balanced against the upside potential we see coming from Cyprus’ economy,” S&P said in a statement.

It is the first ratings upgrade in three years for Cyprus, which was shut out of international financial markets for high implied yields on its traded debt in May 2011 and came to the brink of financial collapse earlier this year. Fitch rates Cyprus B-, and Moody’s Investors’ Service at Caa3.

The island, one of the smallest countries in the euro zone, signed up to a €10 billion bailout programme with the IMF and EU in March.

Programme money was not allocated to commercial banks, and the accord was conditional on Cyprus shutting down a major bank and recapitalising a second lender with its clients’ deposits. Read more