Cyprus

A former British colony, Cyprus became independent in 1960 following years of resistance to British rule. Tensions between the Greek Cypriot majority and Turkish Cypriot minority communities came to a head in December 1963, when violence broke out in the capital of Nicosia. Despite the deployment of UN peacekeepers in 1964, sporadic intercommunal violence continued, forcing most Turkish Cypriots into enclaves throughout the island.

In 1974, a Greek Government-sponsored attempt to overthrow the elected president of Cyprus was met by military intervention from Turkey, which soon controlled more than a third of the island. In 1983, the Turkish Cypriot administered area declared itself the "Turkish Republic of Northern Cyprus" ("TRNC"), but it is recognized only by Turkey. An UN-mediated agreement, the Annan Plan, failed to win approval by both communities in 2004.

In February 2014, after a hiatus of nearly two years, the leaders of the two communities resumed formal discussions under UN auspices aimed at reuniting the divided island. The most recent round of negotiations to reunify the island were suspended in July 2017 after failure to achieve a breakthrough. The entire island entered the EU on 1 May 2004, although the EU acquis - the body of common rights and obligations - applies only to the areas under the internationally recognized government, and is suspended in the "TRNC." However, individual Turkish Cypriots able to document their eligibility for Republic of Cyprus citizenship legally enjoy the same rights accorded to other citizens of EU states.

party to:

Air Pollution, Air Pollution-Heavy Metals, Air Pollution-Multi-effect Protocol, Air Pollution-Nitrogen Oxides, Air Pollution-Persistent Organic Pollutants, Air Pollution-Sulphur 94, Biodiversity, Climate Change, Climate Change-Kyoto Protocol, Climate Change-Paris Agreement, Comprehensive Nuclear Test Ban, Desertification, Endangered Species, Environmental Modification, Hazardous Wastes, Law of the Sea, Marine Dumping-London Convention, Nuclear Test Ban, Ozone Layer Protection, Ship Pollution, Tropical Timber 2006, Wetlands, Whaling

signed, but not ratified:

none of the selected agreements

conventional long form:

Republic of Cyprus

conventional short form:

Cyprus

local long form:

Kypriaki Dimokratia (Greek)/ Kibris Cumhuriyeti (Turkish)

local short form:

Kypros (Greek)/ Kibris (Turkish)

etymology:

the derivation of the name "Cyprus" is unknown, but the extensive mining of copper metal on the island in antiquity gave rise to the Latin word "cuprum" for copper

note: the Turkish Cypriot community, which administers the northern part of the island, refers to itself as the "Turkish Republic of Northern Cyprus" or "TRNC" ("Kuzey Kibris Turk Cumhuriyeti" or "KKTC")

chief of state:

• President Nikos ANASTASIADIS (since 28 February 2013);
• the president is both chief of state and head of government;
• note - vice presidency reserved for a Turkish Cypriot, but vacant since 1974 because Turkish Cypriots do not participate in the Republic of Cyprus Government

head of government:

President Nikos ANASTASIADIS (since 28 February 2013)

cabinet:

• Council of Ministers appointed by the president;
• note - under the 1960 constitution, 3 of the ministerial posts reserved for Turkish Cypriots, appointed by the vice president;
• positions currently filled by Greek Cypriots

elections/appointments:

• president directly elected by absolute majority popular vote in 2 rounds if needed for a 5-year term;
• election last held on 28 January 2018 with a runoff on 4 February 2018 (next to be held in February 2023)

election results:

• 2018: Nikos ANASTASIADIS reelected president in second round;
• percent of vote in first round - Nikos ANASTASIADIS (DISY) 35.5%, Stavros MALAS (AKEL) 30.2%, Nicolas PAPADOPOULOS (DIKO) 25.7%, other 8.6%;
• percent of vote in second round - Nikos ANASTASIADIS 56%, Stavros MALAS 44%

;

• 2013: Nikos ANASTASIADIS elected president in second round;
• percent of vote in first round - Nikos ANASTASIADIS 45.5% (DISY), Stavros MALAS 26.9% (AKEL), Georgos LILLIKAS 24.9% (SP), other 2.7%;
• percent of vote in second round - Nikos ANASTASIADIS 57.5%, Savros MALAS 42.5%

note: the first round of the TRNC presidential election, originally scheduled for 26 April 2020, was postponed to 11 October 2020 due to the COVID-19 pandemic;

the second round was held on 18 October 2020; percent of vote in the first round - Ersin TATAR (UBP) 32.4%, Mustafa AKINCI (independent) 29.8%, Tufan ERHURMAN (RTP) 21.7%, Kudret OZERSAY (independent) 5.7%, Erhan ARIKLI (YDP) 5.4%, Serdar DENKTAS (independent) 4.2%, other 0.8%; percent of vote in the second round - Ersin TATAR 51.7%, Mustafa AKINCI 48.3%

area under government control:

Citizens' Alliance or SP [Giorgos LILLIKAS] (dissolved 2 December 2021); Democratic Front or DiPa [Marios GAROYIAN]; Democratic Party or DIKO [Nikolas PAPADOPOULOS]; Democratic Rally or DISY [Averof NEOPHYTOU]; Movement of Ecologists - Citizens' Alliance [Charalambos THEOPEMPTOU]; Movement of Social Democrats EDEK [Marinos SIZOPOULOS]; National Popular Front or ELAM [Christos CHRISTOU]; Progressive Party of the Working People or AKEL (Communist Party) [Stefanos STEFANOU]; Solidarity Movement [Eleni THEOCHAROUS]

area administered by Turkish Cypriots:

Communal Democracy Party or TDP [Mine ATLI]; Communal Liberation Party - New Forces or TKP-YG [Mehmet CAKICI]; Cyprus Socialist Party or KSP [Mehmet BIRINCI]; Democratic Party or DP [Fikri ATAOGLU]; National Democratic Party or NDP [Buray BUSKUVUTCU]; National Unity Party or UBP [Faiz SUCUOGLU]; New Cyprus Party or YKP [Murat KANATLI]; People's Party or HP [Kudret OZERSAY]; Rebirth Party or YDP [Erhan ARIKLI]; Republican Turkish Party or CTP [Tufan ERHURMAN]; United Cyprus Party or BKP [Izzet IZCAN]

chief of mission:

Ambassador Marios LYSIOTIS (since 17 September 2018)

chancery:

2211 R Street NW, Washington, DC 20008

telephone:

[1] (202) 462-5772

FAX:

[1] (202) 483-6710

email address and website:

[email protected]; https://www.cyprusembassy.net/

consulate(s) general:

New York

honorary consulate(s):

Atlanta, Chicago, Houston, Kirkland (WA), Los Angeles, New Orleans, San Francisco

note: representative of the Turkish Cypriot community in the US is Mustafa LAKADAMYALI; office at 1667 K Street NW, Washington, DC; telephone [1] (202) 887-6198

• centered on a white field is a copper-colored silhouette of the island (the island has long been famous for its copper deposits) above two olive-green-colored, crossed olive branches;
• the branches symbolize the hope for peace and reconciliation between the Greek and Turkish communities

note: one of only two national flags that uses a map as a design element; the flag of Kosovo is the other

note: the "Turkish Republic of Northern Cyprus" flag retains the white field of the Cyprus national flag but displays narrow horizontal red stripes positioned a small distance from the top and bottom edges between which are centered a red crescent and a red five-pointed star;

the banner is modeled after the Turkish national flag but with the colors reversed

The area of the Republic of Cyprus under government control has a market economy dominated by a services sector that accounts for more than four-fifths of GDP. Tourism, finance, shipping, and real estate have traditionally been the most important services. Cyprus has been a member of the EU since May 2004 and adopted the euro as its national currency in January 2008.

During the first five years of EU membership, the Cyprus economy grew at an average rate of about 4%, with unemployment between 2004 and 2008 averaging about 4%. However, the economy tipped into recession in 2009 as the ongoing global financial crisis and resulting low demand hit the tourism and construction sectors.

An overextended banking sector with excessive exposure to Greek debt added to the contraction. Cyprus’ biggest two banks were among the largest holders of Greek bonds in Europe and had a substantial presence in Greece through bank branches and subsidiaries. Following numerous downgrades of its credit rating, Cyprus lost access to international capital markets in May 2011.

In July 2012, Cyprus became the fifth euro-zone government to request an economic bailout program from the European Commission, European Central Bank and the International Monetary Fund - known collectively as the "Troika."

Shortly after the election of President Nikos ANASTASIADES in February 2013, Cyprus reached an agreement with the Troika on a $13 billion bailout that triggered a two-week bank closure and the imposition of capital controls that remained partially in place until April 2015. Cyprus' two largest banks merged and the combined entity was recapitalized through conversion of some large bank deposits to shares and imposition of losses on bank bondholders.

As with other EU countries, the Troika conditioned the bailout on passing financial and structural reforms and privatizing state-owned enterprises. Despite downsizing and restructuring, the Cypriot financial sector remains burdened by the largest stock of non-performing loans in the euro zone, equal to nearly half of all loans.

Since the bailout, Cyprus has received positive appraisals by the Troika and outperformed fiscal targets but has struggled to overcome political opposition to bailout-mandated legislation, particularly regarding privatizations. The rate of non-performing loans (NPLs) is still very high at around 49%, and growth would accelerate if Cypriot banks could increase the pace of resolution of the NPLs.

In October 2013, a US-Israeli consortium completed preliminary appraisals of hydrocarbon deposits in Cyprus’ exclusive economic zone (EEZ), which estimated gross mean reserves of about 130 billion cubic meters. Though exploration continues in Cyprus’ EEZ, no additional commercially exploitable reserves have been identified.

Developing offshore hydrocarbon resources remains a critical component of the government’s economic recovery efforts, but development has been delayed as a result of regional developments and disagreements about exploitation methods.

Economy - overview:

Even though the whole of the island is part of the EU, implementation of the EU "acquis communautaire" has been suspended in the area administered by Turkish Cypriots, known locally as the "Turkish Republic of Northern Cyprus" ("TRNC"), until political conditions permit the reunification of the island. The market-based economy of the "TRNC" is roughly one-fifth the size of its southern neighbor and is likewise dominated by the service sector with a large portion of the population employed by the government. In 2012 - the latest year for which data are available - the services sector, which includes the public sector, trade, tourism, and education, contributed 58.7% to economic output. In the same year, light manufacturing and agriculture contributed 2.7% and 6.2%, respectively. Manufacturing is limited mainly to food and beverages, furniture and fixtures, construction materials, metal and non-metal products, textiles and clothing. The "TRNC" maintains few economic ties with the Republic of Cyprus outside of trade in construction materials. Since its creation, the "TRNC" has heavily relied on financial assistance from Turkey, which supports the "TRNC" defense, telecommunications, water and postal services. The Turkish Lira is the preferred currency, though foreign currencies are widely accepted in business transactions. The "TRNC" remains vulnerable to the Turkish market and monetary policy because of its use of the Turkish Lira. The "TRNC" weathered the European financial crisis relatively unscathed - compared to the Republic of Cyprus - because of the lack of financial sector development, the health of the Turkish economy, and its separation from the rest of the island. The "TRNC" economy experienced growth estimated at 2.8% in 2013 and 2.3% in 2014 and is projected to grow 3.8% in 2015.;

GDP (purchasing power parity):

$1.829 billion (2007 est.);

GDP - real growth rate:

2.3% (2014 est.);; 2.8% (2013 est.);

GDP - per capita:

$11,700 (2007 est.);

GDP - composition by sector:

• agriculture: 6.2%,;
• industry: 35.1%,;
• services: 58.7% (2012 est.);

Labor force:

95,030 (2007 est.);

Labor force - by occupation:

• agriculture: 14.5%,;
• industry: 29%,;
• services: 56.5% (2004);

Unemployment rate:

9.4% (2005 est.);

Population below poverty line:

%NA;

Inflation rate:

11.4% (2006);

Budget:

revenues: $2.5 billion,; expenditures: $2.5 billion (2006);

Agriculture - products:

citrus fruit, dairy, potatoes, grapes, olives, poultry, lamb;

Industries:

foodstuffs, textiles, clothing, ship repair, clay, gypsum, copper, furniture;

Industrial production growth rate:

-0.3% (2007 est.);

Electricity production:

998.9 million kWh (2005);

Electricity consumption:

797.9 million kWh (2005);

Exports:

$68.1 million, f.o.b. (2007 est.);

Export - commodities:

citrus, dairy, potatoes, textiles;

Export - partners:

Turkey 40%; direct trade between the area administered by Turkish Cypriots and the area under government control remains limited;

Imports:

$1.2 billion, f.o.b. (2007 est.);

Import - commodities:

vehicles, fuel, cigarettes, food, minerals, chemicals, machinery;

Import - partners:

Turkey 60%; direct trade between the area administered by Turkish Cypriots and the area under government control remains limited;

Reserves of foreign exchange and gold:

NA;

Debt - external:

NA;

Currency (code):

Turkish new lira (YTL);

Exchange rates:

• Turkish new lira per US dollar:;
• 1.9 (2013);
• 1.8 (2012);
• 1.668 (2011);
• 1.5026 (2010);
• 1.55 (2009);

general assessment:

• Cyprus suffered from the effects of the pandemic in 2020 and 2021, when the tourism sector was essentially closed;
• during 2022, there have been adverse effects caused by Russia’s invasion of Ukraine, which has resulted in a dramatic drop in the number of Russian tourists entering the country;
• the mobile market is served by four mobile network operators;
• the number of mobile subscribers fell in 2020, largely the result of subscribers scaling back on multiple SIM cards as an economic measure;
• the broadband market continues to develop steadily, providing the country with one of the highest broadband penetration rates in the region;
• DSL remains the dominant access platform, accounting for about two-thirds of fixed broadband connections;
• although fiber infrastructure in Cyprus is minimal (supported by the government and regulator) to extend an FttP service to about 200,000 premises;
• as a result, the number of DSL subscribers is set to fall steadily in coming years as customers are migrated to the fiber platform (2021)

domestic:

fixed-line about 35 per 100 and about 140 per 100 for mobile-cellular teledensity; open-wire, fiber-optic cable, and microwave radio relay (2020)

international:

• country code - 357 (area administered by Turkish Cypriots uses the country code of Turkey - 90);
• a number of submarine cables, including the SEA-ME-WE-3, CADMOS, MedNautilus Submarine System, POSEIDON, TE North/TGN-Eurasia/SEACOM/Alexandros/Medes, UGARIT, Aphrodite2, Hawk, Lev Submarine System, and Tamares combine to provide connectivity to Europe, the Middle East, Africa, Asia, Australia, and Southeast Asia;
• Turcyos-1 and Turcyos-2 submarine cable in Turkish North Cyprus link to Turkey;
• tropospheric scatter;
• satellite earth stations - 8 (3 Intelsat - 1 Atlantic Ocean and 2 Indian Ocean, 2 Eutelsat, 2 Intersputnik, and 1 Arabsat) (2019)

note: the COVID-19 pandemic continues to have a significant impact on production and supply chains globally; since 2020, some aspects of the telecom sector have experienced a downturn, particularly in mobile device production;

progress toward 5G implementation has resumed, as well as upgrades to infrastructure; consumer spending on telecom services has increased due to the surge in demand for capacity and bandwidth; the crucial nature of telecom services as a tool for work and school from home is still evident, and the spike in this area has seen growth opportunities for development of new tools and increased services

Cypriot National Guard (CNG):

• 18-50 years of age for compulsory military service for all Greek Cypriot males;
• 17 years of age for voluntary service;
• 14-month service obligation (2022)

note: the CNG accepts all foreign nationals of at least partial Cypriot descent under age 32 as volunteers; dual citizenship Cypriot origin citizens, who were born in Cyprus or abroad, have the obligation to serve in the CNG on repatriation, regardless of whether or not they possess a foreign citizenship;

a person is considered as having Cypriot origin where a grandparent or parent was/is a Cypriot citizen