Fact: Companies listed on the capital market are expected to face an additional 2.5% corporate tax in the next fiscal year unless they adopt cashless transactions as the government plans to promote a cashless society.
China Petroleum Pipeline Engineering (CPP) is seeking a financial settlement and termination of its involvement in the Vasilikos LNG terminal project in Cyprus. CPP may link the settlement to the delivery of the Floating Storage and Regasification Unit (FSRU) vessel named “Prometheus.” There are concerns that CPP withholding the FSRU could undermine previous assurances about the vessel’s readiness and certification. Technical interventions and modifications estimated at €10-15 million are needed for the FSRU to operate in Vasilikos. CPP has also requested an additional €200 million in a separate London arbitration. The situation could potentially escalate into a “hostage situation” involving the FSRU if CPP demands more payment for its delivery.
The United Arab Emirates’ economy grew 4.3% year-on-year in the fourth quarter of 2023, with non-oil GDP surging 6.7% in the same period.
The Lithuanian Finance Ministry proposed increasing the corporate tax rate by one percentage point, hiking excise duty on fuel, and introducing a tax on some insurance contracts to raise additional funds for defense.
Office rental rates in Cyprus have reached the highest levels in five years, with prices increasing by about 8.5% year-on-year in the first quarter of 2024. Limassol and Larnaca are leading the way in office rental price increases, with Nicosia showing a steady recovery. Prices for office sales have remained at 2023 levels, with increases recorded in Larnaca and Famagusta district. The demand for modern, Grade A offices is expected to continue throughout 2024, driven by both the private and public sectors.
Fact: An ‘unprecedented mass claim’ of Laiki and Bank of Cyprus depositors and bondholders amounting to US0 million was dismissed at the International Arbitral Tribunal of the World Bank.
Fact: The global minimum tax mandates large multinational enterprises to pay a minimum tax rate of 15% in each country where they operate.
The World Bank’s ICSID tribunal rejected a 0 million claim by depositors and bondholders of Laiki Bank and the Bank of Cyprus, finding the bail-in measures implemented during the financial crisis to be a legitimate exercise of Cyprus’ regulatory power.
British Prime Minister Rishi Sunak has called for a national election on July 4, where voters will choose between stability with him or the unknown with Labour leader Keir Starmer. Sunak, who is behind in the polls, is taking a risk by calling the election earlier than expected. Both parties have begun campaigning, with Sunak accusing Labour of planning to increase taxes if in power, while Labour criticizes the government for economic mismanagement. If Labour wins, Britain will have had six prime ministers in eight years for the first time since the 1830s. Starmer has pledged to “rebuild Britain” if Labour forms the next government. Sunak hopes to capitalize on uncertainty and economic gains to boost his party’s fortunes in the election.
The CEO of a financial advisory firm believes that the Bank of England should start cutting interest rates this summer despite UK inflation data showing mixed signals.