Methods of Payment
The usual method of payment for business transactions is by letter of credit, with 90-days credit.
Credit rating reports are available through the following firms:
GlobalSource LLC
Address: 36 Grivas Digenis Ave, 1066 Nicosia
Tel.: +357-22-102201
Email: aiacovides@globalsourcellc.com
InfoCredit Group Cyprus Ltd.
Address: Philippou Hadjigeorgiou 5A, Acropolis, Nicosia 2006
Tel.: +357-22-398000
Fax: +357-22-458937
Email: info@infocreditgroup.com
Rime Information Bureau Ltd
Address: 8 Vasiliou Voulgaroktonou, Politis Newspaper Building, Nicosia 1010
Tel.: +357-22-768662
Fax: +357-22-768660
Email: rimeib@rimeib.com
Argus Information Service Ltd.
Member of Lyssiotis Group
Address: 10A Salaminos Ave., Alexia Court, 2nd Floor, P.O. Box 21176, 1503 Nicosia
Tel.: +357-22-348042
Fax: +357-22-348020
Email: janett@cytanet.com.cy
Email2: foulla.ar@cytanet.com.cy
Artemis Bank Information Systems Ltd
Address: 77 Strovolos Avenue, Office 501, 2018 Strovolos, Nicosia
Tel.: +357-22-454791, +357-99-621168 (cell)
Fax: +357-22-454786
Email: achilleas.amvrosiou@artemis.com.cy
Note: InfoCredit Group Cyprus Ltd. and Rime Information Bureau Ltd., also offer debt collection services.
Visa, Mastercard, and American Express credit cards are widely used and accepted.
For more information about the methods of payment or other trade finance options, please read the Trade Finance Guide.
See section on financing under the U.S. Department of State Investment Climate Statement website.
Banking Systems
Republic of Cyprus:
The banking sector has made significant progress since the 2013 financial crisis resulted in a “haircut” to uninsured deposits, followed by numerous bankruptcies and consolidation. The island’s two largest banks – Bank of Cyprus and Hellenic – are now adequately capitalized and have returned to profitability. However, the profitability of the banking sector as a whole is challenged by low interest margins, a high level of liquidity, and a still-elevated volume of Non-Performing Loans (NPSs). NPLs in Cyprus are the second highest in the EU at 11.7 percent of total loans at the end of January 2022, compared to 17.7 percent a year earlier, albeit considerably lower than in 2014, when they reached 47.8 percent. Banks continue striving to reduce NPLs further, either by selling off portfolios of NPLs or using recently amended insolvency and foreclosure frameworks. The economic impacts of the COVID-19 pandemic and political pressure to protect citizens under the current extraordinary circumstances makes reducing NPLs difficult. Aggregate banking sector data is available here. Standard banking services in the ROC compare well with other European countries and the United States. The Central Bank of Cyprus supervises private banks and requires them to meet Bank for International Settlements (BIS) standards as well as corresponding directives by the European Union. Bank financial statements are in compliance with international standards and audited by internationally recognized auditors. Since 2001, a deposit insurance scheme has been in operation, under the Banking Law of 1997. Regulations passed in the summer of 2009 raised the guaranteed amount under this scheme from EUR 20,000 to EUR 100,000 per depositor.
Area Administered by Turkish Cypriots:
Banking supervision has improved in the past few years. The “Central Bank” oversees and regulates all branches of local banks, foreign banks, private banks, and international banking units. In addition to the “Central Bank” and the “Development Bank”, there are 21 banks in the area administered by Turkish Cypriots, of which 16 are Turkish Cypriot-owned banks, and five are branch banks from Turkey. Two of the five members of the “Central Bank’s” “Board of Directors” are from Turkey, as is the “Central Bank Governor.” Turkish Cypriot banks do not have access to the SWIFT system so Turkish Cypriot banks rely on their correspondent banking relationships for foreign currency transactions.
Visit this link for more information about banks and the banking system in the area administrated by Turkish Cypriots (Note: the banking system website is only available in the Turkish language). Note specific features of the banking system and rules/laws that might impact U.S. business.
Foreign Exchange Controls
Republic of Cyprus:
There are no capital restrictions in the Republic of Cyprus. As with other EU countries, travelers to Cyprus must declare cash sums greater than 10,000 euros upon arrival.
Area Administered by Turkish Cypriots:
There are no capital controls in effect. Travelers exiting the area administered by Turkish Cypriots — whether residents or non-residents — may carry up to $10,000 in local or foreign currency without prior permission. Travelers must obtain authorization from the Turkish Cypriot “Central Bank” for sums over this threshold and declare the money to the “Department of Customs” at the port of exit. There is no restriction for the import of currency into the area administered by Turkish Cypriots.
U.S. Banks and Local Correspondent Banks:
Republic of Cyprus:
No U.S. banks are operating in Cyprus but there are 22 other banks in Cyprus, six of which are incorporated locally. The remaining banks are branches or subsidiaries of foreign-incorporated banks or representative offices, conducting their operations mainly with non-residents. Some of them have subsidiaries dealing with insurance services, investment banking, and other related services. Most of these banks, particularly those incorporated domestically, have correspondent arrangements with U.S. banks and offer all types of services, including deposit accounts, lending advances, leasing, credit card facilities, and automatic banking machines. Though the U.S. International Development Finance Corporation (DFC) and Ex-Im Bank do not offer any specific programs for the Republic of Cyprus, exporters may still be able to avail themselves of export financing assistance if the transaction meets appropriate criteria. For more information on the banking system, please visit the Central Bank of Cyprus.
Area Administered by Turkish Cypriots:
Some branch banks have correspondent facilities with the United States. The full list of domestic banks in the area administered by Turkish Cypriots can be obtained from the Turkish Cypriot Banks Association (Note: The website is only available in the Turkish language).