Although most ships flagged or managed in Cyprus appear not to have been disrupted by the prolonged closure of banks during the island’s bailout crisis, it could be a different story for shipping firms with deposits at the two banks subject to the haircut agreed last weekend.
With banks now likely to remain shut at least until Thursday, and fallout from the deal between Nicosia and its creditors not yet clear, it has emerged that the country’s shipping sector has maintained emergency access to funds to keep ships moving around the world.
“The government of Cyprus has clearly understood that payments for ships out on the oceans are as necessary as payments for the national power grid, the import of oil and other vital needs,” said Cyprus Shipping Chamber president Eugen Adami of Mastermind Shipmanagement.
According to the chamber, the understanding with the Central Bank of Cyprus covered national-flag vessels and ships managed by the shipmanagement sector based on the island, which has an international hue.
However, the paperwork requirements were strict and the release of funds “very controlled”, said Capt Adami.
Continue article at: intermanager.org
