Real Estate Investment Trust (REITS): How it will give solutions in Cyprus real estate problem
The relevant decisions of the Eurogroup led the Cypriot society in a collective shock, surprising the political system, razing the country's economic prospects and overthrowing the lifestyle of the average Cypriot. Cyprus is in recession since mid-2011 with the turmoil in the banking and financial sector, which led to lower investment and consumption. Since March 2013 the Cyprus enjoys an Economic Adjustment-Scheduled agreement with the troika (IMF, European Commission and European Central Bank), which aims to restore confidence, to correct fiscal imbalances and to strengthen competitiveness in economy. The GDP growth rate in real terms during the first quarter of 2014 was negative, estimated at -4.0% compared to the corresponding quarter of 2013. Based on seasonally and working day adjustments to the GDP growth in real terms is estimated at -4, 1%. Negative growth rates were recorded by the secondary sector of the economy (industry, construction) and in the fields of banking, tourism, transport and other services. The Cyprus has returned to international markets after a three-year blockade. Nobody expected the government to regain access so soon after the signing of the Memorandum and the haircut of deposits - was the most rapid return to the markets of a country embedded in an assistance program. The resolute implementation of the memorandum, positive quarterly reviews by the Troika, the best results from it indicators of public finances all contributed to a successful bond issue to € 750.000.00. In the recent study is examined how real state investment trust can help the Cyprus economy.