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Levant News | Cyprus Offshore Money Moves to Latvia

Levant News | Cyprus Offshore Money Moves to LatviaLevant News – it is no surprise that the amount of money deposited by non-residents in south Cyprus has dropped. The interest of the troika in Cyprus Bank Management has meant that ‘hot money’ has needed to find somewhere else to hide, some would say. The destination is apparently Latvia, close to Russia and, with the possibility of it joining the Euro-zone in 2014, a much more secure destination for the money, it is believed.

It is not sure where this money originates from its movement to Latvia makes it look suspiciously Russian in nature. With the added fear that Russia may become a major stakeholder in Cypriot Banks, any Russian wishing to avoid tax in the Mother Country might not want this fact scrutinised by the Russian authorities. It is helpful to these depositors that Latvian ties to Russia are not particularly close, although this could change in the future.

North Cyprus, however, allegedly has so little outside scrutiny that you have to wonder if they too are benefiting from this move of money from the south. Anecdotal evidence suggests that the Russian presence there is increasing and their purchasing power is being respected in areas such as property. Additionally, shops catering for Russian tastes are beginning to appear. Are we to believe that the south’s banking demise could be a god-send to the north, causing a mini property boom? We’ll see.

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