CAAG INSIDE ENGLISH 2011_Layout 1.qxd - Ministry of Foreign ...

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The Central Bank of Cyprus
The Central Bank of Cyprus was established in 1963
as an autonomous institution. Since July 2002, the
Central Bank has been governed by the Central Bank
of Cyprus Law of 2002. This law ensures the Bank’s
independence as well as compatibility with the
relevant provisions of the Treaty establishing the
European Community and the Statute of the
European System of Central Banks and of the
European Central Bank. It is an integral part of the
eurosystem, which comprises the national central
banks of the euro area countries and the European
Central Bank.
The Central Bank supervises banks which are
incorporated in Cyprus, including local subsidiaries,
branches and representative offices of foreign banks.
There are 17 locally incorporated banks currently
operating in Cyprus, nine of which are subsidiaries of
foreign banks. In addition, there are 26 branches of
foreign banks, and two representative offices of
foreign banks.
Local Authorities
There are two types of local authorities: Municipalities
and Communities, which are governed by separate
laws. In principle, Municipalities constitute the form of
local government in urban and tourist centres while
communities constitute the local structure in rural
areas. Mayors and community presidents are elected
directly by the residents for a five-year term.
Municipalities and Communities
Any community may become a municipality by local
referendum subject to the approval of the Council of
Ministers, provided it has either a population of more
than 5.000, or has the economic resources to function
as a municipality. The main responsibilities of
municipalities are the construction, maintenance and
lighting of streets and the collection, disposal and
treatment of waste.
The functions of communities are generally similar to
those of municipalities, although structurally different.
The government provides to most communities
essential administrative and technical assistance
through its District Offices.