FOR IMMEDIATE RELEASE

U.S. Embassy
February 8, 2005

CyPEG: Opportunities for a Brighter Tomorrow

Turkish Cypriot Study Tour Participants
Observe Best Practices in the USA

As a concrete demonstration of the American commitment to helping Cypriots build a better future, ten Turkish Cypriot banking professionals recently participated in a one-week study tour in the United States. The purpose of the study tour was to help its participants develop opportunities for a brighter tomorrow.

The banking experts were introduced to best practices in small and medium-sized enterprise (SME) lending, including risk mitigation and management; money laundering prevention; and supervision of bank operations. Participants met with representatives from commercial banks, banking and business associations, and important banking and regulatory institutions in the USA including the Federal Deposit Insurance Corporation (FDIC), the Financial Crimes Enforcement Network (FinCEN), the United States Agency for International Development (USAID), the State Department (State) and the Federal Reserve (the Fed). They were also exposed to the U.S. court system and best practices in the mediation of financial disputes.

Turkish Cypriot Bankers at the Federal Reserve	With USAID’s Director of Economic Growth, Ken Lanza

The study tour was organized by BearingPoint, the preeminent US consulting firm contracted by USAID to assess the economic situation on the island and recommend technical assistance possibilities. The study tour, like BearingPoint’s assessment and the follow on activities being developed for the financial sector, is part of the ongoing U.S. effort to ease the isolation of Turkish Cypriots and promote economic growth in the Turkish Cypriot community through the Cyprus Partnership for Economic Growth (CyPEG).

CyPEG is a concrete demonstration of the American commitment to helping Cypriots create opportunities for a brighter tomorrow. CyPEG will continue to augment existing bicommunal programs and facilitate reunification of the island by supporting economic growth in the Turkish Cypriot community in ways that will (1) enable the Turkish Cypriot economy to shoulder its share of the economic costs of a settlement; (2) contribute to Turkish Cypriot-Greek Cypriot economic interaction; and (3) advance the adoption and implementation of European Union and international standards and practices across the island. It is also meant to address Greek Cypriot concerns that a settlement will be disproportionately and prohibitively expensive for the Greek Cypriot side—concerns that the U.S. government takes very seriously.

The program’s aim is to work with Cypriots to make opportunities for a brighter tomorrow.

The U.S. Government will continue to program its foreign assistance in a transparent manner and will remain sensitive to the complex issues involved. This initiative reflects no change in our recognition policy.

There will be further information about this program in the near future.