CYPRUS Trends and Developments Contributed by: Adam Montanios and Nicolas Montanios, Montanios & Montanios
When a vessel is not in a Cypriot port at the time of her registration, it is also possible for provisional (own - ership) registration to be effected through a Cypriot maritime or consular office abroad (by specific author - ity of the Registrar of Ships). However, permanent reg - istration and parallel registration can only take place at the Registrar’s office in Limassol, Cyprus. A ship may be registered with the Register of Cyprus Ships if: • more than 50% of the shares in the ship are owned by a Cypriot citizen or a citizen of any other EU/ EEA state; or • 100% of the shares in the ship are owned by a Cypriot or EU/EEA company, or by a third-country company controlled by Cypriot or EU citizens (on certain special conditions). Furthermore, a vessel may be registered in parallel under the Cyprus flag, provided that she is bareboat chartered by a person or entity qualified to own a Cyprus-flagged vessel, as per the above-mentioned requirements. Most types of vessels of up to 20 years of age are registrable under the Cyprus flag, while older vessels can only be registered under certain conditions or additional requirements. Related details are contained in the Government Pol - icy on the Registration of Ships, the current version of which is available on the website of the Shipping Deputy Ministry. Vessel Mortgaging A Cyprus-flagged vessel may be mortgaged as secu - rity for a loan to the vessel’s owning company or for the obligations of a third party. The instrument creating such mortgage must take one of two statutory forms: that of securing “principal sum with interest” or an “account current” (the latter being used in the vast majority of cases). A collateral deed of covenants dealing with all matters relating to the mortgage must be attached to such mortgage instrument. The mortgage instrument must
be signed by the ship-owner/mortgagor and the deed of covenants by both the mortgagor and the mortga - gee. A Cypriot statutory mortgage must be filed for regis - tration in the Register of Cyprus Ships (either directly at the Shipping Deputy Ministry or through a Cypriot maritime or consular office abroad – on the instruc - tions of the Shipping Deputy Ministry), and its priority is determined in accordance with the date and time of such registration. If the owner/mortgagor is a Cyprus registered com - pany, such mortgage must also be registered at the Companies Registry as a charge against such owning company. Shipping Deputy Ministry to the President The Cypriot government established the Shipping Deputy Ministry in 2018, to expand the functions and capacity of the former Department of Merchant Shipping, which was one of many departments of the Ministry of Transport, Communications and Works. The establishment of a dedicated and autonomous Deputy Ministry focusing entirely on the Cypriot mari - time industry has been a great success and signalled the government’s dedication to the shipping cluster, which accounts for 7% of the country’s GDP. The Shipping Deputy Ministry has further enhanced its already excellent level of offered services, and now offers a 24/7 service from maritime specialists in sev - en maritime offices around the globe. The Shipping Deputy Ministry has also recently intro - duced its new vision and philosophy for Cypriot ship - ping. The current Deputy Minister, Mrs Marina Had - jimanolis, along with her predecessors Mrs Natasa Pilides and Mr Vassilios Demetriades, have worked tirelessly and extremely efficiently in developing a dis - tinct and leading identity for the newly formed Ship - ping Deputy Ministry. The overarching aim of the Shipping Deputy Minis - try is to maintain and develop Cyprus as a significant and influential actor, spearheading positive change in global shipping. Additionally, it strives to promote Cyprus as an attractive international maritime centre, focusing on sustainable growth and excellence.
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