Cyprus at a Glance_EN

The Central Bank of Cyprus The Central Bank of Cyprus was established in 1963 as an autonomous institution. Today, the Central Bank is governed by the Central Bank of Cyprus Law of 2002, as this was amended in 2007. 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. The Central Bank of Cyprus is an integral part of the Eurosystem, which comprises the national central banks of the euro area countries and the European Central Bank. The main functions of the Central Bank include: - implementing the European Central Bank’s monetary policy decisions, - holding and managing the official international reserves, - supervising banks, - safeguarding the stability of the financial system, - promoting, regulating and overseeing the smooth operation of payment and settlement systems, and - acting as banker for the government. 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, the collection, disposal and treatment of waste and environmental protection and improvement. 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. 6