Glossary -- Cyprus

Cyprus pound--(C£): Republic of Cyprus monetary unit consisting of 100 cents. At independence C£1 was worth US$2.80. The average annual exchange rate for C£ in 1979 was US$2.82; in 1982, US$2.11; in 1985, US$1.64; in 1986, US$1.94; in 1987, US$2.08; in 1988, US$2.14; in 1989, US$2.03; and in 1990, US$2.19.
European Community (EC--also commonly called the Community): The EC comprises three communities: the European Coal and Steel Community (ECSC), the European Economic Community (EEC, also known as the Common Market), and the European Atomic Energy Community (EURATOM). Each community is a legally distinct body, but since 1967 they have shared common governing institutions. The EC forms more than a framework for free trade and economic cooperation: the signatories to the treaties governing the communities have agreed in principle to integrate their economies and ultimately to form a political union. Belgium, France, Italy, Luxembourg, the Netherlands, and the Federal Republic of Germany (West Germany) are charter members of the EC. Britain, Denmark, and Ireland joined on January 1, 1973; Greece became a member on January 1, 1981; and Portugal and Spain entered on January 1, 1986. Cyprus became an associate member June 1973.
European Economic Community (EEC): See EC.
gross domestic product (GDP): The total value of goods and services produced by the domestic economy during a given period, usually one year. Obtained by adding the value contributed by each sector of the economy in the form of profits, compensation to employees, and depreciation (consumption of capital). Most GDP usage in this book was based on GDP at factor cost. Real GDP is the value of GDP when inflation has been taken into account.
gross national product (GNP): Obtained by adding GDP (q.v.) and the income received from abroad by residents less payments remitted abroad to nonresidents. Real GNP is the value of GNP when inflation has been taken into account.
International Monetary Fund (IMF): Established along with the World Bank (q.v.) in 1945, the IMF is a specialized agency affiliated with the United Nations that takes responsibility for stabilizing international exchange rates and payments. The main business of the IMF is the provision of loans to its members when they experience balance of payment difficulties. These loans often carry conditions that require substantial internal economic adjustments by the recipients.
Latin: See Roman Catholic.
Roman Catholic: In historical use, the Latin Church refers to the western wing of Christianity using Latin as its liturgical language, jurisdictionally related to the bishop of Rome (the pope) rather than one of the other patriarchs, and generally corresponding to the area of the Western Roman Empire rather than the Eastern Roman or Byzantine section. After the great schism of 1054 those churches accepting papal authority became known as Catholic in contrast to the Orthodox; the vast majority of these were Latin rite or Roman Catholic. Since the religious conflict in Lusignan and Venetian Cyprus was as much cultural as one of hierarchical structure, Roman Catholics have continued to be known in Cyprus as Latins; the term also is used to distinguish the descendants of the former Lusignan and Venetian elites from Greek Cypriots.
Turkish lira (TL): Monetary unit used in "Turkish Republic of Northern Cyprus." Also known as Turkish pound. Consists of 100 kurus. In terms of the United States dollar, the annual average exchange rate was TL19.3 in 1977, TL76.0 in 1980, TL522.0 in 1985, TL674.5 in 1986, TL857.2 in 1987, TL1,422.3 in 1988, TL2,121.7 in 1980, and TL2,608.6 in 1990.
VAT: Value-added tax. A tax applied to the additional value created at a given stage of production and calculated as a percentage of the difference between the product value at that stage and the cost of all materials and services purchased as inputs. The VAT is the primary form of indirect taxation applied in the EEC (q.v.), and it is the basis of each country's contribution to the community budget.
World Bank: Informal name used to designate a group of three affiliated international institutions: the International Bank of Reconstruction and Development (IBRD), the International Development Association (IDA), and the International Finance Corporation (IFC). The IBRD, established in 1945, has the primary purpose of providing loans to developing countries for productive projects. The IDA, a legally separate loan fund administered by the staff of the IBRD, was set up in 1960 to furnish credits to the poorest developing countries on much easier terms than those of conventional IBRD loans. The IFC, founded in 1956, supplements the activities of the IBRD through loans and assistance designed specifically to encourage the growth of productive private enterprises in less developed countries. The president and certain senior officers of the IBRD hold the same positions in the IFC. The three institutions are owned by the governments of the countries that subscribe their capital. To participate in the World Bank group, member states must first belong to the IMF (q.v.).