In today’s press:
Against the banks’ impunity
The founding assembly of the Association against the Banks’ Impunity took place yesterday. The association said in its first ever general assembly decision that it is an island-wide organisation, which aims to fight against “lawless schemes and the impunity of the banks”. It said, “The banks, as the main culprits of the economic crisis, who transferred their losses onto their customers’ accounts, seized deposits, and even though we have rescued them so many times though state sponsorships and guarantees, are threatening us and attacking our properties,” it said. Among other, the new association is calling for a ban on all auctions; an immediate haircut on loans; the return of abusive charges; and the punishment of banks’ managements. Haravgi newspaper reports that groups are forming and making demands, and it will not be easy to silence them.
Tender 2/2019
The Cyprus Ports Authority has announced the opening of a tender to purchase services from three natural entities to manage the contracts/licences for the Authority’s services at Paphos port (1) and Latchi port (2), for a period of 12 months, with the ability to extend it for another 11 months, at a salary of €15,600 a year plus VAT.
Drilling off the Cyprus shores…
Turkish Foreign minister Fatih Dönmez said his country may soon begin drilling for natural gas in the marine area of Cyprus. He added that the results of the drilling by the Fatih drillship in the Antalya area were expected to be announced by the end of February, or early March. Even if the Fatih drilling does not bare results, “we will not be deterred, without hesitation we will move on to the next drilling”. Meanwhile, Foreign Minister Nicos Christodoulides travelled to Brussels yesterday to participate in a meeting of the Directorate of External Relations (DER) of the Council of Europe, as well as the summits of the Association of Southeast Asian Nations.
The economic challenges of 2019
The results of 2018 for the Cyprus economy, at least as far as the statistics go, are considered satisfactory, economist Tasos Yiasemides tells Phileleftheros. The economy grew at a rate of over 3% of GDP, unemployment continued to drop and the Central Government’s surpluses increased. Looking at the year ahead, Yiasemides said the main challenge will be to maintain the momentum of upgrades from the rating agencies, even though the small and medium sized enterprises, which he considers the backbone of the Cyprus economy, are facing serious viability problems. The economist said 2018 also saw the biggest restructuring of the banking system since 2013; the merger of the ‘good’ Co-op with Hellenic Bank, which he said changed the banking landscape. There is also the very important factor of how the ‘bad’ Co-op’s assets will be managed. “It is noted that the organisation that manages these assets has not yet acquired the necessary licences to carry out its work. At the same time, the completion of the Estia scheme and its implementation are eagerly awaited,” said Yiasemides.
He knows nothing about the expenses either?
Politis newspaper launches another attack against Attorney-general Costas Clerides, accusing him of ‘not reflecting the truth’ with statements he made on Saturday, commenting on a report by the paper, which was accompanied by a document showing that not only was the AG aware of the out-of-court settlement between Supreme Court president M. Nicolatos’ daughter and Bank of Cyprus over securities, but he even endorsed and signed for it. It says the AG claimed that he was never notified, neither before nor after the withdrawal of such cases, and therefore he did not know that a state attorney had signed on his behalf. But Clerides said something else; that on his own instructions, such as in the case of Nicolatos’ daughter, the Republic does not cover the expenses following the withdrawal. But the paper provides yet another document in today’s report, claiming there are others as well, which proves that the AG was in fact very vocal about seeking expenses in an out-of-court settlement for a case involving securities.
Presidential Palace meeting due to GRECO
The government appears irked by the almost immediate response of the Council of Europe’s corruption watchdog GRECO to the scandal that broke last week involving the island’s judicial system, Haravgi reports. It says the fact that its president has become involved, with a delegation expected to visit Cyprus in the coming days, has prompted the President – who initially spoke of a separation of powers as if this did not concern him – to call a meeting at the Presidential Palace today to discuss the matter. Now bills reforming the judicial system have appeared out of nowhere, it says.
Cyprus sixth worldwide in corrupt businesses
In the 15th Global Fraud Survey, 80% of business executives said corruption was widely prevalent in Cyprus businesses. The survey showed that despite the regulatory authorities and law-enforcement services across the globe imposing fines totalling $11b since 2012, 38% of business executives worldwide continue to believe bribery and corruption are prevailing in the business world. The corresponding percentage for Cyprus is 80%, which ranks the island 6th worldwide on the relevant corruption list, behind Brazil, Columbia, Nigeria, Kenya and Peru. But there was a decrease compared to the previous year, when the percentage in Cyprus was 82%.
Operator’s ‘no’ to the CSE
The director of the Transmission System Operator – Cyprus has written a letter to the Chairman of the Cyprus Stock Exchange, Marinos Christodoulides, rejecting a proposal he received last December for the CSE to take over management of the electricity supply department, Politis newspaper learns. The operator, Christos Triaras, urged the CSE to submit a proposal in the relevant tender, if it wishes to participate.
Salaries stay fixed, rents going up
Everything appears to be going upwards in price over the past few years, which is not in proportion with the public’s salary increases. Phileleftheros reports that rents as well as businesses’ profitability increased, both during the crisis and during the recovery period. In contrast, salaries have remained stagnant, with minimal increases.
Unofficial first for the GHS
Today is considered the unofficial launch of the General Health System. The Health Insurance Organisation will be opening its lists, calling on doctors of the specialties that will participate in the system to submit their applications. For the system to function properly, there must be at least 350 personal doctors for adults, and 130 paediatricians. According to official data, there are currently 500 doctors for adults operating in Cyprus, and 200 paediatricians. The HIO is cautiously optimistic, as up until last Friday noon over 300 doctors had expressed their intention to join, during the seminars that were held to update doctors on the details of the GHS.
Akinci on the obstacles preventing a solution
Turkish Cypriot leader Mustafa Akinci said that the refusal of the Greek Cypriot leadership to share power and wealth was the biggest obstacle in finding a federal solution of the Cyprus problem, in a Facebook post. Akinci wondered whether the Turkish Cypriot side should stop defending a fair and reasonable solution that would ensure lasting peace, and whether it should tell the UN Secretary General’s envoy that the federal solution is no longer on the table, and that “we are discussing just one model of cooperation between two states”. Akinci said the TC side must maintain a steady and clear stance. “We must receive support from third parties and fight,” he said.
“Privatisations and the example of Limassol port”
The Citizens Movement Against Privatisations and Political Austerity is organising a workshop on “Privatisations and the example of Limassol port”, at the Journalists House in Nicosia on Saturday, 26 January, at 9am.
The GHS, CoLA and the return of distortions
Politis newspaper publishes an article by Lena Panayiotou, Head of Labour Relations and Social Policy at the Employers and Industrialists Federation (OEV). She writes that 2019 has kicked off with extra costs, for both employees and employers. The increase of Social Insurance Fund contributions and the launch of General Health System contributions as of 1 March signal a reduction of employees’ income by 2.2% (0.5% for the SIF and 1.7% for the GHS), as well as an increase in employers’ expenditure by 2.35% (0.5% for the SIF and 1.85% for the GHS). In addition, the latter also count pay rises as a result of the Cost of Living Allowance, as well as the recovery of salaries and benefits, as part of the renewal of collective agreements, which will lead to business’ expenditure skyrocketing dangerously. Among other, Panayiotou refers to the problems that have arisen at Limassol port, saying OEV has been closely monitoring the situation over the past few months, and the efforts to renew the port workers’ collective agreements, with great concern. “Besides the positions, views and suggestions we have at times expressed as regards regulating the right to strike in essential services, the recent events at the Limassol port reinforce the need for a swift settlement of a pending matter which by being maintained, it gives power to negligible minorities of privileged workers to reverse everything the country’s productive powers have achieved with hard work and sacrifices over the past few years.
Matsas – Time has come for pay rises and return of benefits
Phileleftheros Economy interviews the general secretary of trade union SEK, Andreas Matsas, who says 2019 will be a year of claims for the labour movement. Employees have a right to go after some of the benefits of the economic recovery, he said. But he added that the union did not intend to demand or claim anything that is beyond the capabilities of the economy and employers. “Under no circumstance would we want to see the economy suffer like it did over the past few years. Therefore, the framework of our demands will be within the economy’s capabilities. From there on, in 2019 we will claim a full recovery of salaries wherever this has not been achieved yet, and as for collective agreements that expire, we will seek pay rises based on the condition and capabilities of the business. At the same time, we will claim other benefits, with special emphasis on the Provident Funds but also Welfare Funds,” said Matsas. The newspaper asks Matsas to comment on the labour unrest at Limassol port, with workers threatening strike action, which has been deemed unacceptable by OEV and the Chamber of Commerce and Industry. It asks what SEK’s view is on the matter. He responds that the issue at Limassol port has preoccupied the union for a long time now. “For us, our position is that strikes are irrevocably a worker’s right, but at the same time, we clarify that this right should be exercised when all other margins have been exhausted,” said Matsas. “We will not accept under any circumstances for the right to strike to be criminalised,” he added. He said that thankfully recent actions had a positive impact and the port is now operating as normal. Time has been given to regulate the pending matters to ensure labour peace, but also for the port workers to receive what they are entitled to after negotiating and concluding on the collective agreement.
Presentation of Paralimni marina project
The first official presentation of the Paralimni marina took place in the presence of the President of the Republic. According to an official announcement, the marina will become a place of interest, contributing to the development of nautical tourism and in general in the tourism product of the free Famagusta region. In the framework of the wider effort for development which includes the creation of the casino as well as the other marinas, the Paralimni marina will play its own role in establishing our country as a destination of high-quality tourism. The marina will have a capacity of approximately 300 boats with all the necessary support services, such as the provision of electricity and water, a waste disposal system, a reception for boat owners as well as police, a customs office and an alien service since the marina will be an official entry point into the Republic of Cyprus. Furthermore, the project includes 4 luxury villas and 123 apartments and a path leading to Protaras beaches.
EastMed is a very big achievement for Cyprus
Phileleftheros interviews ruling DISY MP Eleni Stavrou, who says that the recent agreement on the EastMed pipeline for natural gas is the Republic of Cyprus’ biggest achievement since its accession to the EU, on a political, but also economic and strategic level. She added that the hydrocarbon explorations in the Eastern Mediterranean have created a new state of affairs, significantly upgrading Cyprus’ role in regional energy matters. She said up until now, Cyprus was a player in the transfer of oil; now it is a source of oil production. This has made it a geostrategic protagonist of the region.
Tourism records
There were 3,938,625 tourist arrivals in 2018, compared with 3,652,073 in 2017, recording a 7.8% increase. This was Cyprus tourism’s best performance in history. The industry is now having to exceed itself in a strongly competitive environment. The new Deputy Minister of Tourism, Savvas Perdios, has begun a round of contacts with all stakeholders, with Politis newspaper saying it hopes the implementation of the much talked about national strategy for tourism will begin soon, as there is no time to lose.
Ships of British P&O Ferries under the Cyprus flag
A spokesman for the British shipping company P&O Ferries has officially confirmed its decision to place all of its ships that carry out routes in the English Channel under the Cyprus flag. The company confirmed a few weeks ago that two of its ships had been registered under the Cypriot ship register. The ships were “Spirit of Britain” and “Spirit of France”, which linked the port of Dover with the French port of Calais. The latest decision concerns the company’s remaining four ships, which carry out the same route: “Pride of Canterbury”, “Pride of Kent”, “Pride of Burgundy”, and “European Seaway”.
Wargaming.net wins Best Workplace award
Wargaming.net received the Best Workplace award at the InBusinessAwards 2018. Wargaming.net offers an ideal working environment with state-of-the-art offices, flexible working hours that can be adjusted to each employee’s needs as well as partially subsidised meals. It offers a gym with personal trainers, a game room and a kid’s club for the employees’ children. It encourages multiculturalism, facilitating integration in a new country for each new member. Job positions are increasing and training of personnel is ongoing. The company offers competitive salaries and benefits, rewarding hard work, creativity, innovation and good service.
SYPRODAT: Old insurance premiums should not be charged
The monthly amount that a borrower used to be charged in relation to old premiums should stop immediately, the chairman of the borrowers’ protection group (SYPRODAT), Kostas Melas told CNA. He was asked to comment on the KEDIPES’ position that the adjustment of a borrower’s instalment due to the cancellation of old insurance premiums, will only take place after the client has applied to the Regional Service centres of KEDIPES. According to Melas, the charge on the old insurance premiums should stop after the agreement with Universal Life has ended. SEDIPES (Cooperative Asset Management Company) had informed the insurance holders that had entered into a group life insurance plan that it was terminated on 31 December 2018 and added that the choice of insurance company is left to the customers themselves. In the case of insurance holders whose credit cards have been transferred to Hellenic Bank, the Bank has informed them will be automatically be integrated in their own Group Life Insurance plan for 2019 with company Hellenic Alico Life. The chairman of SYPRODAT said that each borrower has a legal right to choose the insurance company they want to cooperate with and certainly they cannot force the borrower to enter into an agreement with a specific insurance company they have not chosen themselves.
Astrobank: deal with USB Bank finalised
AstroBank Limited announced the conclusion of the agreement with USB Bank PLC for the absorption of its banking business including the transfer of USB’s personnel, with the exception of only a few assets. All the necessary permits by the supervisory authorities have been obtained, while all the relevant procedures were completed. The transaction was funded by own resources and was supported by a share capital increase mainly by AstroBank’s current shareholders. With this acquisition, AstroBank significantly improves its position in the Cypriot market. Specifically, the Bank’s balance sheet increases by over 55%, with Total Assets exceeding €2b, Gross Loans amounting to €1.2b, Customer Deposits at €1.9b and Equity close to €160m. The Managing Director of AstroBank, George Appios underlined that the Bank’s primary objective is to play a leading role in the local market.
Attorney-General knew about out-of-court deal since 2015
On the topic above, Politis said that Clerides knew about the bonds out-of-court deal, given to Nicolatos’ daughter back in 2015, and that the agreement had been signed by a Legal Service lawyer on his behalf. The daily claims that Clerides also never mentioned the issue in 2018 when the appeal of the Bank of Cyprus and its former CEO Andreas Eliades was being examined.EY main sponsor of ΚΕΒΕ Business Leader Awards
Phileleftheros reports on the KEBE Business Leaders Awards 2018 that took place on 6 December 2018 for a 5th consecutive year. The Cyprus Chamber of Commerce & Industry (KEBE), in cooperation with IMH and magazines IN Business and Gold, organised the KEBE Business Leader Awards, the institution that honours Leadership and excellence in business and promotes individuals from the business and broader socio-economic sector. The ceremony took place in Limassol in the presence of the President of the Republic of Cyprus. A total of eight awards were given in this year’s ceremony.
1 in 5 pensioners at risk of poverty
In 2017 the proportion of pensioners at risk of poverty in the European Union was estimated to be 14.2%, slightly above the figure of 13.8 % in 2016. The rate has been rising gradually since 2013, when it was 12.6%. For Cyprus the at-risk-of-poverty rate for pensioners was way above the EU average at 21.6% up from 19.8% in 2016. The situation looks even more dire if one looks at 2015, when the rate was 16.5%. In most of the 27 EU Member States for which 2017 data are available, the proportion of pensioners at risk of poverty lies between 10% and 25%. The four countries with an at-risk-of-poverty rate above 30% in 2017 were Estonia (46%), Latvia (44%), Lithuania (37%) and Bulgaria (32%). In contrast, the lowest rates were in France (7 %), Slovakia (8 %), Denmark, Hungary and Luxembourg (all 9%).
Transparency in insurance
With a new circular, the Insurance Commissioner, informs insurance companies for the changes that will take place within 2 months. The Commissioner issued a new directive concerning insurance companies’ compilation of personalised information in relation to Investment Products based on Insurance, considering the special characteristics and choices of the (potential) client. The Directive will enter into force on 15 March 2019 and aims to increase transparency.
Pittas employees’ future uncertain
Dairy company Pittas Dairy Industries, whose creditors rejected a rescue plan for the company last week, ceased all operations yesterday 18 January. Phileleftheros reports that the future is uncertain for the company’s 75 employees who went to work on Friday in order to ask through their trade unions for letters of dismissal so that they can apply for unemployment benefits. A liquidation order has still not been issued, so employees cannot yet apply to the insolvency fund which covers salaries for up to 13 weeks. Employees have not received their December and 13th salaries nor any wages for work in January.
House Price Index increases for seventh consecutive month
The House Price Index (HPI) for the third quarter of 2018 rose an annual 1.7% to 104.19 units, according to preliminary estimate of the Statistical Service. On a quarterly basis, the index was up 0.2%. HPI measures the change in the average price of residential dwellings, both new and existing. The land component of the residential property is included. The Statistical Service also announced that the Price Index of Construction Materials increased 1.7% in 2018 compared to 2017. For December the index 2018 reached 101.15 units (base year 2015=100.00), recording a marginal increase of 0.04% compared to the previous month. The increase of the index in 2018 over the previous year is mainly due to the increase in the prices of the following materials: · Bitumen asphalt: 18.96%; Structural grid: 14.46%; Building iron: 11.95%; Aluminium doors and windows: 5.38%; Asphalt concrete: 4.97% and Structural steel: 4.44%
European Parliament approves new programme to boost growth
Parliament has adopted its position on a new EU programme to support investment and access to finance from 2021 to 2027. The new InvestEU programme follows and replaces the current EFSI (European Fund for Strategic Investments), set up after the financial crisis. MEPs adopted amendments on Wednesday to improve the EU Commission proposal, including among others: 1) increasing the EU budget guarantee to €40.8 billion (current prices) to mobilise more than €698 billion of additional investment across the EU (Commission proposed €38 billion to mobilise €650 billion); 2) clearer and new objectives, such as increasing the EU employment rate, achieving the Paris Climate Agreement goals or economic, territorial and social cohesion; 3) better climate protection: MEPs set a target of “at least 40%” of the overall financial envelope of the InvestEU Programme for climate objectives.
Cyprus risks EU fine after Parliament rejects harmonisation bill
Parliament yesterday rejected the bill that the government was promoting, which would amend the legislation on credit agreements for consumers relating to residential immovable property (mortgage credit directive -MCD). The executive requested these changes warning that if the bill was not passed, Cyprus could face a significant fine by the European Commission. The amending bill aimed at harmonising Cyprus law with the provisions of Directive 2014/17/EU. It was rejected by 25 MPs and supported by 19.
NPLs out of the “system”
The latest statistics that the Central Bank of Cyprus has announced, show an important reduction in NPLs due to the merger of the “good” Co-op with Hellenic Bank and the fact that the NPLs remained under an entity which doesn’t have a banking permit (“outside of the banking system”). The situation will be similar following the finalisation of loan portfolio sales to asset management funds. The author argues that the extraction of NPLs from banking institutions’ balance sheets has boosted their capital. However, this does not mean that socio-economic problems have been overcome; overborrowing continues to burden family budgets and the capacity of enterprises to aim for new investments and expand. The author says that this can also be seen in Moody’s latest report on Cyprus.
Cypriot banks selling real estate in Greece at very low prices
Phileleftheros reports that BoC’s REMU is selling apartments, plots and offices in Greece at extremely low prices, starting from €1.000. This is mainly real estate that was given to Piraeus Bank following the absorption of Cypriot banks in 2013. According to a survey by Phileleftheros, apartments in Athens are being sold for under €50.000 but there are also condos being sold for €1m. In Thessaloniki there is a great variety of properties with apartment prices starting from under €30.000. Many apartments are also for sale in Halkidiki, Crete and the Ionian islands. The article reports that Hellenic Bank also has a lot of properties for sale in Greece. The article goes on to list some examples of properties: an apartment in Thessaloniki with a €120.000 asking price, an apartment in Larisa for €25.000, a plot in Glyfada overlooking the sea for €14.000 among others. The article notes however that the consecutive increases in property taxes in the past few years, have obliged property owners to pay what amounts to 2.5% of Greece’s GDP.
A look at the week that passed
Phileleftheros Economy reports on the week that passed concerning financial affairs. It reports that bank shareholders were able to catch their breath in 2018, since up to September the year has already recorded profits, which they hadn’t seen since 2019. According to information issued by the Central Bank, banks recorded €178.5m in profits in the first nine months of 2015, against €632m in the first nine months of 2017. The main cause of this change, were the huge profits that Hellenic Bank recorded with the acquisition of the Co-op, due to Negative Goodwill.
CSE: Weekly losses of 2%
Phileleftheros Economy reports on the weekly performance of the Cyprus Stock Exchange which suffered 2% in losses overall. On Wednesday, Hellenic Bank’s shares attracted the most interest from investors with €78.349 (2.19 reduction - closing price €0.71). Bank of Cyprus followed with €59.061 (0.74 increase – closing price €1.36).
Reform of Registrar of Companies
The Department of Registrar of Companies and Official Receiver will implement reforms with regards to fines, removals, and other changes in order to simplify its procedures. The first step towards reform was made with the publication of the amending laws and regulations in the Government Gazette of the Republic. Over 100 forms were rewritten and will be gradually applied with the implementation of the necessary changes in the Department’s IT systems. Among the changes, the variable fee on the nominal capital (0.6%) will be removed, in order to reduce the cost of registering a company and enhance the competitiveness of Cyprus as an international business hub. Furthermore, the Department will have the power to remove entities that haven’t submitted the documents required by Law 6 months after they were warned to comply. Finally, there will be a penalty for the delayed submission of specific documents. The above will be implemented within a year.
Depositors called to pay €241.000 in legal fees
Phileleftheros Economy reports that 241 depositors (mainly from Bank of Cyprus) who suffered losses during the 2013 haircut were called to pay €1.000 in fees, following the appeals they filed at the Administrative Court. According to the newspaper’s information, the Court decided after 6 years of delays and 3-4 adjournments that it does not have the authority to investigate the appeals of the 241 depositors but called each one of them to pay €1.000 in legal fees. This amounts to a total of €241.000, Phileleftheros notes.
Tax legislation changes in 2019
Interview with the Tax & Legal practice leader of Deloitte Cyprus, Pieris Markou who informs the public about the changes in tax laws that 2019 has brought. Changes include the increased contributions to the Social Security Fund, the upcoming contributions to the General Health System (starting from March 2019) as well as new provisions in tax laws. Markou also talks about Deloitte’s tax guide which is being issued every year for 30 years.
Banking crimes go unpunished
On the occasion of the developments around the justice sector and the cases of banks that were called before the Legal Service, Kathimerini Economy’s author Michalis Olymbiou argues that there are huge deficiencies with regards to banking crimes framework in Cyprus. Specifically, he reports, the only cases that went to Court were some that the CySEC had investigated on the basis of the legislation on transparency. He says that no one had investigated the exposures race of the banks between 2006-2011 which increased the bank’s balance sheet by 50% making the Cypriot banking system the biggest one in the Eurozone, exceeding 800% of the country’s GDP. He also notes that no one has investigated the role of the Central Bank and the government, which tried to hide the fact that banks would need state aid and to be supported by taxpayers. He says that instead they tried to promote the image that the economy’s problem was solely a fiscal one. Furthermore, he says that no one investigated the fact that banks were lending huge amounts to Cypriot and foreign businesspeople under suspicious circumstances; loans that would later become NPEs.
EU passports for 133,000 investors
133,000 people have gained EU passports through citizenship by investment programmes in the last decade, Kathimerini reports. According to an Italian newspaper, third-country nationals have invested a total of €10.6m in Cyprus, Ireland, Malta and Portugal alone in return for EU citizenship. Third-country nationals come from Russia, China, Arab countries, Turkey, Lebanon, Brazil, Venezuela and North-Africa. According to information by Transparency International and Global Witness, policies of attracting foreign capital are applied in many countries outside of the EU. At a global level it is estimated that such policies lead to yearly investments of at least €11b.
From depositors to creditors overnight
Kathimerini reports that bondholders have returned to the forefront of developments, after the revelations that involve the President of the Supreme Court Myronas Nikolatos. The bondholders published 333 out-of-court settlements with Bank of Cyprus that had never been published before. Sources have told the media that a mass settlement of the cases is not possible. The author argues that the 333 ‘unique settlements’ are way too many to have been ignored by the wider public and the Bondholders’ association. The Parliament, along with the Ministry of Finance, plan to reduce the damage that the bondholders suffered, changing the initial role of the National Solidarity Fund. On the one hand, the bank tried to promote high-risk investment products to its depositors, with the latter trying to play the role of the investor, without any knowledge on the matter. The ignorance of the one party and the lack of information of the other, have brought both sides to a difficult situation. The March 2013 haircut, had huge consequences for the shareholders, creditors and depositors of the banks.
Growth recorded in 2018 must continue
Interview with Deloitte CEO, Christis Christoforou, who argues that Cyprus is capable of receiving a bigger chunk of the investments coming towards the Eastern Mediterranean, due to Cyprus’ system of taxation, the high level of professional services as well as the country’s contemporary airport and port infrastructure. He notes that the successes of 2018 must resume, with reforms as well as the modernisation of the economy. He underlines that the Cypriot economy has always been vulnerable to negative global developments and notes that Brexit, the war in Syria, the uncertainty in the international trade sector and the imbalance in many European economies should concern us.
300 billion dollars to flow into e-mobility
Car manufacturers in Germany, China and the US plan to invest more than 300 billion dollars in electric mobility over the next five to ten years. Around 135 billion dollars will go through China, where leading manufacturers will fight over the control of the market.
Households spend more
Simerini’s author argues that in 2018 there were significant signs of economic recovery for Cypriot households with regards to consumption as this is confirmed by the data on credit card use and the consumption price index. He says that the general improvement of the economy and the growth of household income as well as salary increases and the steady fall of unemployment, improve local demand and consumption. Furthermore, he notes that the course of consumption is an important indicator for economies, showing how healthy an economy is and showing the intentions of consumers/citizens.
Boom in acquisitions and mergers
Simerini’s author Sokratis Ioakim, reports that local mergers and acquisitions are definitely affected by uncertainty in the global market, the increase in protectionism and geopolitical developments such as Brexit, since such mergers and acquisitions are based on immediate foreign investments. However, the author argues, the stabilisation and the continuous recovery of the Cypriot economy and the upgrades by all the big rating agencies have a positive influence on the investment activity in Cyprus, which is expected to grow even further, once momentum returns in the international mergers and acquisitions market.
11,682 companies closed down because of the crisis
Simerini reports that thousands of companies were forced to shut down due to the financial crisis. Statistical data show that in the last 18 years, liquidations have more than tripled. Last year alone, 2,509 legal and natural persons were forced to close down.
Double exit to the markets in 2019
The Ministry of Finance is planning to reduce the country’s public debt, following its increase to over 100% of the GDP last summer. The public debt was increased even more due to the State’s actions with regards to the Co-op. If the Co-op’s influence on the public debt is removed, then it will be reduced to around 89%. Since then, and specifically by the end of 2018 there have been important early repayments of loans worth millions of euros. According to the newspaper’s information, the Ministry of Finance is preparing a double exit to the markets.
Project Helix proceeds
Even if 4.5 months have passed since Bank of Cyprus announced that it would sell loans with total net book value of €2.8b (of which €2.7b concern NPLs) to Apollo Global Management LLC, the sale will be finalised, according to the newspaper’s information, in the beginning of spring; after being approved by all supervisors and after all judicial procedures foreseen by Cypriot legislation are completed. The sale, dubbed “Project Helix” concerns 14,024 loans to corporate and small and medium size enterprises (SME) borrowers, secured over 9,065 properties.
A combination of threats for Cyprus
Politis reports that after 4 years of continuous growth, the element of favourable global financial conditions, which has significantly affected the growth of the Cypriot market and the reduction of unemployment, has ceased to be. In the last few days, there was a barrage of announcements by rating agencies who reported that economic growth is expected to slow down in 2019, while the potential of a no-deal Brexit, is hanging over the vulnerable Cypriot economy. Politis reports that Cyprus is by nature vulnerable to the external environment due to the structure of its economy: tourism, services and construction are driven by external demand. At the same time, foreign experts who are observing developments in Cyprus, underline that reforms and denationalisations should not be delayed.
Power up Spot: Important collaborations and portfolio expansion
Power Up Sport first appeared in the market in the beginning of 2016 bringing an innovative solution to the charging matter in each professional space but also proposing a new means of promotion for advertisers. Continuing its success and having been accepted by consumers, businesses and brands it has a wide application portfolio of each kind. Power Up Sport is used in charging spots in popular events, presentation of new products, conferenced in Greece & Cyprus, public awareness campaigns, multinational marketing campaigns. British American Tobacco launched Glo Power up Spot.
Industry investments are expected to rise by 31.5%
The article reports that Greek industry has proceeded to great expenses in investments in 2018 compared to 2017 in an effort to respond to the increased demand and to technological developments. According to an investments survey that the Foundation for Economic & Industrial Research (IOBE) has published investment expenses have increased by 27.3% in comparison to 2017. The estimations for 2019 are even more optimistic because there is a prediction of 31.5% increase in investments. The sector which is considered to have the most investment expenses are that of food- drinks- tobacco with an increase of 28.8%. Chemicals sector then follows whose investments expenses increased to 26.1% in 2018, metallic products investment expenses rose to 21.5%, while metallic minerals investment expenses rose to 20%.
Cigarette packages warnings are effective
The article reports that with quitting smoking being high on the list of the new year resolutions, Huddersfield researchers used surveillance methods in order to define the effectiveness on health warnings on cigarette packets. The study, which was published in Drug and Alcohol Dependence magazine, compared older packages with new designs. Smokers in the past chose to turn a blind eye to warnings written on cigarette packages.
Unlawful amendment of protection zones
An application from the past has re-emerged, concerning the division of land between plots and the creation of a road network in the Kouklia community in Paphos district. The Environmental Impact Assessment Report (EIAP), which accompanies the application for a town-planning permit, will be examined next Tuesday by the Committee for Environmental Impact Assessment. The EIAP concerns the creation of 249 plots, the development of coastal accommodation and the opening up of a road network in Plakera. The article reports that the amendment of the town-planning status of the location of the proposed project was completed on 21/12/2017 but was neither a Strategic Environmental Assessment (SEA), nor an Appropriate assessment of environmental implications were carried out.
Negative report for Cape Greco golf course development
The Appropriate assessment of environmental implications in relation to the Protected Areas of the Network Natura 2000 has suggested that the creation of a golf course in Ayia Napa, will have negative and non-reversible consequences for the environment. The project proposed the development of a golf course, as well as support infrastructure and a hotel and villas. Tomorrow the Environmental Department, will examine an Environmental Impact Assessment Report for the Master Plan for the creation of a golf course by the company “Ayia Napa Forest Golf Ltd”, in the presence of the Ayia Napa and Paralimni mayors.
Akadimias Park to be upgraded
The National Forest Park of the Pedagogical Academy, will be upgraded with the development of a hotel for bugs, enclosed jungle gym for dogs, an outdoor gym and a children’s playground. Within two months from the approval of the Action Plan, the Forest Department will proceed to prepare a master plan that will include all the provisions of the former plan and will be the basis for the upgrade and further development of the National Forest Park of the Pedagogical Academy.
Record year for tourism
A historic high of just under 4 million tourists visited Cyprus in 2018, which was a 7.8% increase compared with 2017, data from CYSTAT showed on Thursday. Between January and December 2018, a total of 3,938,625 tourists chose Cyprus as their destination, compared to the 3,652,073 tourists who visited in the corresponding period in 2017. The 2018 figures for tourist arrivals were the highest ever recorded in a period of one year, CYSTAT said. The figures for December 2018 were also record-breaking for the month. A total of 106,563 tourists arrived in Cyprus in December 2018, marking a 7.8 per cent increase compared with the corresponding period of the year before which saw a total of 98,924. Simerini reminds readers of the Deputy Minister of Tourism’s statement, that as it comes to tourism, no one has the right to decide by themselves.
Larnaca: close to revealing impressive mosaic floor
The decision on the expropriation of a house with an impressive and rare mosaic floor in Laranca, will be published next Friday according to the Ephor of Antiquities Giorgos Filotheou. The specific mosaic floor, was discovered in 2013, during works for the wastewater treatment system in the centre of the city, in the Chrysolpolitissas region.
Move towards “smart” devices
The global market for technical consumer goods (TCG) exceeded the one-trillion mark for the first time in 2018 with sales of €1.01 trillion*. This is a four percent increase on the previous year. The product segments of telecommunications (+7 percent), small domestic appliances (+7 percent), consumer electronics/photo (+6 percent), and information technology/office equipment (+1 percent) all contributed to this growth in sales. Global sales from major domestic appliances, on the other hand, fell slightly by one percent. At the same time, consumers around the world, spent around $157b on information technology and office equipment as well as consumables, at the same rate as last year. In the IT sector, there is still demand for high-performance devices, specifically in the sector of lucky games and laptops.
OPAP: Exclusive agreement awaiting due diligence report
A steering committee, made up from representatives of the Director-General of the Ministry of Finance, the Minister of Energy, Commerce and Industry and the Treasury has taken up the conclusion of an agreement with a provider for the exclusive provision of ‘lucky games’. The Committee began its operations, after a relevant authorisation by the Cabinet, in the framework of a legislation that was voted a few months ago. It should be noted, that the foreseen agreement, cancels the transnational agreement with the government of Greece, on the basis of which, OPAP (Cyprus) Ltd offers 8 lucky games by OPAPA A.E. to the Republic of Cyprus. The Committee, has begun its operations and up until now it has secured the agreement by OPAP, for the conduct of a due diligence study in order to establish the suitability of the provider that will get the exclusive license. It has prepared documents for an open tender competition in order to secure, services from a financial body with relevant expertise and know-how. The Ministry of Finance, will announce the relevant competition as soon as the necessary appropriations are available in the 2019 budget, according to the Minister of Finance.
Greece: everyone found innocent for fixed matches!
Most defendants involved in fixed matches were proven innocent in Greece, while the only ones that were found at fault were 11 persons (between them Giorgos Tsakoyiannis). The latter were found guilty of organising illegal gambling and laundering money that came from illegal activities.
Cape Greco golf course development rejected
The Appropriate assessment of the implications in relation to the Protected Areas of the Network Natura 2000 has suggested that the creation of a golf course in Ayia Napa, will have negative and non-reversible consequences for the environment. The project proposed the development of a golf course, as well as support infrastructure and a hotel and villas. Tomorrow the Environmental Department, will examine an Environmental Impact Assessment Report for the Master Plan for the creation of a golf course by the company “Ayia Napa Forest Golf Ltd”, in the presence of the Ayia Napa and Paralimni mayors.
Medical cannabis bills back at Parliament
The article reports that MPs did not manage to give their opinion on the bills which concern the prescription of medical cannabis to patients. Two years after the bills were initially proposed, they had to return to the Parliamentary Committee on Health. The reason for this was the delayed submission of amendments on the regulations by two DISY MPs. The first amendment was submitted last Friday by Costas Constantinou who suggested to increase the number of permits for the production of medical cannabis from two to four and at the same time increase the license fee from €15,000 to €300,000. The second amendment from DISY came from Nicos Nouri MP who suggested the reduction of the monthly quantity of dried cannabis in the form of galenical medication that can be prescribed (30g).
GHS doctors most highly paid in the world
HIO’s optimism concerning the inclusion of an adequate number of patients in the GHS can be explained by a study conducted by the Pancyprian Federation of Associations of Patients and Friends (POSPF) which lists the salaries of GHS’ primary care doctors as among the highest in the world. Specifically, doctors in Cyprus will be rank 3rd as the most highly-paid in the world with average annual earnings that reach €135,000 (close to $154,000). POSPF’s drew its data from OECD.
HPV vaccine before being sexually active
The article reports that HPV virus can act as an oncogenic virus. Almost all cervix types of cancer are caused from this viral infection. It is usually spread from sexual contact. There are over 40 different types of HPV which cause infection to reproductive organs and only some of these are the so-called high risk e.g. HPV 16. Even in cases of infection from cancer viruses the majority will be healed from the woman’s immune system. However, 20% will develop cancer defects, meaning the cervix area where cells have been infected will produce new viral particles that will continue to spread until the whole area is infected. Finally, the cancer cells will be transferred from the blood to other parts of the body and therefore develop metastasis. Apart from the PAP test, another way for preventing HPV infection is the recent vaccine, which works to protect against the nine most common types of HPV which infect the cervix and cause genital warts. The vaccine is recommended for girls before the start of their sexual life. As with other vaccines the HPV vaccine prevents the body from getting infected, since it creates antibodies as a natural defense against the virus.
Increased viral infections in hospitals
Viral infections continue to affect people of all ages in Cyprus. Αs a result, the majority of pathology department wards in public hospitals are at full capacity. This phenomenon can also be seen in the private sector where wards in private hospitals are also full. At Accident and Emergency Departments of public hospitals, the increased number of patients continues to be problem. The A&E Department of the Limassol General Hospital was facing a serious problem last week due to overcrowding.
Patients and pharmacists support GHS
The pharmaceutical companies association (Sfek) said that the budget for pharmaceuticals in the GHS should be representative of the system’s needs. At the same time, the association welcome the government’s decisiveness to implement the GHS because a modern state needs an entirely healthy healthcare system; this is something that Cypriot patients demands and has a right to. SFEK reports that the real expenditure of Cypriots for medicines in 2018 should be taken into account in order to calculate the needs for 2019 (with a reasonable increase predicted). Other factors that should be taken into account are the markets of Greece and the occupied areas as well as the increased cost of storage and distribution. The correct determination of the budget is of chief importance in order to cover all the needs. SFEK goes on to say that “the correct determination of the budget is of chief importance in order to cover all the needs of the system. It is not possible that the same amount that is being invested today in the pharmaceutical treatment of all patients, which is one of the lowest in Europe, will be able to offer a higher-quality and more pharmaceutical treatment services”. As it concerns the issue of rebates, SFEK calls the HIO to handle the matter correctly; the discounts that are being asked should not be too high, thereby compromising the availability of current as well as new pharmaceutical products in the small market of Cyprus. As it concerns clawbacks (return of money to HIO in case the budget is exceeded), the Association strongly believes that this provision should be examined for implementation after 5 years. The article further reports that the Pancyprian Federation of Associations of Patients and Friends (POSPF) has also expressed its support for the system saying that if the GHS operates in a correct way, more sectors could be developed such as Medical Tourism, Research and Innovation, with multiple financial and social benefits for the country. The Federation also added that the reform of the healthcare sector is perhaps the biggest endeavor of the Cypriot state as well as the most human-centric system. They further underline that the state has an obligation to complete its effort to implement the GHS as well as support the system in the next few years.
Medochemie: Number one export company of Cyprus
Article by Medochemie Director of Sales, Nikos Christides, who says that the Cypriot Pharmaceuticals Industry plays a very important role in the local economy and society. Cypriot medicines are the number one export of Cyprus, with exports bringing in €272m in 2017. He says that the pharmaceuticals sector is the only sector of the economy where there is a trade balance due to the dynamic and effectiveness of the Cypriot pharmaceuticals industry. The industry employs around 2000 people, most of which are scientists. Medochemie has been operating for 42 years with 13 manufacturing units in Cyprus (9), The Netherlands (1) and Vietnam (3). It has 630 different products and 4355 circulation permits around the world. It exports its products and cooperates with 107 countries and has offices in 21 countries. It is estimated that around 300 million people receive treatment with Medochemie’s products every year. The company is the number one export company of Cyprus taking up 28% of total exports.
Tax legislation changes in 2019
Interview with the Tax & Legal practice leader of Deloitte Cyprus, Pieris Markou who informs the public about the changes in tax laws that 2019 has brought. Changes include the increased contributions to the Social Security Fund, the upcoming contributions to the General Health System (starting from March 2019) as well as new provisions in tax laws. Markou also talks about Deloitte’s tax guide which is being issued every year for 30 years.
Medochemie Marathon Nicosia
The leading sports and cultural event of Nicosia, Medochemie Marathon Nicosia, will take place on 24 February 2019 and is expected to constitute the biggest challenge for every runner. In the framework of the Marathon, there will also be a Run Corporate 5K, which is a race for groups, such as companies and businesses, organisations, schools and other organised collectives. The Corporate Run will start at 11:15 in the morning, starting at Stavrou Avenue. Registrations close on 10 January.
Integration of rare disease patients in GHS, very important
The recent workshop organised by CARD, the Cyprus Alliance for Rare Disorders, has once again brought to the forefront of discussions, the matter of promoting and ensuring the rights of the patients, with specific focus on those who suffer from chronic and rate diseases. Rare diseases concern 6-8% of the population, meaning around 70.000 of Cyprus’ citizens. The author, Dr Andourlla Eleftheriou argues that rare disease medicines are very costly, due to the low interest by pharmaceutical companies in such a limited number of patients and a limited interest in research and development of such pharmaceutical products. She argues that the government should define centres of excellence (hospital departments or clinics) which will be integrated in the GHS and encouraged to network with European Centres of reference. In this way, she says, rare disease patients will be able to benefit from the accumulated expertise of the defined Centres, while in the case of thalassemia and other diseases Cyprus can help other patients around Europe.
Private clinics request more information from HIO
PASIN (Cyprus Association of Private Clinics and Hospitals) has requested more information from the HIO, presenting the gap in its integration in the GHS. “We cannot commit quality, economic or a different type of suicide, thereby jeopardising the viability of our hospitals” the press representative of PASIN, Marinos Sotiriou said. He further said that PASIN has repeatedly asked for more information by the HIO in order to answer reasonable questions posed by the Association’s members.
OKYPY provides new incentives for state doctors
State doctors will receive a raise of 15%, instead of 14% on their salaries, if they choose to conclude contracts with the Organisation of State Health Service (OKYPY) for autonomisation. At the same time their one-off payment will be increased from €3.000 to €4.500. At the same time, private hospitals support that their integration in the System will constitute a leap into the void.
