Daily Press Review - 30/3- 2/4/2019

In the press last weekend until today:

Hellenic Bank’s 55 biggest shareholders (List)

Philenews Insider reports that Hellenic Bank’s new shareholding structure is especially interesting after the share capital increase of €150m. The new shares that emerged after the share capital increase, were listed at the Cyprus Stock Exchange on 28 Mach. The bank’s new shareholding structure consists of investment funds, investment groups, provident funds, private companies and private persons. Insider has secured the list with the bank’s 55 biggest shareholders, who control 94.66% of the total equity. Apart from the shareholders who hold more than 5% and have been made public, other natural and legal persons with important percentages are also known to the public of Cyprus. These are for example, Logicom Services, the Canadian investment fund Senvest, CNP Cyprialife, CNP Asfalistiki, Atlantic Insurance, Cyta, the Central Church Fund. EBRD on the other hand, is completely absent from the list. Before the share capital increase, EBRD controlled more than 5% of the bank’s equity. Evgenia Shchkina, o Renat Fatkhullin, Marios Fylaktou and Emilios Pyrishis are the private shareholders with the most shares. It should be noted that following the share capital increase, the bank’s total number of shares increased to 412.805.076. Insider’s article includes a list with the 55 biggest shareholders.

 

The 50 most influential women in Cyprus (List)

On the occasion of the International Women’s Day (8 March), Economy Today publishes a feature on 50 women who hold senior positions in the public and private sectors and have great influence in the country’s political, economic, business and social life. These are women, the article reports, who have managed to break the social norms, such as gender discrimination, wage gap, representation in politics and participation in decision-making centers. The article also features Marianna Pantelidou Neophytou, Wargaming’s Chief of Staff to the CEO. The article includes her bio and experience adding that “ At end-November 2013 she joined Wargaming Group Ltd and has served in a wide spectrum of posts. Today she serves in the post of Chief of Staff to the company’s CEO. She was appointed Member of the Board of Directors of Hellenic Bank on 24 December 2013. She is a Member of the Audit and Nominations / Internal Governance Committees of the Bank’s Board of Directors.”

 

7+1 Business News

Economy Today features a feature on the country’s main business news and listed as number 1 is Hellenic Bank’s share capital increase of €150m. The article reports that the bank’s share capital increase was decided after the bank acquired part of the Co-op’s assets and liabilities, with a total balance sheet of €1.03b. Wargaming is the bank’s biggest shareholder with 20.61%. After the completion of the share capital increase, the shareholders that hold over 5% of equity are: Wargaming Group Ltd with 20.61% (before 24.9%), Demetra Investment Public with Ltd 18.42% (before 10.1%), Poppy Sarl (Pimco) with 17.30%, Third Point Hellenic Recovery Fund LP with 12.55% (before it held 12.59%) and 7Q Financial Services with 8.83%. The share capital increase was carried out through the guaranteed issuance of Preference Rights amounting to €100m and through Private Placement of €50m.

 

New era for Hellenic Bank

Politis reports that Hellenic Bank said that the successful share capital increase and the subsequent listing of the new shares at the CSE was “an important milestone for the acquisition of ex Cyprus Cooperative Bank business. With an announcement, the bank notes that the share capital increase of €150m demonstrates the confidence and support of the bank’s current and new shareholders to the Bank’s Board of Directors and management. At the same time it significantly strengthens the capital position of the Company, supporting the management’s vision as well as the quicker implementation of the bank’s business plan. Through the acquisition of the former Co-op’s assets and the increase of the share capital, Hellenic Bank has significantly enhances its activities across Cyprus, while its customer base has been expanded and diversified thereby improving its financial profile. “The perimeter of acquisition complements the current business plan, creating economies of scale and synergies. With around 550 thousand clients, Hellenic Bank now has a leading position in retail banking in Cyprus with the biggest network of branches and ATMs on the island and a market share of 39% in household deposits and 30% in household exposures”, the bank notes. In relation to the centre-based approach and the smooth integration process, Hellenic Bank notes the following: “Our goal is to provide excellent services and competitive products to our expanded clientele, while we continue to fund the growth of the real economy. Our strategic priority is the fast and unimpeded transition to the new era and the successful integration of the assets that have been acquired. As such a new wide-scale scheme has been created and is being implemented in relation to the integration, having the full support of Hellenic Bank’s BoD, management, and personnel.

 

Hellenic Bank supports the shipping industry

For a third year in a row, Capital Link organised its Annual Capital Link Cyprus Shipping Forum on Wednesday, February 27, 2019 at Columbia Plaza and Hellenic Bank was again this year a Gold Sponsor of the event. The Forum highlighted the significant role, competitive positioning and advantages of Cyprus as a maritime, energy and logistics hub and as an investment and business destination. The event brought together high-calibre international speakers and delegates, including ship owning and offshore executives, institutional investors, research analysts, industry experts, commercial and investment bankers, risk advisors, private equity and venture capital firms, high-net worth investors as well as major local industry leaders and financial media.

 

Cypriot banks record largest NPLs decrease in Euro-area

Economy Today reports that the Cyprus registered the largest decrease in non-performing loans, in the Euro-area, in the third quarter of 2018. According to the annual ECB report on Supervised Activities for 2018, banks registered in Greece, Cyprus and Portugal recorded the highest NPE, with rates of 43.4%, 20.7% and 14.5% respectively, in the third quarter of 2018. According to the report, the Cyprus banks NPL ratio declined significantly on an annual basis by 13.3%, Slovenia’s banks by 5.3%, Irish banks by 3.7%, Portuguese banks by 3.6%, and banks in Greece reduced their NPE by 3.2%. The article argues that the Cyprus’ NPLs reduction was mainly caused by the absorption of the Co-op by Hellenic Bank and the subsequent removal of €7b worth of NPLs from the banking sector. According to the latest available information of the Central Bank, NPLs in Cyprus were reduced in November 2018 to €11.1b from €20.6b in December 2017. The article also reports that the sale of a large loans package by Bank of Cyprus also played a significant role in this reduction.

 

Who is blamed in the Co-op probe findings report

Economy Today publishes a feature on the Co-op probe findings, which shook up the political world of Cyprus. Since its publication, the article says, politicians and parties have reacted in various ways, with the most important reaction being the government’s contestation of the report. The biggest blame for the post-2013 was assigned to the Minister of Finance, Harris Georgiades. The report also said that the President of the Republic was also responsible for the Co-op’s course which ended with the expedited sale of the Co-op to Hellenic Bank, since he kept Georgiades in the position of Minister of Finance for more than four years. The latter didn’t manage to save the Co-op from collapse, even though he knew it was coming. Georgiades himself later contested every single personal accusation included in the report. The Minister announced that he will step down at the end of 2019.

 

Hellenic Bank’s NPEs ratio dropped

According to Hellenic Bank, Politis reports, the Group’s balance sheet has reduced risks and the quality of the loans portfolio has been significantly improved. The Bank’s NPEs ratio, has dropped significantly from 52% to 25.6% as at 30 September 2018, while the ratio of Net NPEs to assets was reduced from 12% to 4%. A At the same time, Hellenic Bank reports that it has a strong capital position since the pro-forma Common Equity Tier 1 and Capital Adequacy ratios were boosted to 17,8% and 20,4%, respectively; much higher than regulatory requirements. The acquisition of the Co-op enhanced the Bank’s position in the market and in combination with the successful increase of it share capital, led to the improvement of its financial profile; something which is reflected in the recent upgrades by international credit rating agencies Moody’s and Fitch to B3 and B+, respectively.

 

Spokesman: The government needs to strike a balance on the Co-op’s properties

The government should strike the balance between the desire to return the properties of the former Cooperative Central Bank to the local communities and the responsibility to manage all of the Co-op’s assets so that government will be able to recover the taxpayer money that was given for the purposes of the merger, said the government spokesman Prodromos Prodromou. When he was asked whether the President had been informed by the Attorney-General on the Legal Service’s investigation for any criminal or civil responsibilities in the Co-op, he said that the President spoke with the Attorney-General but added that don’t have anything to announce.

 

More than 50 applications for high-rise buildings in Cyprus

Kathimerini publishes a feature on the high-rise building trend in Cyprus and how it all started. The article reports that the high-rise building trend reached its zenith in 2018. According to the town-planning committee, this trend has slowed down since the plots that are appropriate for this type of developments are steadily becoming fewer. Furthermore, it is not ruled out that investor interest for the development of high-rise buildings may slow down, according to the market trends. At the moment, the article reports, Cyprus’ real estate market has is changing and is becoming similar to the real estate market of Dubai, the country that is best known for its high-rise buildings. At the moment in Cyprus, the highest building is 78 metres high, while a permit has been issued for the construction 130-metre building in Larnaca. In total, 58 applications have been logged for the construction of buildings over 12 storeys high, according to the Chambers of Commerce and the municipalities of Limassol, Nicosia, Larnaca and Paphos. The article also lists the high-rise buildings of Cyprus per number of storeys: currently, the tallest building of Cyprus is 360 in Nicosia (34 storeys). The list also includes Wargaming’s building which is 12 storeys-high.

 

Co-op cards to be phased out soon

Phileleftheros Economy reports that Hellenic Bank will stop re-issuing Co-op credit/debit cards for the clients of the former Cyprus Co-operative Bank (CCB) in April. As of today, the customers of the former Co-op are getting their cards renewed, while according to Hellenic Bank’s planning, in about a month, former Co-op customers will receive Hellenic Bank cards. It should be noted that starting from next year, Hellenic Bank will start replacing the Co-op’s cards with their own. This change concerns hundreds of credit/debt cards, given that Hellenic Bank acquired around 500K accounts from the Co-op. It should be noted that from the first day of the merger, the credit/debit cards were accepted at any ATM. The former Co-op customers can use their credit cards until the full integration of the two systems, of Hellenic Bank and the Co-op. At the same time, Hellenic Bank is investing in providing high-quality service to its customers as well as trains them to use the new digital services. The Meeters-Greeters programme has entered into force on 15 January at the former Co-op branches and will last until the end of June. Around 30 young people were trained to handle complaints and promote the using ATMs for cash withdrawal. The main goal of the programme is to promote credit cards and train customers to use ATMs. Additionally, the young people are updating the customers’ information. 44% of orders for new credit cards were ordered through this new programme, since the start of the year and the contact information of an important number of customers has been updated.

 

The properties of the Co-op and their exploitation

Phileleftheros’ columnist Iosif Iosif, analyses how the state can exploit the properties that it acquired after the Co-op collapsed and its ‘good’ part was absorbed by Hellenic Bank. Already, the Cabinet decided that these properties will be given to state services and in general, to local and state authorities and actors. For this purpose, the state set up a Technical Committee that will evaluate these properties and take decisions on how the properties will be allocated. The author argues that the government is headed to the right direction. He says that from the moment that so many and such valuable properties were acquired by the state, they should be appropriately exploited so as to have a countervailable benefit for the public purse. The author argues that the state is currently renting a lot of properties in order to house government services and semi-governmental organisations. This is a golden opportunity for the state to cut back on its spending, by exploiting the Co-op’s buildings, especially in view of the increased public debt (108% of the GDP).

 

The signs were taken down

Phileleftheros Economy’s author reports that the Co-op has completely disappeared from the market, since its signs have been taken down one after the other, being replaced by Hellenic Bank’s signs. It is a historical moment for the Co-op, which was connected with Cyprus and became a point of reference for financing of hundreds of SMEs and households. The author argues that during the last century, the rural communities of Cyprus, established the cooperative movement in order to avoid loan-sharks. However, he argues, the descendants of these people, tore down (with their suits and their mismanagement) everything that their ancestors had built. The author argues that everyone knew what was going on, but no one spoke up. When things started to get difficult however, they started complaining and blaming people. In the end, he argues, it was already too late.

 

The role of Asset Management in the banking sector and the real estate market

An article by KPMG’s Principal and Assistant Manager published in Simerini, reports on the Asset Management industry in Cyprus. It reports that while until recently, Asset Management wasn’t widely implemented in Cyprus, it is a long-standing practice for audit/professional services firms abroad, who have specialised departments with experienced and qualified personnel. In Cyprus, Bank of Cyprus made the start with the creation of REMU (Real Estate Management Unit) in the start of 2016. According to reports, at present stage, REMU holds over €6b-worth of assets, while since its establishment over €1b worth of assets were sold. A year later, Hellenic Bank, followed suit, with the creation of a debt management consortium in cooperation with APS Holdings. According to a report, Hellenic Bank, as of October 2018, held €230m-worth of assets. The Cyprus Co-operative Bank also followed this strategy, in cooperation with Altamira Asset Management. The article notes that Asset Management is evolving into a methodology for the comprehensive administration of an assets portfolio. It is a complex tool, which in the last few years was a great contributor in stabilising the banking sector as well as the real estate market, which in turn positively affects the recovery of the Cypriot economy. The challenges that lie ahead include the evolution of the tool evolution into a prudent management asset management tool in order not to shake up the balance of the market, as well as to expand the management to a wider range of assets, with a view to support economic growth and create a climate of investment for both Cypriot and foreign investors.

 

Andros Kyprianou: It was different with Polyviou

In an interview with Phileleftheros, AKEL’s secretary-general, Andros Kyprianou, said that he is concerned that the Cypriot banking sector will be shaken up once again, invoking rumours that are circulating in relation to a specific Bank. He believes that the problem hasn’t been solved, even after the closure of the Co-op and he supports his position with the fact that the House is called to vote relevant legislations. For this reason, he underlines, the government must officially inform the public, in order to clear things up. Andros Kyprianou said that he does not intend to name the bank he is referring to, because as he said, this is what happened with the Co-op; the government will blame him if he publicly says the bank’s name. He added that AKEL was punished for the Mari naval explosion (blast that killed 12 people in 2011) and said that the Co-op probe report was very different than the one that was undertaken for Mari. He said that Polyviou, who was assigned to investigate the explosion at Mari, presented it in a very fanatical and empathetic manner, while the committee that was assigned to investigate the reasons for the collapse of the Co-op, only publicised their report when the Attorney-General told them to do so. Although for days the members of the committee were publicly disparaged, the did not make any public statements. He said that there was a very essential difference in the ‘quality’ of Polyviou, compared to the members of the Co-op probe committee. Kyprianou refers to the Co-op probe report’s findings, saying that the government’s approach that the Co-op was already dead, is very superficial because the ECB had warned the Minister of Finance multiple times that he should take corrective measures to combat mismanagement. He further says that the government hid the truth from the people before the presidential elections, even though the President knew about the Co-op’s fate since September 2017. He argues that the President hid the truth from the people, in an effort to trick people and get their vote. He also questions the government’s decision to unify all the cooperative credit institutions even though the ‘healthy’ ones could have been saved, since they didn’t have any NPLs. He concludes that all this point to the conclusion that the government consciously drove the Co-op to collapse. He says that what happened at the Co-op wasn’t privatisation neither a selloff: “They potentially burdened citizens with €8b and gave guarantees to Hellenic Bank that they will be profitable in the next 12 years.

 

Two pillars

Politis reports that Hellenic Bank successfully completed all the procedures for the share capital increase of €150 creating the biggest retail bank in Cyprus. The article notes that the numbers are important for the banks and Hellenic Bank after the increase, has a secured a strong capital position. The The pro-forma Common Equity Tier 1 and Capital Adequacy ratios were boosted to 17,8% and 20,4%, respectively; much higher than the minimum regulatory requirements. Its NPEs ratio, has dropped to 25.6%, while the ratio of Net NPEs, was reduced to 4%. The country, the author argues, now has two very strong banks which have the capital and liquidity to support the real economy. Bank of Cyprus has agreed to the sale of €2.8 bn non-performing loans (Project Helix), which is expected to be completed in the coming weeks, reducing the NPE ratio to 36%, the Capital Adequacy ratio to 18.3%, while the surplus liquidity which amounts to €3.1b, will be further increased to €4.4b up the finalisation of Project Helix.

 

Apartments at ‘astronomical’ prices, up to €700.000

Phileleftheros Economy reports that Banks have put apartments up for sale at very high prices. These are properties that were acquired by banks in debt-to-asset swaps or foreclosures and Banks are now searching for their next owners. One can buy a house or an apartment worth €150.000, according to the area. They can also give €700.000 to get an apartment in the town centre. At the same time, one can find a house in an urban area with €300.000 or even less if these are a little outside Nicosia. The prices of the apartments and houses that REMU of BoC, APS of Hellenic Bank and Altamira have concentrated are quite interesting, the article reports. For example, in Nicosia there is a 6-bedroom apartment for sale at the price of €716.000, while there is also a house in Strovolos at the half price, i.e. around €300.000. The article reports that the wide range of properties that are up for sale by Hellenic Bank, are very interesting as it comes to their price. The article goes on to list a number of properties in different areas of Nicosia.

 

Cyprus too small to have 30 insurance companies

Phileleftheros Economy reports that the Cypriot insurance market has a total of 30 companies operating in Cyprus under the freedom of establishment, while in 2017 insurance premiums for the general sector amounted to €465m and the health insurance sector to €348m. Although in recent years, there has been an increase in the value of insurance premiums, however, this increase does not justify the huge number of insurance companies and this can be seen by the results issued by insurance companies, since the smallest ones mainly, either record damages or marginal profits. The article reports that the insurance sector will be challenged by supervisory and consumer pressures. Furthermore, the banks, who control the biggest insurance companies will also play a huge role in the industry. The maintenance of insurance services causes many challenges and additional costs for the banks, who can no longer afford to maintain them. This can already be seen in the case of Hellenic Bank, the article argues, which announced a procedure through which is will investigate the future of its insurance companies.

 

The step forward in the government’s reforms programme

The government is called to implement the step forward in its reforms, in order to facilitate real economic growth. Economic actors and academics, underlined for some time now, that the effort should aim both trustworthiness in Cyprus and without. The Cypriot authorities must move quickly; they need to shield independent institutions (such as the judicial system and regulatory authorities) and they should reinstate their trustworthiness in Cyprus and abroad. At the same time, financial and market experts are saying that the government must facilitate the operations of businesspeople and investors. It should attract fresh, productive investments, that will bring jobs, enhance consumption and give a necessary breath to the financial system. The latter, the article argues, is still burdened by NPLs, while banks like Bank of Cyprus have many assets in their balance sheet. The heads of banks publicly underline their organisation’s great efforts to reduce NPLs and to an extent, there has been some progress. However, it doesn’t appear to be enough to pay shareholders their fair share.  The change brought by the absorption of the ‘good’ part of the Co-op by Hellenic Bank, spurred a discussion with regards to the size of Hellenic Bank compared to BoC. Some people even argue that HB has already surpassed or will soon surpass BoC. The article says that when the newspaper asked John Hourican’s opinion on the matter, he said that he wishes well for Hellenic Bank, and said that if a Bank has more branches, this does not make its automatically better. “The size ‘killed’ many countries and many banks. A customer will choose your Bank because you have good technology, your branches are effective… Let’s look at the facts. We increased our market share at every sector, since the start of our journey. We started to carefully grow our housing loans portfolio. We are making every effort to provide the best possible services to our customers. We do however have a long way to go in order to excel.

 

The fatal supervisory check

Politis reports that a crucial point in the course of the former Co-op was the decision to carry out an on-the-spot check by ECB in December; a decision which terminated the search for investors and ruined all the efforts to maintain the Co-op as a single entity. Without the on-the-spot check, the Co-op’s future, could have been very different, since the Co-op’s management and Board were working on a different plan. According to a testimony by Stavros Iacovou, former Head of Operations & Administrative Services of the Co-op and current acting CEO of KEDIPES, the conduct of an on-the-spot check, (which led to the adoption of radical assumptions and the need for an additional capitalisation of €800m) occurred, because the supervisor was under the impression that they didn’t have the full picture of the situation at the Co-op. The article argues that even though the Co-op probe committee did have the material to look further into this crucial detail, they didn’t analyse it further. Politis reveals Iacovou’s multipage document, in which he says that the decision to carry out an on-the-spot check was paradoxical, since the bank had managed to meet all of its targets. The article argues that finally, the suspicion of supervisors that they were not receiving reliable information on the Co-op, was not confirmed, since the deal with Hellenic Bank was carried out on the basis of the published financial statements of the first 9 months of 2017; statements which have remained unchanged until today. However, the supervisory check brought all of the Bank’s problems, to the surface. In this way, what was supposed to be a gradual privatisation process was turned into a banking thriller.

 

CBC to focus on preparations for the Banking Union

Kathimerini reports that the new governance of the Central Bank of Cyprus will be called to face many challenges, such as to prepare the banks for the EU banking union and reduce NPLs. The new head of the Central Bank, as of 11 April, will be the former privatisation commissioner and until recently executive member of the CBC, Constantinos Herodotou. However, the Board of the CBC will be changed even more, with the president of the Housing Finance Corporation, Stavros Agrotis appointed as an executive member, the representative of the IMF in Cyprus, Maria Herakleous taking up a similar position and the former president of KPMG Cyprus and current CIFA president, Angelos Gregoriades becoming a non-executive member of the Board. The latter are taking up the management of the CBC, in view of general changes in the banking system of the Euro-area. The main change will be the so-called “banking union”, which will be completed within the next five years. Even though there is disagreement on how the deposit insurance scheme will operate, with the biggest disagreement coming from Germany, the banking union will certainly be finalised. For this to happen, the banks must get rid of NPLs, which was the main impeding factor for growth in the Euro-area after Lehman Brothers collapsed. As Kathimerini learns, the Central Bank has prioritised the preparation of Cypriot banks to enter the European Banking market. In order to achieve this, they must be quick with the reduction of their NPLs. The article argues that the two biggest banks of the country, are making great strides in order to prepare for the banking union. On the one hand, Hellenic Bank is in discussions to sells a huge part of NPLs from its balance sheet. It is now in the process of choosing loans and conducting market research on the price they will be offered and interested investors. They are thinking about selling around €1b worth of loans. Bank of Cyprus is also preparing for the so-called “Helix 2”. The loans package is expected to be bigger than Helix, which was announced in August 2018, therefore bigger than €2.8b worth of loans. By selling the two packages, the banks will have a single-digit NPLs rate (single-digit NPL rates are accepted by the European authorities).

 

The government will have its back against the wall

Haravgi reports that the Co-op probe’s findings, will be discussed by the House Plenary on Thursday. The report assigned heavy responsibilities to the President, the Minister of Finance and the government in general for the collapse of the Co-op. The decision to discuss the findings of a probe into the collapse of the co-op bank, was taken in a meeting between party leaders and representatives after AKEL’s suggestion The meeting which will take place on Thursday, 4 April at 10am, is expected to cause clashes between the parties, especially as it comes to the pre-2013 period and the loans of politically exposed persosns. Furthermore, it is expected that there will be a discussion on the approval of the agreement with Hellenic Bank by DISY, DIKO, EDEK and ELAM as well as the Co-op’s properties, many of which were already sold to third parties.

 

A new original campaign by HB

Politis reports that Hellenic Bank is preparing a new original campaign, which will associate the Bank with the average Cypriot person as well as anyone who struggles financially, sending the clear message that the Co-op, even though it doesn’t exist anymore, survives through Hellenic Bank.

 

The Co-op probe and the cooperative movement

Simerini’s author analyses the reasons that led to the collapse of the Co-op and argues that the cooperative movement must continue in Cyprus. He says that while the Co-operative Development Department of the Ministry of Commerce, discussed the matter with a special team of experts from Italy, this did not move forward. The Department must be encouraged and supported so that it finishes its studies on the best practices for the operation of the different types of cooperative societies and their financing, especially after the Co-op’s collapse. The integration of the Co-operative Credit Institutions along with the ‘good’ part of the Co-op into Hellenic Bank, leaves a lot of gaps. Either Hellenic Bank must be encouraged to take up a role in the Co-op, or other commercial banks must be called to adjust their operations in order to satisfy the needs of the cooperative societies around Cyprus.

 

Conference: “Assessing the potential of the Cyprus banking system”.

The Faculty of Economics and Management of the University of Cyprus is organising a conference-discussion under the title: “Assessing the potential of the Cyprus banking system Risks challenges and opportunities” with speakers, John Patrick Hourican, CEO of Bank of Cyprus, Ioannis Matsis, CEO of Hellenic Bank and Kirill Zimarin, CEO of RCB Bank.

 

MoF has officially quit, the President is looking for a replacement

Haravgi reports that the MoF, Harris Georgiades gave in his resignation to the President of the Republic, Nicos Anastasiades. His resignation was accepted and the President, according to the newspaper’s information is looking for another person who will bring the republic’s plan for selloffs and privatisation into fruition. The initial thought to appoint the former CEO of the Co-op, Nicolas Hadjiyiannis to the position of the Minister of Finance, was abandoned quite early as he is considered to be ‘damaged goods’ after the publication of the Co-op probe report. The president is now negotiating with the leaders of DIKO and DISY in order to lock down their support for certain bills that will be sent to the House. It should be noted that Georgiades’s resignation was a condition set by DIKO so that they would approve the Co-op-Hellenic Bank deal. However, Georgiades didn’t quit back then, but DIKO did approve the Co-op-Hellenic Bank deal remaining exposed ever since. So in this way, the government is closing this issue. According to the newspaper’s information, the expedited departure of Georgiades from MoF, was deemed necessary by the government in coordination with DISY, in order to more easily manage importance challenges. Furthermore, the discussion at the House on the findings of the Co-op probe, has also played an important role in the Minister’s rushed departure, since the government will have its back against the wall.

 

The carnival of the Cypriot economy

In this article in Phileleftheros, the secretary of the borrowers’ rights protection movement analyses the collapse of the Co-op. He argues that the Cypriot banking system ended up with a large percentage of NPLs, because the Banks did not align their operation to criteria of other European Banks. He argues that banks, with their large interest rates became legal loan-sharks and the Central Bank was absent all the while. He says that experts who are saying that it was the right decision to establish the unconstitutional laws of 2018 (which in their opinion violate the borrowers’ human rights), never spoke of the €43b that the state spent to save the Cypriot banks, which were rated by rating agencies as “junk”. The article argues that in 2013, the NPLs should have been cleared from any overcharges, so as to avoid the current situation where borrowers cannot pay them back. The author says that the sale of the Co-op to Hellenic Bank, resulted in a budgetary burden of €1.662m, excluding the €1.7b (with 10% interest rate) that the government lent the Co-op, in order to save it. The author concludes that the party has ended. Their movement argues that if overcharges on loans aren’t subtracted and if interest rates aren’t reduced to present levels, then the banks will have a huge problem to deal with. The movement calls on borrowers to demand these measures.

 

Statements

Haravgi’s column reports on the most important statement over the weekend and includes a statement by Andros Kyprianou who said that the government burdened the citizens with potentially €8b and gave guarantees to Hellenic Bank that they will be profitable in the next 12 years. The paper adds that essentially the public wealth was privatised, while the public debt was dumped on the citizens.

 

Wargaming’s Global Headquarters in Nicosia

InBusinessNews publishes a feature on Wargaming’s Global HQ, which has a futuristic high-tech design. It was designed by the architect Zenon Zenonos, with interior design by the architects Zenonos&Zenonos & al architects. The 17-storey building, which is located in the heart of the capita, covers a total area of 8.029 square metres and each of its storeys is dedicated to a specific activity or department. The 12^th floor hosts a conference room with a 360-degree view. The building, features state of the art technology, with a Building Management System that continuously monitors all electrical and mechanical operations. A large number of sensors and control units regulates and records any faults, as well as warnings in the case of an issue or problem. Special emphasis is given to the lighting, so that it provides a pleasant working environment. Furthermore, the touch screens installed in the entire building, let people interact with the automation systems and control the temperature, the lighting and the shade in each floor. Wargaming’s building is a Category A building, that can operate in part with it own energy. The photovoltaics which are located on the top of the building, produce on average 51.3W. The building is also covered by glass with High-level Insulation. The architects also paid attention to the building’s reflection, so that it only reflects back 9% of the sunrays it receives, avoiding problems with drivers and nearby buildings. A special Building Maintenance Unit was developed in order to keep up with maintenance and the special glass surface. For the cleaning and the removal of the glass, there is a special permanent crane inside the building’s area. The security of personnel is ensured through access controls, cameras and a security office. The company strongly supports recycling PMD, glass, paper and electrical devices. Wargaming invests in its human capital through different initiatives, which include the provision of the appropriate infrastructure for a good work-life balance. The company also offers a gym and a spa with specialised trainers within the building. The building also offers a gaming areas, where employees can have an active break. The company also has a large cafeteria room and Kids Club for the employees’ children.

 

Apparently but indirectly

Alithia’s article reports that Politis, reported on 31 March, that even though the Cyprus Cooperative Bank has collapsed, it is indirectly surviving through Hellenic Bank. The article marks a linguistic error on the part of Politis’ author.

 

Conference: “Assessing the potential of the Cyprus banking system”.

The Faculty of Economics and Management of the University of Cyprus is organising a conference-discussion under the title: “Assessing the potential of the Cyprus banking system Risks challenges and opportunities” with speakers, John Patrick Hourican, CEO of Bank of Cyprus, Ioannis Matsis, CEO of Hellenic Bank and Kirill Zimarin, CEO of RCB Bank.

 

More cases of complaining guarantors under review

Philenews reports that the decision of the Financial Ombudsman to release a loan guarantor from his obligations due to a delay on the part of the Co-op’s successor (SEDIPES-KEDIPES) to notify him of the inability of the borrower to pay back their loan according to the contract-guarantee they had signed. The Financial Ombudsman’s decision is binding, when SEDIPES/KEDIPES accepts it. According to Phileleftheros’ sources, SEDIPES-KEDIPES will soon accept the Ombudsman’s decision and will release the guarantor of his obligations. The Ombudsman is currently reviewing another 5-10 similar cases, where the Co-op’s successor did not inform the guarantors of the non-compliance of the borrowers. In the meantime, the Agency for out-of-court Settlement of Disputes of Financial Nature has received hundreds of letters, with which the complaining guarantors are informing the Ombudsman that they haven’t been notified by the banks on time. It is not ruled out that the rest of the decisions of the Ombudsman, will also be accepted. In any case, in order for the Financial Ombudsman to intervene, the guarantors must have exhausted all their options with the bank; in fact, they should initially submit a complaint to the bank.

No American Express card is currently on the market

On 31 March, American Express cards have officially run their course. Bank of Cyprus, which had a permit for their circulation in the Cypriot market, has proceeded to replace thousands of cards with Mastercard. The new cards will participate in the bank’s Antamivi Scheme. The scheme will include more than 700 partners, in the retail, fuel, airline, hospitality and entertainment sectors. The new card will have the same or cheaper annual subscription fee, in relation to Amex. The American conglomerate had published its intention to leave the EU market, because of changes in EU law and the strict regulation that have been imposed. The Amex cards had the highest commission rate among other cards. If anyone wishes to obtain the card, they can apply directly to American Express and not through Bank of Cyprus, which until recently had an exclusive partnership agreement.

 

Eurozone inflation to reach 1.4% in March

Euro zone headline and core inflation slowed in March, flash estimates showed on Monday, supporting the European Central Bank's decision to delay a planned tightening of monetary policy. The European Union's statistics office Eurostat said consumer prices in the 19 countries sharing the euro grew 1.4% year-on-year in March, against market expectation of no change from February's 1.5%. Energy prices were the only major component of the index that accelerated in March, to a rise of 5.3% year-on-year from 3.6% in February. Growth of all other components was slower. Excluding the volatile energy and unprocessed food contributions -- what the ECB calls core inflation and watches closely in policy decisions -- consumer prices rose 1.0% year-on-year, decelerating from 1.2% in February.

 

Company profile: DP World Limassol – A key actor in the economy

Brief.com.cy presents DP World Limassol and its operations in Cyprus. The article reports that the DP World Group is one of the biggest port operators in the world. Based in Dubai, it was established in 2005 and today operates 78 marine and land terminals in 42 countries. DP World Limassol is made up of a consortium between the DP World Group and the Cypriot company G.A.P. Vassilopoulos Group. In January 2017, DP world took up the operation of the Multi-Purpose Terminal and the New Passenger Terminal at the Limassol port for 25 years, after signing a Contract Agreement in April 2018. The article reports on the services offered by DP World Limassol, mentioning the Multi-Purpose Terminal and the New Passenger Terminal, which the company aims to establish as a year-round venue for conferences and exhibitions. It is mentioned moreover, that the company wishes to establish the port as a base for companies active in the cruises sector. The article also mentions that DP World Limassol, through its fuel and natural gas supply zone in the terminal of the company at Limassol’s port, it offers services to international companies that are active in the sector such as ENI and ExxonMobil. DP World Limassol employs 85 persons, of which more than 90% are Cypriots, while its operation has created new job positions directly and indirectly in many sectors, supporting the local economy. At a global level, DP World employs more than 37.000 people from 130 countries. Given the philosophy governing all of the operations of the Group and its strategic plans, DP World Limassol wishes to play a key role in improving the quality of life of the local community. Specifically, DP World Limassol is implementing a comprehensive programme of activities, which is based on 4 main pillars, which are promoting sustainable development, putting the focus on supporting the local community, protecting the environment, promoting safety and investing in personnel. For the current year, DP World Limassol focuses on actions that concern the protection of the marine environment and women’s empowerment. DP World received a prize in 2018 by Invest Cyprus, for its contribution in the development of the Cypriot economy through its investments at the Limassol port, during the 7^th Awards Ceremony of Invest Cyprus (CIPA Awards). Furthermore, the company has received, three of the most significant certifications (ISO9001, 14001, OSHAS 18001) worldwide, after a successful check by TUV Nord, establishing it as one of the first terminals in Cyprus to have received this kind of distinctions.

 

Upgrading the customer service on the new passenger terminal

Politis reports on the plans to further exploit and upgrade the services offered by the new passenger terminal at the port of Limassol, given the many possibilities offered by its size. The DP World Limassol’s General Manager, Charles Meaby, said that the aim is to use the new passenger hall throughout the year for hosting conferences and other activities. In this context, we have installed special equipment, such as high-tech screens. At the same time, plans for upgrading the duty-free shops by 2019 are underway, while significant investments have already been made to upgrade the interior of the new passenger terminal, in order to improve customer experience.

 

40% increase in cruise industry

An increase of 40% is expected in cruise ship arrivals this year at Limassol port, said DP World Limassol’s General Manager, Mr. Charles Meaby, in an interview with Politis. The company's contacts with global cruise giants have begun to bear fruit, as the port will be the starting point for several routes, including those of Celestyal Cruises and the travel giant TUI. Passenger traffic resulting from cruises, given that Limassol has all the specifications to become a regional cruise centre, has increased in recent years. Limassol port is the first port of call for cruise ships after passing through the Suez Canal while its excellent terminal location offers easy access to Larnaca and Pafos airports. Therefore, one of the factors that may increase traffic from cruises is the improvement of Cyprus' air links during the summer and winter months. Moreover, the fact that the new modern passenger terminal is in full operation implies a significant improvement in services and infrastructure, upgrading the overall experience of both cruise companies and passengers.

 

Congestion at Larnaca Port

The government has expressed concerns with regards to restrictions on service capabilities ay Larnaca port, at a time when port demand is becoming more and more intense. The denial of overtime benefits to the staff of the harbor as well as the inability to recruit additional staff, led the workers to refuse working overtime. The increased arrivals of many merchant ships at the Larnaca port, because of the arrival of the French aircraft carrier, Charles De Gaulle, at Limassol port, has intensified the problem.

 

Surveillance aircrafts west of Cyprus

US and Israeli spy airplanes flew on Sunday west and southwest of Cyprus, within the Nicosia Flight Information Region, because of a particular maritime activity in the area. The French aircraft carrier Charles de Gaulle had already arrived at the port of Limassol as many other warships at the port of Larnaca. In particular, Turkey started flying with its own AWACS spy plane yesterday afternoon, that flew for hours on Sunday over the west and southwest coasts of Cyprus and about 30 nautical miles off the coast. Moreover, the American spy Boeing P8-A Poseidon, which in recent months has been flying along the coast of Syria, yesterday afternoon was flying in circles southwest of Cyprus. Furthermore on Friday the French KDC10 was flying over the area too after the French aircraft carrier arrived at Limassol port.

 

Maintaining momentum in tourism

Haris Loizides, President of the Cyprus Hotel Association, in his speech at “Cyprus tourism in the new competitive environment” event, said that Cyprus has managed to receive more arrivals in the recent past from countries such as Israel, Lebanon, Poland and Scandinavian countries, which were not a priority target. He also pointed out that competition from Turkey and other neighboring countries will continue to increase in the next years. "We do not want to raise the bar for 2019-2020, we want to maintain momentum, maintain our achievements and, at the same time, continue to invest in quality and improvement of service as well as better train young people in the tourism industry," he added

 

Setting sail for a new brand name

The Deputy Ministry of Tourism is preparing a detailed plan setting the pillars and activities of the Ministry by 2030. According to Deputy Minister Savvas Perdios, establishing a Brand Name for Cypriot tourism can be done by 2020, while each tourist region should take advantage of its positive attributes and promote its own brand-name. The Deputy Ministry plana to attract 5 million tourists by 2030. The Ministry aims to turn Cyprus into a year-round destination by strengthening the winter season and focusing on special tourism areas such as sports, health, wellness and casino.

 

Ayia Napa’s tourist season has already begun

The tourist season for Ayia Napa seems to have already begun, with the first tourists already making their presence known since about two weeks ago. According to Mayor of Ayia Napa Yiannis Karousos, the tourist season in Famagusta has been expanded by at least one and a half months. It is predicted that by the first ten days of April, almost all hotels, tourist accommodation facilities and other tourism related businesses will open. For April, there is favourable momentum since the Catholic Easter and the Orthodox Easter are only one week apart, and therefore it there will be increased tourist arrivals in the region in the last ten days of the month. Additionally, the Municipality of Ayia Napa, in response to Famagusta's branch of Cyprus Hotels Association request to attract domestic tourism during the Easter holidays, is preparing a series of Easter events that will appeal to both locals and foreigners.

 

Paphos seeks a solution from Sir Stelios

Various stakeholders from Paphos related mostly to tourism, after receiving a final “No” from Aegean και Blue Air, have personally turned to Sir Stelios Haji-Ioannou so that Easyjet will manage to fill the gap of Paphos-Athens air link. However, even if the effort is successful it will take time for the link to be established.

 

Residential project in Limassol by CNS Group

CNS Group announced the launch of Citrine Estates, an exclusive development in Limassol. Located near the highly-anticipated premier casino-resort, City of Dreams Mediterranean, Citrine Estates promises to be a key international destination for luxury living and hotspot for real estate investors. Citrine Estates boasts a range of designer property options from 50m² to more than 370m², including super-stylish and contemporary luxury one and two-bedroom apartments. Available larger properties include two and three-bedroom residences, and elegant three and four-bedroom detached villas, all complete with private gardens and large infinity pools.

 

Vacancies at Ayia Napa casino – What are the criteria (video)

The article summarizes the interview of Victoria Michaelidou, VP Human Resources at Melco in Cyprus at SIGMA TV. Melco Figure of  is in search of staff for the company’s satellite casino in Ayia Napa. Mrs. Michaelidou said that the needs for this casino are between 30-35 people in positions such as security officers, cashiers and customer service. "The process for submitting applications has begun. The company will start hiring people within the next few weeks and will last until May. Our goal is to train the right people so that the casino is staffed by the summer, when it will be launched", she said. However, Mrs. Michaelidou has clarified that there is still no specific opening date.

 

The cost of the Casinos

The article basically shoots at Government’s so called “success story” which, as the article argues, was eventually a failure. According to the article, what was discussed last Wednesday 27 March, at the House Institutions Committee with regards to the operation of the casinos, has created even worse concerns, since it has been proven that, so far, the casinos didn’t meet the government’s promises and expectations, but rather they had negative economic and social consequences. What worried people, besides the fact that most of the visitors are Cypriots, is the socio-economic level of the many casino visitors. In particular, there were reports of unemployed and poor citizens who are receiving allowance from the government (General Minimum Income) and, obviously, other public benefits, lower daily wages, but even minors and people under 21, who are below the age limit for entry to the casinos.

 

Checking everything at the Casinos

Phileleftheros Economy’s author agrees with AKEL, that stricter controls should be implemented with regards to the age of the casino’s guests. The writer states that identification should be requested at the entrance, not only to determine a person’s age as well as in order to send this information to the relevant public authorities. The latter are the ones that should know which Cypriots visit the casino, since they are the ones that provide them with allowances.

 

Procedure on pharmaceuticals is ongoing

The last couple of days have been heated with regards to the participation of pharmaceutical companies and industries in the General Health Scheme (GHS). For the last few months, there are ongoing discussions that have reached their peak, and sources report, that the Ministry of Health (MoH) and Health Insurance Organisation (HIO) have exhausted any capacity for concessions in the last 24 hours, sending the message to pharmaceutical suppliers that the ball is now in their court. Everything looks quite optimistic as the three involved organisations (KEFEA, Association of Cyprus Pharmaceutical Companies (ACPC) and Pancyprian Association of Generic Medicines Manufacturers (PAGMM)) despite their hard bargain with HIO and MoH, seem ready to respond positively, deciding to incorporate the companies they represent into the GHS. At the same time, all procedures with regards to pharmaceuticals are proceeding. Yesterday, the Parliament began to examine the laws and regulations with regards to the supply of pharmaceuticals in the GHS, while HIO announced the start of registrations for Pharmacies and Clinical Laboratories. The legislation prepared by the Pharmaceutical Services of the MoH, in cooperation with the HIO regulates how pharmacists should serve the beneficiaries of the GHS. Modification is needed to incorporate everything agreed between the HIO and the Pancyprian Pharmaceutical Association (PPA). Last summer, five bills were shared for public consultation where all stakeholders examined and reported back with comments and objections.

 

Doctors and nurses give way to anger

Yesterday, the intense argument between state doctors and nurses about their hierarchy and salary scales continued. By the afternoon however, they agreed to put their differences aside and work things out away from the spotlight. The debate started after the contents of a letter were published, where the Pancyprian Guild of Government Doctors (PASYDI) argued to the State Health Services Organisation (PASYKI) about the importance of doctors being placed on the top of the state hospitals’ hierarchy. These claims resulted in reactions on the part of the nurses where representatives of the Pancyprian Guild of Nurses, claimed that nurses’ autonomy and their salary scales should not be questioned by anyone.

 

CyMA upset by Vasos Economou’s decision to join GHS

The decision of Vasos Economou, head of CyMA’s Ethics committee to join the GHS as a GP, resulted in reactions within the CyMA. Members of CyMA accused Economou of going against everything that he carried on saying in the past months with regards to the GHS. Economou, however claims he has always supported the effort to create the GHS and that he was never against the GHS. Economou, was until recently the Association’s spokesman. The article reports had attempted to resign from the position of media representative at the Association’s board, last February, however his resignation was not approved until later, when it was decided that only the President of the Association should be making statements to the media.

 

GHS proceeds after agreement with a group of pediatricians

In the next few days the HIO is expecting many registrations by pediatricians in the GHS, after the HIO reached informal agreements with a group of pediatricians, who parted ways with CyMA. Yesterday, the HIO’s announcement formalised all that had been said in the recent past, which included the added concessions to all personal physicians, including pediatricians. These concessions include steps to avoid an abuse of the system and a potential over-visitation to GPs. Furthermore, the personal doctors will not be obliged to appoint stand-ins in case they are absent.

 

Measures for pharmacies joining the GHS

Two inspectors of Pharmaceutical Services are visiting each and every one of 535 pharmacies to establish whether they are properly equipped for the change taking place in the framework of GHS with regards to medicines. The Pharmaceutical Services of the MoH have drawn up a plan for the smooth transition from the current system of supplying medicines to the new one. Among other measures, they suggest that for the first 3 months of GHS’s implementation, state pharmacies should remain in operation in order to better serve people during the transitioning period.

 

Recording inventory in pharmacies in view of GHS

Ministry of Health (MoH) the Health Insurance Agency (HIO) are recording inventory for both the state and private pharmacies that will join the GHS. The list of pharmaceuticals that will be compensated by the system is being also being finalised. Last week, representatives of the HIO and the Minister of Health were presented with a 10-step-plan, which is focused on minimising any inconvenience experienced by citizens with regards to the supply of medicines. Recording the pharmaceutical stock is the first step of that plan. Apart from the supply of pharmaceuticals, the plan also concerns the pharmacies’ readiness for the systemic change, which will be established through on-the-spot inspections by inspectors of the Pharmaceutical Services. Other steps of the plan foresee informing pharmaceutical suppliers, pharmacies and pharmacists of their legal responsibilities.