Daily Press Review- 13 – 15/7/2019

In the press over the weekend and today:

Foreclosures framework dismantled

The House yesterday approved a bill, which postpones the foreclosure of homes that could potentially be eligible for the Estia debt relief scheme, until the 1^st of October. Another bill was passed by a majority vote, which adds new steps that further delay the foreclosure procedure, essentially reducing the value of the collateral in current as well as new mortgage loans. Following this development, the banks as well as the government have expressed huge concerns sine the changes to the foreclosures framework add new steps and further delay the auction process. They are worried that the new bills will create problems in the management of current NPLs as well as new lending, potentially damaging the wider economy as well as financial stability. The Minister of Finance, told Politis that the foreclosures framework has been dismantled, in a way that could distance us from the European regulatory framework. Via Twitter, he expressed his intention to suggest the referral of the bills to the President. Politis reports that members of the banking sector have expressed their concern about the latest developments, noting that if nothing changes, then it will be very hard to grant new housing loans. Members of the banking sector have argued that the more you make asset recovery difficult, the more you reduce its value. Banks are also worried about how this will negatively impact the country’s credit rating. As a member of Bank of Cyprus has said, if the changes that were passed are put forward, the collateral of mortgaged loans is affected and almost nulled; by extension, the management of NPLs and other exposures is also negatively affected. At the same time, he said, since the recovery of an asset has been made more difficult, the housing loans market is also put on ice, since the collateral will be worth less. He didn’t rule out the possibility that the current interest rate for housing loans will double. A member of Hellenic Bank has said that if the new regulations are implemented, new couples, who have trouble securing a housing loan will essentially be punished. He also said that with the new changes serve to reward the old strategic defaulters.

APS Debt Servicing announced €20m sales in Q1

APS Debt Servicing announced real estate sales of more than €20m. APS is the servicer managing Hellenic Bank’s NPLs. As it is mentioned, they sold offices in Ayios Andreas, for their conversion into a District Court at the price of around €3m. A shopping mall in Anexartisias Street in Limassol was also sold-off for more than €7m. They also sold, for more than €2m, office space in the entrance of Nicosia, which is currently being rented by the Police Headquarters of Cyprus. According to Hellenic Bank’s financial results for the first quarter of 2019, APS Cyprus is managing €2b-worth of loans and an assets portfolio with a market value of around €240m. It should be noted the fair value of the assets held by Hellenic Bank amounts to €239.5m. It should be noted that the Bank’s real estate stock includes houses, apartments, offices and other commercial properties, industrial properties and not building land and plots. It’s also noteworthy that the Bank, in the framework of handling its NPLs, is carrying out debt-to-asset swaps and repossessions. The assets in question, are acquired either directly or indirectly through subsidiary special purpose companies, which were created in order to hold and manage these assets.

Financial Ombudsman ruled against the HFC

The Financial Ombudsman ruled that the House Finance Corporation failed to inform loan guarantors on time, that they loans they were guaranteeing accumulated significant payment delays. Following the complaints of specific guarantors, the Financial Ombudsman found that the guarantors were informed about the delays in the loans of the HFC, six years later. He also notes that they ruled in favour of the consumers and they called the HFC to exempt the Complainants from their obligations as guarantors. According to the current legislative framework, the Protection of a Specific Category of Guarantors Law and the law on abusive clauses in consumer contracts, the borrowers have an obligation to inform the guarantors in a timely manner, in cases where the principal debtors, whom the Guarantors had guaranteed, are not able to meet their loan obligations, the announcement reports. He said that given that 2-3 years have passed, since the beginning of the creation of arrears, it cannot be deduced that the guarantors were informed ‘without delay’, the Ombudsman stressed.

HFC: Internal Governance changes

The House approved a series of bills, which amend matters that concern the internal governance of the House Finance Corporation. According to the Director General of the HFC, Andreas Georgiou, the bills that were passed, do not change the organisation’s current status. Specifically, the HFC still is a legal person established under public law and is owned by the state and nothing about this will change, Andreas Goergiou stressed, commenting on reports that the Organisation’s status would change after the bills were passed. The HFC is still a credit institution, and just like previous years, focuses on the needs of families, he stressed.

Complementary budget for PESCO and Audiovisual Promotion Plan crossed

The House Plenary yesterday approved a complementary state budget, freezing however funds which concerned Cyprus’ participation in military programmes such as PESCO and the Audio-visual Promotion Plan. Specifically, a provision was added so that the House Finance Committee has to approve the participation of Cyprus in EU programmes and initiatives that concern matters of Defence in writing. It should be noted that the 2019 budget includes €442K budget for the Ministry of Defence’s contributions to the various international organisations. However, as a relative memo notes, the above budget provision is insufficient due to the Ministry’s participation in the European Programmes/Actions, Athena, EDIDP and PESCO, which have to do with matters of research and innovation in Defence. As such, additional funds amounting to €1.18b should be granted. Furthermore, the Audio-visual Promotion Plan budget was also put on ice; the House Finance Committee has to approve the budget in writing. It should be noted, that the state budget includes a €1.5m envelope, while with the additional funding this budget will reach €10.25m. It should be noted that the Ministry of Finance, initially requested additional funds worth €16.75m but later reduced its request to €8.75m.

2^nd phase of Estia has begun

Cypriot banks are getting ready for the implementation of the Estia scheme after it was approved by the Cabinet. They have already clarified which of their customers are eligible for the Scheme, with a view to start the submission of applications from 2 September-15 November. According to the timeframes that were set, the banks will be informing the Ministry of Labour, which will approve or reject the application until 29 November 2019 and will be offering the approved borrowers, a standard debt restructuring scheme by 16 December 2019. The first instalment will be granted between December 2019-end of April 2020. Last Tuesday, the state sent letters to the banks, to which they must reply within 15 days, in order to express interest to join the scheme. After the banks have responded, a memorandum of understanding will be signed and subsequently the borrowers will be officially informed. Upon the signature of the MoU between the banks and the state, the second phase of Estia will be implemented (i.e. borrowers will be officially informed about Estia, so that there are no delays in the submission of applications). It is expected that the banks that will join the Estia scheme are Bank of Cyprus, Hellenic Bank, the House Finance Corporation, Alpha Bank and KEDIPES, while the MoU will be signed between the state and the banks or between the state and the non-bank loan management bodies, such as KEDIPES. KEDIPES has a total €1.5b of loans in its portfolio that are eligible for Estia, Bank of Cyprus has €1b, while the rest of the banks have €1b, with the total value of loans amounting to €3.5b. The Ministry of Labour will be issuing the approvals for the scheme.

Banks on track for digital transformation

Phileleftheros Insider reports that in recent years, Cypriot banks are going through a transitional period with many challenges ahead, such as the reduction of NPLs as well as low profitability. However, they are steadily proceeding to create and establish a digital transformation network both for their internal business as well as in order to better serve their clients. The digital transformation of the banks, on the one hand aims to reduce operational costs as well as assist immediately meeting their clients’ needs. Many banks have managed to develop revolutionary methods for the provision of digital products to the clients, while they are gradually developing comparative advantages, which will definitely give a new momentum to their business. In this more and more demanding environment, the banks that will manage to meet the demands and needs of their clients, will be the ones to lead and survive; the rest of them will stay on as merely bystanders to this medium-term decline. Insider analysed all the internal and external operations of the Cypriot banks, as it comes to their digital transformation, marking the progress that has been recorded so far. The article reports that Hellenic Bank is implementing actions, which boost the functionality of its mobile banking business, by continuously updating its apps and adding new functions. Furthermore, by streamlining and improving the performance of its branches, redefining the role and the type of branches, aiming to push its clients towards digital channels. At the same time, it is steadily proceeding to implement an API-orientated approach in order to serve corporate clients through the connectivity of the ERP (Enterprise Resource Planning) of each corporate client. According to the paper’s sources, the bank managed to attract more companies to the B2B ecosystem, via the ERP connection from different sectors, such as telecommunications, entertainment and shipping. Furthermore, the bank aims to further develop the B2B ecosystem, by promoting and using 6 APIs for the direct payment processing between the bank and third parties. Through these applications, the clients’ ERP systems ensure safe and direct communication with the bank for the immediate processing of payments. Moreover, they are expanding and upgrading their digital banking branch, which is part of the corporate Web Banking platform, so that users can choose, activate and manage all the products/applications available. 100 new state-of-the-art ATMs, have been installed, with more operations than cash withdrawals. Customers, can withdraw money, directly credit their linked accounts or credit cards, deposit cheques by crediting their linked accounts or credit card, transfer cash from all the accounts that are connected with the card or credit card, deposit cash/cheques to a credit card, register in the SMS service, receive an e-statement of their balance, statement of accounts with the last 10 transactions, change their PIN number, Payband, determine a transaction for quick cash withdrawal, express interest for new products at the time of an ad campaign, order a chequebook, order a bank statement, deactivate a card.

Holiday homes for all budgets

Phileleftheros Insider reports that there are many holiday homes and apartments for sale, in Paphos, Ayia Napa, Protaras and Limassol for all budgets (between €40.000 – €9.7m). Most of the properties, that were acquired in exchange for debt by Bank of Cyprus, are offered through its Real Estate Management Unit (REMU), are located in Paphos as it is a district that had a huge construction momentum. There are apartments in tourist complexes, villas, small houses and the most of them have pools. Hellenic Bank’s APS, also has plenty of holiday homes in its portfolio. Its website lists a two-bedroom house in Tala with a total area of 1.078sqm, which is for sale for €191.600. A condo and two apartments are also for sale in Paphos (their prices are €132.000, €83.000 and €106.000). The complex is about 10-11years old and has two common-use external pools and a secure entrance. APS also lists a villa in Chloraka for sale, in a 1.109sqm plot, covering an area of 188sqm; its selling price is €672.800. Four houses in Kisonerga are for sale for €664.400. A 374sqm-luxury villa with a pool, a garage, covered verandas is up for sale for €470.000. Moreover, a complex consisting of houses, apartments, and maisonettes with common-use pools, a playground and common spaces, is being sold in Mandria.

Them again?

Phileleftheros Insider’s columnist wonders why Hellenic Bank chose Mike Spanos and Phedias Pilides for its BoD. It says that while they are good choices, there also other Cypriot or foreign individuals who could be placed in the Bank’s board. The column doesn’t have anything personal with these two people, but they argue that this mentality of “sure things” must change at some point.

The silent investor

Phileleftheros Insider reports that the Canadian fund Senvest, without making a lot of “noise”, has managed to establish itself in the Cypriot banking system over the past few years. As it was announced, the fund purchased more shares in Hellenic Bank, with its total stake exceeding 5%. At the same time, they control 3.49% of BoC’s shares. The fund has been extremely patient with the Cypriot banks, as it started investing right after the crisis broke out, and may now feel that the time has come to reap the rewards of all these years. It remains to be seen.

You believed in them. You nominated them. We supported them.

Hellenic Bank’s campaign “you have the strength”, which started on 07/04/2019 is a campaign which marks the beginning of an important social initiative which emphasises on the individual and everything that each of us can achieve when we believe in each other. In the framework of the campaign, the bank created a specialised website (www.exeistidynami.com), where anyone could nominate a fellow human being who needed help or support in order to find their strength and be able to achieve what they thought to be impossible. From the start of the campaign, the bank received many nominations, proving that solidarity and faith in human beings, is still present in our society, and they only need an excuse in order to be activated. The article recounts the stories of Giorgos, Andrea and Ioanna, which all received support by Hellenic Bank in the framework of its campaign.

Most-read stories at Philenews

Phileleftheros Insider reports on the most-read stories of Philenews over the past week. The article mentions that the article on Hellenic’s first claim on the Co-op’s NPLs, which was published on 5 July was one of the most-read stories. The article reported that Hellenic Bank plans to make the first claim to the state on non-performing loans it took over from the collapsed Cyprus Co-operative Bank after the summer holidays, according to informed sources. Hellenic Bank had acquired the debt portfolio of the Co-op bank under the agreement that specific loans came under an Asset Protection Scheme against future losses. As part of this Scheme, the Republic of Cyprus had provided a direct guarantee to Hellenic over the defunct lender’s obligations.

Pancyprian Insurance announcement

Pancyprian Insurance, a subsidiary of Hellenic Bank announced a fall in profit for 2018. According to a Press Release, its profit was reduced to €187.5K in 2018, compared to €197.2K in 2017. Gross premiums increased to €29.5m, compared to €28m in 2017. The net premium income increased from €18.5m in 2017 to €19.3m in 2018. Insurance claims increased from €9m to €11.1m. As it comes to the outlook, it should be noted that the company’s development plan will focus on growing its business, through the Hellenic Bank network and the former Co-op clients. In 2019, the company will take specific measures, in order to reduce its losses from insurance claims and focus on reducing the overdue balances in premiums.

MoF to tell president to veto new foreclosure bills

The House yesterday approved a bill, which postpones the foreclosure of homes that could potentially be eligible for the Estia debt relief scheme, until the 1^st of October. Another bill was passed by a majority vote, which adds new steps that further delay the foreclosure procedure, essentially reducing the value of the collateral in current as well as new mortgage loans. Following this development, the banks as well as the government have expressed huge concerns sine the changes to the foreclosures framework add new steps and further delay the auction process. They are worried that the new bills will create problems in the management of current NPLs as well as new lending, potentially damaging the wider economy as well as financial stability. The Minister of Finance, told Politis that the foreclosures framework has been dismantled, in a way that could distance us from the European regulatory framework. Via Twitter, he expressed his intention to suggest the veto of the bills to the President. Politis reports that members of the banking sector have expressed their concern about the latest developments, noting that if nothing changes, then it will be very hard to grant new housing loans. Members of the banking sector have argued that the more you make asset recovery difficult, the more you reduce its value. Banks are also worried about how this will negatively impact the country’s credit rating. As a member of Bank of Cyprus has said, if the changes that were passed are put forward, the collateral of mortgaged loans is affected and almost nulled; by extension, the management of NPLs and other exposures is also negatively affected. At the same time, he said, since the recovery of an asset has been made more difficult, the housing loans market is also put on ice, since the collateral will be worth less. He didn’t rule out the possibility that the current interest rate for housing loans will double. A member of Hellenic Bank has said that if the new regulations are implemented, young couples, who have trouble securing a housing loan will essentially be punished. He also said that with the new changes serve to reward the old strategic defaulters.

Gordian Holdings joins the servicers game

About a year ago, Bank of Cyprus announced the sale of a large NPLs portfolio to Apollo Global Management. The agreement foresaw the purchase and the management of these NPLs by a company that would established by Apollo. This company was named Gordian Holdings, and 100% of its share capital is owned and controlled by the funds that manage the subsidiary companies of Apollo Global Management LLC. The company’s portfolio includes 14.024 loans by corporate and medium-sized borrowers, with the loans amounting to a total €5.7b collateralised by 9.065 immovable properties. Moreover, the company is headquartered in Nicosia with offices in Limassol and Larnaca. As part of the agreement, the Helix programme around 110 staff members working in the corporate banking and SME banking departments of BoC’s Restructuring & Recoveries Division, will be transferred to Gordian Holdings. The company aims to be established as a main player of the Cypriot real estate market. The specialised servicer, is aware that there are many assets that haven’t been purchased in the last few years, due to the unrealistic expectations of the sellers. In such cases, Gordian intends to align the asking price with the market.

House Finance Corporation to participate in Estia

The House Finance Corporation received a letter by the Ministry of Finance, in relation to Estia and will participate in the scheme, the director general of HFC, Andreas Gergiou told CNA. Specifically, in its letter, the Ministry of Finance reports the following: “Requesting your written expression of interest by 30 July 2019 addressed to the Ministry, on whether you would like to participate in Estia and sign the attached Memorandum of Understanding with the Government”. The letter attached the MoU as well as copy of the application that the borrowers will be able to complete from 2 September onwards, in order to request to be incorporated in Estia.

Foreclosures bills stir things up

Cypriot banks were concerned after the approval of a bill that will amend the foreclosures framework. The banks estimate that the decision will negatively affect the country’s economy and they are hoping that the President of the Republic intervenes. The Ministry of Finance will recommend that the President vetoes the law. At the same time, the Ministry of Finance will request an opinion by the ECB, with regards to the consequences of implementing decision. On Friday, the MPs have decided that the foreclosures framework needs to be amended, so that debt restructuring schemes are promoted instead of foreclosures. They wanted to ensure that the courts will be checking whether the banks had tried to restructure the NPLs of the borrowers. On the contrary, the banks believe that this change will give the borrowers the opportunity to appeal against decisions, and as a result the recovery of debt will be delayed while the overall effort to reduce NPLs will be hampered. At the same time, strategic defaulters will be encouraged.

An air of modernisation at Central Bank

Phileleftheros’ author argues that the new Head of the Central Bank seems to have an air of modernisation and understands a lot more than what some may think. If he manages to change the old-fashioned mentality of some of the individuals at the Central Bank, then he will have achieved a great feat. Up until now, the article argues, the image of the Central Bank was that of an ageing organisation. The central banker if he wishes to, can change things and pull all the employees out of mothballs. Everyone can contribute, but they mainly should escape from the faults of the past and the perception that the organisation is inflexible.

 Rotation arrangement for Director-General position at Finance Ministry

Following the retirement of the Director-General of the Ministry of Finance, the Ministry will be managed on a rotating basis. Phedon Kalozois, the Economic Director of the Public Debt Management Office and George Panteli, the Head of the Economic Research and European Union Affairs Directorate were appointed as co-Director-Generals. They are two important members of the Ministry and are well-versed in their fields. Initially, Kalozois was appointed as Deputy Director-General, while Panteli will take up duties in the coming months, until a new Director-General is appointed. Specifically, Kalozois will be the head of the Ministry until 24 August, while Panteli will be heading the Ministry from end of August-October

Kalogerou: Cyprus has tackled money laundering

The Chairwoman of CYSEC, Demetra Kalogerou stated that cooperation with Moneyval’s evaluators has been great so far, mentioning that the new assesments give an opportunity to the countries that aspire to develop into financial hubs, to improve even more. She also said that the creation of an equity fund, a fund for that will finance the equity of SMEs, is necessary. She added that CYSEC agrees with the relevant proposal by the Commission for the Protection of Competition. She says that they have given Moneyval a lot of information and data on the measures they are taking in order to combat money laundering, adding that Cyprus will implement all of the suggestions put forward by Moneyval.

Student-led project creates vraka-wearing robot

A group of students, underage and unaccompanied asylum seekers, created a robot that wears the Cypriot traditional costume (vraka). The initiative to create the so-called Vrakaman-bot, by combining, tradition, tolerance and robotics, was taken by the students Alkinoos Tomarides, Gregoris Orphanides and Angelos Antoniou from the Epiteugma Training Center. In the framework of the project, the students taught robotics to the undocumented children.  As student, Alkinoos Tomarides explained, it was a unique process where they exchanged cultures and knowledge. The Director of the Centre, Stavros Charalambous said that the project has already received awards and distinctions. The students gave lessons to the undocumented migrants from February-June 2019, in their free time. As the Director of the centre said, the idea behind the project, was to give an opportunity to the underage and unaccompanied refugees, who likely never had the opportunity to attend a robotics class and especially in a space with state-of-the-art tech, such as the Epiteugma Robotics Lab powered by Wargaming. He further explained that for the implantation of the project, they cooperated with Hope for Children.

APS Debt Servicing announced sales of €20m

APS Debt Servicing announced real estate sales of more than €20m in the second quarter of 2019, reducing its assets portfolio. APS mentions they sold offices in Ayios Andreas, that will be converted into a District Court for around €3m. A shopping mall in Anexartisias Street in Limassol was also sold-off for more than €7m. They also sold, for more than €2m, office space in the entrance of Nicosia, which is currently being rented by the Police Headquarters of Cyprus. The announcement writes that APS, will continue with gravity, a high level of professionalism and discretion to put properties up for sale, in an effort to reduce Cyprus’ NPLs.

There was no need to activate the Asset Protection Scheme (APS) so far

No guarantee has so far been requested, in the framework of the asset protection scheme (APS), as it comes to the loans of the former Co-op, which were restructured and transferred to Hellenic Bank as non-performing loans. As a relevant memo by the Finance Minister reports, the loans in question are so far being serviced, and no need has emerged to guarantee them, because the borrower did not meet their needs. In the memo, Georgiades explains that APS, as it has been approved by the Cabinet and the House, is a not a government guarantee scheme for specific loans, and its activation changes the obligations of the borrower. As he reports, APS is a guarantee mechanism for unexpected accounting losses, i.e. those which exceed the current forecasts. It further adds that for the calculation of these unexpected losses, they take into account different parameters, such as the value of collateral securities. The MoF adds that at the time that the agreements were approved by the Parliament, a condition was established to inform the House, as it comes to the guarantees that are accepted. “Up until today, no guarantee has been requested”, Georgiades said, responding to MP Irene Charalambidou’s question, on the coverage of the loans that Politically Exposed Persons (PEPs) held in the former Co-op, by the APS scheme. As it comes to the MP’s question in relation to managing the restructuring of the red loans held by PEPs, the MoF referred them to the terms of reference of the Investigative Committee that was set up to investigate the collapse of the Co-op. Specifically, he notes that the Investigative Committee’s terms of reference report “the investigation of all the actions, omissions, facts, conditions or combination of these, which led the Co-op system to its current state”. Furthermore they add, the “investigation of the facts and decisions in relation to the provision of loans or other facilities and the management of non-performing loans, such as the strike-off or reduction of loans and/or guarantee by co-operative credit institutions and specifically, if these were carried out on the basis of specific policies and correct guarantees or collateral securities or on the basis of the generally accepted banking criteria of good lending and whether there was an adequate control on the part of the supervisory authorities and the internal auditors as well as on what criteria, terms and/or securities were any NPLs granted”. As such, Georgiades in general referred to the report of the Investigative Committee, which was submitted to the Attorney-General.

The 15 biggest properties held by banks

InBusinessNews reports that high-value properties, which had been transferred to the banks, in debt-to-asset swaps, are accumulating in the portfolios of the banks. The Asset Management Units of Bank of Cyprus, Hellenic Bank and the former Co-op, (REMU, APS and Altamira, respectively), have assumed the servicing of large commercial buildings, some of which haven’t attracted any interest by investors. InBusinessNews lists the five highest-valued commercial buildings, that each of the three management units are currently managing. The former commercial property Orphanides in Strovolos, with an estimated selling price of €34m, is still the highest-valued asset currently managed by REMU. The article goes on to list more high-valued buildings currently managed by REMU. As it comes to APS, the article reports that the second most expensive property in APS’ portfolio, is a building with a warehouse, in Ayios Athanasios’ Industrial area in Limassol. The building’s estimated selling price exceeds €5m. APS also holds a property with a private school, in Achelia in Paphos and a mall in Paphos (Paphos Oasis), which consists of shops, a bowling alley, a playground, a cinema, a cafeteria and restaurants. APS also manages the well-known “Iacovides Tower”, which is located in the centre of Nicosia, consists of 6 storeys and 2 basements with parking lots. 90% of the building is currently being leased. The servicer also holds a showroom in the industrial area of Latsia, with a total covered area of 3.984sqm. It has a 1.920sqm basement, while the ground-floor and the first floor cover 2.064sqm. The building is currently being leased.

9.221 borrowers to gain some time due to the new foreclosures framework

9.221 foreclosures will be affected by the changes in the foreclosures framework that was passed by the House, with both the banking circles and the government being highly concerned about the new bills. What is certain is that the new framework, increases the foreclosures timeframe, while the borrowers will gain some time. The foreclosure procedures, will undoubtedly become lengthier and the courts will fill with appeals against the foreclosures notices. The bills that were passed include provisions, relating to the court’s issuance of prohibitive injections for foreclosures by the courts. Even though some parties raised concerns about the foreclosures, none of the 100 properties that were foreclosed in 2019 were primary homes. As it is well-known, the parties that suggested the changes to the foreclosures framework, referenced the need to support the right to appeal. Out of the 444 foreclosures that were carried out in the last decade, only two cases were primary homes. The author argues that the issue is that if the Cyprus’ rating by international rating agencies will likely be affected.

Many NPLs, more lengthy procedures

According to the IMF, up until 2015, the foreclosure procedure in Cyprus took 10 whole years. Before the changes by the House were approved, the European Central Bank, estimated that a foreclosure of a property in Cyprus needs around 5-6 years. According to an IMF report in November 2017, Cyprus on average has the longest foreclosure procedure in the EU. According to this report, the countries with the longest procedure, also have the highest NPL rates. Cyprus held the first place a few years ago, with the average foreclosure time being 10 years and the NPLs rate standing at 45%. Greece is in second position with an average 5 years and the NPLs rate standing at 45%. Italy held the third place, with an average 4.5% and an NPLs rate of 13%. The IMF report two years ago, had reported that because of the time-consuming foreclosure procedures, the number of strategic defaulters is increased. It explains that those who strategically choose to avoid their loan obligations, make use of all the legal dysfunctions they can find.

Is blockchain really that revolutionary?

For some, blockchain technology is firing up a technological revolution, similar to that which brought the Internet and “World Wide Web” to our every day lives. Supporters of this technology believe that in the next 10 years it will change our transactions, phase out bureaucracy and restrict frauds, while it will completely change the way we find and cross-check information or data. It will stop any “leaks” of personal data from medical files, and will restrict forging medical prescriptions, as well as have a huge impact on trading in both sea and land globally. Gartner researchers estimate that blockchain technology will bring added value of $3.1 trillion to businesses around the world. For others, this technology is “terra incognita” and those individuals are the ones who are reserved and sceptical about this technology. However, retail franchises, shipping companies and ports authorities at some of the most important ports of the world have already adopted blockchain technologies: Shanghai’s ports have already invested in blockchain and artificial technology, aiming to upgrade their services everywhere in the future. Companies such as IBM, Maersk, Cosco, Evergreen, CMA CGM, DP World and Hutchison are steadily entering the “blockchain game”.

Optimism about Cyprus-Greece ferry link  

The establishment of a Cyprus-Greece ferry link is proceeding at a fast rate. Officials aim to finalise this procedure and launch the routes by May 2020 – the start of the next summer period. However, this will depend on Brussels’ decision, as the European Committee must first give the green light in order to carry out this project. Mr. Costas Iacovou, the Permanent Secretary of the Deputy Ministry of Shipping, spoke to Alithia, and said that the first step of this project – the sustainability study – is almost complete. The next step is to get state funding, which must first be approved by the European Committee. When asked about his expectations about the European Committee’s response, he said he was optimistic. He noted we must distinguish between leisure cruises and ferry link, as this link will give passengers the option to transfer large cargo or even travel with their car – which is prohibited on cruise-ships and planes. Mr. Iacovou noted that negotiations about offers must be transparent, while when asked about the price of the tickets he replied that they do not want to commit to any price right now, but it will like cost around €100. Concluding, he added that this particular route will be tested for a 3-year period, and if successful they will re-evaluate the route at the end of this period.

Tourists prefer low-budget diets

Members of the newly-appointed Association of Famagusta restaurants (part of EBEA) expressed their concerns, and asked Deputy Minister Savvas Perdios to intervene and take action in order to change the type of tourists that Cyprus attracts. Representatives of Famagusta businesses are complaining that this is a difficult year for them, and that Ayia Napa and Protaras restaurants, like the rest of tourist businesses, have already experienced the consequences. Due to the high prices compared to neighbouring countries, tourists who choose to save up to come to Cyprus, spend as little money as possible while they’re here, thereby hurting local businesses such as restaurants.

Lawrence Ho is still enthusiastic

Phileleftheros Insider’s interview with the Chairman and CEO of Melco Group, Lawrence Ho. The article starts off by saying that Ho, had been on the cover of the Insider magazine last November. In the start of this year, he once again visited Cyprus, on the occasion of one year of operations of Cyprus Casinos as well as in order to accept an award by Invest Cyprus for his company’s investment. The article says that Ho has the same enthusiasm, he had when the Group first decided to invest in Cyprus. It seems that the numbers justify his satisfaction as the visits to the casinos exceeded 880.000. They estimate that by August 2019, visits to the casino will rise to 1 million. Ho explained that they are very satisfied by the casinos’ performance so far, as both the revenues and the number of visits have exceeded their expectations. Besides, with the launch of the satellite casino in Ayia Napa in the coming days as well as the casino in Paphos by the end of the year, the number of visitors as well as their revenues will rise. It’s not secret that everyone’s attention is turned on the casino-resort. Asked whether the Group is thinking about investing elsewhere in Cyprus, Lawrence Ho said that at the moment, their focus and attention is on finishing and launching the casino-resort by the end of 2021. “We have an excellent cooperation with Melis (Shacolas) and the CNS Group and when the right time comes, we will assess whether there is more opportunity to invest in something else that will contribute to the creation of a sustainable tourist product, since at the end of the day, this is our goal”. When he was called to comment on the fact that the initial agreement with the government stipulated that the casino would open in the end of April 2021, while their own estimate is that it will be finished by the end of the year (2021), Ho didn’t hesitate to report that he prefers to delay the launch of the casino-resort for a few weeks, in order for everything to run smoothly. “It’s the first impression that sticks with the visitor and we want to make sure that anyone visiting the City of Dreams Mediterranean, will immediately get the best impression”. As he said, it’s not only the completion of the buildings that is important but a pre-opening, simulation period is needed, in order to make sure that everything is perfect. The promotion and marketing of the casino-resort has not yet begun, but they have already met with local hotel groups for this purpose. Lawrence Ho also argued that their cooperation with the local authorities has been very positive. “The government is very focused on all sectors, and especially tourism. They want to attract more tourists as well as more businesses. We are helping them to achieve this and we are participating in congresses and presentation abroad, talking about our experience as investors and contributing to this effort”. When he was asked about the Ellinikon casino in Greece, he said that he is aware of this development and that he has been hearing about this project for many years. Indicatively he said that while Athens is a big and well-known city, he still prefers Cyprus, taking into account the economic cycle of the past years.

Three consortiums interested in LNG terminal

Three consortiums have expressed interest in the development of the infrastructure of the new LNG terminal in Vasiliko. The bidders are; 1. Joint Venture China Petroleum Pipeline Engineering CO, Ltd – CPP, AKTOR S.A., METRON S.A.; 2. Consortium Samsung C&T, Posco E&C, Mitsui O.S.K. Lines, Osaka Gas; 3. European Consortium (DAMCO Energy S.A., ENAGAS Services Solution S.L.U., GasLog LNG Services Ltd., SNAM Spa, TERNA S.A.). Phileleftheros notes that the Greek TERNA S.A. (part of the third consortium) is the company that has taken up the construction of the casino-resort.

“Feverish” preparations for Ayia Napa casino

The fourth casino of Cyprus is being completed in the heart of Ayia Napa, next to Faros Hotel. Construction is proceeding feverishly, so that the C2 Ayia Napa casino will be able to be up and running within the month. The casino is located in Archbishop Makarios Avenue. The total building covers 367sqm, while 45 people will be working at the casino. The C2 Ayia Napa casino will be open from 3 pm (midday) until 6 am (morning) and will have 50 gaming machines and the Columbia bar. The satellite casino of Ayia Napa is expected to enrich the tourist product of the district, as well as help it tackle seasonality. According to the news site’s sources, Faros Hotels, which is next to the casino, aims to remain open during the winter season.

Increased disability allowance

Yesterday, House voted a new bill which increases the allowance for disabled individuals as well as extend its mandate to cover 1910 blind people. This new bill has 6 changes; The term ‘disabled’ will be replaced by the phrase “person with disability”, while they will extend the term “quadriplegic person” to cover individuals, suffering from permanent mobility problems and use a wheelchair permanently, while they also have a serious or full disability to use both of their arms, to the degree where they cannot function by themselves on a daily basis. Additionally, they have now incorporated the term “blind person”, giving an allowance to quadriplegic and blind individuals, despite their employment or student status, as well as increasing their monthly allowance.

We import and export Hepatitis C (HCV)

Alithia reports that a University of Cyprus research group, published the findings of their innovative scientific study in the international scientific journal Nature Scientific Reports, contributing significantly in the future prevention policies for HCV in Cyprus and abroad. According to the University’s announcement, these re-emerging contagious diseases are a continuous and increasing threat to public health, with adverse socio-economic consequences on a global scale. Over the past 40 years, human-kind has experienced various severe epidemics including HIV which causes AIDS, HCV, the Ebola virus and the recent ZIKV. HCV is the main cause of chronic liver disease around the world. This study’s findings underline the significance of Cyprus as a country which imports infections and spreads the virus of HCV around the world.

Problems of Larnaca General Hospital were discussed

In a meeting between AKEL representatives and staff from the Larnaca General Hospital, all of the problems that have emerged due to the lack of medical personnel were discussed. These problems were intensified even more after the consecutive resignations of state doctors. They also discussed other problems such as problematic elevators, and other operational difficulties.

GHS Doctors Association waiting for final approval

GHS doctors are now waiting for the final approval in order to formally announce the creation of an Association for GHS-Registered Private Doctors. All of the necessary documents have been submitted for quite some time now, and doctors are waiting to receive the green light in order to formally launch their association. With this new association, the HIO’s work will be facilitated at a great extent, as they will now have an official organisation to negotiate and convene with as it comes to GHS issues. The association aims to promote cooperation and mutual support among its members, defending their professional interests and establishing scientific protocols, in order to achieve the most efficient GHS possible. They also plan to cooperate with CyMA and other unions of patients and the community in general, with a view to upgrade the GHS.

The public sector hasn’t adjusted to the new system

Phileleftheros reports on the many problems that patients are facing in the new healthcare system. Patients are not able to receive their medicines at private pharmacies, citizens go to their scheduled appointments at the Medical Centres but their personal doctor isn’t there, specialised doctors are still using the old system, and administrators are saying that they weren’t informed and don’t reply to the patients’ questions. In some cases, they have even asked for documents and certificates that aren’t needed in the new healthcare system.