What were we saying about responsibilities?
Phileleftheros comments that in the report with the findings on what led to the Co-op’s collapse, there was reference to the responsibilities of the political parties, who would make interventions that would prevent loans from being restructured at the CCB. It appears that they are still carrying a grudge, as during the discussion at the House Audit Committee on Thursday, they tried to do the exact same thing with Hellenic Bank, due to its decision to follow the instructions of the ECB and close branches that were under-functioning in the rural areas.
Another show of arrogance and authoritarianism from the government
Main opposition AKEL’s press spokesman Stefanos Stefanou accused the government of putting on another show of arrogance and authoritarianism, as he commented on President Nicos Anastasiades’ response to secondary education teachers’ threat to strike just as the new academic year has begun, telling them that it was the government that was ruling the country and not them. Stefanou said it was not just the crisis in education either. The government has confirmed that it is completely unmoved by the inconvenience and suffering of isolated communities whose bank branches have been shuttered by Hellenic Bank, while it is insisting on closing more branches and making more people redundant. “While society is experiencing the consequences of the crime at the Co-op, Mr Harris Georgiades is saying that this is not the reason why he is resigning, nor does his government take any responsibility,” said Stefanou.
The defence asked for a separation of the indictment due to dissimilarity
The defence team of three plaintiffs in a criminal case about the Co-op on Friday provided the reasons behind its request to have the charges on the indictment that was submitted earlier this year separated, saying three of the seven loan contracts included in the indictment bare no similarity or adequate connection to the other four. Thus, they said, they should be tried separately. The three specific contracts were part of the original indictment that was submitted in 2017, which was later retracted by the prosecuting authority and submitted anew, with the addition of new charges and one additional legal entity as a plaintiff.
Appeal over Zolotas and Fole to be examined on 26 September
The Supreme Court will examine the appeal filed by the Attorney-general against the Permanent Assizes Court’s decision to cease the criminal prosecution of Michalis Zolotas and Michalis Fole in the Focus trial, on 26 September. The Assizes Court had decided to interrupt the trial and acquit the two defendants of all charges, ruling that there was abuse of judicial procedure.
No additional reduction of deposit rates
Central Bank of Cyprus Governor Constantinos Herodotou is in favour of the ECB monetary policy decisions that were made a few days ago, adding however that if there are side effects, then the package of measures would have to be adapted accordingly. Asked by Phileleftheros Insider to comment on the ECB’s latest decisions, as well as the impact these may have on the Cypriot banks but also depositors from the reduction of the ECB’s deposit rates from -0.4% to -0.5%, Herodotou explained that the policy decision includes a provision that averts an increase of costs for the banks. Specifically, he referred to the fifth point of the ECB announcement on 12 September, which mentions the introduction of a two-tier mechanism, which ensures that part of the excessive liquidity of banks will be exempted from the implementation of the negative interest rate. Asked whether this concerns all Cypriot banks, Herodotou said the measure concerns all Eurozone banks and hence all Cypriot banks; however, the calculation will be made based on the reserves of each bank separately. He added that the new measures do not provide the Cypriot banks with an excuse to further reduce their deposit rates.
Seven recommendations from the troika
In addition to the above, the troika of international lenders made seven recommendations to Cyprus: 1. Fresh momentum is needed for structural reforms, so as to support growth and the economy’s robustness in the future. 2. Dealing with the shortcomings in the judicial system is of vital importance so as to improve the business environment. 3. Effective implementation of the insolvency and foreclosures framework is vital to ensure a reduction of NPLs. 4. The creation of a credible and transparent system for the issuing and transfer of title deeds and an end to the delays in issuing title deeds is taking too long. 5. Other reforms must also be accelerated to improve the business environment and attract investments, such as privatisations, simplification of procedures to secure building permits and the establishment of swift approval procedures for strategic investments. 6. Public and local administration reform is still a top priority. 7. The implementation of the General Health System continues to require close observation, given the significant fiscal impact it will have, especially in its first years of implementation.
Securities and Exchange Commission strengthened
The key to Cyprus’ success as an investment destination is reliable and effective supervision, Finance Minister Harris Georgiades said on Friday, at the inauguration of the new offices of the Cyprus Securities and Exchange Commission (CySEC) in Nicosia. “Our country’s credibility as an investment destination heavily relies on the adequacy and reliability of our supervisory authorities, such as the Securities and Exchange Commission.” He added that he was very pleased with the way CySEC has been operating over the past few years, working systematically and continuously. He said his ministry and CySEC had excellent cooperation. Meanwhile, CySEC chairwoman Demetra Kalogerou said that the Commission’s role and supervisory powers have increased significantly over the past few years, while the volume of its works has trebled. Specifically, there are currently 679 entities under its supervision, compared with 247 in 2011 (an increase of 174%). There has also been a 98% increase in recent years in the growth rate of collective investments, while the numerous new EU regulations provide for more intensive, complex and in-depth supervisory checks to protect investors. As for the staff employed at CySEC, Kalogerou said the number has increased from 53 in 2011 to 109 today, while 27 new positions were announced recently.
Those who do not pay taxes will face criminal prosecution
A multifaceted bill that is currently being vetted by the Law Office will provide among other that it is a criminal offence to not pay taxes. The bill, prepared by the Tax Department, is expected to bring some significant changes to the tax legal framework. Once it is vetted, it will be submitted to the Cabinet for approval, and then the House for discussion.
- Michael: Cyprus is a strategic choice for investors
Cyprus is gaining increased momentum as a first choice for foreign investors who wish to find a suitable location to establish international or regional headquarters, the head of the Cyprus Investment Promotion Agency (Invest Cyprus), Michalis Michael said addressing The Cyprus Headquartering and Funds Summit which is taking place in Mumbai, India. “Offering stability, strong protection to investors and a balanced, varied portfolio of products, our small but dynamic country is already a hub for international business activities,” he said. “It is ahead of its competitors in the sector of innovation and infrastructure, while it has a very specialised and multilingual work force. With a strong economy, placing it among the top executives of the EU for five consecutive years, Cyprus has further reinforced its business climate, its healthy regulation and its particularly attractive tax regime, introducing a series of general and sector-specific incentives.” Michael also referred to the enviable quality of life that Cyprus has to offer, stressing how besides its sunny climate and natural beauty all year around, the island also offers a multinational, hospitable and safe society, making it a country that people not only want to work in but also live. The Invest Cyprus president highlighted how over the past few years, significant investments have been made in a number of financial sectors, which are significantly supported by the inflow of foreign capital. “It is worth noting the first integrated casino-resort, the only one in Europe, which was developed by the well-known Melco Resorts and Entertainment, who searched the globe and chose Cyprus to expand outside of Asia,” he said among other.
Without time to adjust
Panicos Nicolaou is the new CEO of Bank of Cyprus. Clearly, he is not facing the same challenges as his predecessor John Hourican did when he took over; however, there are other equally important ones and less leeway for excuses. For example, instead of having to convince depositors to trust the bank, he must attempt to find ways to convince them to reduce their deposits or even better, take advantage of the excess liquidity so as to at least limit the costs for the bank. Along with a series of internal issues that need to be managed, BoC is also facing changes to the Cypriot banking map, with Hellenic Bank (HB) now having become a big bank after absorbing the Co-op’s assets. But HB is also dealing with the same challenges as BoC. Hellenic’s efforts are also focused on increasing its revenue, and while BoC’s loan portfolio may still be significantly bigger than Hellenic’s, the competition is still strong.
Saying goodbye to the CCB
Whatever had been left from the historic Cyprus Co-op is no more. As of mid-September, the part of the bank that had been transferred to HB became integrated with the latter, officially transforming former Co-op customers into HB customers and ending all trace of the CCB. Whatever is now left of the Co-op is at KEDIPES but mainly SEDIPES, which is operating as a cooperative company.
What do we do after the negative rates?
Households and businesses alike are concerned about the interest rates on their deposits, which are currently almost zero or even in negative territory. The phenomenon is not just Cypriot, but concerns the entire Eurozone. Based on the latest Central Bank data, Cypriot deposit rates at end-July 2019 were at 0.2% for deposits with a maturity of one year, while for businesses it was 0.32%. The article reminds how HB announced a negative deposit rate a few months ago; with the rest of the banks expected to follow in its footsteps. According to CFA Society Cyprus president Panayiotis Mavromichalis, due to the distortions that existed in the Cyprus economy and the island’s overinflated banking sector, deposit rates were over 4% up until end-2012, when the short-term rate of the euro was zero. “But following the banking crisis in 2013, the state of affairs changed, leading to an inevitable shrinkage of the banking sector. With the stabilisation of the banking sector, we observed a steady decrease of deposit rates, which led the average rate of a one-year deposit close to 0.30%. We are effectively facing zero rates and Hellenic Bank announcing negative rates for big deposits,” he said.
The security of secrecy
The negative deposit rate environment has left depositors at a loss as to what to do with their deposits. Insider investigated the options bank customers have, focusing particularly on the option of bank lockers. Among other, the article writes that HB hires out 7,000 lockers, 2,500 of which were transferred from the Co-op to HB in September 2018. It is noted that from 2013 until present, additional lockers have been installed in four HB branches in Nicosia, one branch in Limassol and one in Famagusta.
Sustainable growth requires reforms
Article by Dr Andreas Assiotis, chief economist at Hellenic Bank. He says, among other, that it has already been six years since the economic crisis broke out in Cyprus. It seems like only yesterday, but six years is a long time; especially when one considers everything that has taken place since then. The Cyprus economy has achieved an impressive recovery, while it has continued to strengthen for 18 consecutive quarters. But he adds that in order to achieve long-term, sustainable growth, there are still some significant reforms that are pending, such as privatisations, local and public administration reform, judicial reform and educational reform.
Astrobank-USB integration
Cypriots became painfully aware of the meaning of the word “integration” of bank systems when Laiki Bank was shuttered and its systems were integrated with those of Bank of Cyprus. Over the past weekend, the systems of HB and the former Co-op were integrated, while in mid-October, the systems of Astrobank and USB will be integrated.
Fiscal policy and state budget
The Cabinet approved the 2020 state budget, which will have a surplus. The budget lays out the policies the government wants to promote, having in mind the fiscal limits within which it can move and the international organisations to which it belongs, such as the EU. Besides maintaining the surpluses, the reduction of the public debt as a percentage of the GDP is just as important, especially after it increased as part of the procedure to merge the Co-op with Hellenic. After repaying the Russian loan, the government plans to repay its loan to the IMF in 2020, which is the most expensive of the loans it was granted as part of the bailout.
Corruption and reconciliation with occupation go hand in hand
Opinion editorial by former Justice Minister Doros Theodorou, who says he read an interview in Phileleftheros with the Attorney-general, which made him deeply disappointed for the future of the island. He refers among other to the privatisation of the Co-op, which took place without any protests, while there were plenty of protests because of Hellenic Bank shuttering branches in the villages. And what’s worse, the party (he does not specify) suddenly became a major shareholder in HB through Demetra Investment. This is very questionable, and yet its fans and followers tolerate it as they are being appeased by their leaders. Theodorou says he was personally threatened with lawsuits for writing the above. But only verbally, as it is not in their best interests for the case to reach the courts. Because everything would be revealed for all to see.
They suddenly remembered at the parliament
It appears they have run out of things to discuss at the House Audit Committee, Phileleftheros comments. It cannot be otherwise explained how the closure of Co-op branches was discussed following the agreement between the government and HB. Even if the deal had not happened, the closure of CCB branches would have been inevitable. In the era of digitisation, the discussion should turn elsewhere. The question is, why was this matter not discussed a year ago?
Banks at the doorstep
There is no reasoning behind the House Audit Committee’s decision to discuss the closure of the Co-op branches a year after the deal with HB, Phileleftheros comments. Nothing new has come out of the discussion. It just became clear that Cypriots demand to have a bank on their doorsteps. And this is despite the fact that a mobile banking unit visits the rural areas. Community leaders in the rural areas are demanding to have branches in their communities, even if only one or two transactions are carried out each day.
Disappointment over response to Estia Scheme
The Finance Ministry is disappointed with the lacklustre response by the 12,000 beneficiary borrowers to the Estia Scheme. The banks are also concerned about the meagre 100 applications that have been made, as they had hoped to get rid of some €3.4b of red loans. It is reminded that there are €900m’s worth of NPLs at Bank of Cyprus that are eligible for the scheme, €250m at HB and €3.4b belonging to the former Co-op.
Positive outlook for Cyprus economy
Rating agency Moody’s changed the outlook for the Cypriot economy to positive from stable, citing the reduction of the sovereign exposure to event risks stemming from the banking sector and the improving fiscal strength beating previous expectations. However, Moody’s affirmed Cyprus’ long-term rating to Ba2, two notches below investment-grade, and remains the only rating agency to maintain Cyprus’ rating at junk. “The primary driver is that Cyprus’s bank-related exposure to event risk continues to decline,” Moody’s said, noting that policy action by the government and actions by the banks will likely lead to a further large reduction in non-performing exposures (NPEs) over the coming 18 months. Recalling that NPEs in the Cypriot banking sector declined to 30.6% of gross loans in March 2019 from their peak of 49.8% in May 2016, Moody’s said it “expects that number to continue to fall, and quite possibly to halve, over the next 12-18 months.” The agency cites two factors. Namely the government scheme Estia, launched on 2 September, aiming to subsidise repayment of NPEs collateralised by primary residences by one third, with Moody’s noting that these loans “are the most difficult area of NPEs.” It said Estia will assist repayment of NPEs amounting to €1.1bn held by Bank of Cyprus and Hellenic Bank rated by the agency.
BoC’s course in the London Stock Exchange
Bank of Cyprus listed its shares on the London Stock Exchange in January 2017, with a simultaneous listing on the Cyprus Stock Exchange, which created a new state of affairs for the bank. There have been plenty of ups and downs; the highest price BOCY’s share ever reached was on 12 May 2017, when it reached €3.4050, while the lowest was on 12 February, when it fell to €0.9780. The price of the bank’s share was affected by significant events, such as the departure of Mike Spanos (-12.75%), the financial results for 2019 and the announcement of John Hourican’s departure (+16.18%)/
What is going on with Estia?
Politis comments that there has been a very small number of applications for the Estia scheme, which raises questions over the calibre of the NPL borrowers and their motives. Just 100 applications were made by the end of last week, when there are 12,000 borrowers who are eligible. There are just two months left until the deadline to submit applications expires and if things don’t change, the context under which the protection of primary residences is being discussed will change. This indifference over such a generous regulation is a provocation for Cypriot society, says the paper, as this is the only method available to help the so-called vulnerable borrowers.
Interest-free loans of €3.4b to 28 banks
The European Central Bank gave the region’s lenders €3.4 billion in free long-term loans as it revived a policy intended to boost economic growth and inflation. The three-year loans – at a rate that starts at zero and could fall as low as the deposit rate, currently minus 0.5% – are part of a package of stimulus measures that includes taking negative interest rates further below zero and restarting bond purchases. The take-up by the 28 banks that took part was far lower than expected. Predictions ranged from €20-100. This is the third series of so-called targeted longer-term refinancing operations, under which the cost of the loans falls if banks lend more to companies and households.
Quantitative easing provides us an opportunity
The quantitative easing measures that were announced recently by the ECB may not fit Cyprus 100%, but they still open a window for the smoother servicing of public debt and assist in the restructuring of NPLs. Sources tell Politis that the key is for reforms to take place straight away, so that the island can boost its economy’s competitiveness and productivity. This was also the message from the troika of international lenders after its seventh post-bailout review last week.
Cyprus economy’s outlook upgraded
Rating agency Moody’s changed the outlook for the Cypriot economy to positive from stable, citing the reduction of the sovereign exposure to event risks stemming from the banking sector and the improving fiscal strength beating previous expectations. However, Moody’s affirmed Cyprus’ long-term rating to Ba2, two notches below investment-grade, and remains the only rating agency to maintain Cyprus’ rating at junk. “The primary driver is that Cyprus’s bank-related exposure to event risk continues to decline,” Moody’s said, noting that policy action by the government and actions by the banks will likely lead to a further large reduction in non-performing exposures (NPEs) over the coming 18 months. Recalling that NPEs in the Cypriot banking sector declined to 30.6% of gross loans in March 2019 from their peak of 49.8% in May 2016, Moody’s said it “expects that number to continue to fall, and quite possibly to halve, over the next 12-18 months.” The agency cites two factors. Namely the government scheme Estia, launched on 2 September, aiming to subsidise repayment of NPEs collateralised by primary residences by one third, with Moody’s noting that these loans “are the most difficult area of NPEs.” It said Estia will assist repayment of NPEs amounting to €1.1bn held by Bank of Cyprus and Hellenic Bank rated by the agency.
The troika’s alarm bells for Cyprus
The troika of international lenders warned the Cypriot authorities that there may be a potential deterioration of the financing environment and gradual slowing of the economy, despite the Cypriot economic growth being strong. The are also concerned about the banks’ high operational costs and low profitability, with the lenders urging the executive to accelerate structural reforms. According to a joint announcement by the European Central Bank, European Commission and International Monetary Fund following their seventh post-bailout review of the Cyprus economy last week, following an increase of the real GDP by 3.9% in 2018, the growth rate moderated in the first half of 2019, which was to a great degree due to external factors. The broader public sector balance sheet is expected to record a significant surplus of over 3.5% of GDP in 2019, due to an increase in tax revenue and certain temporary factors, while the surpluses are expected to reduce somewhat in 2020 and 2021, partially reflecting the increases in public healthcare expenditure and the gradual reversal of the public payroll cuts that were implemented during the recession. The troika said that satisfactory progress was made in terms of the banking system’s recovery and the reduction of NPLs, though there are still significant challenges. Despite the recent reduction, the Cypriot banking sector continues to have the second highest NPL rate in the Eurozone. As for the Estia scheme, the lenders said that strict compliance with the eligibility criteria and the swift activation of repossession procedures in the event that debts stop being serviced again are vital for the scheme’s success. It added that the swift establishment of KEDIPES, the biggest state asset management company in the EU in proportion to the economy, is of vital importance. Another challenge for the banking sector is high operational costs along with low profitability, they said.
Cards with limitations
The use of bank cards for day-to-day transactions is being broadened, as the government is preparing a bill that will make it obligatory for all businesses and service providers to install POS machines. However, Politis reports that not all businesses are ready to take on the cost of installing the systems. President of the Cyprus Consumers Association Marios Droushiotis told the paper that businesses are obliged to inform customers with a clearly visible sign that they do not accept cards or that there are certain restrictions on accepting cards for payments. Specifically, a store has the right to add a small commission to the total amount due during card payments, only if there is a sign clearly stating this that is visible to customers. For example, the sale of cigarettes at kiosks has a very low profit margin, so there are certain kiosks that charge an extra sum for customers to use cards or only accept cash for the transaction. There are also businesses that do not allow card payments for small sums of up to €5,
Collusion they say
Haravgi comments that the government continues to sponsor the Church (with salaries of millions to priests) for the same reason that it closed the Co-op and sponsored a private bank. The government cannot act as a businessman, but it can sponsor the church so that the Archbishop is a businessman, who in turn sponsors whoever he wishes – certainly not poor people – with lucrative land plots. And the state turns a blind eye.
Pilgrims’ donations are not controlled
Just 11 of the 30 Christian foundations that are under the supervision of the Archbishopric are registered with the Registrar of Societies and Foundations, which means their operations and decisions are not governed by a regulatory framework as is the case with all other foundations and societies. Recent reports about a donation by a woman to a Christian foundation on the promise that it would arrange a nursing home for her, which eventually was not kept, have indicated that these foundations are not being properly managed. A member of a Christian foundation told Politis that it depends on each foundation’s constitution whether it receives donations or not. Almost all districts have foundations that answer financially to the Archbishopric. The paper notes that besides the 30 religious foundations that are under the Archbishopric’s supervision, there are another 50 that are under each district bishopric’s control.
Increase of profitability for Ellinas Finance
Ellinas Finance Public Company Limited increased its profitability in the first half of 2019, according to its financial results that were discussed and approved during a board of directors meeting on 12 September 2019. Specifically, total revenue from operations increased by 2% compared with 2018. Revenue from short-term financing, factoring and other loans remained at the same levels as 2018. The company had a significant increase in new financing with total claims increasing by around €2.5m. Furthermore, there was an increase of 3.4% in the revenue from commissions for MoneyGram services.
Invest Cyprus throws its nets in India
The Cyprus Investment Promotion Agency (Invest Cyprus) carried out a series of promotional actions in three towns of India on 16-20 September, in its bid to tap the massive and promising Indian market. the promotion of investment opportunities offered by India and countries of Eastern and South-Eastern Asia, are high in Invest Cyprus’ priorities. Among its India-specific efforts is to increase Cyprus’ presence in the country, so as to make it easier to attract international companies to the island to set up their European headquarters, as well as direct foreign investments in large touristic projects and renewable energy sources.
New square in Limassol opened
The Syntagma square connecting the Limassol Castle square and the historical centre with the port as well as the seaside Molos park with the marina, was opened yesterday after a revamp. This project completes the revamp puzzle in the area. Pedestrians will be able to move to any direction without facing hurdles such as cars and building sites. The 2.200sqm square, which was a parking lot until last year, has been turned into a contemporary square. The square has fountains, hedges, contemporary lighting, sculptures, seats and facilities for disabled persons. The square expands to Ermou street, which as also been pedestrianised.
Cruises to triple by 2020
This year, cruise ship arrivals will double, while they will triple by 2020, according to the Deputy Minister of Tourism, Savvas Perdios. He said that the 30 cruise ships that visited Cyprus last year, will increase to 60, while another 100 cruises have been scheduled for next year after specific promotional activities. Already, as the Deputy Minister said, they are looking into the 2021 schedule, and a further increase is very likely. Certainly, there are big cruise ship companies that were missing from our region in the past few years, who have expressed interest in incorporating Cyprus to their schedule. Perdios specifically mentioned Royal Carribean, MSC, Costta, Silversea, Norwegian, Tui, Aida, Holland America and Carniva. According to Perdios, the stability observed in Israel and Turkey, will help the cruise sector recover in our region and this is something that all stakeholders are trying to take advantage of.
Deputy Ministry of Tourism takes part in Seatrade Europe
The Cypriot delegation led by the Deputy Minister of Tourism, Savvas Perdios received encouraging messages at the important specialised cruise exhibition Seatrade Europe, which is being held in Hamburg this week. The contacts held with large cruise companies demonstrate that demand for cruises in the Eastern Mediterranean region, has re-emerged due to the smoother political conditions in the region as well as the oversupply of cruises in the Western Mediterranean. The conclusion emerging from the Deputy Ministry’s contacts in the framework of the Seatrade Europe expo is that through cruise tourism, Cyprus can attract tourists from Spain, Italy, Chine, the United States and Latin America.
Coastal link between Thessaloniki, Limassol and Haifa, very successful
The new trade link of Salamis Cruises, connecting Thessaloniki, Limassol and Haifa has given a significant push to Cypriot commerce. In its six months of operation, the new link has proven to be very successful and useful for the business world, which has embraced it and used it for its commercial activities. Salamis Lines gives its thanks to the business world for its response, announcing that it will continue operating this link every week, supporting the needs of businesses. With its long-standing credibility, the well-known quality of its services and high level of professionalism, Salamis Lines will always be on the frontlines, supporting the business world and Cyprus commerce.
Recognition for shipping firms
The AMVER awards were held for another year in Limassol, recognising the shipping firms who participate in the American Coastguard’s Automated Mutual Assistance Vessel Rescue (AMVER) System Programme. The event was organised by the Cyprus Shipping Chamber, the US Embassy in Nicosia and the CYMEPA. The AMVER programme is open to vessels with any flag and country. Companies who participate in this programme voluntarily, are offering their ships as rescue vessels, thereby creating a worldwide assistance network for research and rescue at sea. The Cyprus Shipping Chamber congratulates all the companies that were awarded and especially the firms Bernhard Schulte Shipmanagement Cyprus Ltd, Columbia Shipmanagement Ltd, Donnelly Tanker, Management Diana, Wilhelmsen Management Enesel Ltd, FML Ship Management, Interorient Marine Services, Intership Navigation Co, Lemissoler Shipmanagemnt Ltd, Marlow Navigation Co Ltd, Mastermind Shipmanagement Ltd, Matrix Ship Management Ltd and MSC Shipmanagement Ltd.
World Maritime Day beach clean-up
In the framework of World Maritime Day, CYMEP and the European Commission representation in Cyprus, invite you to a beach clean-up at Akti Olympion in Limassol on Thursday, 26 September at 3pm. The event is being held under the auspices of the Environmental Commissioner Ioanna Panayiotou, with the support of the Municipality of Limassol. A bus will be used for transfers from the offices of the Stelios Charity in Nicosia.
Coastal link between Cyprus and Greece by May 2020
If all goes according to plan, the coastal link between Cyprus and Greece will restart in May 2020, according to the Deputy Minister of Shipping, Natasa Pilidou. According to Pilidou, maintaining a frequent coastal link between Cyprus and Greece, was economically inefficient, and as a result the link was abolished in 2020. With a view to evaluate the funding gap in order to make a frequent coastal link between Cyprus and Greece viable, the Deputy Ministry of Shipping has prepared a study with the contribution of external consultants, which was completed on 5 August 2019. According to the findings of the study, the Ministry is now in a position to substantiate a relevant application to the European Commission, as well as prepare the relevant terms of the European-wide competition that will be announced for the reopening of the line, upon the approval of the EU.
State aid scheme to upgrade vessels
The Cabinet has approved a state aid scheme aiming to upgrade coastal passenger vessels and boost the services they provide. According to an announcement, the scheme aims to upgrade the shipping sector and the professional services offered by coastal vessels in the summer months for local and foreign tourists. Specifically, the scheme aims to promote the protection of the environment, upgrade/improve the navigation instruments, enhance the security and health conditions for passengers and the crew and improve accessibility for disabled persons. The scheme will be implemented over the period 2019-2021 with a total budget of €3m (€1m every year). Beneficiaries are persons who were active in the sector for no less than five years, over the past 10 years. The investment should at least amount to €20.000.
Collective agreement of hotel sector on thin ice
The renewal of the collective agreement of the hotel industry is now at a crucial point. While the unions greenlit the adoption of a mediation proposal by the Minister of Labour Zeta Emilianidou, the leaders of hoteliers went on a campaign in order to convince their members to pass the agreement. Yesterday, the hoteliers of Famagusta met with the Chairman of PASYXE, Haris Loizides. The hoteliers of the free Famagusta area called on the leader of the negotiating team to give them clarifications for the mediation proposal submitted by the Minister, calling on the Minister to answer their questions in writing. The hoteliers say that the way some of these points have been written is not clear and that some questions need to be answered in writing. They therefore support that the ball is now in the Minister’s court. Called to comment on this complication, the Minister of Labour was brief. She sent a clear message that the negotiations have been completed. She underlined that she will not send anything else to the hoteliers in writing, as the procedure for the agreement has ended.
Paphos Hotels Association concerned over Brexit
The Paphos Hotels Association expressed concerns about Brexit. In statements to CNA, the chairman of the Paphos Hotels Association, Thanos Michaelides said that they are still waiting to see whether there will be no-deal Brexit on 31st of October, highlighting that the attention will turn to the Euro-to-Pound exchange rate. Furthermore, they are still waiting to see whether the markets will be negatively affected and if this effect is short-term, because this will prove that Brexit is under control and there will be no problems for the economy. Furthermore, this means that the Pound will recover against the Euro and this will be a positive thing. According to Michaelides, as we are approaching January, the time when summer bookings begin, things will become clearer. Answering to another question, Michaelides said that the second biggest market in Cyprus and Paphos is the Russian market and that over the past two years there was a decrease in this market, due to the slippage of the Ruble.
Deputy Minister of Tourism meets with Troodos community leaders
The Deputy Minister of Tourism met with Community Leaders of the Troodos region, and discussed the connection problems of communities with urban centres, upgrading the tourist businesses of the region etc. Everybody aims to transform the region into a pole of attraction for foreign and local tourists.
Casino vs Casino
Seeing that Greece is investing a lot in developing a casino resort in Hellenikon, the people at Melco have been closely monitoring the developments due to its proximity to its own project in Limassol. There are clearly some concerns; however, an answer was provided by Melco CEO and Executive Director, Lawrence Ho, in an interview in the previous issue of Phileleftheros Insider: “Athens is a large and internationally known town; but looking at the economic cycle of the past few years, I continue to prefer Cyprus.” The magazine comments that the response is very clear; let’s see if it proves to be the case in action.
Analysis: Arrivals and revenue in opposite directions
The gradual increase in tourist arrivals over the past few years is not in line with the revenue from tourism and the per capita spending. Data collected by the site, along with numbers released by the Statistical Service, clearly reflect the problems with the quality of tourists arriving in Cyprus and the erosion of the tourist wave to the island, as well as the socio-economic class of the tourists the country attracts. All-inclusive deals, last-minute discounts to boost hotel occupancy and commitment to collaborations with tour operators are the main factors behind the abovementioned situation. On the other hand, there are expectations that things will improve once the casino-resort in Limassol is up and running, a new strategic plan for tourism is implemented and new markets will open for Cyprus.
Battle of Indians for the Hellenikon casino
When the US Secretary of Commerce, Wilbur Ross, visited Athens around 10 days ago, he was well aware of the date of the tender for the casino in Hellenikon. This was a clear indication of the US’ interest in the project, Kathimerini Economy writes. A billionaire himself, Ross knew the tender for the casino had been through multiple delays and postponements. But this time he was positive that things would be progressing. The paper says that the casino in Hellenikon, which will be accompanied by the construction of a massive hotel with over 2,000 beds and over 200 metres high, will be the biggest direct foreign investment of the past decades in Greece. The investment will definitely be in excess of €1b. Two clear bidders have entered the final stretch to submit a binding financial and technical proposal for the project’s licence: Mohegan Gaming & Entertainment and Hard Rock International. Both are of American interests.
COPY PASTE
Private universities in Cyprus, private universities in Greece. Casino in Cyprus, casino in Greece. Passports from Cyprus, passports from Greece. The new Greek prime minister is closely following the Cypriot recipe that will bring his country back to sustainable growth, Phileleftheros Insider comments. But isn’t this something that Cyprus has always done, namely copy the best practices used by other countries? This tactic being followed by Kyriakos Mitsotakis may prove damaging to Cyprus; but we still have to see it move into the implementation stage.
Games of chance in Cypriot society and the importance of responsible gaming
Games of chance are an integral part of contemporary Cypriot reality, as they are a part of life for thousands of Cypriots. According to the results of the first Pancyprian Quantitative Study and Survey on the Influence, Behaviour and Characteristics of Games of Chance Users, which was carried out on behalf of the National Betting Authority by Insights Market Research (IMR) Ltd, 92% of Cypriots stated that they have played games of chance at some point in their lives, while 75% stated that they are actively participating in games of chance at present. Cypriots start playing these games at a young age, making their first contact on average from 12.5 years old, while 66% of today’s players were first introduced to games of chance by a relative. The vast majority of Cypriot players of 15 years and above, 81%, fall under the category of low-risk, as they present a healthy behaviour when it comes to games of chance. Symptoms of possible problematic behaviour were evident in 13% of players, while 6% were classified as problematic/pathological players. Players aged 65 and over, young people aged 18-35 years old and minors aged 15-17 are most prone to problematic betting behaviour, while men are much more prone to becoming addicted than women.
“Play a game…!”
The majority of people have played some game of chance at some point of their lives, writes Claudia Neophytou, scientist at the Center for Applied Neuroscience. She explains what pathological gaming is, a persistent and repetitive behaviour that leads to significant dysfunctions in the individual’s life. Some examples of dysfunctional behaviours are the need to increase the sum that is being gambled to experience the excitement of the game, finding it difficult to stop gambling, wanting to gamble when going through emotionally difficult times, lying about one’s relationship with gambling and one’s gambling behaviour having a negative impact on relationships with other people and professional opportunities.
Will Philip Morris merge with Altria Group?
Philip Morris International (PMI) announced that they’re negotiating with Altria group in view of a possible merger between the two companies. A successful conclusion would be the reunification of PMI and Altria, after over a decade since their division in 2008. Altria, which sells Marlboro, had mostly focused its activities on the American market, while PMI focused on selling the brand in foreign markets. According to CNBC, experts had been long waiting that these two companies would reunite, in view of the challenges facing the tobacco industry.
9 arrests in Nicosia and Limassol
Alithia reports that in just one night, in both Nicosia and Limassol, the police arrested a total 9 persons for drug related charges. The cases involved quantities of various drugs (cannabis, crystal substance, methamphetamine, pills and cocaine). One of the cases involved a 58-year-old who was found with 1,500 grams of cannabis, an air pistol, 340 fire crackers and 30 tobacco packs.
