Daily Press Review - 8/10/2019

InBusiness Awards 2019

InBusiness presents the candidates for the InBusiness Awards. Hellenic Bank is included under the Corporate Social Responsibility category. The Bank invests in programmes, such as scholarships, supporting more than 80 students, while its “Exeis ti dynami” project is part of the bank’s initiatives that support vulnerable groups, in the framework of empowering people, institutions and organisations working on social and cultural matters. It invests in educating customers in digital services (emathisis), while it gives rural areas access to banking services with its mobile units. The proper management of energy consumption through ISO 500 and the green offices programme is highly important for the organisation. At the same time, it stands by the side of eco schools as well as educates its personnel with feedback tools.



Hellenic Bank offers 20 scholarships

Hellenic Bank presented the scholarship programme “jumpstart” on Wednesday 25 September at Hellenic Bank’s headquarters in Nicosia. Through this big programme, Hellenic Bank is promoting the dreams of the youth who believe in their power, providing them 20 scholarships to 20 students, worth €2,000 per year until the fourth year of their studies, on the basis of certain social, economic and academic criteria. Evripides Polykarpou, the chairman of Hellenic’s BoD, welcomed the attendees with a brief address stating among other things that Hellenic’s JumpStart programme will support young people with dreams and talent, whose life wasn’t at all easy but nature provided them with qualities such as stubbornness and willpower. “Here at Hellenic Bank we will give them all the tools they need in order to chase their dreams”, he stated.



Hellenic Bank responds with raises

Developments in the banking sector are especially interesting, after Hellenic Bank’s Board decided to respond to the announcement of a 24-hour strike, by giving raises to all the members of staff. The concession of salary increases will be conducted according to the model that the bank has prepared in cooperation with experts. Specifically, the bank decided to introduce a minimum gross salary of €1.300, benefiting 300 employees who come from the Co-op, while the remaining staff will get a 2% salary increase. An additional raise will be given on the basis of a new system which is based on the productivity and competitiveness of the market. Hellenic Bank sources report that on average, the raises that will be given are higher than the percentage demanded by ETYK (3.8%).





Retroactive salary rises at Hellenic Bank

Same as above. Hellenic Bank’s some 2,500 employees expect pay rises at the end of the month, retroactive as well, starting from January 2019. This follows a unilateral decision by the lender’s management and comes days only before Friday’s 24-hour strike action called by ETYK (Cyprus Bank Employees Union). Chief Executive Officer Ioannis Matsis who informed staff via the banks’ portal also pointed out that pay rises will be granted based on performance and on relevant earnings in the market. At the same time, insiders told Phileleftheros that the remuneration plan Hellenic wants to introduce focuses on two major points. The first concerns the introduction of a minimum wage for some 300 employees, mainly from the collapsed Co-op bank which was absorbed by Hellenic a year ago. In these cases, the monthly salary is between €900 and €1,000 and the plan is for them to rise to €1,300. The second concerns the salaries of 2,500 employees of which 1,100 are from the Co-op bank.  These salaries will increase based on evaluations carried out in 2018. Bank insiders have said that this decision aims at modernising the remuneration system. Specifically, they said, the aim is to create a fairer and just system based on the performance of each employee and relevant remuneration in the market. Hellenic’s management want to rectify the injustices of the current remuneration system, but stay away from outdated and horizontal evaluation systems, one also said. However, the new bank salary system also provides for 2% horizontal increases for all staff. Bank executives have been calling on ETYK for months to discuss this new system, but the union has repeatedly refused to come to a dialogue. Instead, ETYK’s leadership has opted to call for a strike that will cause unnecessary inconvenience to customers. Moreover, Hellenic’s leadership said that total pay rises to be granted will be much higher than those demanded by ETYK and provided by the expired collective agreement.



Labour crisis at Hellenic Bank flaring up

The labour crisis at Hellenic Bank is headed for a head on collision, with the everything pointing to the fact that it’s extremely unlikely that the 24-hour strike next Friday will be prevented. While negotiations for the renewal of the collective agreement that has expired are still ongoing, the Bank announced yesterday salary increases on the basis of a system that, according to the bank is the fairest and is supported by the productivity of each employee and the emoluments of the market. Moreover, members of the Bank’s management accused ETYK that instead of sitting at the negotiating table, it is going on strike causing unnecessary problems for the bank’s customers.



APS manages assets worth €400m, expects to double volume of assets

More than 1250 assets have been onboarded in APS Debt Servicing Cyprus portfolio so far, the value of which exceeds €400 million. In the first two years of the company's operation in Cyprus assets valued more than €120 million have been sold or reserved states. APS Real Estate Director, Ms Elpiniki Frantzi also pointing out APS significant contribution to Cyprus effort to reduce non-performing loans. Ms Frantzi emphasizes that the majority of the assets handled by APS are medium to low value properties, while in the next 9 months the volume of assets that are going to be onboarded by APS will double.







ETYK demands a penalty against Hellenic Bank

ETYK is demanding that a penalty is imposed against Hellenic Bank’s management, reporting that there was a violation of the salary protection law. In a circular that was published before Hellenic Bank announced the salary rises, ETYK mentions that the Minister of Labour herself had told the Bank’s management that on the basis of the current agreements they must give all staff members their annual salary rises and the Cost of Living Allowance. Moreover it adds that the Ministry of Labour after several reports by the organisation, has issued written decisions with which it mentions that Hellenic Bank has violated the current agreements (travel expenses payment, contribution to welfare fund). ETYK, apart from the strike action that it has decided, it will call the Minister of Labour to proceed with taking criminal measures against members of Hellenic Bank’s management.



The two faces of Limassol: 30 towers are being built but there is also a miserable side

Limassol Mayor Nicos Nicolaides said in an interview that permits have been issued for the construction of 25 to 30 high-rise buildings in the broader Limassol region, though the number within the municipal boundaries of Limassol Municipality is clearly smaller. Nicolaides stressed that the necessary traffic and static studies are carried out before any permits are issued, while the municipality is awaiting the completion of a comprehensive study into the environmental impact from these constructions soon. The article includes previous statements by former minister and director of the Planning Bureau, Iacovos Aristidou, regarding the Municipality’s decision to promote the development of the coastal area between Limassol port and the town’s marina. “In Limassol, as in other towns, for environmental and synergy purposes, we created industrial areas and established industrial zones, mainly in the area where the wineries are.” He said the development of the area could be combined with this, with the promotion of other products as well, such as other Cypriot drinks and farming products, to promote the area as a tourist attraction. Meanwhile, the article also reports that despite the feverish development of Limassol, there is also another miserable face to the town, which needs a facelift the soonest possible. Old and unmaintained buildings in certain parts of the town are blighting its image and posing a threat to the environment.



European Commissioner for Transport: Cyprus has a quality maritime cluster

The European Commissioner for Transport, Violeta Bulc, in a pre-recorded video message that was presented at the Maritime Cyprus 2019 conference, said: “Cyprus commands global respect for its shipping fleet and longstanding quality maritime cluster”. “I know how important the sector is for the Cypriot economy and I welcome the political attention that the maritime sector receives in Cyprus. I hope you have recognized also our efforts to make sure maritime stays in focus also at the EU level”, she noted. “Over five years, we have shared an incredible journey. We have worked hard to make maritime transport safer, cleaner and more connected and digitalised. But what is even more important is that we did it together and this is what counts the most”, the EU Commissioner said. As she noted, eight concrete legislative acts concluded in five years (passenger ship safety, port reception facility, European Maritime Single Window) and have set the maritime sector on course towards a cleaner and greener future.



BSM Maritime Training Centre’s historical building launched in Limassol, with the colours of the sea

The BSM Maritime Training Centre’s building launched in Limassol a few months ago, between the old port and the marina. The building has been painted with the colours of the sea, by the Fresh Art arts centre which owns the building. The emblematic building is expected to be a reference point for the town, said Limassol Mayor Nicos Nicolaides, who added that Limassol was proud to be considered a shipping hub and a centre for shipping education.



Paralimni marina: Significant commercial growth

Paralimni marina is expected to significantly boost financial activity in the free Famagusta area. Through its year-round operation, the marina is expected to help fight seasonality, and create around 250 new and permanent jobs.



The aim is to develop a relationship between agritourism and industry

The contribution of Cypriot farming products to the effort to enrich Cyprus’ tourism product was the main topic of discussion in a meeting that took place between Agriculture Minister Costas Kadis and the Deputy Minister of Tourism, Savvas Perdios, where they discovered plenty of potential of cooperation between the two ministries. Kadis told reporters after the meeting that there were plenty of areas of activity that are of mutual interest, especially in terms of utilising and promoting farming products and generally the Cypriot rural areas. He said specific decisions had been made regarding ways to cooperate with the deputy ministry. Perdios, on the other hand, referred to gastronomy, which has been included in the 2020-2030 national strategy for tourism as one of the ten most important alternative forms of tourism that should be promoted. He said the deputy ministry intended to assist farmers in promoting their products to restaurants and hotels, while he added that designating these products was very important for Cyprus and its farming sector. Perdios said that he would be consulting with Kadis on how to include the upgrade of agritourism and the farming sector in the next financing programmes for 2021-2027. He said this would not only extend the tourism season and upgrade Cyprus’ tourism product, but it would also attract the kind of nationalities the island needs in order for its tourism to grow and progress.



Investments with high returns

The real estate sector in Cyprus has recovered after a prolonged period of crisis. Traditionally, real estate is an investment choice with high returns. Nothing safeguards high returns more than location. One can renovate a car, change its structure, design, style but it can certainly not be moved. When speaking about privileged locations, it seems that 2020 will be the year of Limassol’s western areas, dynamically transforming into a pretty, friendly and attractive urban landscape with small and big sustainable urban development projects. As such, Western Limassol is about to be upgraded significantly. Apart from the projects that have already started, the wider area is attracting large-scale investments in the land development sector. For starters, the development of the biggest casino-resort in Europe, City of Dreams Mediterranean is expected to attract international interest as well as bring multiple benefits in all the sectors of the economy and be the pinnacle of the area’s facelift. Citrine Estates, a new luxury housing development, will be developed an especially good location, at an idyllic natural environment about 800 metres from Lady’s Mile Beach, as well as very close to the Limassol centre and the casino-resort.



Educational Seminar

The National Betting Authority, in cooperation with the Cyprus Gaming and Casino Supervision Commission are organising the “Responsible Gaming Conference”, that will be held at Filoxenia Conference Centre on 7 October, in Nicosia for the second year in a row. The conference is part of the “Responsible Gaming Awareness Week”. Distinguished speakers and experts on responsible gaming will take part in the conference, with presentations and panel discussions. The seminar will discuss issues such as advertising of games of chance, health and addictive behaviours, studies in the field of gaming, artificial intelligence in gaming, youth as well as the responsible gaming practices put forward by supervised organisations.



Let’s keep it a game

The Responsible Gaming Awareness Week aims to send a message to society that that people who are worried about how their involvement with betting and gaming is affecting their lives, or they believe that a person close to them is addicted, can now ask for help and act accordingly. According to the president of the National Betting Authority, Ioanna Fiakkou, their goal is to mobilise the wider society to promote responsible gaming. The event aims to raise awareness about responsible game, self-protection measures that a player can set as well as ways to tackle the hazardous involvement with relevant activities. The Responsible Gaming Awareness Week gives the public an opportunity to get information and discuss what it means to be a responsible player, by putting forward protection measures for their own safety and the safety of the people around them. The event aims to reduce any negative consequences from gaming as much as possible. The Slogan of the event is “Let’s keep it a game”. The whole event will operate as a platform to raise awareness and develop constructive dialogue around responsible gaming. To achieve this, the organisers are focusing on a series of events that will be held over the course of the week, such as presentations, educational seminars, workshops, interactive games.



Health Ministries of Cyprus & Egypt meet for pharmaceuticals

The Committee that was established based on the Memorandum of Understanding that was signed between the health ministries of Cyprus and Greece for pharmaceuticals, will convene for the first time on 8 and 9 October in Limassol, according to a health ministry announcement. Cyprus’ Health Minister Constantinos Ioannou will launch the proceedings, which will be attended by officials of the Health Ministry, Pharmaceutical Services and the Energy, Commerce and Industry Ministry. Egypt will be represented by high-ranking officials of the country’s Health Ministry, Ministry of Investment and International Cooperation, and the Egyptian Drug Authority. The announcement said that in the context of the Committee’s first meeting, attendees will visit local pharmaceutical companies, while the meeting’s goal is to discuss the possibility of creating trade relations, as well as scientific and technical collaboration between the two countries in terms of pharmaceutical products. At the present stage, Egypt imports pharmaceuticals only from countries which are included in the catalogue that has been designated by the country’s Health Minister. Among other, the aim of the meeting is to include Cyprus in this catalogue, which would be a major commercial success for the Cypriot pharmaceutical industry, as Egypt is the most populated Arabic country. Phileleftheros adds that this development would be beneficial for Egypt as well, as it would allow the country to enter the European pharmaceutical market through Cyprus. The full announcement by the MoH can be found here.



Inclusion of non-prescription drugs causes an uproar

The Health Insurance Organisation’s (HIO) decision to meet the demands of the patients’ rights advocates in order to include non-prescription drugs in the GHS system (under conditions and based on protocols) has caused an uproar. The Cyprus Pharmaceutical Association (CPA) on the one hand acknowledges the need to assist chronic and severely ill patients, but on the other hand wants to set limits, as it disagrees with the HIO’s planning and is preparing to submit its counter-proposal to the organisation. Despite the fact that the GHS doesn’t cover non-prescription drugs, similarly to most national health schemes around the world, the MoH and the HIO decided to move forward with this specific concession when they realised that specific groups of chronic patients require specific products that are non-prescription drugs as part of their treatment. In fact, the patients’ rights advocates submitted a relevant request from the first month of the GHS’ implementation, after complaints kept flooding in. This matter was examined by the HIO, and the organisation concluded that 33 specific products will be covered by the system, under conditions and based on protocols which have been created for 6 groups of patients. This decision will be implemented from 15 October onwards, but is not supported by the CPA, which considers the decision a violation of the terms of agreement between the CPA and the HIO. Eleni Piera-Isseyegh, the president of the CPA, stated that private pharmacies will be financially burdened by the implementation of such a decision, which is something the HIO needs to consider, and they demand that the HIO supplies private pharmacies with these products.



CyMA raises objections

The number of doctors registered in the GHS is growing daily and yesterday it was reported that there are 1,533 doctors, 875 of the private sector and 658 of the public sector. The under-establishment association of private doctors registered in the GHS is having trouble making its registration official due to CyMA raising objections.



Okypy and Pasyno make decisions

Yesterday’s meeting between Okypy (state health services) and Pasyno (Cyprus nurses association), went on for more than two hours but concluded on a positive note, with decisions and timeframes. Meanwhile, Pasyki’s doctors unleashed a new attack against Okypy, while the association also saw the departure of its secretary, who announced his decision to move to private practice. The meeting between Okypy and Pasyno concluded positively, as they managed to map out solutions to the most severe problems facing state hospitals. It was announced that they’ve already scheduled a second meeting in November. The meeting was mostly led by Pasyno’s representative, and he focused on nursing staff at state hospitals. Mr. Petelis said “170 nursing positions were announced but only 20 were hired so far”. They agreed to re-start the hiring process until all the needs have been met. They also decided to immediately implement the training programme for those that were hired recently. The programme will last 6 months and will include both theoretical and practical training. Nurses decided to stop protesting about their complaints against Okypy and cooperate with them in order to solve all of their problems. On the other hand, Pasyki published a scathing comment against Okypy’s recent announcement that the A&E departments will be temporarily operated by security personnel, stating that they previously thought that staffing the A&E departments with resident doctors and students was a horrible idea, but it appears that they were wrong as this latest decision takes the cake; from both a medical and managing point of view.



How Juul’s cofounders lost their billionaire status

A recent article published by The Wall Street Journal reports that one of Juul’s investors-shareholders reduced the company’s value by over a third, which was enough to terminate the short-lived billionaire status of its cofounders Adam Bowen and James Monsees. According to the article by WSJ, Hedge fund Darsana Capital Partners recently wrote down its investment in Juul Labs Inc. by more than a third and now holds it at a price that values the e-cigarette company at $24b. Darsana Capital refused to comment on the matter. Based on the reduction, the cofounders are no longer considered billionaires, because according to Forbes, each of them now has a net worth of $900m. Last December, tobacco giant Altria purchased a 35 percent stake in e-cigarette maker Juul Labs, a deal worth $13b. In fact, this deal launched Bowen and Monsees to their billionaire status. However, Altria’s investments declined following the FDA’s survey into the health problems related to vaping. FDA is suggesting the prohibition of e-cigarette flavours except tobacco. This development would damage Juul’s activity significantly, as they represent over 80% of their sales in the US.