Daily Press Review – 6/6/2019

In the press today:

MPs didn’t do their homework on Co-op properties

Some MPs, who participated in the House Commerce Committee, didn’t do their homework, Phileleftheros reports. During the discussion of a bill by DIKO, which prohibits the concession, leasing, exchange or alienation of any immovable property belonging to Co-op bank, the MPs submitted questions that obviously showed that they weren’t up to date with the matter at hand. In fact, some of the questions were so irrelevant, that they caused the discontent of the invited parties. For example they weren’t aware that the Cabinet’s decided to concede Co-op properties to Municipalities and communities. Furthermore, they didn’t know that on the basis of Hellenic Bank-Co-op deal that was finalised last summer, Hellenic has the right to decide whether they will make use of the 103 properties of the Co-op. The author concludes by saying that MPs should be more prepared when presenting a specific subject, because they are embarrassing themselves.

NPLs falling but still high

Brief.com.cy reports that while NPLs are dropping, the private sector still is heavily indebted. NPLs were reduced significantly in 2018, mainly after the transfer of part of the Co-op’s assets and liabilities to Hellenic Bank. Specifically, one third of NPLs (€5.6b) in the banking sector was transferred to SEDIPES in September 2018, and therefore, outside the banking sector. At the same time, during 2018 Hellenic Bank sold its first NPL portfolio (worth €144m), while Bank of Cyprus sold a portfolio worth €2.8b. Furthermore, as it comes to arrangements such as debt-asset swaps or debt-equity swaps, these are mainly implemented in the case of big business as well as households. The drop in NPLs, was also supported by write-offs, in the framework of debt restructuring schemes. However, Brief reports that NPLs are still high. The Central Bank reports that despite the significant progress that has been achieved, the high level of NPLs still entails significant risk since the NPL ratio as a percentage of total exposures in banks, is still one of the highest in the EU. According to Central Bank data, total NPLs in the banking sector amounted to €10.5b in September 2018, dropping from €11.3b in September 2017. At the same time, due to debt-to-asset swaps, the real estate exposure of credit institutions recorded a significant increase. Specifically, the Bank of Cyprus and Hellenic Bank made substantial use of the debt-to-asset swaps and are now proceeding to sell the accumulated assets.

Tensions high at bondholders association protest

Phileleftheros reports that tensions were high in yesterday’s protest that was organised by the bondholders association outside of the Presidential Palace. The protestors cut-off the streets around the Presidential Palace, causing severe traffic congestion. When the police tried to enforce order, the protestors reacted intensely and started yelling. A few representatives of the association met with the Director of the office of the President of the Republic, Petros Demetriou, who assured them that the state will compensate people whose cases are won in judicial proceedings against the former Laiki Bank.

Eurobank posts €10m profits

Eurobank posted €10m in after-tax profits for the first quarter of 2019, recording a repeated profitability. According to a Press Release, the bank recorded a strong capital position with its Capital Adequacy Ratio as well as CET1 standing at 23.4%. Furthermore, there was a strong surplus liquidity with deposits reaching €4.937m and the loan-to-deposit ratio reaching 32%.

Occupied area aims for 2 million tourists and $2b income

The new “Minister of Tourism & Environment” Unal Ustel stated that a new perspective is needed for the tourism industry, saying that the “state” aims to reach 2 million tourists and $2b income. He mentioned, that in the foreseeable future they will begin discussions with Turkey to increase the amount of flights, and decrease ticket taxes. He added, its not only politicians who have to believe in tourism, but it’s the whole of the country.

The city of homeless people

In the column ‘Interventions’, the author states her opinion regarding the homeless situation in Limassol. The author accuses the government of keeping quiet on this matter and presenting a false picture of growth. The author states that Limassol is well-known for its growth but wonders if the government and the people are able to see through the tall buildings, the casino, and the expensive restaurants.

Nicosia creates new brand

Nicosia is renewing and modernising its brand, aiming at to establish a new identity for the city, combining all the elements that make it different for residents and visitors as well as attracting quality tourism and foreign investment, with the motto 'The brightest capital' of Europe. Deputy Minister of Tourism Savvas Perdios said that the profile of the modern tourist requires the modernization of the touristic product, noting that Nicosia’s new identity reflects not only the sunlight but also the luminous and unique experiences that the visitor can experience in Nicosia and the bright minds studying in this city.

Amount of specialized doctors is growing continuously

Today, the number of specialised doctors is about 285, but this number is growing every day, as private doctors keep joining. The same goes for specialised doctors of the public sector who are also steadily registering with the GHS after the close collaboration of the HIO and OKYPY.

School intervention program for the prevention of food disorders

A series of actions were taken in order to implement and promote a body positivity project under the title “Encouraging kids to love their selves and their bodies”, managed by Marios Argyrides, Lecturer in the Psychology Department of Neapolis University. Specifically, according to the relevant press release, they held educational presentations in the context of this program, for teachers at Geroskipou Gymnasium and Lyceum, Linopetra Lyceum and Ypsonas Gymnasium. A conference was also held for the parent associations at Erimi’s nursery and primary school. It is worth noting that this project is now the world’s most efficient project in preventing the development of eating disorders and has been implemented by 1.000.000 young girls and women. In Cyprus it has been implemented in public schools since January 2019. In a pilot study, Dr. Argyrides presented that the project and said that was very successful. The research is still ongoing.