Daily Press Review - 01/11/2019

In the press today:

Even most well-off families have lost property to the banks

Phileleftheros reports that even the most financially well-off families – middle class and above – have had difficulties paying their banking obligations. This is demonstrated by the properties acquired by REMU of BoC and Altamira, which is managing the properties of the former Co-op and APS of Hellenic Bank. Houses in well-known districts of Nicosia as well as outside the city are taken in by banks in debt-to-asset swaps. The article goes on to report on specific cases. APS which is managing the properties of Hellenic Bank is selling houses, mainly outside of Nicosia. Inside Nicosia, APS is selling a house in Engomi for €1.49m, a 3-bedroom house in Latsia for €557,000. Apar from Nicosia the Bank is selling a two-storey house in Paralimni for €1.27m, a two-storey house in Larnaca for €337,600 and a house in Paphos (Konia) for €406,000.

Decree on conduct of e-auctions to be issued soon

The decree on the conduct of e-auctions by the banks and credit management companies is expected to be9 published very soon in the Official Government Gazette. If the decree is published within the next 24 hours, it is not ruled out that the first e-auctions in Cyprus will be held around the end of November. It is an alternative method of selling assets, which is popular abroad, and its implementation is anticipated with great interest both by the banks as well as the real estate market. Banking executives believe that e-auctions will lead to even more property sales. In Greece, the data has showed that there was an increase in both auctions and sales, reaching record numbers. The e-auctions will be implemented via special platform. The website on procedures and legal documents has already been set up with the coordination of the Cyprus Banks Association. The platform has already been tested and presented to banking executives. The platform was created by News Phone Hellas, which has taken up and operates Greece’s e-auction platform. According to Politis, the Cypriot platform will look like the Greek one. Interested parties will be following a registration and certification process so that they can participate.

“Fresh” loans worth €2.5m in first 9 months

A total €2.518,m-worth of loans were given out by the banks between January-September 2019, recording a 11% increase, compared with the same period last year, according to Central Bank data. The largest category were business loans of over €1m that amounted to €1.24b recording a 22% increase, compared with €1.01b in the same period last year. Conversely, business loans up to €1m stood at €330.5m recording a 6.9% increase compared with the same period last year, when a total €632m worth of loans were granted. Consumption loans recorded a 1.4% decrease in the first 9 months of 2019, as they dropped to €122.7m compared with €124.5m in the same period last year. Finally, the remaining net loans stood at €155.2m, recording a 19% increase, compared with the same period in 2018.

Interest rates dropping steadily

Interest rates in the Cypriot banking system continued their downward course. According to Central Bank data, the interest rate on deposits from households with an agreed maturity of up to one year, recorded a marginal decrease to 0.16% compared with 0.17% in the previous month. The same interest rate on deposits by non-financial corporations dropped to 0.13% compared with 0.22% in the previous month, recording 9% decrease. Both interest rates on household deposits as well as businesses dropped for the fourth month in a row. The interest rate on consumption loans, recorded a significant decrease dropping to 2.80%, compared with 3.06% in the previous month, while the interest rate for loans for house purchase remained stable at 2.13%.

New reduction in unemployment rate

Unemployment in Cyprus continued to drop in September, reaching 6.6%, which corresponds to 29,000 persons. It should be reminded that one year before, the unemployment rate stood at 8%, while in August 2019 it stood at 6.8%. The reduction recorded in Cyprus was the second highest in the EU, where the seasonally-adjusted unemployment rate in the Eurozone stood at 7.5% in September 2019, stable compared with August 2019 and down from 8% in September 2018. The EU28 unemployment rate was 6.3% in September 2019, stable compared with August 2019 and down from 6.7% in September 2018. This remains the lowest rate recorded in the EU28 since the start of the EU monthly unemployment series in January 2000.

Concerns over ESTIA intensify

The launch of e-auctions coincides with the implementation of the ESTIA scheme. There are very few participants in the scheme, a fact that has worried the banks. 160 applications were submitted, while another 400 are still pending as they’re missing one or two documents. The deadline for applications is in around 2 weeks on 15 November and there hasn’t been any indication that more applications will be submitted. An extension is very likely, while in the next few days will demonstrate whether the assistance (agreed a few days ago by the Finance Ministry) in drafting and submitting the applications, will bear any fruit. A main issue was the issuance of documents from the Land Registry department. This matter was settled as only the borrower needs to submit an asset declaration certificate, while the remaining family members only need an asset statement.

From a government consultant to a speaker in the occupied areas

One of the leading member of the Cyprus energy program team, and lately a critic of the government's cooperation agreements and decisions on hydrocarbons will be among the keynote speakers at a conference held next week. The conference will be held in the occupied Morphou area at the Eastern Mediterranean Technical University on November 11. The main sponsor of the conference is the Turkish company Aselsan, known for building high-tech systems for Turkey's armed forces.  The all-day conference will focus on energy and hydrocarbons. In addition to academics, politicians, technocrats and representatives of foreign companies, it is striking that among the speakers will be the former president of the Cyprus Hydrocarbons Company and CEO of E-C Natural Hydrocarbons Company Ltd, Charles Ellinas. One of the keynote speakers at the energy conference will be the so-called prime minister, Ersin Tatar in the Turkish occupied areas. Mr. Ellinas will present the topic: "Hydrocarbon extraction, production and exploitation".

Negotiations with private hospitals proceed smoothly

Discussions between OKYPY and state doctors seem to be going well, while negotiations between the HIO and private hospitals also appear to be proceeding smoothly, as they are discussing the inpatient care phase of the GHS. The HIO is expected to finalise its proposal soon and in fact, it is determined to increase its budget in order to have successfully implement the second phase of the GHS, and have private  hospitals integrated in the system. Commenting on the GHS’ budget, the Health Minister Constantinos Ioannou stated that the GHS’s budget has been set and it hasn’t been exceeded so far. He clarified that healthcare providers will not be left unprotected, and that if the GHS needs more money, then the Government won’t hesitate to increase the budget. “If needed, we are ready to invest in Health”, he said. Haravgi also reports on the bullying allegations mentioned above.

Austria implements complete smoking ban

On 2 July, following years of debate and controversy, the Austrian Government voted a complete smoking ban, which will be implemented on 1 November. This move by the Government was met with protests, pub and nightclub closures and lawsuits. Stakeholders of the nightlife industry complained against this law and demanded their exemption. In their appeal they cited, inter alia, that their businesses – bars, discos – operate almost exclusively at night and their visitors have a different profile. Stressing that numerous international surveys have shown the positive effects of smoking bans, the World Health Organization, in its announcement today, welcomes the ban on smoking in Austria as an important step. Additionally, WHO points out that every year in Austria 14,000 people die due to smoking, while 1,000 deaths are attributed to “passive smoking”. According to Eurostat, 30% of young people in Austria start smoking by the age of 15, with the corresponding percentage being higher only in Greece and Bulgaria.

Campaign to reduce plastic in schools

Alphamega Hypermarkets and Unilever teamed up for a joint campaign entitled “We take care of SCHOOLS and protect the ENVIRONMENT”. They aim to raise environmental awareness within the schools, ensuring a better future for our children. From 31/10 and until 31/12, for every Unilever product pruchase at Alphamega Hypermarkets, €0.05 will be go towards replacing single-use-plastics in schools with products made from reusable materials.