Daily Press Review - 12/12/2018

Cyprus in London regarding copyrights

A presentation by the Cyprus Investment Promotion Agency (CIPA) in London recently as part of London IP Week was very interesting, Economy Today reports. The aim was to present Cyprus’ advantages to technology and innovation companies. Interest was keen, particularly in view of Brexit. Deloitte’s Alekos Papalexandrou presented the tax incentives and exemptions Cyprus offers, while IP Cyprus lawyer Marinos Cleanthous laid out the legal tools available to protect copyrights and industrial rights. The site says the presentation of Wargaming CEO Victor Kislyi was extremely interesting, as he analysed the reasons why his company chose Cyprus for its headquarters, in a practical and animated way. “When we initially chose Cyprus, we were not aware of all the advantages we would have. Our motive was to acquire a base in the EU, in a country with a good tax system and that we connected with on a cultural and religious level. Today I am in a position to assure you that we made the best choice: as a technology company we rely heavily on the use of our copyrights. Cyprus’ tax package is the best in Europe. Furthermore, we are living in a beautiful country, with a good a quality of life and exceptional professionals who have helped and supported us in making decisions. I have experienced it and can confirm: Cyprus is the most hospitable country for technology companies.”

The end of an era…

The logo of the once powerful Strovolos Co-op was taken down yesterday, with Politis newspaper saying this marks the end of an era; the end of the Co-operative movement. All the branches belonging to the Strovolos Co-op will come under the ownership of the state, based on the deal that was signed with Hellenic Bank. These include the central building in old Strovolos and which the suburb’s municipality is interested in.

Phivos Leontiou: CCB-Hellenic unification going well

The incorporation of the Cyprus Co-operative Bank with Hellenic Bank is running smoothly, says HB’s Head of Group Operations and Chief Integration Manager Phivos Leontiou in an interview with Kathimerini Economy. He relays the positive elements of the acquisition, as well as the challenges, while adding that a total of 75 branches will have shut down by the end of 2018. The full incorporation of the Co-op’s healthy portfolio with HB is expected to be completed by September 2019, he said. The deal has made HB the biggest retail banking provider in Cyprus, while it is now the island’s second largest bank.

Problems with restructurings if Estia funds not released

All the actions the banks have taken relating to the Estia schemes and the loan restructurings will be put on ice if the House ‘crosses’ the €33m fund that is included for the scheme in the 2019 state budget this Friday. All the opposition parties are against releasing the funds, while ruling DISY is also expected to vote against. Bank sources told Phileleftheros that they are very concerned about the parties’ intentions, as if the funds are frozen, the scheme’s implementation will be delayed. They are also wondering what to do in the event that the funds are not released, and what will happen with the procedures that are already underway. Bank of Cyprus, Hellenic Bank and KEDIPES have already sent letters to the borrowers who meet the criteria to join Estia, while borrowers have started inundating the banks with questions as to what the future holds after hearing MPs intentions.

Shacolas’ Limni project included in debt-to-asset swap deal

Kathimerini reports that Shacolas’ Limni project has passed under the administration of BoC’s Real Estate Management Unit following a debt-to-asset swap deal with the Bank. The Shacolas Group’s subsidiaries Ermes Department Stores, Woolworth Properties and Cyprus Limni Resorts & Golf Couses, agreed to give the BoC real estate worth €228m in exchange for debt. Among properties to be sold to the Bank of Cyprus is said to be Limni Resorts & Golf Courses’ golf course in Paphos. The project was to include a golf course, a five-star hotel, a wellness center, residential units and would grow to 3.3 million square meters. It is worth noting that urban planning permission was obtained in August this year. The total project was estimated to cost some EUR 800 m.

Marginal decrease of red loans

There was a slight €15m drop in NPEs in August, bringing them down to €16.59b compared with €16.61b the previous month, according to Central Bank data released yesterday. The NPE rate remained unchanged at 40.4%. Compared with August 2017, NPEs dropped €5.3b, as a result of the securitisation of €2.7b NPEs by Bank of Cyprus and the transfer of €0.4b by Alpha Bank.

Giant investment in Pyla

The US company NCH Capital Inc is planning to invest over €100m in the tourist area of Pyla, after having acquired the former Beau Rivage hotel from Bank of Cyprus, as well as a neighbouring coastal plot spanning 33,000m². The company’s investment plan provides for a mixed tourism and housing development, while the hotel by NCH Capital will collaborate with a well-known international hotel brand which currently is not present in the Cypriot market. NCH Capital is already running similar projects in Corfu and Mavrovouni.

Committee of Inquiry assessing the material

The Committee of Inquiry probing the Co-op’s collapse is currently in the process of evaluating all the material and witness accounts it has gathered, in order to prepare its final findings report. The report is expected to be ready by late February, early March 2019, and it will be handed over to the Attorney-general.

Cyprus got €212m from the EU for 15 projects

Cyprus has so far received €212m from the EU for projects with a total budget of €468.4m as part of the 2014-2020 funding period. These include the first phase of the Nicosia ring-road (funding of €43.8m, said Public Works Department officer and national coordinator of the Intereuropean Transport Network and “Connecting Europe” facility, Elpida Epaminonda.

Mevlut meeting is key

The UN are aware that the key to a positive outcome to the mission by the UNSG’s special envoy Jane Holl Lute is in Ankara, and that any prospects for a resumption of peace talks depend on the Turkish government’s intentions, Phileleftheros reports. Lute has been trying to arrange a meeting with Turkish FM Mevlut Cavusoglu either tomorrow or the day after, prior to her arrival in Cyprus. The paper says it is obvious that the UN want to have a full picture of each side’s intentions, so that it can prepare its own roadmap for the procedure that will be followed.

Limassol port is a seething cauldron

The Limassol port is a seething cauldron two years after its privatisation, since the charges of the private companies that took up the operations of the port continue to be a problem for the companies’ relationship with traders. While the government and operating companies are saying they are satisfied by the course of the deal so far, the auditor general and other state services say that there are reduced proceeds. The commercial-financial world and the port industry complain about limited service and especially high tariffs imposed by two of the three managing companies which are “strangling” commerce. The Cyprus Chamber of Commerce and Industry (KEVE) has recently sent a letter to the Deputy Minister of Transport Vasiliki Anastasiadou, asking for a meeting on the subject. Stockwatch further reports that the government is saying that it is satisfied by the so far privatisation deal of the port. Vasiliki Anastasiadou has recently told the Parliament that the Limassol port’s proceeds from 2016 to today, amount to 82,3m. Charles Meaby, the General Manager of DP World Limassol, underlines that the port’s image is now better than what the company had taken up in 2016. “Our goal is to be established as the leading port operator in the Eastern Mediterranean region, however more time is needed”, he said. As he reports, the company’s goal is to develop important sectors of the port, such as energy and sea tourism. “In the field of energy, we are in the process of erecting a refuelling station in order to support the companies that will be operating within the Cypriot EEZ. At the same time, we are enhancing the cruise sector, since the reinforcement of maritime tourism, opens up development potential with multiple benefits”. According to Mr Meaby, from 2017 to date, over 100 thousand passengers have been served while more than 40 cruise-ships entered the port. For 2019, they estimate a 30% increase. Concerning the problems with charges and labour disputes, the general manager says that the company respects its employees, the trade unions and its associates. “With dialogue, our common goals can be achieved”, he says. “Two years after the privatisation of the Limassol port, Eurogate has turned the shipping container terminal into a contemporary European station that offers services on a 24-hour basis, 7 days a week”, the company’s director Giorgos Pouros reports. The company is satisfied about its two-year run at the port. “There is now an increase in cargo containers being transferred to and from the Limassol port of about 7%”. KEVE has asked for an immediate meeting with the Transport minister, which is saying that the high tariffs and lacking service are “strangling” commerce. According to the Senior Officer of the Industry Department, Vasilis Vasiliades, KEVE is focusing its attention on DP World and P&O Maritime, since Eurogate’s operation has been exemplary. He says that as it concerns DP World, there are problems with regards to carrying out trade and specifically in loading and unloading operations, due to the lack of staff, mechanical equipment and especially, cranes.

Fuat Oktay: Turkey is not backing down in Aegean and Cyprus

Turkey is not prepared to make the “slightest compromise” with regards to its energy plans around Cyprus, the Aegean or the Eastern Mediterranean, Turkish Vice President Fuat Oktay said. Speaking to parliament during a 2019 budget debate on Tuesday, Oktay said that Greece and Cyprus have been “spoiled” by the European Union and that Ankara will “by no means” tolerate any “measures against our country. With our determination and our diplomatic efforts, we project our power and our energy policy,” he said.

Nicosia gets a casino

Phileleftheros reports that the first casino of Nicosia was launched on Monday, operating in Engomi with 50 slot machines and 5 gaming tables. Phileleftheros further goes on to say, that according to its own information, the consortium has not agreed on the contractor that will take up the erection of the City of Dreams Mediterranean casino-resort in Limassol. A contractor will be chosen by the end of the year or the start of next year. The consortium is now examining the proposals submitted by 3 contracting firms. However, the foundation works for the project, are proceeding as planned.

Nicosia casino has specific opening hours

Politis reports that in contrast with the Limassol casino which operates on a 24-hour basis, the Nicosia casino which opened its doors to the public yesterday, will have specific opening hours, as the licensed consortium announced yesterday. Specifically, the C2 in Nicosia will be open on weekdays from 3pm to 4am, while on the weekends and public holidays it will be open on a 24-hour basis. However, it is not ruled out that the Satellite casino in Larnaca will have be open 24/7.

Nuns embezzled cash to gamble at casino

Haravgi reports that two nuns who worked at a Catholic school in California have admitted embezzling about $500,000, from the school’s funds and using it to gamble in Las Vegas. They are thought to have stolen the money over a period of at least a decade to spend on travel and gambling. The sisters, who recently retired, have expressed remorse for their actions. The article closes off by saying hopefully, now that the casino is operating in Cyprus, we won’t have similar phenomena.

People smoke everywhere

Smoking has been banned in closed public spaces for the last few years. However, we often see people who break the law, mainly in restaurants and cafeterias. People are no longer afraid of the consequences of the law since penalties are minimal. In addition to this, police do not react immediately when there are reports on a smoking ban violation. An officer of Police Headquarters has stated that Police have expressed their desire to be exempted from non-police duties.

Quality of health system depends on medicines

Article circulated by KEFEA President Kyriakos Mikellis to the press yesterday, in which he points out, among other, that the implementation of the system must ensure that all Cypriot patients have access to quality healthcare services and effective and safe medicines. Ensuring access to new innovative treatments is crucially important for the system to be a success, he said, adding that it is also important that every citizen is immediately aware of the improvement to the services provided, as they will now be contributing financially as well. He goes on to lay out the criteria KEFEA believes should be met in order for the GHS to be a success.

New doctors’ contracts with one-off payments and pay rises

Negotiations of the Organisation of State Healthcare Services (OKYpY) with employees’ trade-unions in public hospitals are going well. The Cyprus State Doctors Union (PASYKI) is expecting the propositions and details on contracts and incentives which will be given to doctors and is preparing for discussion. The contracts will include among other things like salary increases and a one-off payment as a reward for their decision to stop being a public employee.

Ten things we need to know about the GHS

The General Health Scheme (GHS) will cover healthcare for patients from medical practitioners, specialised doctors, nurses, midwives, clinical psychologists, dieticians, physical therapists, occupational and speech therapists. In addition to this, it will provide beneficiaries with ambulance transportation, medication, lab tests, in-patient health care, as well as healthcare in cases of accidents and emergencies. From 1 June 2019 staff and specialised doctor services, as well as lab tests and medication for outpatients, will be introduced, while from 1 June 2020 there will be full implementation of the System. All citizens who stay in the Republic of Cyprus will have access to all the services above. The beneficiary will have the right to access health services once they register in the GHS and to the register of a medical practitioner of their choice. The beneficiary will pay small co-payments to receive services from specialised doctors, labs, pharmacies, nurses, midwives, other health professionals; for example, €1 per pharmaceutical product, €1 per lab test, €6 per visit to a specialised doctor.

Minister of Health: Significant change in 2019

The Minister of Health and the Organisation of State Healthcare Services (OKYPY) state that the completion of the state hospitals’ autonomisation will mostly have been completed by 1 June 2020, when the second phase of the GHS begins with in-patient treatment. At the same time the effort is focused on the preparations for the provision of primary healthcare, which will be included in the GHS on 1 June 2019. The Health Minister has said that the autonomisation of the state hospitals is going at an accelerated rate and that he believes there will be significant changes in the first six months of 2019 in public hospitals, as far as their administrative and financial autonomy is concerned.

Small risk of side-effects from statins

Statins, a well-known medication for the reduction of “bad” cholesterol (LDL) have significant benefits for the reduction of heart attack and stroke due to thrombosis, while the risk of side-effects is small and in each case the benefits are greater from the potential risks. One in four Americans over 40 years takes statins, but 10% stop them due to various symptoms. American cardiologists claim that in most cases nobody should stop statins, because it can increase the risk of heart attack or stroke due to a blocked artery.