Daily Press Review - 18/12/2018

Estia is still alive

The fact that the funds for the Estia scheme were frozen during the 2019 state budget vote does not mean that the scheme will be cancelled or significantly delayed, Politis newspaper reports, providing some crucial details for those who are interested to find out more. Among other, the paper writes that in order for Estia to enter the implementation phase, the banks must complete their preparations in order to start accepting applications. The banks have already sent letters to the borrowers who they believe could benefit from the scheme (around 15,000 borrowers with loans totalling €3.4b) and have set up special departments to handle the applications. The biggest volume of loans is shared by Bank of Cyprus and KEDIPES, while Hellenic Bank and the other banks have a smaller share.

Ioannou: Estia requires improvements

Financial Ombudsman Pavlos Ioannou said yesterday that the Estia scheme for vulnerable borrowers contained a number of distortions and injustices, during a seminar organised by the Movement Against Foreclosures. Ioannou said that scheme carried big moral risks. He also called on the House to contribute towards correcting the scheme’s procedural weaknesses and to champion its effective implementation, in a transparent and fair way, for all borrowers.

Banks’ next stress test in 2020

In its meeting on 12 December, the Board of Supervisors of the European Banking Authority (EBA) decided to carry out its next EU-wide stress test in 2020, in line with its previous decision to aim for a biennial exercise. The EBA will start immediately to prepare the methodology for the 2020 stress test exercise. This decision has been communicated to the European Parliament, the Council and the Commission. In 2019, the EBA will perform its regular annual transparency exercise.

Control and not abolition of the €30m fund

Opposition party AKEL said it was saddened by an announcement by the Laiki Bank Depositors’ Association (SYKALA), attacking the party for ‘crossing’ the €30m that was earmarked for the Solidarity Fund, to compensate those who suffered losses in the 2013 haircut. AKEL said the association’s claims that it was holding a negative stance against the affected depositors were ungrounded and unfair, and that ‘crossing’ the funds did not mean that they were cut or abolished, but that there would be more control over their management.

€989m in loans trapped in Swiss franc

It has been three and a half years since the crisis with the Swiss franc’s exchange rate broke, affecting thousands of Cypriot and foreign borrowers; and loans totalling €989m remain trapped in the Swiss franc. Haravgi reports that according to a confidential Central Bank report, which was submitted to the House, the loans in Swiss franc have dropped by €1.06b since 2015, from €2.05b to €989m at the end of the second half of 2018. The remaining loans have not been restructured, and are consequently being charged in accordance with the Swiss franc exchange rate.

The “shell companies”

Lawyer Panicos Symeou writes an opinion editorial about the Central Bank’s recently-revised regulations for shell companies, saying that only in Cyprus will you see a country being promoted as an international business hub and seeking to reinforce the services sector, which has proved to contribute 40% to the country’s GDP, but then in the space of just a few months and with erroneous interpretations claim that this ‘model’ caused problems to the economy and it must be changed. He says we are forgetting that this is the model that has supported the Cyprus economy from the first years of its establishment, but also following the Turkish invasion.

Investors pursue A&P

The A&P group of companies and their subsidiary Conspel Qatar WLL are the most important assets of J&P Overseas, with investors showing a great deal of interest to acquire them. According to the newspaper’s information, A&P and Conspel are the most valued assets of J&P Overseas. However, due to the way the group is structured, there are multiple issues that should be cleared up. Apart from local well-known groups of companies and families that have expressed interest, such as Ioannou, Efthyvoulos and Leoni Paraskevaides, Andreas Papathomas, Cypriot Investment company Elements Capital Management, a Dubai-based construction company is also interested in company’s assets.

Increased cost for housing, electricity and food

CYSTAT reported a 13.7% increase in the cost of housing, water, electricity and gas in November compared with the corresponding month last year. The biggest change was recorded in the food and non-alcoholic drinks category with a 3% percentage. Increases were recorded in the education category by 1.9% in restaurants, hotels by 2.3%, in recreation and culture by 2.1% and in commodities and services by 0.6%. On the contrary, price reductions in alcoholic drinks and tobacco reached 0.1%, in clothing and shoes 1.6%, in furniture, house equipment and cleaning products 1.2%, in health 0.2%, in transports 0.6% and in communication 5.3%.

Hotel employees without benefits this Christmas

Phileleftheros reports that more than 10 thousand hotel workers will have to spend Christmas without having been paid their monthly unemployment benefits. The article says that the seasonality problem with tourism, forces hotel employees and tourist businesses to close down during the winter months. As the Department of Social Insurance Services says in its website, during this period they are examining the applications of employees whose unemployment period started on the 01/11/2018. It should be noted that they are examining cases of people who are already receiving unemployment benefits which concerns the unemployment period November-December 2018.

CTO advises on prices during holiday season

The Cyprus Tourist Organisation suggested hotel businesses and entertainment venues that want to change their prices in view of special festive menus and programmes, to inform the Organisation in due time. In an announcement, CTO encourages consumers to learn about the charges included in their NYE night-out beforehand, in order to avoid any complaints and unpleasant consequences.

Creation of “China Park”

The Embassy of China in Cyprus contributed €30.000 for the creation of the “China Park” in Paphos. The Ambassador of China in Nicosia Huang Xingyuan gave the Mayor of Paphos Phedon Phedonos, a cheque with the amount that will cover part of the cost for the construction of the park.

E-cig generation

The percentage of senior students in the USA who use electronic cigarettes has doubled reaching 20.9% compared with last year. Electronic cigarettes create problems in public health with some people focusing on the possible benefits from smokers moving to less harmful nicotine products and others expressing fear that their use will create a new generation addicted to nicotine. Last month, the US Food and Drug Administration announced new strict limitations in tobacco flavoured products, including electronic cigarettes.

Cyprus trade deficit reduced to €3.4b

The value of Cyprus’ total exports stood at €4b in January-October 2018, representing an increase of 56% compared to the same period of 2017, said Eurostat. The value of Cyprus’ exports to the EU was €1b (up 10%) and outside the EU €3b (84% increase). Cyprus’ total imports amounted to €7b, a 14% increase compared to the same period of last year (€4b from the EU, a 9% increase, and €3b from the rest of the world, or a 21% increase). As a result, Cyprus registered a -€3.4b trade deficit, a decrease from last year’s -€3.9b.

This is not the time for a plan B’

The possibility of a plan B’ for the Cyprus problem will be looked at once all other margins to achieve a solution have been exhausted, said President Nicos Anastasiades in an interview with Omega last night. The President said the Greek Cypriot people should consider the consequences of a possible new deadlock. He did reassure, however, that the margins have not yet been exhausted, adding that the UN Secretary-General’s new attitude towards the problem “raises hope”. Anastasiades said that the proper functioning of the potential new state is his main concern, adding that for this reason alone, the possibility of a rotating presidency has been withdrawn from the table.

CCCI: No to ultimatums for strike at ports

The Cyprus Chamber of Commerce and Industry has expressed its outright disagreement with the tactics and decisions of the trade unions that are leading to the upheaval and dysfunction of the ports. With the 2-hour strike last Friday in mind and especially the dockers’ unions’ ultimatum to have their demands satisfied or else they will go on indefinite strike, the CCCI has urged the government to take responsibility and protect the smooth operation of the ports, and in extension the country’s trade and economy. “This decision by the Unions is completely unjustifiable, irregular and it violates in a forceful way the Code of Industrial Relations as there haven’t been any deadlocks in the negotiations to renew the collective agreement,” the CCCI said in an announcement. “On the contrary, after months of negotiations, the unions initially signed the compromise proposal of the Labour Ministry, and then went on to reject it and bring up new demands.” According to the CCCI, it defies all reason for small groups of workers to arbitrarily and without taking into account the labour norms, cause a paralysis of vital sectors of the economy, massively harming the country’s growth. “These worrying developments that are happening for the umpteenth time must convince even the most disbelieving of how correct the CCCI’s longstanding position is, that it is imperative to legally regulate strikes in essential services.” Only thus, it said, will everyone be forced to conform and respect the labour norms, and stop undermining the economy and amassing problems for the entire country. The CCCI called on the government and House of Representatives to take the necessary initiatives without further delays, to promote the relevant law to avert similar unacceptable situations in the future. It also urges the unions to respect what they signed and immediately call off the strike, so that the port can function without hindrance.

Moves to resume talks in climate of intimidation by Turkey

At a time when the UN Secretary General’s special envoy Jane Holl Lute is making an effort to resume the negotiations for the solution of the Cyprus problem, Ankara is stepping up its intimidating behaviour, Phileleftheros newspaper reports in its daily column. With its main focus being the natural gas explorations and how to prevent them or become a part of them, not only is Turkey preserving the tension, it is escalating it with new illegal actions; namely the issuing of a Navtex committing the marine area of blocks 5, 6, 7 and 8 of Cyprus’ EEZ. The illegal Navtex covers both the area committed by the Republic of Cyprus for the supporting ships of the ExxonMobil drilling from Limassol port to the Stena Icemax drillship, as well as the area that was committed for the daily helicopter flights to and from the ship from Larnaca airport.

Eurogate: Investing in the future of Cypriot shipping

Eurogate Container Terminal Limassol welcomed students from the Cyprus University of Technology to the company’s premises, giving them a tour and allowing them to observe Limassol port’s container terminal operations first hand. In a press release, the company said this was part of its long-standing strategy to upgrade Cypriot shipping, including its human resources and the industry’s future professionals.

Government-doctors disagreement

President Nicos Anastasiades has come into conflict with private doctors accusing them of tax evasion. He has asked them to submit their tax returns for the last seven years so that they receive the relevant reward in the GHS frame. He pointed out that some doctors do not wish to join GHS because they wish to hide their income. “Those who gave the Hippocratic Oath did not do so only to get rich,” the president added during the interview.

Use of substances with toxic consequences is restricted

The Commission has adopted a decision to restrict the use of four phthalates (DEHP, BBP, DBP and DIBP) in consumer products on the EU market. The restriction decision has been adopted by amending the EU's REACH regulation, the most advanced and comprehensive chemicals legislation in the world. The REACH regulation has already allowed the EU to significantly reduce our citizens' exposure to harmful chemicals over the last 10 years and the Commission constantly evaluates how to further enhance the protection of consumers, workers and the environment. Substances including the four phthalates can be present in plasticised materials in a wide variety of everyday products, from cables and coated fabrics to sport equipment. Consumers can be exposed to phthalates through oral or skin exposure or by breathing dust particles with such substances.