Daily Press Review - 5/3/2019

Bargaining for HB’s preference rights

Hellenic Bank’s new shareholding structure is expected to become finalised on 18 March as will the total net revenue from the share capital increase. Economy Today reports that Hellenic Bank’s big shareholder Third Point has proceeded to sell its preference rights in what it calls a “middle-eastern bazaar”. Specifically, the US-interest fund, which today controls 26.2% of the Hellenic Bank Group, appointed Axia Ventures Group Ltd, with the purpose of approaching interested buyers for the rights. Axia Ventures is active in the area of investment banking advisory services as well as the provision of services to large companies and institutions. According to the newspaper’s sources, Axia Ventures approached Demetra Investment essentially asking them to acquire Third Point’s rights. They also approached EMMA ALPHA, an OPAP shareholder in Greece, which showed willingness to acquire a percentage in Hellenic Bank’s new shareholding structure of up to 9%. The two interested buyers, have not given an offer for the purchase of the rights for strategic reasons, even though they expressed their intention to acquire them. In the next few days, the newspaper says that Wargaming, which controls today 24.8% of HB’s stock, wants to maintain and/or expand its influence in the Group’s Board of Directors. Wargaming will exercise its preference rights, with its percentage dropping to 20.5%, while in the case where they buy-out Third Point’s rights, then this percentage will reach 30%. The article notes, that the picture will become clearer on 18 March according to Hellenic Bank. Specifically, the Preference Rights will be issued and granted to all the current shareholders who have shares in the Company, with Archive Date, 4 February 2019, ratio of one Preference Right to One Share. Preference rights will be granted to all shareholders who bought shares until 31 January 2019 included. From 1 February 2019, the company’s shares will be negotiated without the right to participate in the issuance of Preference Rights (ex rights date). The period of exercising Preference Rights started on 18 February and will end on 7 March 2019. Total net revenues from the Share Capital increase are expected to reach €150.031.254,80. The net revenue which are expected to result from the issuance of Preference Rights amount to up to €100.031.254,40 (on the condition that all of the Preference Rights will be exercised). The net revenue, expected to result from Private Placement amounts to €50.0000.000,40. As regards the intentions of the rest of the significant shareholders, the article notes that EBRD which now controls 5.39% of HB’s stock will control 4.4% in mid-March and Senvest, which will see its percentage reduced to 3.9% from the current 4.77%. Conversely, the Church, which currently controls 3.6%, will not participate in the share capital increase and this will reduce its percentage to 1.7%. The article notes that PIMOC reached an agreement for Private Placement for the amount of €50m, increasing its stock to 17.3%.

Digital education for 150 rural communities

The National Digital Education Programme Emathisis offers free digital training in 150 communities. The European University of Cyprus, as a strategic academic partner in the programme, actively participates with the creation of appropriate educational material which will be adjusted for the specific students. The Programme which started in the start of December 2018 and will last 9 months is being implemented by the NGO REACTION and Hellenic Bank, and is under the auspices of the President of the Republic. The goal of the programme is to make the public more familiar with government services as well as e-banking.



Co-op Inquiry verdict will be publicised

Alithia reports that the verdict of the Co-op inquiry will be publicised. This will happen very soon, even by Thursday, since according to the newspaper’s sources, the Attorney-General Costas Clerides decided that he will call the chairman of the Committee Georgios Arestis, to declassify the Committee on Wednesday, calling him to proceed with the publication of the verdict in its entirety. At the same time, according to our own information, the inquiry’s verdict does not put any political blame on the President of the Republic. The political responsibilities recognised in the verdict concern other state officials.

 

Solidarity Fund goes for a vote on 15 March

The House Finance Committee decided to take the Solidary Fund bill for a vote in the Parliament’s next plenary on 15 March. In yesterday’s Committee meeting, the political parties refrained from submitting any amendments. In statements after the committee meeting, its chair Angelos Votsis said that the bill’s approval will allow the creation of the Solidarity Fund which has already been funded with €55m and real estate worth around €100m. He added that the parties have committed that at the next Plenary, the matter will be concluded without any other postponements. The Fund’s goal is to support the natural persons who have contributed their own resources in the capitalisation of two systemic Cypriot banks, Laiki Bank and Bank of Cyprus.



Infrastructure, not a naval base

The government, through Defence Minister, Savvas Angelides, clarified that Cyprus is providing infrastructure in the framework of PESCO and not a naval base for any country to use. Angelides underlined that Cyprus’ defence cooperation with France, is part of the PESCO framework. Cyprus is participating in two important PESCO actions, one is the Network of Logistic Hubs in Europe project and the other is the Upgrade of the Maritime Surveillance project. In this framework Cyprus offers infrastructure such as the Mari naval base, which will be exploited by EU member-states that participate in PESCO’s projects. Savvas Angelides, notes that such a defence cooperation will not influence developments in the Cyprus problem, since the country will still be an EU member-state even after a solution is found, and will have the same security needs.



The Deputy Ministry of Tourism is preparing seminars

The Deputy Ministry of Tourism believes that the new regulatory framework for the categorisation of hotels will facilitate the licensing and operation of tourist accommodation. It will also help to upgrade the services provided and help create hotels and tourist accommodation especially in rural areas, the countryside, mountain areas and city centres. At the same time, the Deputy Ministry of Tourism notes that the implementation of the new regulatory framework falls under its own responsibility and that there are plans in the near future to organise seminars to inform the interested parties about the provisions and the implementation of the new regulatory framework.

City of Dreams Mediterranean puts Cyprus on Europe’s casino map

City of Dreams Mediterranean Integrated Casino Resort, has been officially announced as the European Casino Association’s (ECA) 29th member. At the General Assembly of ECA, the Association’s board accepted City of Dreams Mediterranean’s membership application, after the company subscribed to ECA’s code of conduct and it was decided that it meets the association’s strict membership criteria.

 

An island with mansions

Politis reports that progress recorded with the construction of the artificial island that in the western part of the Ayia Napa marina, is impressive. The whole project is expected to further upgrade the area, which is by far the largest ever project in the free district of Famagusta. According to official information, 12 luxurious villas will be built on the artificial island and the island will be connected to the rest of the marina by a bridge.

 

Digital Tree at the Cyprus Career Expo

The largest career and employment fair in Cyprus, was very successful. Young people aged 18-30 will be able to apply to take part in ‘Business days’, which essentially are educational visits that will be held at a later stage in various organizations, including Melco. The article contains photos from the expo.



Construction for Wastewater Treatment plant in West Limassol starts in July

Construction for the West Limassol Wastewater Treatment Plant, west of the A' Industrial Area, will commence next July. The unit will serve about 25 thousand citizens, ten thousand households, as well as large West Limassol projects such as the under-construction casino- resort and future developments in Phassouri

 

Semi-governmental organisations want a completely free GHS

The Auditor-General’s office thinks that the demands of employees in semi-governmental organisations and the local administration with regards to health insurance funds, are unacceptable. The controversial element is the contribution percentage of the state in the health insurance funds of the specific employees. According to some sources, the employees are demanding that the state contributes the total amount needed for the GHS. Trade unions have also warned with measures of mobilisation and are asking to negotiate with the government on its contribution, because a relevant clause is included in their collective agreements. The Auditor-General told the newspaper that the trade union’s demand for the semi-governmental employees’ exemption from the 2.65% contribution, is completely unacceptable and provocative. As he explained, semi-governmental organisations work for the State, which will contribute an additional 4.7% of the employees’ salaries and added that now, the state will be paying 2.9% as an employer and 4.7% as the State, reaching a total of 7.6%.



Specialised doctors’ registration lagging behind

Politis reports that the GHS seems to be at its most crucial point. The procedure for the registration of personal and specialised doctors is ongoing, but there are concerns on the limited registrations of specialised doctors. Up until now, only around 50 doctors have proceeded to sign up for the new General health scheme. The Health Insurance Organisation which is expecting the registration of 1.700 specialised doctors, is hopeful that the doctors will eventually sign up and that the GHS will be implemented without any problems. The HIO and the Ministry of Health have created alternative plans in the case where there are problems with specific medical specialisations.



HIO uploads fees for specialised doctors on website

Phileleftheros reports that the HIO has uploaded a detailed list of fees for the different specialisations in relation to the first stage of implementation of the GHS. The HIO calls on specialised doctors to sign up for the GHS. As of Friday, 80 specialised doctors were registered in the system. The article goes on to explain how the fees are calculated and how specific specialised doctors will be paid.



Nurses depart from dialogue with OKYPY

Haravgi reports that the relationship between the state health services organisation (OKYPY) and trade unions is strained. PASYDY’s nurses have decided to depart from the negotiations that are currently underway and concern the structure and hierarchy in state hospitals. Sources report that the doctors are still struggling to remain in the dialogue, the article reports. Speaking to Astra radio yesterday, nurses representative Zoi Antoniou, expressed discontent with the fact that the OKYPY did not send the contracts to the nurses and that decisions are being taken without informing them.