Daily Press Review - 14/3/2019

Hellenic Bank shuts down former Co-op in Pissouri

Hellenic Bank is still closing down former Co-op branches, causing an intense reaction on the public’s side. Hellenic Bank decided to shut down the bank’s branch in Pissouri, leading to great upheaval in the community as well as the neighbouring communities who were going to the local former Co-op bank for decades. The bank’s decision causes a lot of problems, Haravgi reports, for the bank’s elderly residents as well as dozens of businesspeople and other professionals. The professionals of the area are now forced to go to the nearby Episkopi Hellenic Bank branch. AKEL MP, Giorgos Georgiou sent a letter to the Bank’s Board asking them to reconsider closing down the Pissouri branch. Referring to the bad deal that the government made, selling out the Co-op with additional state aid to Hellenic Bank, underlines that the government does not care about the daily problems resulting from the shutdown of the Bank’s branches.



Investment creates serious problems

Politis’ author argues that the investment of bank employees’ Provident Funds in Hellenic Bank, through 7Q Financial Services, creates serious questions. According to Politis sources, the investment has to do with the purchase of Third Point’s rights. According to the same sources, the man behind this investment is the all-powerful trade-unionist of ETYK Loizos Hadjikostis. However, as the newspaper reports serious questions have been created as to why the Provident Funds didn’t directly invest in Hellenic’s rights and did so through 7Q, which will receive thousands of euros per year in administrative fees. The author adds this investment could potentially be in violation of the laws and regulations regulating Alternative Investment Funds with limited number of persons, which should have below 50 investors.  

 

It’s never the government’s fault!

Phileleftheros’ author argues that ever since the Co-op Inquiry’s report came out, the government is trying to demonstrate and convince us that they don’t bear any responsibility for the collapse of the Co-op and that its sale to Hellenic Bank, was a positive development since as the Minister of Finance has said, the deal “bolstered our banking system” and prompted ratings agencies to place Cyprus on investment grade after a long time.“ This decision was welcomed by the European Commission, the European institutions, so it was a difficult, (and) favourable and for this positive decision of course we assume responsibility.” The president added, referring to the post-2013 period that the current government took up a nearly dead patient, with failing organs and tried to do its best. The author argues that the Government’s consistent repertoire has been focusing on the on the pre-2013 period of the Co-op and the political parties and the sale of the ‘good’ part of the Co-op, which was a beneficial and positive development. The author says that they don’t make any reference to the 2013-2018 period. He adds, it’s as if we were transported from the tragic 2013 to 2018 and they only choice was to sell the Co-op’s good part to Hellenic Bank. Furthermore, they remained completely silent, the author says, with regards to DISY’s and the President’s responsibilities, which for 15 years, from 1997-2012 was presiding over the Co-op.



‘Publish the names’

Politis’ opinion article says that the infamous list of politically exposed persons with NPLs in the Co-op and Hellenic Bank, has been part of the public discussion for a few days now. The discussion emerged, due to the publication of a findings report by the Inquiry which was assigned by the Attorney-General to locate the reasons for the collapse of the Co-op. The report mentions the loans of Politically Exposed Persons with NPLs exceeding €153m. These loans have been listed as attached to state officials, ministers, MPs, mayors, political parties, semi-governmental organisations etc. The author argues that the Inquiry should have investigated the responsibilities of civil and political officials and should have explicitly named them. It didn’t dare to go through with this, and has fed political gossip and created a lot of questions. The author argues that the Inquiry has essentially acted with double standards as it comes to assigning responsibility.



After the fields, plots are now being auctioned-off

Banks have announced that they are foreclosing plots in the centre of Nicosia and other cities. After the numerous fields that were put on auction, Bank of Cyprus, Hellenic Bank, SEDIPES, and Astrobank have proceeded to foreclose plots with or without homes as well as many apartments. In the area of Makedonitissa, there are many plots up for auction due to their owner’s debts. The article goes on to report on specific plots that are up for sale.

 

Record number of participants

The article reports that this year’s Ayia Napa Triathlon 2019, will have a record number of participants according to the co-organisers, Nireas Triathlon and Ayia Napa municipality, with the participation of athletes from over 30 countries, including famous athletes from Cyprus and abroad. According to everything the organisers said at a Press Conference yesterday, the event will include three different distances for every level, the Hellenic Bank Middle Distance Triathlon, the Triathlon and the Sprint Triathlon.

 

Letters to Hourican and Arapoglou  

The bondholders' association sent separate letters to BoC’s CEO John Hourican and Takis Arapoglou in view of his assignment as chairman of the bank. The letter to Hourican expresses the association’s regrets that he will be departing, leaving the matter of bonds and securitised loans behind him. The letter wrote, “if you resolved these two problems before you departed, the affected people and their families will always remember you”. In the letter to Arapoglou, they expressed hope that his presidency will be able to solve the problems that have been ongoing for years.

 

SYKALA complains about “third haircut”

Depositor's group SYKALA argues that the Central Bank and the Laiki’s administration, are trying to proceed to a third bail-in at the expense of the former Laiki depositors. As they said in a Press Conference, the Central Bank and the Resolution Authority as well as the Laiki Bank special administrator have objected to unifying the thousands of lawsuits that have been filed in district courts for compensation, after the haircut. This, SYKALA argues, will lead to the creation of thousands of court proceedings and therefore to very high court and legal fees. Additionally they argue, the procedure of examining all these cases separately will take a long time.



The evaluation of Larnaca’s port and marina development proposal gets a new extension

Haravgi reports that the Minister of Transport, Communications and Works Mrs. Vassiliki Anastassiou will ask for a deadline extension with regards to the evaluation of the proposal submitted for the development of Larnaca’s port and marina. This is the second extension that will be granted from the cabinet to the government for the evaluation of the proposal that was submitted on 16 November 2018 by the joint venture “Ampa Ltd Israel Shipyards Ltd”. The Israeli investors are proposing amongst other things the expansion of the port and the marina and the construction of shopping areas and tourist accommodation around the harbour and the marina. In the event of an agreement, the development of Larnaca’s port and marina will cost over 1 billion euros and will be by far the largest foreign investment in Cyprus.

 

Deputy Ministry of Development on ice

Government has withdrawn the plan for Public Organisations and State Companies that has been on the Parliament’s table since 2015 because there is no potential for approval. The Ministry of Finance also asked the Parliament to retain the bill on the creation of Deputy Ministry of Development pending.

 

Mixed messages

Bookings from Britain have been frozen, according to hoteliers, while different districts sending different messages with regards to their dependence on either the British or the Russian market. The important thing is that arrivals from Russia seem to be around the same levels as last year, despite the challenges arising from the ruble devaluation. At the same time, hoteliers are pressured into reduce the price of their packages. This, as they point out, will have an impact on their revenue and profitability



Negotiating with each organisation separately

Phileleftheros reports that the contribution percentages of employees working in semi-governmental organisations and local government authorities will be determined after the GHS has been implemented. President Nicos Anastasiades met with trade unions leaders (SEK, PEO) with whom he discussed this issue. The meeting was held at the request of the trade unions which complained against a Cabinet decision, which called the specific organisations not to add the percentage that is currently being offered by the employer to healthcare funds to their employees’ salaries or the organisations’ provident funds. During yesterday’s meeting, the trade-unionists reported that they will continue to submit their contributions to the GHS, like the rest of the citizens. At the same time, they supported that the percentage that the employer is currently offering the healthcare funds is part of the employees’ collective contracts.



€183,5m for pharmaceuticals in GHS budget

Phileleftheros reports that HIO gave its final proposal to pharmaceutical importers on Tuesday evening, with the pharmaceuticals budget reaching €183,5m for the first phase of GHS. HIO met with Cyprus Medical Association representatives with whom they discussed the regulations concerning the participation of specialised doctors in the GHS, which will be examined by the House Health Committee. The newspaper’s sources say that at the end of the meeting, disagreements between the HIO and the doctors were not resolved, while much of the discussion focused on HIO’s explanation on the way that the unit-price will be guaranteed. The unit-price will be determining the doctor’s payments for each service within the new System. During the meeting, the two sides wrote down their agreements and disagreements in the different articles of the Regulations, with the ball now being the House Health Committee’s court, which will decide how the procedure will move along, so as to submit the Regulations as soon as possible and without any delays. Following the Regulations on the doctors, the House Health Committee, will have to start studying the four bills concerning the way that private pharmacies will operate within the GHS, as well as a Regulation text which concerns the way that the pharmacists will participate in the GHS.

 

Unit price still a problem

Politis reports that yesterday’s meeting between HIO, Cyprus Medical Association (CyMA) and Ministry of Health ended with both agreements and disagreements. The main point of the discussion was the Regulations on the specialised doctors of the GHS. In many instances, the atmosphere was tense. The Regulations will be presented today at the Health Committee of the House of Representatives. Due to the fact that the unit price is not stable, doctors worry that their revenue will be likely diminished. During yesterday’s meeting the CyMA representatives gave the doctors’ concerns regarding this issue and the HIO and Ministry of Health remind that for the first three years of the GHS the price has already been determined at €13-17. This means that for the first three years the price unit will not drop below €13. This unit price is ensured even if there is as 20% increase in the number of visits. In the case where visits mark an increase over 20% (2.4m visits per year at a specialised doctor), then HIO, CyMA and Ministry of Health will evaluate the reasons of this fluctuation and take measures.