Daily News Review - 05/02/2019

In today’s press:

IN Business Awards

INBusiness presents the winners of its Awards for 2018. They include Wargaming, which won the “Best Workplace” award. The magazine says among other that the company provides an ideal working environment with modern offices, flexible working hours and partially funded food. It also has a gym with personal trainers, a gaming room and a kids club for its employees’ children. It encourages multiculturalism and helps each new member integrate in a new country of residence, says its CEO Victor Kislyi.

The diptych of Hellenic’s strategy

Hellenic Bank remains focused on maintaining its position as a strong bank institution that can meet the expectations of its investors and shareholders, as well as the economy and society, it said in its prospectus for the share capital increase. It said the Bank remains focused on two aspects: “Reorganisation” and “Growth”. The former has to do mainly with reducing its high level of NPEs, while the latter with its strategy to develop its lending portfolio through fresh loans, as well as promoting and boosting relations with its customers. Specifically, Hellenic wishes to continue to play its role in supporting the local economy, while also ensuring its share value through prudent policies that comply with the bank’s risk profile. At the same time, HB has realigned its strategy on international bank management, reflecting the changing regulatory framework with special emphasis on compliance. The Bank’s strategy also includes the development of technology, digital reform, improvement of customer service and simplification of procedures and operations.

Astrobank – Stronger in 2019

magazine interviews Astrobank CEO George Appios. In its introduction, it says that there have been radical changes of late in the Cypriot banking system. The absorption of Laiki Bank by Bank of Cyprus and then the ‘good’ part of the Cyprus Co-operative Bank by Hellenic, along with a drastic reduction of branches and completion of mergers have created an entirely different landscape. The banks are now faced with a strict supervisory environment, with the banking union and single supervisory mechanism being more demanding than ever before, said Appios. But he said the changes are moving in the right direction and creating a more stable and reliable environment.

6^th Banking Forum

Logicom Solutions presented the 6^th Cyprus Banking Forum, under the title “The Era of Evolution”. The forum was directed at all the CEOs, COOs, CFOs, CCOs, CROs, partners, directors, general and financial managers and other senior executives of the Cypriot banking sector. Hellenic Bank was among the forum’s supporters.

Yields in free-fall

The yields of the Cypriot 10-year government bond reached a new historical low last week, dropping to below 2%, according to data processed by the Cyprus News Agency. Cyprus ten-year bond with a coupon of 2.38% was trading in the secondary markets under 2% on January 31 and by 40 basis points below the nominal interest rate of the bond issued by Cyprus last September. Last Friday, the bond’s yield amounted to 1.97% marking a reduction of 14 basis points in the last five days of January. Last September Cyprus issued a 10-year euro-denominated bond amounting to €1.5 billion, the largest issued so far. The nominal interest rate and the buyback yield amounted to 2.375% and 2.40% respectively. Furthermore, the yield of Cyprus 5-year bond maturing in 2024 amounts to 1% while the bond maturing in 2025 is trading at 1.39%. According to other data gathered by CNA, the Finance Ministry paid off remaining debt to the Central Bank of €483m early, as well as the loan to the former Co-op (transferred to Hellenic) totalling €324m. If the repayment of the first bond that was issued at the Co-op (and also transferred to Hellenic) is taken into consideration, the state’s repayments reached €1.31b in the last few months of 2018.

Index drops

The CSE wrapped trading yesterday with the General Index recording a 0.62% loss, closing on 61.07 units. The FTSE/CySE 20 index receded 36.56 units. The most investor interest was attracted by Bank of Cyprus’ shares, followed by those of Vasiliko Cement Works, Logicom and Hellenic Bank (volume of €11,894, up 0.29%, closing price €1.43).

Houses and flats at auction

The list of foreclosed flats and houses that are being put up for auction is growing by the day. The next round of auctions in February and March will see a supermarket put up for the first time, while there will be a number of houses that were acquired in debt-to-property swaps. The properties are located mainly in the Nicosia and Larnaca districts.

Hope for haircut victims

Continuation yesterday of the House Finance Committee discussion on a law proposal to amend the law governing the National Solidarity Fund, in order to create reserves to compensate natural persons who lost money in the 2013 bail-in, highlighted a series of difficulties that have to be addressed. The most important yesterday was whether companies should also be entitled to compensation from the Fund, which was strongly demanded by representatives of the bondholders’ association. It was clarified however that the composition of the Fund will not have any impact on legal proceedings by bondholders against the banks regarding the bonds issue.

Innovations in the insurance sector

KPMG Cyprus, in cooperation with Greek technology and innovation company Crowdpolicy Open Innovation, with industry catalysts General Insurance Cyprus, Anytime and Gan Direct, as well as supporters and sponsors CYBAN, Microsoft, UCLan, Economy Today and OINOTOPIA, successfully organised the 2^nd innovative technology marathon KPMG Crowdhackathon cy#insurtech on 18, 19 and 20 January.

Scenarios coming and going over who will be the next governor

The scenarios about who the new Central Bank of Cyprus Governor will be are coming and going, two months ahead of the expiry of Chrystalla Georghadji’s term, Stockwatch reports. Georghadji, who has led the bank since 11 April 2014, saw her term marked by attacks from the political world, changes in the banking sector and the closure of FBME and Co-op. The government is expected to decide who the new governor will be in the imminent future, as well as who will fill two vacancies on the CBC board; one executive and another non-executive. Among the names being heard for the new governor are those of existing CBC board members Constantinos Erodotou and Andreas Persianis, the site claims. The former is an executive board member, while the latter was a member of the Bank of Cyprus’ transitional board. There are other rumours that President Nicos Anastasiades is seriously thinking about appointing Greek national Takis Arapoglou, who was the chairman of National Bank of Greece; though there may be constitutional issues with this, as there is a provision that the Governor must be a Greek Cypriot. Arapoglou was also a BoC board member from 2012 until 2013, until he resigned. Another name that has been mentioned is that of Michalis Kolakides, Cypriot financial director of the Titan group and former banker at Piraeus Bank and Eurobank in Greece.

Privatisations brought 300% increase to price of grain

The privatisations at Limassol port have caused an increase in the price of grain, the Cyprus Grain Commission told the House Finance Committee yesterday. Its representatives told MPs that the private investors have increased the charges for loading and unloading grain by around 300%; from €2.25 that the Ports Authority used to charge for every ton, to €6. Furthermore, the Commission said that due to wrong management by the state, the Grains Commission has to pay DP World increased rent to use the Limassol grain silo, as the specific area passed under the operator’s management as part of the concession agreement. According to data submitted to the committee, the grain commission is expected to pay €610,000 this year for the unloading and transportation of materials, as well as €217,000 for the silo rent.

The prospects of the energy sector

Article by Lazaros Charalambous, commercial manager of DP World Limassol, on the prospects of Cyprus’ energy sector. Among other, he writes that Cyprus’ geographical positioning at the crossroads between Europe, Africa and the Middle East provides it with all the natural advantages required to turn it into a regional hub. DP World’s terminal in Limassol is indicative of this success, as it currently provides passenger services and supply services to the markets of the surrounding region. However, he notes, one matter that has not been debated as much is the potential of turning Cyprus into an energy hub of the broader Eastern Mediterranean. Exploratory drilling in 2011 estimated that there were around 4.5 trillion cubic feet of natural gas in the Aphrodite gas field in Cyprus’ EEZ. Given that domestic demand for natural gas is limited, the biggest part of the production will be exported. Despite this, due to the size of the deposits, it is not feasible to install LNG liquefaction terminals in the extraction area, which opens new prospects for the development of a financially efficient location for exploration and onshore operations, Charalambous points out. According to the International Energy Agency, oil and particularly natural gas are expected to play a significant role along with renewable energy sources in the near future. It predicts that in conditions of sustainable growth, the demand for natural gas will increase by 20% by 2030, with natural gas being turned into the commonly used fuel worldwide. Within this context, DP World Limassol’s contribution to forming Cyprus’ hydrocarbons sector is vital. The supply zone for oil and natural gas at the company’s terminal spans a total area of 100,000m2. It has a 430m-long jetty exclusively for the energy sector, while it also has other 1.2km jetties that can be used. The terminal was successfully used by ENI during its drilling in the Cypriot EEZ, while other international oil companies, such as ExxonMobil, have indicated the terminal as a supply base in their exploratory drilling.

Security solutions

INBusiness presents a feature on ICTS in Cyprus which was founded in 2009 and became a member of ICTS Europe in 2010, with an in interview with the company’s CEO Panayiotis Fisteides. Among other, he says that more than 130 of the world’s international airports and over 25 airports in the US, 220 airlines, over 33 international ports, cruise ships and companies such as Amazon and Dubai Ports World (DP World) trust ICTS’ services and solutions. He described 2017 as a very impressive year for ICTS Cyprus, as it was when it won the contract to provide security at Limassol port with the company DP World. DP also assigned ICTS with the natural control of passengers and luggage from cruises at Limassol’s new passenger terminal.

Arrival of new workers in Limassol will result in skyrocketing rental prices

Politis reports that the arrival of hundreds of foreign workers in Limassol within 2019 is expected to worsen the housing crisis in the city. According to the information provided by the President of the Limassol Scientific and Technical Chamber (EVEL), Kostas Galatariotis, over 6 thousand employees brought in by foreign companies and new developments, will be looking for housing. Specifically, Galatariotis mentioned that 5 foreign companies, which plan to start their operations within the next 20 months, are planning to bring in and accommodate 3 thousand people in the city. Another 2.500 people working for the casino will be added in the future, as will another 800 people that will be working at the two new hotels that will be launched in 2019. The Ministry of Interior has adopted EVEL’s position to give incentives to private actors so that they only build apartments for housing that are affordable for young couples. As Galatariotis mentioned, the plot ratio in Limassol will be increased by 30% and the minimum area of a studio will be reduced from 70 to 38 sq. metres.

The importance of ‘Value for Money’

The global theme of the 41^ST Annual Hotel Conference, organised by the Cyprus Hotel Association on the 26^th February 2019 at the Hilton Park in Nicosia, Cyprus, with “Value for Money from a Slogan to Word of Mouth” being its general theme. The Convention will 6 different presentations under the themes: “Prospects and challenges of the UK Market”, “Air connectivity strategy, “MELCO’s vision in taking Cyprus Tourism to new/elevated dimensions, “Securing our businesses by creating our own water resources”, “Energy efficiency challenges”, “Our vision of Cyprus Tourism and immediate priorities”. The keynote speaker of the event will be the Deputy Minister of Tourism, Savvas Perdios.

Tourism exhibitions in Berlin and Moscow are critical

The Deputy Ministry of Tourism ‘sees’ dark clouds over Cyprus’ tourism with Brexit and the opening up of neighbouring competitive markets giving a headache to the sector’s policy drafters. At the same time, hotel-owners have sounded the alarm due to a limited number of bookings this summer. The Deputy Minister of Tourism, Savvas Perdios recognises that 2019 will be a difficult year for tourism, with many challenges ahead. He reported that the contacts between Cypriot tourism actors and foreign actors at the Berlin and Moscow tourism exhibitions, will clarify what the future holds for Cyprus’ tourism. He noted, “Tourism fairs will give us an opportunity to talk to various agencies and key players of the sector and we will find out what to expect from them. The market will provide us with the necessary messages.”

Protests over London tube ad campaign promoting vacations in occupied Cyprus

The London Cypriot community is protesting a publicity campaign advertising holidays in Turkish-occupied north Cyprus on public transport. Posters have gone up on dozens of London buses, 22 tube stations and 25 central locations in the British capital, the Cyprus News Agency said. They urge Londoners to “Beat the Blues” by taking a holiday in “North Cyprus”. The month-long campaign started on January 28 as the breakaway north seeks to generate early bookings from the UK market. The Cyprus High Commission has written to London mayor, the transport committee of the city council and to Transport for London in protest. Letters of protest have also gone to the mayor from the president of the National Association of Cypriots in the UK Christos Karaolis to London mayor Sadiq Khan. Transport for London is under the responsibility of the local authority.

Suncity Spa Resort to open in end of 2019

The luxury five-star mixed development hotel, Suncity Spa Resort & Residences, situated in Ayia Thekla, close to the Ayia Napa marina, will be launched in the end of 2019. This is the first project by the JimChang Clobal group (JCG) in Cyprus, and is one of the most noteworthy projects that were ever developed for the tourism sector of our country, the article reports. The group, which has been operating in Famagusta for 3 years, is part of an international group of companies based in Guangzhou, China and Hong Kong.

€100 every night

The Police is looking for three persons who allegedly threatened certain business-owners. The names and pictures of the persons were published by the Police in an effort to locate them. The allegations were made by Greek-Cypriot internet café owners in Pyla, which are also operating as casinos, that the three men visited them on the 31^st of January, demanding €100 per night in order to offer them ‘protection’ for their businesses.

Corporate Social Responsibility in Cyprus

InBusiness’ special feature on Corporate Social Responsibility in Cyprus and socially sensitive Cypriot companies. The article starts off by presenting the CSR Cyprus network as well as the developments on matters of corporate social responsibility in Cyprus and Europe. The article goes on to present certain companies which have very advanced Corporate Social Responsibility programmes. The feature also includes OPAP Cyprus, whose reported goal is to ensure that anyone who plays lucky games for entertainment purposes does so in a responsible environment. The complete Corporate Social Responsibility strategy of OPAP Cyprus, is centred on health, sports, culture, education and the environment.

Pharmacists have special requests in order to join GHS

Phileleftheros reports that any negotiations on the first phase of the GHS will have to be completed by the end of February, according to the timeframes. Pharmacists and clinical laboratories examining the HIO’s final proposals and are expected to answer within the next two weeks. The Cyprus Pharmaceutical Association and the Association of Clinical Laboratories are positive with regards to further discussing and resuming negotiations with the HIO as they support that certain matters need to be resolved before the launch of the GHS. The newspaper reminds readers that pharmacists have been offered financial incentives to join GHS. Particularly, incentives were offered to the Cyprus Pharmaceutical Association in order to a merge all pharmacies (according to the newspaper’s information each pharmacist who accepts this, will receive around €25.000). Furthermore, pharmacists who choose to set up their pharmacies in remote areas will also be given additional financial incentives. Phileleftheros also adds that in a recent development, the doctors’ registration to the HIO catalogues has caused a quite a turmoil within doctors’ circles. Reportedly, doctors who are joining the HIO are mainly state doctors close to retirement age who want to apply for early retirement from the public sector and then join the HIO as private doctors.

Doctors are leaving state hospitals

The President of the State Doctors Union (PASYKI), Sotiris Koumas, warns there will be a new wave of doctors’ departures from the public health sector. In the last few days, three doctors from the Limassol hospital (2 pathologists and 1 general practitioner) have already resigned in order to join the GHS as personal doctors. Other doctors are also intending to do resign and set up their own practice, with PASYKI sounding the alarm. This is due to the overall dissatisfaction of state doctors with state hospitals as well as because they believe that with regards to salary, the will be better off if they have a private practice. State personal doctors will receive around €80.000 annually, while GHS doctors will receive an annual salary of €135.000. Dr Koumas says that state doctors are not well-informed about their participation in the GHS.

New weapon against Parkinson’s disease

Parkinson’s disease is a progressive neurodegenerative condition that occurs due to the gradual loss of nerve cells in the brain. This leads to the decline of brain chemical dopamine levels and causes various symptoms. The risk of the disease increases with age and the symptoms worsen with time. Some of the common symptoms include difficulty in movement such as walking and talking, stiffness, tremor and loss of balance and coordination. The gradual progression of the disease may lead to the return of disease symptoms in patients despite being on therapy, which is called ‘off’ periods. The U.S. Food and Drug Administration has approved Inbrija (levodopa inhalation powder)‎ for the treatment of Parkinson’s off periods in patients on a carbidopa/levodopa regimen. Inbrija is an oral inhalation drug that includes levodopa in dry powder formulation to be inhaled with the Inbrija inhaler. The drug is a metabolic precursor of dopamine that crosses the blood-brain barrier and transforms into dopamine in the brain.