Daily News Review - 06/02/2019

In today’s press:

Found a dowry of €450m for Helix

Apollo Global Management has managed to cover the €1.3b it was missing to purchase loans totalling €2.8b from the Bank of Cyprus. Apollo had paid the bank just €450m. It borrowed €400m from Pimco, while BoC intended to lend it the remaining €450m. However, the European Central Bank did not authorise it. Kathimerini Economy’s sources say that the €450m has now been raised through a syndicated loan and that the Helix project will finally be going ahead. The paper also reports that Hellenic Bank informed investors in its prospectus for the share capital increase that as with its sale of an NPL portfolio to B2Kapital and in line with its strategy on NPLs, it is now assessing whether to sell more NPL portfolios, to accelerate reducing its NPL rate. Within this context, in the first half of 2019 HB has started a review of various NPL-reducing methods, with the aim of choosing the one that will best meet the Bank’s goals. The paper’s sources say that the bank wants to sell red loans of €800m to €1b.

Big battles ahead between banks and ETYK

There are big battles ahead between bank employees’ union ETYK and the banks’ managements to renew the collective agreements. Following the banking crisis of 2013, ETYK now wants the resulting pay cuts to be restored. The collective agreements expired in December 2018, except BoC’s which expired in 2017. For the time being it has not been renewed and workers are going by the existing contracts. There are 3,700 employees at BoC and 2,500 at Hellenic. The union and employers will be negotiating during a difficult period, when the banks’ income is under pressure from NPLs and low interest rates, and they are claiming they cannot handle any further labour costs. In an announcement yesterday, ETYK accused Hellenic among other of refusing to follow through the organic structure (300 new jobs and 450 promotions) and violating the agreed, such as annual increments and the Cost of Living Allowance (CoLA). It said the bank is also refusing to incorporate the colleagues of the former Co-op into the new pay scales.

KEDIPES and Altamira satisfy ETYK’s demands

KEDIPES has sent a letter to ETYK, assuring the union of its positive stance towards the matters that it has raised, ETYK said. KEDIPES said the matters will be discussed at a meeting soon. ETYK has asked for all staff to be incorporated into the provisions of the agreements between ETYK and the Cyprus Co-operative Bank (pay scales, etc.), the concession of annual increments and CoLA, and the restoration of salaries and bonuses. ETYK also said that in a meeting with Altamira, the company’s management assured the union that whatever is agreed between ETYK and KEDIPES, will also apply for the staff that had been deployed there.

Ancoria Bank – New Board chairman

Ancoria Bank announced that Dr Andreas Kritiotis has been appointed as its Board of Directors Chairman, as of 1 February.

Shutting down and leaving workers unpaid

Hundreds of workers who have been left unemployed after the companies they worked at unexpectedly closed down, are now without work and are not eligible to receive assistance from the Insolvency Fund. This is due to loopholes in the relevant law, which was voted through in 2001. In the event that an employer is declared insolvent, the Fund is meant to pay redundant employees certain sums. For them to be beneficiaries they need a court order that certifies that the employer is no longer in business and does not have enough assets to pay the employee. However, the companies choose to appoint administrators, so that they can use whatever assets they have left to cover their debts, including to their staff and the banks. This means the workers do not have the right to apply to the Insolvency Fund. The tactic followed by many companies has resulted in the Fund amassing €200m which cannot be used due to the loopholes.

President asking for TC positions in writing

According to Phileleftheros, President Anastasiades in his contacts with Jane Hall Lute, suggested that the Turkish Cypriot side's position within the Guterres framework be submitted in writing in an effort to open up the dialogue on the Cyprus issue. The President pointed out the need for Mustafa Akinci to record his position his positions on two or three occasions during his first meeting with the UN official on Sunday, asking Ms. Lute to convey this message to Mustafa Akinci. As it turned out at the second meeting with the Lute on the following day, there was absolutely no response from Akinci. However, Mr. Anastasiades reiterated his position that the Turkish Cypriot side should submit its own positions based on the Secretary General's framework and intends to request it again in his forthcoming meeting with Mustafa Akinci. Speaking to Antenna, yesterday, the President said that the written proposals of the Turkish Cypriot side based on the Turkish side's interpretation of the Guterres Framework could become the baes of the dialog between the two sides.

Part of Omonias Avenue closed off due to works

Phileleftheros reports that the northwest part of the New Port junction and a part of Omonia Avenue has been closed-off since last Saturday and will be for the next three months. In an announcement, the District Engineer Office in Limassol said that works continue as normal in the road which connects the new Limassol Port with the Limassol-Paphos highway, while on February 2nd, works started at the northwest part of the New Port’s junction (Omonia).

The EU contributed €1b to projects in 6 years

Kathimerini Economy reports that the EU has contributed to many projects that Cypriots are currently enjoying. In most of the projects that the EU is involved with, through the European Funds, total funding is 85%. For the programme period 2014-2020, €956m has been allocated to Cyprus, of which €784m came from the EU’s Cohesion Funds. For example, the construction of the Primary Importance Road (vertical road) which connects the new Port of Limassol with the Limassol-Paphos highway and the wider National Highway Network was funded by the EU’s cohesion funds. The project is part of the Trans-European Road Network, whose budget amounts to €100m with the Cohesion Fund contributing €85m.

Multiple deals with foreign investors through BoC

Stockwatch reports that investors from Russia, Lebanon, Israel and Cyprus seized the opportunity and invested in plots, hotels and real estate all around Cyprus through Bank of Cyprus, taking advantage of the opportunities offered by the improved macroeconomic environment as well as by the banks’ absorption of immovable properties. Many of the biggest projects that are underway or have been completed, concern deals that were completed through Bank of Cyprus, with real estate that passed to the bank’s hands, which it then sold to foreign or Cypriot businesspeople. According to the information that Stockwatch has obtained, the Trilogy Limassol Seafront project on the coast of Limassol is an investment of a Russian investor who bought the land for €80m and who in cooperation with Cybarco are creating this huge development. The article also mentions that the Orphanides supermarket which was later sold to Melco for the creation of the temporary casino in Limassol, is also an example of this. The supermarket was bought by an investor from BoC who then sold it to Melco. The article mentions that Melco renovated the space spending €12m for the temporary Limassol casino. The article goes on to list more investments that had once passed through the ownership of Bank of Cyprus in Nicosia and Paphos.

Vacancies at National Gaming and Casino Supervision Commission

The Cyprus Gaming and Casino Commission, has announced two vacancies, one for an accountant (maternity leave cover) and an assistant accountant. The two jobs have an annual salary of €16.500 and €33.000 respectively.

Limassol historical centre upgrade

With a view to promote tourism inside the city and especially in Limassol’s historical centre, the Limassol Tourism Development and Promotion Company has put forward a number of measures and other actions in order to make the city more attractive and friendlier to both visitors and locals. This effort is focused upgrading the historical commercial street of Ayios Andreas, where the Limassol Tourism Development and Promotion Company in cooperation with the Municipality has planned and implemented a series of small-scale projects along the street.

Pre-emptive complaints

Phileleftheros’ author reports that tourism and actors have been the consequences that Brexit will have for Cyprus’ tourism as they are speaking about a 15-20% reduction of the number of tourists. The article argues that the actors have their own interests in mind, and calls on the Deputy Minister of Tourism not to allow such irresponsible statements to be circulated with regards to the sensitive Tourism sector.

The companies competing for the construction of the casino

InBusinessNews reports that the award and signature of the contract for the construction of the first comprehensive casino-resort “City of Dreams Mediterranean” is a matter of days. According to InBusinessNews’ information, many different consortiums have expressed interest in the construction of the great development project, including the TERNA – J&P AVAX consortium and the Bouygues – Cybarco consortium. The article reminds readers that the “City of Dreams Mediterranean”, owned by Melco International Development and The Cyprus Phassouri (Zakaki) Limited, will be a unique development for Europe and will be launched in 2021, while the total investment will amount to €550m. The article goes on to present the two competing consortiums, reporting that TERNA was founded in 1972 in Greece and since then it has been actively involved in the implementation of a broad spectrum of public and private projects of considerable budget and complex know-how, such as the construction of Railway and Highway networks, high-quality office buildings, hospitals, museums, resorts, hydro-electric plants, dams. TERNA is today part of the construction company GEK TERNA. It’s worth noting that the Greek company has taken up a part of the construction work for the Ayia Napa marina in Cyprus. The J&P AVAX J&P-AVAX Group is one of the largest construction Groups in Greece has a considerable presence in the larger projects of the county and the international market. As it concerns Cyprus, the Group participated in the construction works for the Limassol Marina. Bouygues Construction is a global player in construction, with operations in more than 80 countries. It designs, builds and operates projects in the sectors of building, infrastructure and industry. In 2017, Bouygues Construction generated sales of €11.7 billion. The other half of the consortium, Cybarco, is part of the prestigious Lanitis Group and has more than 70 years of expertise and is responsible for the development of large and high-quality projects both in Cyprus and abroad. The company is responsible for bringing many of the island’s landmark projects to fruition – including the world-class Aphrodite Hills Golf Resort, Sea Gallery Villas, Akamas Bay Villas, The Oval and Limassol Marina. Cybarco is also responsible for the development and exclusive property sales of Trilogy Limassol Seafront. The article goes on to list a number of Facts and Figures with regards to the “City of Dreams Mediterranean” casino-resort, including the fact that it will include a 5-star hotel with more than 500 five-star guestrooms, exclusive suites and villas, a 7,500m2 gaming area with about 140 tables and 1,200 gaming machines, 11 world-class restaurants and bars, a 1,200m2 retail area replicating the streetscape of the old Nicosia city centre, recreation, leisure and sports centres as well as a MICE room of more than 9,600 sq.m.

Falsified medicines directive comes into force next Saturday

The Falsified Medicines Directive (FMD) 2011/62/EU, which comes into full force next Saturday, 9th of February 2019, aims to increase the security of the manufacturing process and delivery of medicines throughout Europe. Falsified medicines do not circulate only through the internet but also circulate in the official distribution chain. They have the same packaging and appearance as official medicines, making it hard to distinguish if they are falsified. They circulate widely on the internet, but they lately have been circulating in the legal supply chain. Falsified medicines can easily fool patients, mainly due to their reduced price. Director of the Cyprus Organisation for the Verification of Medicines (CyMVO) Arthur Isseyegh, told Phileleftheros that falsified medicines are dangerous for people’s health and in some cases, they can even be deadly. It was reported that around 16% of falsified medicines contain wrong ingredients, 17% contain incorrect quantities of active ingredients, 7% do not contain any correct ingredients and 70% do not contain any ingredients. Phileleftheros goes on to report that the Cyprus Organisation for the Verification of Medicines (CyMVO) was established in February 2017 with Main Members the Cyprus Association of Pharmaceutical Research and Development Companies (KEFEA) and the Pancyprian Association of Generic Medicines Manufacturers (PASYPAGEF). Affiliate Members are, the Cyprus Pharmaceutical Association (CPA), the Pharmaceutical Services of the Ministry of Health, the Association of Cyprus Pharmaceutical Companies (SFEK), the parallel importer Krinera Ltd and the pharmaceutical wholesalers MEFAL, KEDIFAP and Blue Pharmacies. The basic mandate of KOEF is to create and effectively implement the Cyprus Drug Verification System (CyMVS), to support all the entities that have the obligation to implement it and to continuously monitor its operation, so as to bring about the desired results.

New European Directive for falsified medicines

As above. Simgalive reports on the Director of CyMVO’s interview to Radio Proto where he said that pharmacies will check all prescribed medicines with a 2D barcode reader. He expressed hope that the specialised hardware will be successfully installed in all pharmacies. He mentioned that “until recently, the most frequently falsified medicines were expensive 'lifestyle' medicines, for obesity and erectile disfunction. However, the medicines that are promoted now are used to treat more serious conditions”. He added that the Pharmaceutical Services will be in charge of implementing the Directive in Cyprus.

Ministers have been denying treatment to sick children

Parents of children with inherited metabolic diseases report that the Ministry of Health does not help to transfer their children to specialised hospitals and clinics abroad. President, of the Association of Inherited Metabolic Diseases “Aspida Zois” (Shied of life), Marios Vakanas said that there is not enough specialisation and expertise with regards to inherited metabolic diseases in Cyprus and he pointed out that it is the State’s obligation to make sure that patients are treated abroad. They report that despite their oral commitments, the 3 previous Health Ministers did not meet their request to bring in a paediatrician specialising on metabolic diseases from abroad 2-3 times per year. Phileleftheros contacted the Ministry which said it was positive to Aspida Zois’ suggestion but were not in a position to set a timeframe. Metabolic diseases is the biggest group of rare genetic diseases making up 15%-20% of all rare genetic diseases. These diseases occur in the absence or dysfunction of enzymes.

Former HIO senior members turn against hospitals

Two former HIO senior members issued an article saying that the Association of Private Clinics and Hospitals (PASIN) is trying to distort the truth. They argue that the HIO was informing PASIN since 2010. The two former HIO members said that HIO had set up a comprehensive digital platform where public and private hospitals were asked to submit data (DRGs) that would confirm the numbers and the types of in-hospital cases they hospitals encountered. However, the response by the private sector was extremely limited with regards to submitting the DRGs. The go on to say that PASIN undermined the HIO’s study, without even studying it.

Anabolic steroids from the Netherlands

The Customs Office detected anabolic steroids in a package that a T/C woman had ordered. The woman was arrested when she went to receive her package. The detection of anabolic steroids was conducted in the framework of the European campaign “Viribus” which is organised by EUROPOL and aims at the detection of hormonal, doping substances, falsified medicines, fake nutrition and sports supplements.