Daily Press Review - 27/3/2019

Cyprus expects an upgrade from Moody’s

Cyprus has been upgraded to investment grade status since September  and since then rating agencies have upgraded the country twice and two bonds (10-year, 15-year) have already been issued. The Cypriot bond yields have been satisfactory even though Cyprus was not upgrades by all the international rating agencies to investment grade status and the country has a high public debt. The Agency, which still hasn’t upgraded Cyprus to investment grade status is Moody’s, which had assessed the country before the Co-op-Hellenic Bank deal. The deal had pushed three agencies to upgrade Cyprus to investment grade for the first time since 2011. In July 2018, Moody’s had assessed that Cyprus should have stayed two grades away from investment grade status, grading it at Ba2. Cyprus needs to be upgraded by Moody’s to investment grade status, so that it enters the group of countries with iBoxx bond market indices. The iBoxx bond market indices are benchmarks for professional use and comprise liquid investment grade bond issues. They enable investors to analyse and select benchmarks that reflect their investment profile. Sources from the Ministry of Finance report that traditionally, Moody’s was one of the most conservative Agencies and this is why when the deal with Hellenic Bank was announced in June, they proceeded to upgrade Cyprus in July, from Ba3 and a positive outlook to only Ba2 and a stable outlook. They expected the full transfer of the Co-op’s assets to Hellenic Bank, which has already taken place on 3 September. They were also expecting the smooth absorption of these assets. At the moment, it is appreciated that the Agency will proceed to double upgrade, since as they said, there is no reason not to agree with the remaining three Rating Agencies.



Opposition launches attack against the government over Co-op, in view of European elections

Alithia reports that the opposition parties continue to fiercely attack the government as well as the Minister of Finance, Harris Georgiades on the matter of the Co-op, in view of the upcoming European elections. These attacks have been occurring on a daily basis, with the parties of the opposition hoping that in this way they will run down the government, to their own benefit. The opposition has new ‘weapons’ in its disposal after the Co-op Inquiry report: 1) the resignation of Giorgos Arestis from the position of president of the Disciplinary Committee of the Public Authority Audit Oversight Board, saying that he wanted to save his ‘dignity’ because the government discredited his findings report; 2) the government’s well-known policy on the privatisation of Cyta. In the same framework of its strategy, the opposition since it has the majority vote, decided to discuss Co-op Inquiry’s findings report and the Co-op-Hellenic Bank Business Transfer Agreement at the House Plenary on Thursday, 4 April. The article argues that the parties of the opposition, will definitely launch a new tough attack against the government, while they are expected to call their members to protest outside the House.



Apartments up for sale

Phileleftheros’ article reports that banks are selling off apartments for various budgets, with prices starting from €55.000 for studios. The Bank’s pressure on borrowers, has pushed more and more owners to put their properties up for sale. Bank of Cyprus, Hellenic Bank and Altamira have a wide range of properties, with some properties being sold in debt-to-asset swaps and some being foreclosed.  The article goes on to present some of the Banks’ properties.

 

Cruise industry key for tourism development

Opportunities in the tourism sector and the need to accelerate procedures to develop and promote sustainable tourism, were at the focus of a meeting between DP World Limassol and Deputy Minister of Tourism, Savvas Perdios. The Deputy Minister of Tourism was welcomed by DP World Limassol officials during a recent visit at the Limassol port. During his visit, the Deputy Minister had the opportunity to take a tour of the recently inaugurated New Passenger Terminal for cruise customers. He also met with DP World Limassol’s General Manager, Charles Meaby and exchanged views on ways to enhance Cyprus’ tourist products to increase the country’s competitiveness and improve the visitors’ experience. The Deputy Minister of Tourism said, “a robust cruise industry can have a significant impact on the local communities and the wider Cyprus economy, generating multiple benefits.” Perdios continued “DP World Limassol is an important partner of the state and one of the main stakeholders of the tourism industry. We consider it imperative that we join forces towards establishing Limassol port as a major cruise hub in Eastern Mediterranean”.



Increased competition between ports

The author reports that the competition in East Mediterranean has increased, after Shanghai International Port Group signed an agreement with the Israeli authorities on the operation of Haifa port from 2020 onwards. Moreover the company has already announced its cooperation with China Ocean Shipping Company on the promotion of the transportation of goods.



Employing foreign workers at hotels
Haravgi’s author, believes that the reason why Cypriots and European workers are not interested in working in the Cypriot hotel industry is the very low wages offered, as well as the unattractive working conditions. As the author mentions, it is obvious that hotel-owners aim to employ foreigners in the context of their long-standing policy of easy profit. The author invites hoteliers to make the most of the local trained workforce, so that Cypriot tourism acquires the identity that is desirable for all, with Cypriot hospitality and high quality of services being the main feature. At the same time, they should create the necessary conditions for the professional development of the staff that wants to have a career in the hotel industry.



Easter brings mass tourism

This year, Catholic Easter falls on Sunday, April 21, a week before Orthodox Easter. Therefore, hoteliers are rushing to complete their renovations in order to be ready to open their doors to the public on time. Construction workers are also working on weekends to finish renovations on time, while the hotel staff is expected to return to work in early April.



Investments of depth and height

Andreas A. Andreou, CEO of APS Andreou Property Strategy - Chartered Surveyors, in his opinion article, states that in Cyprus we created a new product, getting visas from large investments on the island, which has had both positive and negative aspects. Mr. Andreou does not believe that this measure will cease to exist but it will definitely need fine-tuning in the future. From this programme so far, only the real estate sector has benefited and Limassol more than any other cities. Mr. Andreou suggests that Local Plans should adapt to the new investment environment and define areas where they can be erected without affecting the existing structure. This will create the concept of the old and the new city - something that can be found abroad - with the traditional and modern buildings coexisting side by side without overshadowing each other.



Expansion and renovation of Anassa

The Environmental Department green-lit a Town-planning permit for an expansion and modifications to Anassa Hotel. With the proposed conversions, the total number of rooms will increase to 186 with 382 beds. The project includes an extension of the existing gym and the modification of an existing retail space to an exhibition space as well as the creation of a restaurant. In addition, a kiosk will be constructed that will operate as an ice cream kiosk in the pool area.

 

Which taxes have shown support?

Phileleftheros reports that according to the state budget during January February 2019 there is a balance sheet deficit of state budget of €1.136b against a deficit of €2.046b that has been included in 2019 Budget report for the relative period of 2019 and a surplus of €1.526b for the relative period of 2018. The main revenue categories in which there was an increase against February 2019 goal are the following: VAT on products and services by €91m, taxes on specific services by €14m, taxes on real estate by €22m, income tax payed by natural persons by €52m, other income taxes by €46m, transfers by €185m, other running income by €59m. Tobacco products revenue was reduced in February 2019 by €10m.

 

HIO says doctors' Gesy sign-up is going well

The first phase of the National Health Scheme (Gesy) will kick in on June 1 no matter what and everyone is working full speed to meet that goal, an official said on Tuesday. According to deputy director of the Health Insurance Organisation (HIO) Efl Kamitsi, a lot of work is being done to meet the June 1 goal, which is the introduction of outpatient care. "The HIO's goal is clear, we have to implement this system," Kamitsi told the Cyprus News Agency. Contributions for Gesy started on March 1, she said, while beneficiaries will be called in to register under Gesy and choose their family physicians (GPs), after HIO signs contracts with the doctors registered to work as GPs.

 

PASYKI gave its opinion on new hospital structure

Haravgi reports that the State Doctors’ Union (PASYKI) discussion with the Organisation of State Health Services (OKYPY) on the organizational structure of autonomised hospitals is intensifying. PASYKI has already given to OKYPY and the Ministry of Health its first comments, as well as disagreements in relation to the framework that OKYPY has presented during their meetings. PASYKI has recorded various queries asking for clarifications. Among other, PASYKI points out that there is a need to determine the hierarchy in the hospital’s medical organisational structure as well as within clinics/departments without influencing the opportunities for career advancement/progression for employees who will keep their public employee status and those who will join OKYPY. They also note that the state doctors cannot be assessed by two different entities: the Public Service Commission and OKYPY. PASYKI also rejects OKYPY’s opinion that each hospital’s three services (Medical, Nurse and Administrative-Financial) will be hierarchically equal and will fall under the direction of the General Manager of OKYPY.  PASYKI also disagrees that clinics currently operating within hospitals will be abolished, and asked for further clarifications on how out-patient clinics will operate within the GHS.



Doctors demand to come first in hospitals’ organisational structure     

Phileleftheros reports that PASYKI doctors demand to have priority in the organisational structure of clinics and state hospital departments. They also demand that their promotion to senior positions is safeguarded by the government. As above, the article reports on the state doctors’ concerns with regards to the hierarchy within the autonomised hospitals.

 

Private pharmacies register in GHS

Phileleftheros reports that private pharmacists’ registration in the General Health System will be approved in the next few days. At the same time the HIO’s seminars aiming to train healthcare service providers within the GHS, are starting today. As it comes to the private pharmacists, the HIO’s expectations were exceeded as many chose to attend the Organisation’s seminar. Representatives of clinical laboratories have also expressed great interest in participating in the seminars, and the HIO yesterday announced the exact dates and times of the seminars aiming to train health professionals to use the GHS electronic platform.  Seminars are addressed to personal and specialised doctors, pharmacists and seminar directors. Participants will be trained on the electronic system of the GHS and carrying out specific tasks on the platform.



Over-the-counter medicines liberalised

Phileleftheros reports that the prices of over-the-counter medicines are not included in the official state medicine price-list. The prices will be determined by the supplier and the pharmacist who will sell the medicines to patients. In the last ten years wholesale prices of over-the-counter medicines were determined by importers and suppliers who were submitting a report to the Pharmaceutical Services which in turn adjusted for the pharmacist’s profit margin and published these retail prices of the products via the official medicines price-list. With the new Ministerial decree, the wholesale price will continue to be determined by the importers/suppliers but it will not be included in the official medicines price- list. As such the final retail price will be set by the pharmacists.