Daily Press Review - 5/6/2019

Sifting through the Co-op properties

As above, with Politis focusing on the proposed bill by DIKO MP, Zacharias Koulias on the Co-op’s assets. Politis reports that if this is adopted, it will overturn the current procedure that is being followed: the concession of former Co-op properties to the local authorities. Finance Ministry representative, Dionysis Dionysiou explained that the proposal prohibits SEDIPES and KEDIPES from conceding properties that will be given to municipalities and communities. Koulias expressed the hope that with this bill, the discussion will be finalised and the legislation will be complete, so as to prevent alienating the Co-op’s assets so as to return them to the beneficiaries. As he reported yesterday, during the House Commerce Committee, 2.100 Co-op properties, were taken by the state against debt, 300 will be given to municipalities and communities, while Hellenic Bank has the right to acquire 100 properties by September.



22 villages will be financially excluded

Haravgi reports that after the Co-op acquisition and the simultaneous actions and agreements of the government, more and more people living in rural areas are excluded from basic banking transactions, thereby having an impact on their daily lives and of course resulting in rage and desperation. The article goes on to say that commercial banks are not taking into account the social aspect of the Co-op, and make their calculations on the basis of profit. Without banks, rural areas will not be able to attract neither small farming businesses, nor industries and new residents. The decision of Hellenic Bank to close down another branch, which used to be under the umbrella of the Co-op. It was serving dozens of communities and has agitated the affected residents and local authorities. The article warns that a protest should be expected. The Hellenic branch that is closing down is located in Pachna, which is one of the biggest villages in the Krasochori area of Limassol, serving 22 communities with a local population in excess of 5.000. Given that about a month ago, the Bank closed down its branch in the neighbouring Pissouri village, residents of the area are expressing their intense worry that closing down the Pachna branch will destroy the entire area, where most residents are seniors and retirees who make their transactions when visiting the Health Centre of Pachna, serving more than 20 communities and are not able to make their transactions online. Initially, Hellenic Bank had decided to close down the branch on 14 June, and after protests and demarches of the local authorities, they postponed the closure for 2 August.



Insurance sector receives investment despite GHS

Kathimerini Economy reports that while it was estimated that the insurance sector would be worse-off after the implementation of the GHS, this hasn’t been the case and a trend to the opposite direction can be observed. Not only it hasn’t been damaged, but huge investments have been taking place. The total gross written premiums of the general sector, including accident and health insurance recorded a 6.9% increase, compared with the same period in 2018. Growth has also been recorded in the corresponding period in 2018 and 2017, but this was restricted to 2.6%. Even if the implementation of the second phase of the GHS, is expected to have a negative impact on life insurance, investments and changes have been taking place throughout the past year, with CNP being the most recent case. Hellas Direct, entered the Cypriot insurance market in 2018, earning customer interest, while with the acquisition of Rescueline, it kept the level of interest high. In 2018 as well, after the Co-op closed down, its cooperation with Universal Life and Allianz ended. For all the Co-op insurance holders who had a group life insurance scheme, their credit facilities were transferred to Hellenic Bank and automatically passed to Hellenic Alico Life. From then on, they were given the opportunity to continue with any company they wanted to. The cherry on the top of reshuffling in the insurance sector, came with CNP Insurance which was entirely acquired by its parent company in France by Bank of Cyprus for €97.5m. Still, the changes – investments in the insurance sector don’t end there. Hellenic Bank has officially reported in its press release accompanying the bank’s share capital increase, that something may change between its two subsidiaries Pancyprian Insurance and Hellenic Alico Life. Specifically, the two subsidiary companies may be sold to a third insurance company or they may be merged with a third insurance company, in the framework of a banking-insurance agreement with a third insurance company. Another possibility is that they will invest in the two insurance companies in order to upgrade their offering and the position of their products in the market. Another possibility is that the current strategy and business model of the insurance companies will not change.



Hellenic-Co-op and Astrobank-USB to be fully merged by September

Kathimerini Economy reports that the Cypriot banking sector is still experiencing absorptions and mergers. Astrobank was the first one to acquire USB Bank, followed by the absorption of the good part of the Co-op by Hellenic Bank. Even if the two mergers were officially completed in September 2018 and January 2019 respectively, the banks are still in the process of incorporating the banks that they absorbed. These procedures are expected to be finalised in the Autumn of 2019 and difficulties are mainly centred around merging the systems of the banks. This procedure will take many months and needs to be monitored by the coordinating committees. Furthermore, the absorption of a bank is a procedure that is regulated by the Authorities and both cases are being monitored by the Central Bank of Cyprus as well as the European Central Bank. On the side of Hellenic Bank, they reported that the procedure of changing the branches in all the Hellenic Bank branches has been completed. As it concerns, branches that are able to serve both Co-op and Hellenic customers (branch in branch), these amount to 24 at the moment. Sources at Hellenic Bank comment that the bank is achieving its targets as it comes to the absorption, while all the relevant departments (IT, integration team, retail banking and HR) are working hard in order to complete the merger of the systems by September 2019. As the Chief Operating Officer of the Bank, Phivos Leontiou said that 14 working groups have been set up, which are working on the integration project. The key milestone of the plan over the next few months is to successfully the transfer all the data located in the systems of the former Co-op, which concerns over half a million customers. This will allow all clients (both Hellenic Bank and Co-op) to receive services from all the branches in the Bank’s network. In this way, all customers will be able to enjoy the upgraded services of Hellenic Bank ATMs.  The 98 individuals who departed with Voluntary Retirement Schemes, continue working at the bank on a temporary basis. With the completion of the merger, Hellenic Bank will have 125 branches, while its branches now amount to 130.



Hellenic-Co-op deal has placed Hellenic Alico in first place

The acquisition of the Co-op by Hellenic Bank, has resulted in changes in the insurance sector, causing a reshuffling in the 5 biggest companies as well as greater competition. After the deal, Hellenic Alico had the greatest market share in the first quarter of 2019 as it comes to gross premiums in the life insurance sector. It should be noted that they have agreed to a group Life Insurance scheme so as to insure natural persons whose credit facilities were transferred from the Co-op to Hellenic Bank. According to the Insurance Association of Cyprus, market shares have changed a lot. In the first quarter of 2019, gross premiums in the life insurance sector recorded a 9.5% decrease, subsiding to €114.3m from €126.2m in the first quarter of 2018 and €112.3m in 2017. This decrease may be a result of the non-closure of the contracts by former Co-op customers. It is interesting to see which insurance companies are now competing against each other in order to maintain or reinforce their market position. The biggest market share in the first quarter of 2019 was held by Hellenic Alico (22.53%) with insurance premiums amounting to €25.74m Its market share in 2018 was 3.66%. Eurolife comes in second with €23.41 in insurance premiums and a 20.48% share. Eurolife’s share in 2018 had been 17.77%. CNP Cyprialife inches closely behind with a market share of 20.34%, compared with 16.6% in 2018.



IMF urges Cyprus to speed up the introduction of e-auctions and privatisations

In a news release following its third post-program monitoring visit, the IMF said Cyprus’ rapid recovery was expected to slow gradually but the outlook remained favourable. It said that the implementation of the foreclosure framework should be complemented by the planned introduction of e-auctions, ongoing reform of the court system and measures to eliminate uncertainties regarding title deeds, the IMF said. It also urged Cyprus to vigorously pursue long-delayed structural reforms and maintain strict fiscal discipline, in view of the implementation of the GHS and ESTIA schemes. As it comes to the risks for the Cypriot economy, the IMF specifically mentions NPLs, the possibility of activating Hellenic Bank’s guarantees which were granted to the bank in the framework of the Co-op acquisition, the potential increase of budgetary outlays due to judicial decisions like the one that recently happened with the salaries of public employees, the consequences of Brexit and the consequences of a negative rating of Cyprus on matters of anti-money laundering.



“You have the power” – Stories giving us power and hope come to Sigma

Sigma TV and Hellenic Bank will be presenting the stories of everyday heroes every Sunday. They will tell the stories of simple people, invisible heroes that don’t wear a cape, but gladly offer their smiles to the rest of the society. They will find the stories and make a short documentary (10 minutes) for each of them. These are people, who in their free time want to reach out to their fellow human beings and help them in any way they can. The documentaries will be presented by Christie Papadopoulou.



ETAL: Promotes tourism in Lebanon, England, Israel

Limassol Tourism Development and Promotion Co. Ltd (ETAL) completed a series of events and visits in the markets of Lebanon, United Kingdom, Israel striving to strengthen the island’s relations with these important markets for our tourism. According to the relevant announcement, ETAL in collaboration with Limassol tourists businesses, attended a dinner held for about 70 tourists offices in Beirut, and presented their existing and new developments and products that ensure a high-quality tourist experience. They also promoted political marriages and honeymoons. In the UK they attended educational seminars for 50 Jet2Holidays tourist consultants, while during the seminars ETAL’s president Maria Michaelidou presented the significant advantages, the new developments in the broader Limassol area and discussed with the tourists consultants about practical issues, preferences and concerns of a British traveller. Lastly, ETAL hosted a workshop, presentation and dinner for tourist agents in Tel Aviv. In this mission there were many participants who include; the Limassol Mayor, Germasogeia Mayor, new and existing Limassol hotels, DP World Limassol – the managing company of the passenger terminal, the wedding planner platform BookYourWeddingDay.com, Troodos Tourism Development and Promotion, and the company IPN Management.



Security and service find harbour in Limassol

The goal to establish Limassol port as an advanced transit station in the Eastern Mediterranean seems more attainable than ever. This goal is estimated to be reached by 2023. The security and fast service offered at the port bring new companies to Cyprus. While the Limassol port is ready to continue into phase 2 of the investment program, Larnaca port is awaiting its privatisation procedures.



Columbia pioneers in their advancement of women employees

Columbia pioneers in advancing women who work in the shipping industry through the “CSM TogetHER” campaign. Aiming to support the ongoing attempts by IMO (International Maritime Organization) to strengthen the female gender in the shipping industry, CSM as a company who employs a large number of females, took the initiative to launch the campaign on Women’s day. For the start-up of this attempt, CSM called the president of WISTA (Women’s International Shipping & Trading Association) Mrs. Despoina Panagiotou Theodosiou, to speak to women employees for “Women in Shipping”, which was also attended by WISTA Cyprus’ president Mrs. Anna Vourgou.



Concerns about the privatisation of Larnaca port

Cyprus Ports Authority (CPA) reiterated to the President of the Republic (PoR), Nicos Anastasiades, that they do not oppose the privatisation of Larnaca port, however they highlight the fact that the problems and issues that arose during Limassol port’s privatisation must be taken into consideration to prevent their repetition. In the association’s announcement, they mention that during their meeting at the Presidential Palace they submitted their stance in detail. Among others, they expressed concerns about a possible negative side-effect on import and export trading, and also port service of important to the economy shipments, if the privatisation procedure does not ensure the port’s trading character. Especially, until the trading port in Vasiliko is in operation. During the meeting, the PoR was presented with many serious issues that emerged by the Limassol port’s operation and that should be avoided at all costs in this case of Larnaca. According to the announcement, the PoR gave direct instructions to maintain the current conditions for 5 years (until the Vasiliko is ready without problems) and prevent any mishaps, gaining CPA’s satisfaction, who thanked the President for the meeting and his support.



Limassol has been stigmatised as the city of the homeless

Although the government and local authorities do not lose the opportunity to highlight Limassol as the city with the greatest growth, obviously believing that it is related to the frantic and uncontrollable erection of towers and skyscrapers or with the profitable business of the casino and some other activities of a few entrepreneurs, the reality that everyday people experience is completely different. This is precisely what the Movement for the Right to Housing-Energo is try to remind everyone, aiming at further awakening and mobilising society against this tragic situation. With a huge banner saying 'Limassol the homeless city' placed at the roundabout of Germasogeia, the Movement highlights the stigma of Limassol, where most cases of homeless people have been recorded. At the same time the government as well as the Municipality of Limassol do not appear willing to solve the problem.



The real estate market is growing steadily

In 2018, according to the financial stability survey, the real estate market continued its gradual growth, which began in the first quarter of 2017. The largest annual house price increase in the third quarter of 2018 was recorded in the Famagusta region (4.5%), followed by Limassol (1.6%), Larnaca (1.1%) and Nicosia district (0.5%), while the Paphos District recorded an annual decrease of 2%. The largest annual increase in apartment prices in the third quarter of 2018 was recorded in Limassol (8.7%), followed by Paphos (5.2%), Famagusta (5.0%), Larnaca (2.7%) and Nicosia (1.2%). According to the Central Bank of Cyprus, the annual increase in the prices of the apartments in Limassol is mainly due to the increased demand for apartments, mainly in coastal areas, while the rise in prices is related to the development of the area (the casino, the marina and the Cyprus University of Technology - TEPAK), but also due to the demand for apartments by non-residents through the citizenship for investment scheme.



The fourth day of GHS without any significant issues

The fourth day of GHS implementation continued rather smoothly, without any significant issues, according to the HIO, which highlighted “there were no new problems that had not been dealt with previously the days before. Everything is manageable”. Mr. Aggelos Tropis mentioned that the computer system of GHS seems to be operating smoothly, visitations are going strong, and they have been successfully recorded within the system, prescriptions and referrals are also operating without any issues. He said that, on the HIO’s part, the system is operating as it should be, and any issues that arise have to do with a lack of familiarisation, and these are easily resolved.



OKYPY is in session against Nicolaos Polyzou

OKYPY’s board of directors is meeting today to examine the CFO’s complaint against the Executive General Director of the organisation, which also had to do with bullying among other things. OKYPY expressed dissatisfaction on how this whole issue leaked to the media, while attempts should have focused on the successful start of the GHS. Due to the nature of the complaint, the organisation will not continue with a further announcement prior to the completion of the procedure, and they ask the media and the public to respect the rule of “innocent until proven guilty” until investigation is completed.



The hospitals need to be strengthened

Doctors and nurses at state hospitals express their concerns that the state hospitals will not be able to handle the burden of the GHS. A representative of the Pancyprian Federation of State Employees (PASYDY) soon after the GHS’ started stated that “despite the great attempts to respond to demands, state hospitals are not in fully prepared to deal with the increased demands of the new health system and in turn the citizen’s demands”.  In their announcement, members of PASYDY state various problems that they deem in need of immediate resolve, which mostly concern the lack of staff present at hospitals. “it is observed that the procedure to hire the 60 new nurses is being delayed, and there is an insufficient amount of caregivers due to the strict criteria put forward by OKYPY”.