Daily Press Review - 26/8/2019

Hellenic Bank: Hailis voting for Senvest

Stefanos Hailis of Prochoice will have the proxy in order to vote on behalf of the Canadian investment fund Senvest, in the upcoming Hellenic Bank meetings on the 28 August. Hailis will exercise rights corresponding to 5.07% of the bank’s share capital.



Argyrides: the Cypriot economy attracts foreign investors

Costas Argyrides, CDB Bank’s CEO, stated that the Cypriot economy has managed to attract foreign investors in various levels. Speaking to InBusinessNews, Argyrides mentioned Bank of Cyprus’ (BoC) €1b recapitalisation in 2014, as well as Hellenic Bank’s recapitalisation in 2013 and 2018. He added, “Attracting investors in the real estate industry through naturalisation has helped the Cypriot economy immensely, as well as the acquisition of Cypriot companies in the pharmaceutical industry and education industry.”



The challenge of maintaining growth rates

The Cypriot GDP’s growth is now multidimensional as it continues unabated with rates of more than 3%, having a positive impact on all the fields of the Cypriot economy. The latest data provided by CyStat showed GDP growth reaching 3.2% in the second quarter of 2019, instead of 3.4% during the first quarter of the same year. HB’s head economist Dr. Andreas Assiotis states that we should compare our current point in the financial cycle to the Eurozone average which is 1.1%. “The economy has surpassed recovery rates and is already on a growth trajectory, since 2018”, he noted. He also noted that GDP growth is based firstly on the increase in consumption, the attraction of high-quality and productive investments, as well as specific public expenditures which have multiplying effects on the GDP. He highlighted that beyond the traditional industries, industries such as education, health, transport, renewable energy sources and retail trade have also contributed to its growth. When asked whether the GDP will be slowed down due to developments abroad, such as the German slowing economy, Dr. Assiotis stated that Cyprus is a small and open economy and it’s influenced by foreign environments, such as the slowing Eurozone, the retail war between China and the US. He said that these are uncertainties for investors “That is why we need to work with alternative scenarios in order to tackle anything coming our way”. He lastly noted that we should expect a growth rate of 2.5%, which will continue to have a positive impact on employment, which in turn will help increase the available income of consumers.







A probe into PEP loans for complete transparency

An opinion article reiterates the latest developments regarding loans by PEPs, and then goes on to share the site’s views on the matter. The attorney-general has reaffirmed the state-owned asset management company’s (KEDIPES) obligation to hand over information as part of a probe into the possibility of the former co-op bank affording favourable treatment to politically exposed persons (PEPs) in terms of loan restructuring, it emerged on Wednesday. According to auditor-general Odysseas Michaelides, in a new legal opinion the attorney-general reaffirmed KEDIPES’ duty to hand over information concerning loans belonging to PEPs that were taken over by Hellenic Bank in 2018 after a decision to shutter the co-op. “Based on the assurances given that the opinion would be respected, we hope no new objections will be raised and the information will be handed over,” Michaelides said in a tweet. This was the second opinion issued by the attorney-general on the issue after KEDIPES had earlier declined to hand over the information in question seeking additional clarifications. The company denied stonewalling the investigation, reiterating its willingness to fully cooperate with the auditor-general on all matters and readiness to hand over the requested information as soon as the lawfulness of its actions was ensured.



NPLs created thousands of jobs

The mission of clearing up non-performing loans (NPLs) rising up to €10,4b, is carried out by hundreds of employees of both BoC and Hellenic Bank and companies responsible for managing problematic loans. Meanwhile, a number of professions such as lawyers, auditors, real estate appraisers and agents are working in conjunction with the managing companies and banking institutions for the NPLs issue, in a way creating an industry focused on problematic loans and therefore real estate.  To manage its NPLs, HB assigned APS Debt Servicing Cyprus Ltd, whose activities began in July 2017. APS has approximately 165 employees whose work focuses on NPLs and real estate. Around 50% is derived by HB and the rest were employed by APS. HB’s NPLs reached €2.47b. Altamira Asset Management Cyprus is handling NPLs worth €7b that are owned by KEDIPES, which were loans by clients of the former Co-op.



Sizopoulos’ non-loans

An opinion article states, that EDEK’s president has a good thing going on. He saw light in KEDIPES and he entered. Yesterday, he announced that neither he nor any of his relatives have any loans with the Co-op and HB, so any requests to KEDIPES for data does not concern him. According to the author, this is just another statement “In this matter I’m clean”, but politicians should make statements when something concerns them, not the other way around. For instance, how many loans did Marinos Sizopoulos have with defunct Laiki Bank and what is their status today?



NPLs with state guarantee

Phileleftheros reports that there are 1,237 loans with state guarantee, reaching €111.3m in total. According to data by the Treasury of the RoC, until the end of June 2019, a total of €1.9b loans are guaranteed by the state, out of which 1.9% are not performing. The percentage may be low, but the NPLs include public organisations. In fact, compared to June 2018, the total of NPLs with state guarantee are reduced by €2.7m. Most of the NPLs, 1,169 rising up to €79.8m are owed by natural persons, which took loans for housing, consumption, business or agriculture purposes. Compared to the respective period of 2018, the total number of state guarantees may have dropped, but the total number of NPLs in this specific category has increased by €2.1m.



Expecting the Americans

Next week a group of US Congress members will visit Cyprus, including Maxine Waters, the Chair of the House Financial Services Committee. They will communicate with top economists in Cyprus, and the discussion is likely to focus on issues of money laundering. The US representatives have stated that they do not have an agenda, and have not been informed about anything specific, but taking into consideration the focus of their work and the group of Cypriot officials attending, it’s easily inferred that the discussion will mostly include banking issues and money laundering, especially given previous experiences with US representatives.

 

Olympic: the process of liquidation begins

The process of liquidation of Olympic Insurance Company Ltd has officially begun. According to relevant information, the court has considered all of the information, and listened to what was said between the lawyers, and ordered to allow the liquidation of Olympic. They appointed the official receiver and Pavlos Nakouzis as the mutual liquidators of the company’s assets.



Collaboration between CSEC and NBA

The Cyprus Securities and Exchange Commision (CySEC) and National Betting authority (NBA) have signed a collaboration protocol, which entails the framework and procedures of collaboration in order to more easily exchange information for the more efficient implementation of their responsibilities and achievement of both bodies’ goals.



Hellenic Bank: The battle of all battles for its board of directors

On Wednesday, 28 August, the shareholders of HB will convene in an extraordinary general meeting and they are expected to elect the new chairman. There is a great possibility that there will be many changes in HB’s BoD as there are powerful names of the banking industry as contenders. It’s reminded that Youssef A. Nasr has recently departed as its chairman. The candidates include Zion Bahloul, John Charles Chrystal, Marco Comastri, Ioannis Georgoulas, Marios Maratheftis, Kyriakis Pilia, Michalis Spanos and Chistos Themistocleous. Simerini’s article provides each candidate’s biography in detail.



Everything ready for the integration

The integration of clients’ systems and accounts of the previous Co-op to HB is expected to be completed in September, within the strict timeframe, said Charalambos Franjeskos, HB’s Chief Technology Officer (CTO). He states, “There have been many trials and checks so far with promising results which make us optimistic. Until today, we have followed the project’s timeframe without any delays.” He explains, “The most important thing for our clients to know is that they will be able to be served at any HB branch. By the end of the year, HB will operate with 115 branches across Cyprus. Also, the clients of the former Co-op will now be able to make their transactions through our technologically advanced ATMs. They may deposit cash or cheques in real time, print account statements and transfer money between connected accounts as well as make payments in credit cards”.



The integration of Co-op in HB will bring new developments

Kathimerini Economy reports an interview with Phivos Leontiou. It’s been a year since the day it became official that the Co-op would be integrated in HB, and the procedure is moving at a fast pace to meet the deadlines. It’s estimated that by mid-September the integration procedure will be completed, and that by the end of November the transitional agreement between HB and KEDIPES will also come to its end, while by the end of December there will be a total of 115 branches. Phivos Leontiou, the Chief Operating Officer of HB, spoke to Kathimerini about the changes which have happened over the course of the last 12 months, while there are still some challenges and issues that need to be addressed. He notes that soon the bank will inform its clients about the upcoming changes that begin from ATMs and electronic channels.



Eight Gordian knots for banks

This period until the end of the year is full of challenges for banks, and they need to handle them in a way that prevents shareholders from suffering losses. Banks’ depositors are faced with almost zero or negative interest rates. Banks are gradually transforming into a digital environment. On the other hand, the main two banking institutions, BoC and HB, can be influenced by the legislative body, as seen with the recent reforms the Parliament wanted to implement for foreclosures. One of their biggest challenges is reducing their high numbers of NPLs but the upcoming Estia scheme is expected to aid in problematic loans.



The candidates of HB

Hellenic Bank will have a new BoD following the EGM of shareholders that will take place on 28 August. There are 18 candidates for 11 positions, and they are expected to elect a new chairman following the departure of Youssef A. Nasr. HB’s new BoD will showcase the balance of powers between the big shareholders of the bank.



The advertisement of Limassol Co-op and today’s developments

In an opinion article, the author remembers a Co-op advertisement of 2010-2011 on how deposits would be safe in a Co-op account. He described the current bad situation the banks are in due to the high numbers of NPLs, while at some point states that it’s understandable that foreign investors are selling their shares, while bank/ETYK employees are buying them (see HB).



Is anyone still interested about what happened to Co-op?

It’s already been a year since the investigations for the reasons behind the Co-op’s collapse began, and during that period HB bought the Co-op. However, after a year we haven’t seen any results. The only individuals still involved in this matter are the investigators, while the Auditor General is still expecting KEDIPES to release information about the loans of PEPs.



Pressure from cryptocurrency

Large companies are facing challenges by the development of digital money. Mastercard, which has signed a collaboration with Facebook on Libra cryptocurrency, is now establishing its own cryptocurrency, according to CNBC. Mastercard wishes to be known as something more than just a card company; it wishes to become a technology company, said Ted Rossman analyst for CreditCards.com. Other companies who have collaborated with Facebook for Libra include Paypal, Uber, Coinbase, Lyft, Vodafone, eBay, Spotify, and Visa – Mastercard’s main competitor – is also involved.



Instruction manual for Estia clients

Phileleftheros presents an instruction manual for any bank clients who are interested in the Estia scheme so they comprehend all of its parameters. These will probably be repeated in the future as the application period is between 2 September and 15 November. The article follows a questions – answers form.



Assets under management of the Collective Investments sector reached €6.8 billion

A fresh increase has been recorded for the 2nd quarter of 2019 concerning the assets under management of the Management Companies and the Undertaking of Collective Investments, according to the Quarterly Statistical Bulletin released by Cyprus Securities and Exchange Commission (CySEC). The bulletin, whose 4th publication has been posted on CySEC’s website, presents the most important data associated to the Collective Investments’ sector in Cyprus. The Total Assets under Management reached €6.8 billion for the 2nd quarter of 2019, recording a 2% increase compared to the 1st quarter of 2019. Approximately 62% of the Total Assets under Management was managed by the Collective Investments Sector and 30.6% by the Subthreshold AIFMs, 3.4% by the UCITS Management Companies, 3.2% by the CIFs and only 0.8% by the Regulated UCIs that are under the management of Foreign Fund Managers. The full report can be found here.



Online shopping in Cyprus has “blossomed”

Electronic shopping is gaining ground, both within and beyond Europe, with companies like Amazon and eBay proving it with turnovers of billions according to statistical data which record the consumers’ behaviour turning to online shopping. According to these data, the turnover of online shopping in Europe is estimated to reach €621b in 2019 and continues to increase at about 13% when compared to €547b in 2018. The age group that most frequently shops online is around the ages 25-54. Data shows that in Cyprus 38% shop online, which is increased compared to 2017.

 

Apartments for all budgets

Phileleftheros reports that the interested parties can find apartments for all budgets through realtors as well as Bank of Cyprus, Hellenic Bank and Altamira. There are apartments on sale starting from €58.000, while on Phileleftheros’ incyprusproperty.com website there is a great variety of apartments in various prices. Hellenic Bank is selling an apartment in Engomi for €78.000 and another one in Strovolos for €80.000, while there is also an apartment on sale for €98.400. In Engomi, an apartment is for sale at €104.000. The bank is selling an apartment for €95.000 in Ayios Antonios and a €89.000-apartment in Ayious Omologites. Moreover, it is selling apartments in Strovolos for €120.000 and €119.000.

 

 

 

Handovers at Bank of Cyprus and Hellenic Bank

Phileleftheros reports that there are two important developments in the banking sector this week. Bank of Cyprus’ Board will convene today about the results of the first semester of 2019, while Hellenic’s shareholders will be called to an extraordinary meeting on Friday, in order to elect the new 13-member board. Specifically, Bank of Cyprus’ board will convene today and it’s expected that tomorrow the bank will announce its financial result for the first six months of 2019. This meeting will be the last for John Hourican who is departing and whose position will be taken over by Panicos Nicolaou. At Bank of Cyprus, they are expecting that with this change in management, the bank’s operational model will also change on some matters. One of the many matters that the new CEO of the Bank will be called to deal with is the reduction of labour costs. Some informal scenarios have already started being circulated internally, with regards to the compensation packages for anyone choosing to leave the company in the end of the year. It is also expected that on 28 August, there will be great changes in Hellenic Bank’s Board. The battle for seats in the Board will be fought between Demetra Investment and Wargaming. However, this election will also point to alliances between the shareholders as well as the Bank’s strategy for the various challenges it is facing. The article reports that both banks are facing common challenges. Apart from the personnel issue and the digital transformation, the agenda entails the reduction of NPLs. The sale of NPLs is already on the table and they are already negotiating with investment funds. Pimco is also interested in purchasing Hellenic’s red loan portfolio but no final decision has been taken so far. It should be noted that one of the biggest shareholders of Hellenic Bank is Poppy Sarl (17.3%), which is linked to Pimco. There are rumours that the Bank of Cyprus is negotiating with Pimco for a loan sale.



Hellenic Bank and BoC in deep water

As above the article reports that Hellenic Bank’s general meeting will be held next Wednesday and will elect the group’s new 13-member Board. The 13 positions are currently being claimed by 18 nominated members, most of which will come from the two major shareholders, Demetra Investment and Wargaming. The electoral battle for the election of the new management of HB will be fought between the two major shareholders. The meeting will also demonstrate what synergies and alliances have been achieved during the months-long negotiations behind the scenes.

 

Tax revenue increase points to growth

The Republic’s revenue from taxes on production and imports increased by 0.8% in the first six months of 2019, compared with the same period in 2018, but they increased by €11.6m in relation to the prediction of the Stability Programme (2019-2022). This positive development, (even though proceeds from consumption tax fell by 12%) is mainly due to the increase of revenue from Value Added Tax (3.6%), reflecting the improvement of economic activity and the subsequent growth of consumption and investment.



Russians are steadily leaving Cyprus

Russians have reduced their presence in Cyprus, whether this in relation to the financial system, the drop of tourist inflows or even the reduction observed in the number of Russians involved in business in Cyprus. Phileleftheros’ information shows that there is a steady reversal of the situation we knew over the past years. The strict money laundering laws, an expensive tourist product in relation to the incomes of Russians as well as competition with other destinations, have created a new situation. The outflow of Russian money from the island marks the reversal of a trend that began after the fall of the Soviet Union, and was accelerated after Cyprus joined the European Union in 2004 and adopted the Euro in 2008. Cyprus has changed its economic model and is now turning to businesses with a physical presence and substantial activity on the island, rather than shell-companies.



The sectors that attract investments to Cyprus
Investor interest in Cyprus comes almost exclusively from businesses that are already established on the island, with just 4% of investments coming from those who do not have a presence on the island. A study by Danos An Alliance of BNP Paribas Real Estate has shown that seven out of 10 investors appear willing to invest in Cyprus, under certain conditions. However, just 50% of those asked believe the island is following a specific policy and has all the characteristics needed to attract international investors. The most popular answer (40%) when it came to investing in the country was the creation of a sales office or shop (including franchises). This was followed by currency exchange activities and products, tourism and construction, while investments in manufacturing and the Stock Exchange ranked last. According to the study, the small number of investments in capital-intensive and high-tech activities is worrying. Just 9% of those asked include manufacturing in their investment plans for Cyprus, compared with 22% in Europe. Also, just 2% of those asked are thinking of setting up headquarters in Cyprus, compared with 7% in Europe, and even 4% in the UK, which is preparing to leave the EU. Another concerning element, besides the fact that Cyprus is not considered an investment destination for those who do not have a presence in the country, is that seven out of 10 participants (69%) believe that Cyprus’ economic growth over the next few years will depend on the tourism sector. This is worrying because the reliance of an economy on just one sector is dangerous; especially when that sector is extremely sensitive to potential negative developments on a geopolitical level or natural and ecological disasters. Another worrying conclusion from this answer is that this shows the well-established conceptions investors have regarding the Cypriot economy’s capabilities and opportunities. Sectors such as logistics and energy (despite the activity in the Cypriot exclusive economic zone and the relevant findings, as well as the investment in Limassol port by DP World), real estate, the pharmaceutical industry (most notable investment was the Ascendis-Remedica deal) and agricultural economy garner very limited investor interest.



Ozersay wants establishment of joint private company for NG

Turkish Cypriot so-called deputy prime minister and foreign minister Kudret Ozersay revealed that he made a proposal during contacts he had with Italian ENI and other American companies for the establishment of a joint private hydrocarbons company, so that there is equal distribution of natural gas proceeds with the Greek Cypriots once it is extracted. Addressing diplomatic reporters in Ankara, when he accompanied so-called prime minister Ersin Tatar on an official visit to Turkey last Thursday, Ozersay said that the oil companies in turn stated that they are seeking ways to limit the risks from selling the Eastern Mediterranean’s natural resources to the international markets. So, he said that he proposed to them the creation of a private company, with the participation of the pseudo-state, so that the natural gas is shared equally between the two sides. “We had some contacts with ENI. There was a dialogue over whether there could be cooperation and over how and when this could come about. During my visit to Washington at the beginning of the year, I participated in many conferences and half of the participants were representatives of the companies that cooperate with the south of the island and they asked me what exactly I meant,” said Ozersay. “If the sides are to meet, let us do it via the companies, we said, and have an exchange of information regarding the resources. In reality, the companies have shown signs that they are open to discussing ways in which the Turkish Cypriots could participate in such a system, so as to reduce their own risks. The Greek Cypriot side is not the only one that has a say in this matter. The international players and states, which want to protect their investments across the world, could take on such an initiative, if they find that their risk is increased,” said Ozersay. As for the pseudo-state’s ability to issue exploration licences to other countries, Ozersay said that this can only happen through the Turkish Petroleum Company. He added that if the Turkish Cypriots find natural gas first in the northern part of the island, in an area that belongs to the Greek Cypriots, then the Turkish Cypriots would be willing to discuss ways of sharing the proceeds with the GC side.



Strong security web in the EEZ

The clear support expressed by French President Emmanuel Macron towards the Republic of Cyprus as regards Turkey’s threatening behaviour over natural gas, has reinforced the security web surrounding the Cypriot EEZ, Kathimerini reports. Nicosia has received Macron’s statements as a positive development, at a time when Ankara is escalating tension in the region. The paper cites sources saying that it is the timing and not the essence as such of Macron’s statements that is of benefit to Nicosia. They came at the right time and can been seen as a strict message to Ankara, while they are a repetition of what Macron said during the MED7 conference in Nicosia, that France has interests in the broader region, which it will protect when and if so required. Sources in Nicosia say that Ankara’s planned exploration activities in blocks 2 and 9 of the EEZ affect France, following the recent Cabinet decision to approve explorations in these blocks to companies including French Total. Based on the relevant plans, activities are set to resume in the Cypriot EEZ in December 2019-January 2020. They will start off with the French and Italian consortium in blocks neighbouring those that Ankara has announced are being explored illegally by the Barbaros seismic research vessel. The two companies will drill in block 6, where a confirmatory drilling is pending in the “Calypso” target, or will move to neighbouring block 7, to see whether the findings from block 6 spread into that block too. Nicosia is expected to limit itself to diplomatic reactions, as in one way or another, Paris will react to Turkish provocations if the Barbaros enters blocks where Total has a presence. However, the most crucial point, if tension is not de-escalated, will be when the consortium for blocks 2, 3 and 9 begins explorations. According to Kathimerini’s sources, these will begin in the second half of 2020. The return of ENI and Total to the Cypriot EEZ at the end of the year is expected to be accompanied by an increased French presence in the region. Nicosia has received the message that the French will not allow for a repetition of what took place in block 3 in February 2018, when Turkish warships prevented the Saipem 12000 from drilling. Something similar had happened in the summer of 2017; however, the West Capella drillship continued to block 11 unhindered when the French intervened.



Marketability of Aphrodite’s natural gas is not a given

Former president of the Cyprus Hydrocarbons Company (KRETYK) and energy expert Charalambos Ellinas tells Alithia newspaper in an interview that it has not yet been confirmed that the natural gas found in the Aphrodite gas field in Cyprus’ EEZ is marketable. He said there is still a long way to go until Cyprus is ready to export NG and even when it reaches that point, the low prices of NG in the international market will mean that profits are limited. Ellinas also refers to the government’s’ energy programme as well as the next drillings that are on the way. He is asked, among other, what he believes the government’s development plan for Aphrodite will entail and how viable he feels the target is. Ellinas says the plan should include a precise evaluation of the natural gas reserves, a production profile, as well as a NG recovery, marketability and exploitation method. It must also describe the facilities that will be required for production, the necessary timeframes, costs, financing, options for sale, revenue from sales and a financial study that proves that the NG is marketable and profitable. He said the plan is for Aphrodite’s NG to be transported via a pipeline to liquefaction units in Egypt to be liquified. According to reports, this is the only competitive option for sales to the international market, said Ellinas. “To reach that point, certain important steps are required. First, we need an additional confirmatory drilling to confirm the exact quantities of NG. Then the necessary facilities need to be designed, so we have a better estimation of the cost. Based on these, the price and agreement to sell the NG will be negotiated. Then the necessary investments must be secured and the final investment decision made. This procedure will take three years. Then the construction work will begin, and will take another three years. if we start working on Aphrodite now, it will be in a position to start exports in 2025. And all this at a time when the international prices of NG are expected to remain low, if NG is to continue to maintain an important share of the international market, compared to other, cheaper renewable energy sources, and even carbon,” said Ellinas.



Why have the Russians and Scandinavians turned their back on us?

There were two significant developments in 2019 when it comes to local tourism, both of which were unexpected. The first was the closure of budget airline Germania, which affected the inflow of German tourists. And the second was a decline in tourist arrivals from Scandinavia and Central Europe. The drop in Swedish tourists in particular has prompted Deputy Minister of Tourism Savvas Perdios to plan a visit to the country in September to hold contacts with travel agents from Sweden as well as Norway.



Looking into new markets

CYSTAT’s data shows that a record number of tourists arrived in Cyprus this July. According to the Passenger Survey, tourist arrivals in the past month amounted to 550.971 compared with 539.626 last July, recording a 2.1% increase. However, tourist arrivals have slightly dropped compared to 2018. Specifically, between January-July, tourist arrivals stood at 2.181.994 compared with 2.184.77 last year, marking a 0.1% drop.

 

 

Russian market on a downward path again

The Russian market seems to have been affected by the openings of our competitors. It may still be our second biggest tourist market – after the UK – but compared to last year, it has marked a significant drop. While 824.494 Russians visited Cyprus in 2017, the Russian market went on a downward path last year. Last year’s tourist arrivals from Russia stood at 783.631 recording a 5% drop compared to last year. This year a similar trend is being recorded. For the first 7 months of 2019, Cyprus was visited by 418.991 Russians, a 4.5% drop compared to the same period last year.



The sectors that attract investments to Cyprus

Investor interest in Cyprus comes almost exclusively from businesses that are already established on the island, with just 4% of investments coming from those who do not have a presence on the island. A study by Danos An Alliance of BNP Paribas Real Estate has shown that seven out of 10 investors appear willing to invest in Cyprus, under certain conditions. However, just 50% of those asked believe the island is following a specific policy and has all the characteristics needed to attract international investors. The most popular answer (40%) when it came to investing in the country was the creation of a sales office or shop (including franchises). This was followed by currency exchange activities and products, tourism and construction, while investments in manufacturing and the Stock Exchange ranked last. According to the study, the small number of investments in capital-intensive and high-tech activities is worrying. Just 9% of those asked include manufacturing in their investment plans for Cyprus, compared with 22% in Europe. Also, just 2% of those asked are thinking of setting up headquarters in Cyprus, compared with 7% in Europe, and even 4% in the UK, which is preparing to leave the EU. Another concerning element, besides the fact that Cyprus is not considered an investment destination for those who do not have a presence in the country, is that seven out of 10 participants (69%) believe that Cyprus’ economic growth over the next few years will depend on the tourism sector. This is worrying because the reliance of an economy on just one sector is dangerous; especially when that sector is extremely sensitive to potential negative developments on a geopolitical level or natural and ecological disasters. Another worrying conclusion from this answer is that this shows the well-established conceptions investors have regarding the Cypriot economy’s capabilities and opportunities. Sectors such as logistics and energy (despite the activity in the Cypriot exclusive economic zone and the relevant findings, as well as the investment in Limassol port by DP World), real estate, the pharmaceutical industry (most notable investment was the Ascendis-Remedica deal) and agricultural economy garner very limited investor interest. The same goes for sectors where the country has not recorded significant achievements such as technology, IT and communications. The article reports that investments of Melco and Invel are reported as positive developments.



10 new hotels in the works

24H reports that ten new hotels with around 3 thousand rooms will be added to the Cypriot hotel market in the coming period, significantly enriching the local tourist product in a period however, during which the market has plateaued. The article reports that the luxury five-star City of Dreams casino-resort will open in 2021 with 1.000 rooms.





Hard Rock submits binding offer for casino at Elliniko

Hard Rock International Chairman and Seminole Gaming CEO Jim Allen announced a binding offer for the casino in the Hellinikon Project, at a press conference in Athens on Friday. The value of the investment totals 1 billion euros, he said, and will be self-funded with 250 million euros, supplemented by Greek and foreign bank loans. The casino package includes a hotel, a conference center, restaurants and other entertainment areas. During the interview Allen said that his proposal will respect local culture and include local agencies, bringing the casino to a city that has been international for 3,000 years. The Hard Rock proposal he said would create 3,000 new jobs in construction and 1,600 in the facilities and would be completed in 20-26 months. Hard Rock International has facilities in 74 countries with 188 Hard Rock Cafes, 240 Rock shops, 29 hotels and 11 casinos, Allen said. The same day, the businessman is also scheduled to meet with representatives of the prime minister and relevant ministers to present the company's business plan for the casino.



1st NAAC Congress - Science Behind Addictions

The National Addictions Authority of Cyprus is organizing its first scientific congress on addictions from 11-12 September 2019, with a view to start the scientific dialogue in fields such as: prevention, alcohol consumption and connected risks, smoking, pathological gambling and new forms of addiction, cannabis, going out, reducing the damage, alternative approaches instead of penalties.



Cooperation protocol between CySEC and NBA

The Cyprus Securities and Exchange Committee and the National Betting Authority signed a cooperation protocol yesterday. The protocol was signed by CySEC’s chairwoman Demetra Kalogirou and the NBA Chairwoman, Ioanna Fiakou. According to a press release, the protocol defined the framework and cooperation procedures in order to facilitate the exchange of information and contribute to the effective exercise of the bodies’ functions and the achievement of their targets. According to the protocol, the two bodies are cooperating in order to enhance the effectiveness of their supervision and the uniform treatment of issues and violations of the current legislation, ensuring compliance with the relevant laws. CySEC and NBA are participating in the advisory body for the prevention and suppression of money laundering law from 2007-2019 and they are cooperating on combatting money laundering.



Pharmacists went on a two-hour strike  

Yesterday pharmacists went on a 2-hour strike, from 10–12 a.m., at Larnaca General Hospital, protesting for the multiple problems they have been facing. Father Soteris, pharmacist and president of pharmacists in PASYDY, said that the strike was held following an emergency general meeting of pharmaceutical services; “Our main request is to enter into discussion with the Ministry of Health (MoH) and OKYPY, in order to tackle the multiple problems that emerge from the changes in the health system beginning 1 September 2019, that directly affect state pharmacists”. He added, that one of the main issues they encounter is staff shortages at hospitals.



Infections: A real but manageable issue

The emerging threat of bacteria’s resilience to antibiotics, with more than 500,000 annual deaths, has been recognised as a high-priority threat to health by WHO. International studies show that knowledge on infectious diseases and proper use of antibiotics is disappointingly low in both the general population and health professionals. Data shows that over 50% Europeans don’t know that antibiotics are effective against viruses, while Cyprus and Greece are among the highest consumers of antibiotics. The Medical school of European University Cyprus acknowledges the importance of the academic community’s contribution to raising awareness, and in recent years it has taken up important initiatives to raise awareness in the general population as well as train health professionals.



Problems of patients with rare diseases on the table

During the meeting between the Cyprus Alliance for Rare Diseases and Health Minister Constantinos Ioannou, they discussed issues that patients with rare diseases have to endure and how to better integrate them in GHS. The meeting’s agenda included among others the need to include specific medicines and products in GHS, which are part of some patients’ therapy, the link with specialised centres per disease, which is expected to be completed by the end of November, as well as the connection with the Support Centre “Nest”. Both sides agreed to establish monthly meetings in order to enhance discussion between them as well as shed light on important issues facing patients with rare diseases.



GHS boosts vaccinations

Following the GHS’ implementation the vaccinations situation seems to improve as well. It is an easier process now as GPs/paediatricians for adults and children respectively, will be informing patients that they need to come in for a vaccine and given them information about vaccinations. With the gradual development of the health system, the patient will be automatically informed about the need to be vaccinated.



New measures to avoid potentially fatal dosing errors with methotrexate

EMA has recommended new measures to prevent serious and potentially fatal errors with the dosing of methotrexate for treating inflammatory diseases such as rheumatoid arthritis, psoriasis and Crohn’s disease. The recommendations result from a review of reports that patients are using methotrexate incorrectly despite previous measures to prevent errors. For inflammatory conditions, methotrexate must be used just once a week. Using methotrexate more frequently than intended can result in serious side effects. The review found that the error in dosing frequency can occur at any step from prescribing the medicine to the patient taking it. The new measures to prevent errors include restricting who can prescribe these medicines, making warnings on the packaging more prominent and providing educational materials for patients and healthcare professionals. In addition, to help patients follow the once-weekly dosing, methotrexate tablets will be provided in blister packs and not in bottles (or tubes). The measures were agreed after consultation with patients and healthcare professionals.



Cyprus Cancer Research Institute (CCRI)

Phileleftheros reports about the creation of an innovative institute, the Cyprus Cancer Research Institute, which aims to become a renowned global cancer research institution. Its aim is to educate and train new postgraduate students and attract scientists from but not limited to Diaspora. They hope to understand the “geography” of cancer in Cyprus and beyond.



Metastatic Breast Cancer: Significant research for the first time in Cyprus

“What are the needs of Cypriot women who suffer from MBC?” “How is their daily life and quality of life influenced?” For the first time in Cyprus these questions will be answered through an innovative study which records the experiences of women with MBC. The findings of the study, suggestions as well as exchange of opinions between experts and influenced patients will be the focus of an upcoming conferenced entitled: “Knowledge, Power, Hope”. The conference will be held on Thursday 19/09/2019 17:30, at Hilton Park Hotel in Nicosia.



10.3% of Cypriot suffer from diabetes

The Diabetics’ Association in Paphos have recorded an increase in diabetes among young children, highlighting that Cyprus records the highest percentage of diabetics in Europe. Studies show that 10.3% of the Cypriot population suffers from diabetes with the percentage steadily growing. This is something that should concern everybody. The President of the association, Matthew Ierokypiotis, explained briefly what diabetes is, identified the two types and what happens if left untreated. According to him, in order to put an end to its spread, we need to spread awareness.



Trouble at Polis Chrysochou Hospital

Following complaints and protests about the continuous staff shortage at the local hospital, and mostly after the commotion outside of the A&E department that was underperforming for the third consecutive day last Saturday, the problem seems to have been temporarily settled. OKYPY announced that the problem was swiftly dealt with and that the department is operating as normal. The organisation apologised for any inconvenience.



Medicine for both the body and the soul

Ailthia profiles Father Soteris, who provides medicine for both the body and the soul, as he is both a priest and a pharmacist at Larnaca General Hospital, as well as the president of PASYDY pharmacists. Father Soteris studies pharmaceuticals and started working as a pharmacist, but somewhere along the way 23 years ago, he decided to also follow God’s path in life, which may have added to his responsibilities. However, his work or his holy responsibilities were never affected by the other. “I combine both of them with great effort but always with joy”, said Father Soteris.



How much G/Cs spent in the occupied areas in July

There was an 65.3% increase in payments with Cypriot cards in the occupied areas. According to Sigmalive’s information obtained by JCC, Greek-Cypriots spent €1,520,675 in the occupied areas during July. Payments by Cypriot cards in Turkey amounted to €637,301. Respectively, Turkish card payments in the Republic of Cyprus amounted to €1,520,675. According to JCC data, a total €11,766,676 was spent in the occupied areas by July. As it comes to July 2018 data, €1,182,522 was spent by Cypriot card in the occupied areas and €466,361 by Cypriot cards in Turkey.



Still hoping for a Pyroi checkpoint

Speaking to Phileleftheros Athienou Mayor Kyriakos Kareklas, stated that the matter of opening a new Pyroi checkpoint is now being discussed with new terms. Mr. Kareklas stressed the importance of the President’s position on the matter, and especially his commitment to not accept the opening of any other checkpoints if the checkpoints in Pyroi and Kokkina are not opened first. On the other hand, Mr. Kareklas highlighted that no one should overlook the huge social and financial cost that Athienou was burdened with over the past 45 years, due to the loss of the Pyroi road connecting them to Nicosia. An 8–10 minutes road, tripled in both distance and time, with Athienou residents going multiple times per day to Nicosia for their jobs. For 45 years, he added, Athienou residents remain isolated and the local authorities consider this to be high-time to finally open a checkpoint at Pyroi.