Daily Press Review - 28/8/2019

Hellenic’s shareholders to decide on new Board Members today

After John Charles Chrystal and Youssef A Nasr withdrew their candidacy for personal reasons, the Bank’s shareholders are convening today in order to elect the new members of the Board. 13 Board Members will be elected, 7 of which must be independent and 6 must be non-independent, including Ioannis Matsis and Lars Kramer, CEO and CFO of the Bank. A total 17 candidates are claiming a seat in the Bank’s Board. These are Stephen John Albutt, David Whalen Bonanno, Demetris Efstathiou, Irena A. Georgiadou, Lars Kramer, Kristofer Richard Kraus, Ioannis A. Matsis, Marianna Pantelidou Neophytou, Evripides Α Polykarpou and Andrew Charles Wynn. Christos Themistocleous has also been proposed as an independent non-executive member. According to the bank’s statute a separate vote will be held for Zion Bahloul, Marco Comastri, Ioanis Georgoulas, Marios Maratheftis, Kyriaki Pelia, and Michalis Spanos. The main shareholders of the bank who will try to claim as much representation possible in the Bank’s Board are: Wargaming Group Ltd and Demetra Investment Public Ltd. Recently, the bank employees union (ETYK) acquired 6.26% of the bank’s shares. After the vote, the 13 members of the Board will decide on their positions and the new president. It’s expected that the procedure for the election of the new Board will be finalised today, followed by an announcement on its composition, its President and the different committees. After this, the bank will request an approval by the European Commission. Apart from the appointment of the new Board during the 45 AGM, it is expected that Ioannis Matsis will present a review of the past year, including a reference to the Co-op and the completion of the integration procedure, the group’s revenue, as well as the vision and the goals of the Bank over the coming years.



17 candidates for 13 seats at Hellenic Bank’s BoD

Same as above. Haravgi also notes that %Hellenic’s biggest shareholder is Demetra Investment (21%), followed by Wargaming Group (20.2%), Third Point (12.6%), Poppy Sarl (Pimco) (17.3%), Provident Fund (6.3%), and Senvest (5.1%). The rest of the shareholders have a 17.6% stake.



Hellenic to choose a new Board today

After months of negotiations and deliberations between the shareholders of Hellenic Bank, it is expected that today the situation with the bank’s Board will be clarified. A total 17 current members are aiming for re-election, 13 of which will manage to be elected. Yesterday, it was announced that John Charles Chrystal withdrew his candidacy. It is expected that the six positions will be covered by two executive members, Ioannis Matsis and Laes Kramer and four non-independent members representing each shareholder, meaning David Wallen Bonanno (Third Point), Marianna Pantelidou Neophytou (Wargaming), Kristopher Richard Kraus (Pimco) και Marios Maratheftis (Demetra Investment). As the rulings proposed during the EGM stipulate, the individuals appointed as temporary executives are those who received the most positive votes, after the 13 members. The Board can also ask the independent members of the Board who didn’t claim a seat, to participate as temporary members.



BoC has a stake in a cinema, a mall in Romania and a car import company

Alithia reports that the Bank of Cyprus holds a significant stake in six Cypriot companies and one Romanian company. This information has been published in the Group’s midterm financial report that was published yesterday. In the majority of cases, Bank of Cyprus acquired a stake in these companies through debt restructuring schemes. The companies are listed with more details: Apollo Global Equity Fund of Funds Variable Capital Investment Company Pic (Apollo) 31.6%, Rosequeens Properties Limited και Rosequeens Properties SRL 33.3%, Ans Capital Management LLC 30%, ΜΙ Skyra Vasas Ltd 15%, D.J Karapatakis Sons Limited και Rodhagate Entertainment Ltd 7.5%, FairwaysAutomotive Holdings Ltd 45%, Tsiros Consortium Ayios Tychon Ltd 50%.



A no-deal Brexit worries us

Kathimerini Economy interviews the president of the Employers and Industrialists Federation (OEV), Michalis Antoniou, who says that the climate of uncertainty surrounding the imminent Brexit has led to a numbing of new business activities in Cyprus. But what is of real concern to the island’s business community is the possibility of a no-deal Brexit, he adds.  Antoniou said local businesses have not yet started to panic, while he underlines one advantage that they have over other countries: they have strong experience in dealing with companies from third countries. Nonetheless, he said the UK’s exit from the EU and Cyprus’ close relationship with the country has highlighted the need to prepare and plan ahead; especially in terms of the island’s trade agenda, education and priorities in matters such as tourism. Antoniou said it was to everyone’s best interests if there is a transitional phase in Brexit. But he said if there is a sudden and full interruption of all regulations, which appears to be what the Brits are planning, “then we will have problems”. It is in neither side’s best interests to have a no-deal Brexit, he said.



Shell in a double key-role at Aphrodite

As above, with Phileleftheros highlighting the double key-role that Shell is playing in Aphrodite, as it will not only be the producer of the natural gas, it is also the owner of the Idku liquefaction terminal in Egypt, which the paper says raised the bar in yesterday’s meeting at the Presidential Palace. The paper also cites sources to report that experts have left the possibility open for the final quantities in the Aphrodite deposit to end up being more than initially forecasted, once the second confirmatory drilling takes place.

 

The Oruc Reis has set sail too

Turkey said it and did it: it has sent a fourth research vessel – the Oruc Reis – to the Eastern Mediterranean, confirming Turkish Foreign Minister Mevlut Cavusoglu’s recent statements. The ship is sailing from Marmara to Tasucu port, where it is expected to refuel before it starts its activities. The Fatih drillship has already been in the area since May, where it is drilling west of Polis Chrysochous, while the Yavuz is off Karpasia and the Barbaros continues its illegal seismic research activities within the Cypriot EEZ. Cavusoglu had announced recently that a fourth Turkish ship was on its way to the East Med. The ship is expected to support the Barbaros. The Oruc Reis sailed from Istanbul port early on Tuesday, while according to reports it is heading to the Aegean, and then the Selefkia port west of Mersin, Turkey.



Zeta pushed them into a corner in the hotel industry

It appears that hoteliers and hotel employees’ unions have reached boiling point, following two days of intensive consultations at the Labour Ministry. The dialogue to resolve their dispute over the renewal of the hotel industry’s collective agreement, in the presence of Labour Minister Zeta Emilianidou and her ministry’s mediation service, continued for a second day yesterday. All the points of dispute were tabled in a bid to pinpoint a framework with the convergences that can be achieved. Both sides appear aware of the significance of this initiative and of the fact that their time to resolve the issue is running out. Even though it appeared that there was common ground yesterday, the two sides still did not reach a final agreement. And there can be no agreement unless all parameters are agreed on. Emilianidou’s presence at the meeting appeared to calm things down, as before her arrival and in the presence of just the mediation service, the unions were pressing for a deadlock to be declared. The minister however attempted to lower the tone, bridge the divide and engage in marathon discussions to help resolve the labour dispute. The biggest point of dispute is the trade unions’ demand for workers’ salaries to be legally regulated; which has never happened in the hotel industry before.



Fewer foreigners this year and they are more frugal

The 2.1% increase that was recorded in tourist arrivals in July was not enough to reverse the numbing that was recorded this year in Cyprus’ tourism. Just before the peak month of the touristic year comes to an end, and in anticipation of whether there will be an increase in arrivals in September, the general consensus is that there has been a drop in tourism; both in terms of arrivals, what with the loss of Cobalt and Germania seats and the hesitance shown by the British market, as well as hotel occupancy, which appears to be down 10-15% compared to last year. Revenue from tourism is also expected to be reduced, what with tourists being more frugal with their spending.



GHS health centres will operate during out-of-work hours

The on-duty GHS health centres (operating during out-of-work hours) will most likely be ready in October. The deadline for doctors’ applications is the 6^th of September, and all the necessary procedures for their operations will be carried out immediately after this. HIO’s Andreas Papaconstantinou explained that beneficiaries will be able to contact the on-duty doctor (either a GP for adults or a paediatrician for children) until 10:00 p.m. on weekdays, and from early morning to late afternoon on weekends and bank holidays. Beneficiaries may call the on-duty GP/paediatrician late in the evening, on weekends or bank holidays, if they can’t or don’t want to pay the additional €25 fee that their GP/paediatrician has the right to request. The HIO is expected to make the announcement, calling interested doctors to apply within the next few days. The HIO aims to have two health centres operating at out-of-work hours in each city every day. Each health centre will have two GPs for adults and 2 paediatricians. The number of doctors on duty will be determined according to each city’s population and needs. It’s worth to note that these out-of-work hours doctors will accept patients without prior appointment, as they will be there to assist anyone in need.



400.000 visits

Politis reports that 400,000 visits were recorded during the first 90 days since the GHS’ implementation. Problems continue to emerge, however, and HIO employees are working tirelessly to solve them. A third GHS software upgrade can be expected within October, while doctors of the private health sector continue to register within the GHS. There are 391 GPs, 128 paediatricians, 772 specialised doctors (300 of which come from the private sector) registered with the GHS. Mr. Papaconstantinou noted that “we got our message across that the GHS has come to stay”.



Unions against abolishing Health Funds

Union organisations react intensely following the Government’s decision to abolish the Health Funds on 1 June 2020, given that the GHS will be fully implemented, and that Municipality’s Health Funds will only offer health services that are not already available through the GHS. Union organisations think that the Government is changing their collective agreements without their consent, and that they had agreed different terms a few months ago with the PoR, than the ones that the Ministry is implementing currently.