Daily Press Review - 29/8/2019

Wealth Management services coming soon

Phileleftheros focus on the fact that Matsis said that HB aims to achieve a low double-digit Return On Equity percentage in the mid-term. Both Matsis said that the possibility that the bank will likely sell another NPLs package. Sources report that procedures on this matter are quite advanced, but the Bank was waiting for the appointment of the Board that will take the final decisions. Kramer stressed the high liquidity of the bank, noting that it costs them an annual €16m, adding that they are currently proceeding with the adoption of negative interest rates. As it comes to increasing the bank’s profits, the CEO of the Organisation explained that the Bank’s development policy is not limited to granting loans. For example, Matsis said that the Bank aims to offer alternative choices to our clients, so that they can invest in specialised investments services, i.e. wealth management services.



Pelendri HB branch to close down

The community of Pelendri as well as nearby villages are very upset after Hellenic Bank announced it will close down the branch that made a huge contribution to the establishment of the Co-op institution in Cyprus. As Haravgi reported, the community leader of Pelendri, Nicos Patsiaouros, said that even though the Council and other organisations have tried to push for the non-closure of the Pelendri branch and even though Hellenic Bank had told the community that they are looking into the community’s demand, the bank announced that the branch will close on 6 September. “Without being previously informed about this decision, one fine morning we saw a sign outside the building which announced the closure of the bank”, said the community leader. The article reports that the community is afraid about the fate of the Co-op buildings in their community, as they think that they may be sold off. AKEL’s MP Andros Kafkalias said that they will call on the government and the Bank to not proceed with their decision and in the case where the outcome isn’t positive, they will organise mobilisations in coordination with the community itself.



Still no dividends

Politis’ author argues that the fact that Cypriot banks, even though they are profitable, haven’t distributed any dividends, demonstrates that the Cypriot banking system still has a long way to go in order to achieve normalcy. Asked about the potential for dividend distribution, the Bank’s CFO, Lars Kramer, has said that there are supervisory restrictions in 2018. The distribution of dividends is depended on the reduction of NPLs.







Looking into preferential treatment

Politis reports that the Audit Office has had all the necessary information on the NPLs of politically exposed persons that remained at KEDIPES following the closure of the Co-op, for a month now. Last Tuesday, the Audit Office gained access to data about PEP loans that were transferred to Hellenic Bank, after a second ruling by the Attorney-General. Speaking to Politis, the Auditor-General said that these data concern thousands of PEPs and personal loans by state officials, MPs as well as community council members. The Audit Office of the Republic has to examine all this information in an effective and substantive manner, he explained. He added that they asked information about the loans that were transferred (as performing loans) to Hellenic Bank, in order to examine if there werer any preferential debt restructurings and/or write-offs. When the investigation is completed and depending on the findings, they will further decide who to turn to for further actions, he said.



RCB: “BB-/B” with stable outlook

S&P Global Ratings has published its annual report on RCB Bank, confirming its “BB-/B” long- and short-term counterparty credit ratings with stable outlook. RCB continues to hold the highest rating level amongst Cypriot banks. RCB Bank’s strengths, such as strong capitalization, good asset quality, as well as good profitability through the cycle are amongst S&P’s major rating factors.  The agency views the steady growth of domestic business in loans and deposits, much better credit and earnings performance, compared to domestic peers and management team as positive factors for the business stability of RCB. S&P considers RCB Bank's corporate governance to be adequate, and internal anti-money laundering control system to be sound. This is another confirmation of the Bank’s strong and stable position in Cyprus



White cheese is not illegal

A meeting was held at the Presidential Palace yesterday, chaired by President Nicos Anastasiades, to discuss the various issues affecting the halloumi sector. The meeting, which took place after the cabinet met in the morning, was attended by the ministers of agriculture and commerce, and the respective presidents of the employers and industrialists’ federation (OEV) and the chamber of commerce and industry (CCCI). The only statement was made by CCCI president Christodoulos Angastiniotis who said the issues discussed related to the marketing of halloumi. Cyprus has been battling on two fronts to protect halloumi: in the UK, where it lost the trademark because of blunder by civil servants; and in the EU where its collective community mark is being challenged. A source from the Commerce Ministry told Politis that the white cheese that is being sold on the market – and which farming organisations have protested as a “familiarisation of the Cypriot halloumi recipe” – is not illegal, as it is not being brandished as halloumi. The same source said that it was decided yesterday that controls would be stepped up, both in the exportation and importation of halloumi. Meanwhile, according to information obtained by Politis, a large quantity of halloumi that was meant to be exported is currently at Limassol port, after being blocked for not meeting the criterion for the shape halloumi must have during the relevant controls. Sources tell the paper that it is quite common for exported halloumi not to meet the shape and size requirements, at a percentage of almost 40% of total exports.





Barrage of Turkish military exercises in Kastellorizo and the Eastern Mediterranean

Ankara has committed large areas in the Eastern Mediterranean and the Aegean to carry out military exercises, issuing a series of NAVTEX notices. According to a report by liberalgr, Turkey is continuing with its barrage of provocative activities as part of its well-known military exercise “agenda” in Cyprus and Kastellorizo, wishing to keep tension levels high in the Eastern Mediterranean. Specifically, it issued a series of NAVTEX notices, to carry out exercises on 29 and 31 August in a large marine area between Rhodes and Kastellorizo, which reaches all the way to the border of Kastellorizo’s territorial waters. Phileleftheros reports that this is Turkey’s way of reiterating its longstanding claim that Kastellorizo as well as all the Greek islands do not have any other rights over maritime zones, beyond their territorial waters. In another NAVTEX, Turkey has committed an area north-west of Paphos for exercises on 29 August, covering the area where the Fatih is carrying out its illegal drilling activities, while a further two NAVTEX have been issued to commit an area south of Limassol for almost the whole of September. Turkey had acted in the same provocative way back in April, when it issued a series of NOTAM and NAVTEX to carry out military exercises around Cyprus.



Images from the ANKA drone that is protecting the “Fatih”  

Turkish Aerospace Industries (TUSAS) has published four new images of the “Fatih” drillship, which is currently drilling in the Cypriot EEZ. The new images were taken by the Turkish unmanned aerial vehicle ANKA, which has been hovering over the “Fatih” and recording its every move. The ANKA is being used to protect the drillship. According to a post by TUSAS, “Our ANKA is monitoring and observing the mission by ‘Fatih’, which has been carrying out drilling activities in the Mediterranean since May 2019”.



From words to action – Traps and provocations that are “made in Turkey”

It was July the 16^th, just a few hours after the European Foreign Ministers announced their decision to sanction Turkey, that Turkish FM Mevlut Cavusoglu decided to announce the dispatchment of the “Oruc Reis” to the Eastern Mediterranean. With his rushed announcement, Cavusoglu wanted on the one hand to prove that his country could not care less about EU decisions, and on the other, state his government’s determination to proceed with its drilling and exploration programme, which was designed in cooperation with the Turkish petroleum company. Very little has changed since, the website reports; the “Fatih” continues its drilling activities off the coast of Paphos unhindered, the “Yavuz” began drilling east of Karpasia and the Barbaros research vessel continue to scan the seabed south of Limassol and Larnaca. And these will be joined in a few days by the “Oruc Reis” research vessel, which is to assist the “Barbaros”. It has not yet been made known where exactly the “Oruc Reis” will end up; however, reports have said that it is heading to an area south of Cyprus, within its EEZ. It is noted that no NAVTEX has been issued for the research vessel. The website comments that the secrecy surrounding Turkey’s next moves in the Eastern Mediterranean “chessboard” is cause for concern, as if the Recep Tayyip Erdogan government continues drilling and finds a hydrocarbon deposit, this will mean that it won’t be long before a Turkish rig is set up off the shores of Cyprus. What should be considered a certainty is that whatever Turkey says and announces, it turns it into action.





Dental care 1 September and onwards

Yesterday, the Council of Ministers approved the Health Minister’s proposal in order to continue providing dental care to beneficiaries in Okypy’s hospitals and health centres after 1 September. According to the relevant announcement, the practices in force until now will continue in the same way, meaning that patients who may benefit from dental care services, can receive their oral medicine by paying the existing fees, from Okypy’s pharmacies which will remain in operation. On 1 June 2020, when the GHS’ dental care is implemented, prescriptions of GHS dentists may be carried out in any GHS-registered pharmacy. Also, state dentists will continue to refer patients directly to lab tests at Okypy’s labs, without a referral from their GP. Their fees will also remain the same. Alithia also reports that after 1 September 2019, patients interested will have to contact a centre via telephone in order to arrange an appointment prior to visiting any state dental clinic.



Doctors fought in front of patients

An unprecedented incident occurred at Paphos Hospital when two doctors had a fist fight in front of dozens of patients. The physical fight started following one of the doctor’s comments about a young nurse. The wild fight included fists, kicks, cursing before any of their colleagues managed to stop them. Both doctors decided not to take the matter to the police, however, the Ministry of Health will investigate this incident due to its large negative publicity, damaging the sector’s image.