Daily Press Review - 3/10/2019

ETYK ready to fight

JCC’s general staff meeting recently approved the bank employees’ union (ETYK) for strike action. As ETYK said in an announcement today, with a secret vote (92.4%) ETYK’s leadership was authorised to take up strike measures, in the case that the company does not comply with its contract obligations. According to the union, the company has refused to grant the annual incremental pay rise and ATA of the employees from 1/1/2019. The likelihood of measures in the near future is rather removed, without being ruled out since ETYK’s attention for the time being has turned to the voluntary retirement scheme that will be put forward by Bank of Cyprus.



Defendants had testified as defence witnesses

The attorney, Christos Triantafyllides mapped the Legal Service’s confusion in relation to three BoC cases. He was heard as a witness of the preliminary ruling that was raised by the defendants. Triantafyllides was the lawyer of the defendants in all three cases and his clients were acquitted. Broadly speaking, he referred to the information that the Legal Service had in its disposal since 2013, for the reclassification of the Greek bonds, the centre of all three cases as well as the defendants that were used as defence witnesses in the first two cases, which collapsed. Christos Triantafyllides was the attorney of Andreas Eliades and Andreas Artemis, while he also defended Yiannis Pechlivanides in the first case and Giorgos Georgiades in the second case. It should be noted that the defendants of the third case were A. Eliades and G. Kypris, who were acquitted because the Legal Service was found to have abused the court process. Christis Chadjimitsis, Nicolas Karydas, Christodoulos Patsalides, Eliza Aivadiotou and Despina Kyriacou are still in the charge sheet.



State raised €350m through private placement

The Ministry of Finance raised €350m from the issuance of 15-year and 30-year bonds through private placement. The issuance took place in the framework of the 15-year bond (expiring in 2034) and the 30-year bond (expiring in 2049) and offered investors, the bonds of these specific series. €100m was raised from the bonds expiring 2034 (0.98%) and €250m, expiring in 2049 (with a 1.536% interest rate). As it was announced last Friday, the government’s aim was to raise a maximum sum of €400m. The sum that was raised will cover part of the financing needs of the state for 2020, which took place through different alternative choices, including potential private placements through the reopening of the bonds, expiring in 2034.





Second pillar of pension system boosted

The establishment of a new Independent Authority for Insurance and Pensions, as well as the increase of tax deductions on the payment of insurance contributions, strengthen the second pillar of the pension system. The Cabinet approved the mini structural reform on the pension system, which over time aims to broaden the role of professional pensions, whether these come from professional funds or provident funds, complementing the main pension entitlement of the Social Insurance Fund. By unifying the supervision of the insurance market and the provident funds, the new authority aims to enhance confidence in the second pillar, while the increase of the tax deduction provides an incentive for participation in an additional retirement plan, a professional fund or a personal savings-insurance programme for the private sector.



Changes in leasing legislation, tougher penalties

Phileleftheros reports that the Council of Ministers has decided to amend the law on leasing. The amending legislation aims to tackle the problems emerging from the current framework in relation to the delivery of a movable asset, which is a leased object as well as the better implementation of the basic law.



Two porters guilty of scam – They pocketed €367,000

Limassol District Court found two members of the Licensed Porters Association at Limassol port guilty of a scam against the association, for embezzling large sums from its own funds. According to the court ruling, between 2008 and December 2012, the two porters embezzled €367,000 by submitting invoices to the association’s accounting department, for supposed repairs that were made to cars belonging to the association, which in reality never took place. The scam was revealed when the association’s five-member council spotted some unusual invoices for the purchase of spare parts and machines, and ordered independent auditors to carry out a detailed examination of its accounting books. According to the auditors’ findings, the financial and commercial transactions of the association were carried out without any elementary control, which in turn was exploited by a number of people. For example, a spare part worth €500 was charged as €3,000, while the tyres of the same car were changed dozens of times in the space of one year. In another instance, association members altered invoices for the purchase of machinery, eventually invoicing them at a much higher price. Following the advice of the attorney general, the association reported the case to the police, and it was investigated by Limassol CID’s financial crime unit. The association’s cashier and accountant were cleared of all charges, as there was not enough evidence to prove they were aware of the overpricing. The two will be handed down their sentences on 15 October.



Andreas Vyras to announce three-year results on 16 October

Larnaca Mayor Andreas Vyras and the town’s municipal council are scheduled to announce an account of the work of the three years since the beginning of their term on October 16. Among the issues that are expected to be analysed are the details of the consultation between the government and final bidders for the joint development of Larnaca port and marina, which is in its final stages.





Turkey’s threats for “7” included in official document to UN

A statement that was made by spokesperson of the Turkish Ministry of the Foreign Affairs, Hami Aksoy, on 19 September, expressing Ankara’s objection to the signing of the contracts between the Republic of Cyprus and energy companies Eni and TOTAL for exploitation of block 7 of the island’s Exclusive Economic Zone (EEZ), was handed out to the UN General Assembly yesterday (October 2) by Turkey as an official document. Aksoy had said that part of block 7 belongs to Turkey’s continental shelf, “which was declared to the United Nations”, while he reiterated that Cyprus delimited its EEZ without taking the Turkish Cypriots’ legal rights into account. He said that by doing so and totally disregarding Turkey’s warnings, “the Greek Cypriot administration of ‘southern Cyprus’ fails to understand our determination on this issue”. The request for the statement to circulate as an official document at the UNGA was submitted on 21 September by Turkey’s permanent representative to the UN, Feridun Hadi. Askoy’s statement also warned the energy companies active in the region to not carry out any hydrocarbon explorations in the Turkish shelf, on the basis of invalid licences issued by the “G/C administration of ‘southern Cyprus’”.



Yavuz back in the Cyprus EEZ

Turkish drillship Yavuz appears to be heading towards the Fatih drillship, which is operating off the shore of Paphos, according to the website Marine Traffic. The site reminds how Turkish Energy Minister Fatih Donmez had announced a few days ago that the Yavuz would start drilling again in a new area. After completing its first drilling off the shore of Karpas, the Yavuz had returned to Mersin port to await instructions for its next drilling operation.



Annual 2.1% increase in arrivals of travellers in July, 3.7% for the first seven months

Arrivals of travellers to Cyprus reached 733,116 in July, compared with 717,833 in July 2018, recording a 2.1% increase according to the Statistical Service. The increase was down to a rise in tourist arrivals by 2.1% and the return of Cypriot residents (1.1%). In January-July 2019, arrivals of travellers reached 3,185,587, compared with 3,072,109 in the same period of 2018, marking a 3.7% increase. The return of Cypriot residents recorded an 11.9% increase. As for the departures of travellers, there was a 1.5% year-on-year increase in July, as well as a 3.8% y-o-y increase for the January-July period.



The situation with pharmaceuticals is a mess

The HIO and pharmaceutical suppliers expect that by the end of October – beginning of November any remaining drug shortages will be completely solved. However, suppliers are complaining about the delay in product evaluation by the relevant advisory committee. The HIO denies these claims, saying that out of 300 medicines subject to evaluation, only 25 are pending, and refers to the necessary procedures. Meanwhile, the HIO, MoH and Okypy have found themselves in a race against time to ensure the necessary quantity of flu vaccines, so as to cover the needs of vulnerable groups on time. Yesterday, stakeholders attended a conference and decisions were taken in order to deal with the “crisis” created following information that the suppliers would not be able to deliver sufficient quantities of flu vaccines before mid-November. 10,000 vaccines are expected to be imported in Cyprus within the next 2 weeks, while efforts are being made to give permission to import 50,000 vaccines from Romania without Greek labelling. Influenza vaccines will be offered to beneficiaries through the GHS, and their total number will surpass last year’s deliveries by some tens of thousands.



135,000 Cypriots suffer from rheumatic diseases

In Cyprus, there are 100,000 people who suffer from some form of rheumatic disease and an additional 35,000 citizens suffer from inflammatory rheumatic disease. In fact, experts even speak of an epidemic, given the fact that osteoarthritis belongs to the category of rheumatic and musculoskeletal diseases. In the European Union, 25% of the population are facing rheumatic and musculoskeletal diseases. These conditions are the most common cause of absence from work as they are responsible for the 50% of long-term functional disability. As a result, not only are people with disabilities burdened, but so are their families and employers, and by extension society itself and the state’s finances. Yesterday, the Council of Ministers in Cyprus approved the revised national strategy for tackling rheumatic and musculoskeletal diseases 2019-2024. One of its basic aims is to manage these in a timely fashion, to the benefit of both the patients and the state.



Pasyki – Okypy continue negotiating

Negotiations between Pasyki – Okypy are moving forward at an intense pace, as they try to tackle the problem of staff shortages in state hospitals, and more specifically in A&E departments. Yesterday, the two sides exchanged a few suggestions, but the head of Pasyki Mr. Soteris Koumas noted that the doctors’ union submitted specific suggestions in the past, some of which were applicable but never implemented; however, it is now too late. Mr. Koumas stated that Pasyki is ready to assist, clarifying however that doctors won’t assume any additional responsibilities other than those they are obligated to have. Commenting on some of the suggestions discussed so far, Mr. Koumas said that the doctors’ day off must be off-limits. “Doctors have made it clear that they refuse to work on their day off. They have a right to rest, and doctors must be well rested both physically and mentally so as to avoid making mistakes”. Politis reports that Pasyki had warned that multiple doctors would resign from hospitals, and Pasyki stressed that today we are counting more than 40 resignations.



The regulation for direct trade with the occupied areas under the microscope

The regulation for direct trade with the occupied areas is expected to be tabled at the meeting of EU heads of government at the European Parliament. At the start of each new parliamentary term, the leaders of political groups discuss any pending issues in each political committee. The matter of direct trade with the occupied areas will be discussed in this framework. DISY called all Cypriot parties, to also apply pressure so that the matter is not reopened. They argue that the matter must be removed from the EP’s agenda as it clashes with EU Law and sends the wrong message.