Daily Press Review - 7/10/2019

Both in writing and orally

24h writes that the banks are constantly trying to find ways to milk their customers for more and more. Marinos Pavlou, a reader had the following experience with Hellenic Bank: “I asked them for an account statement for the parents’ association of the school I am the cashier at. The account was a Co-op account and doesn’t have access to internet banking. I was charged €3 for each month. The current month is free. As such, the association i.e. the parents, paid €33 in order to print out an A4 black and white paper.



ETYK calls strike at Hellenic bank

Bank employees’ union ETYK has called a 24-hour strike at Hellenic Bank for next Friday, accusing the company of reneging on prior commitments made to staff. In a statement, the union said the bank is refusing to pay employees automatic wage increases as well as Cost of Living Allowance, despite being advised to do so by the labour minister. ETYK also said the company is unfairly treating former employees of the Cyprus Cooperative Bank, absorbed into Hellenic last year. It said the co-op staff who were transferred to Hellenic have not been placed in their former pay grades, as promised by Hellenic when the merger took place. The union added it had no choice but to call a 24-hour ‘warning strike’ at Hellenic. “We hope that even at the last moment Hellenic’s management will change their stance, that they will honour their contractual obligations and display respect toward labour institutions and its own staff, thus avoiding needless and damaging friction,” the statement concluded.



Only 104 applications were submitted to ESTIA

One and more months since Estia was implemented, only 1% of applications by eligible borrowers have been forwarded to the Ministry of Labour. According to Phileleftheros’ sources, out of the 10 thousand borrowers that are eligible for the Scheme, only 104 applications are fully complete and have been submitted by the banks and credit acquisition companies, to the special taskforce of the Ministry of Labour, which manages the Scheme. Before sending their customers’ applications to the ministry, the banks examined the credibility of the borrowers, while they also proceeded to restructure the red loans. An authorised source told the paper that since the beginning of Estia’s implementation, only around 350 applications were submitted, corresponding to 3.5% of eligible borrowers. The 142 applications were submitted to Bank of Cyprus, with only 25 being fully complete. Another 78 applications were submitted to the Cyprus Asset Management Company (KEDIPES), while another 1.050 borrowers have received applications to join the Scheme. It should be noted that out of the 350 applications that were submitted, 250 are not fully complete, since they are missing certain documents and certificates. The limited interest is something that concerns the Government and the banks quite a lot. This coming Monday, the matter will be tabled at the House Finance Committee once again. Anyhow, the banking circles argue that the small number of applications is a result of the many documents that the interested parties have to submit. Another factor delaying the process are the property valuations. As the newspaper has learned, the borrowers as well as the banks have contacted valuators in order to proceed with valuations. Due to the high workload, the valuators are postponing valuations for the next few weeks, and as a result the whole process is delayed. In the meantime, the banks have contacted all potentially eligible borrowers, calling them to apply. However, some of them refuse to apply because they are hesitant to declare their revenues and assets.



KEDIPES-Altamira to go on 24-hour strike on 14 October

The unions PEO and SEK announced yesterday a 24-hour warning strike at KEDIPES and Altamira for Monday, 14 October. In joint announcement, the two unions point out that they have positively responded to a proposal tabled by the Board of KEDIPES as it comes to drafting a new Single Collective Agreement. It also reports that they requested that the agreement is immediately signed and implemented at least for the members of the two unions and the staff that desired to be included in this. However, KEDIPES’ board has not yet responded to this. It also mentions that the two sides had scheduled a meeting for 2 October but this did not take place because of KEDIPES’ board. The unions argue that there is no more time for further dialogue. “If there are no positive developments in the following 10 days, according to the Code of Industrial Relations, we will hold a 24-hour strike on Monday, 14 October and depending on the developments, the strike actions will intensify”, the unions say in the announcement. It is noted that if there is a positive response by KEDIPES’ board, the measures will be cancelled.



Borrower wasn’t allowed to save his property

A property owner filed a report with the police in Larnaca, claiming that the auction process was manipulated so that his property (valued at €1.430.000) would end up in the hands of a specific bidder. The owner said that on the day of the auction, he was prevented from entering KEDIPES and fully repaying the loan. The owner had concentrated all the money needed for the auction not to proceed (€686.000), but he wasn’t allowed to save his property.



All the money went through Cyprus

Another two cases of serious political scandals with bribes involve Cypriot banks. In one of the cases, in Bulgaria, the Justice system of the country prohibited a Russian high-ranking member of a Russian organisation to enter the country and is now interrogating a member of the pro-Russian party of Bulgaria for funds he received through his account at a Cypriot bank, in order to promote Russian interests in Bulgaria. In the second case, the Romanian authorities have already begun legal proceedings against the former House President of their country for bribes he received through his bank account in Cyprus.



Record number of foreclosures in October

The majority of auctions will be held in Paphos region, while the most expensive properties will be auctioned off in Limassol. The properties under foreclosure, include 33 houses, as well as 30 apartments, and half of them are located in Paphos. More properties than ever will be auctioned off over the course of October, with the total value of the properties exceeding €100m. According to an investigation by Brief, drew took data from the official website of the Ministry of Interior, over the course of October, 262 auctions relating to 371 properties have been scheduled, with a total value of €103.302.228. The biggest number of scheduled foreclosures will take place in Paphos (77), and the smallest number in Famagusta (17), while the majority of properties will be foreclosed in Nicosia (110) and the fewer properties will also be foreclosed in Famagusta (18).



PwC posts net revenue of €81m for 2019

PwC Cyprus presented its financial results for 2019, during the Annual Meeting of the organisation, which was held on Friday, 27 September in Limassol. The organisation’s revenue for the fiscal year that ended in June 2019 amounted to €81m, while its total contribution to government revenues over the same period, amounted to €28,3m.   More than 170 senior executives from PwC Cyprus and PwC’s international network took part in the Annual Meeting, where they analysed and presented developments in the various fields of activity of the organisation. PwC Cyprus’ CEO, Mr Evgenios Evgeniou gave an address, while the Deputy Minister of Shipping, Mrs Natasa Pilides attended the meeting and presented the latest developments in the shipping sector as well as the strategy of the Deputy Ministry of Shipping, which aims to develop a competitive, high-quality national shipping register. Mr. Ioannis Matsis, Chief Executive Officer of Hellenic Bank and Pavlos Christoforou, Partner and Co-Founder of Point Nine also attended the PwC conference and spoke to attendees about their experiences, the challenges they face in their respective fields of activity and their future plans as it comes to the strategy and future of the organizations they lead.



BoC to cut staff by 800 by 2021

Kathimerini Economy reports that Bank of Cyprus had been preparing for a Voluntary Retirement Scheme since 2018, and reports that another VRS is on the way (by 2021), bringing the total number of departures to 400.  The initial plan was to announce the first VRS on Friday 4 September. However, after Hourican announced his departure from the bank and due to the procedures for Helix, the VRS scheme came in the third place of the bank’s priorities. The high-ranking officials of the bank were discussing the possibility to provide a VRS for 800 people and not 400. This makes sense as BoC has 105 branches, employing 4.155 employees, without accounting for the external consultants of the bank. This number includes the 108 people connected to Project Helix, who have been transferred to Gordian, the company that purchased the Project Helix loans. For example, Hellenic Bank is currently employing 2.600 people in 120 branches. As such, accordingly, the Bank of Cyprus must reduce its personnel, in the coming one and a half years, in order to cut its costs. The cost-to-income ratio of the bank stands at 56%, according to the latest results of the bank. The bank can reduce this ratio in two ways: increasing profits, or reducing expenses. However, it is very difficult for the bank to increase its income due to the low interest rate environment. It should be noted that the total expenses of the BoC for the first semester of 2019 amounted to €208m, €54m of which were connected to personnel costs. Therefore, the bank’s disposable income amounts to €112m. The scheme announced by Bank of Cyprus gives a maximum compensation of up to €200K to 400 people, and resulted from a negotiation with the bank employees’ union (ETYK), which took about a year. In the case where 800 employees were called to depart at once, the Bank would have to pay a huge sum for the VRS. At Hellenic Bank for example, 200 people departed with its latest VRS. The cost of this VRS amounted to €35m and the terms were similar to BoC’s scheme. If the bank needs about €70m for the 400 employees who will depart in the coming months, then it would need around €140-150m for 800 departures; something that would definitely burden their balance sheet. This is the most important reason why BoC didn’t proceed with including all 800 people in the Scheme.



The exodus of bank employees

The biggest outflow of bank employees from the labour market has been taking place since 2013, due to the reduction of operational costs and the digital transformation of the banks. This is the banks’ second biggest challenge, after the reduction of NPLs. Mobile banking and internet banking, have rendered the banks’ extensive branch networks obsolete as more and more customers carry out their transactions through digital channels. The technological developments have drastically changed the operational model of the banks. According to ECB data, 3.910 Cypriot bank employees left their jobs between from 2012 and 2018. The closure of Laiki Bank in 2013 and the Co-op in 2018 played a major role in this development. In addition, 486 branches were shut down within 6 years and as a result, the clients are now served by a smaller network. The Bank of Cyprus proceeded to three Voluntary Retirement Schemes from 2013 to today. On Friday, the bank announced its four scheme, which aims to cut staff by 400 people. The Bank set the maximum sum of ex gratia compensation at €200 thousand, same as the 2016 scheme. It seems that most of the time, banks set the maximum compensation at €200K. This was the case at Hellenic Bank’s latest VRS, as well as at Alpha Bank and the former Co-op. The average compensation for the early retirement of the Bank of Cyprus, which was completed in June 2016, stood to €160K. The average compensation for Alpha Bank’s 2016 VRS scheme, amounted to €126.9K. The article goes on to say that at the presentation of Hellenic Bank’s results for 2019, the bank’s CEO, Ioannis Matsis, ruled out the possibility that the Bank will proceed with a new voluntary retirement scheme in the foreseeable future.



The ‘core group’ of unemployment

Politis reports that young people, the long-term unemployed and women are facing difficulties in accessing the Cypriot labour market, according to CYSTAT data. Despite a further drop in unemployment in the second quarter of 2016 (6.5% from 7.3%), there are high unemployment rates in these three categories. Despite the huge number of graduates in different sectors, and the training that these employees (and even students) receive, unemployment in Cyprus has a “core”. In this article, two economists, the Economic Research Manager of Bank of Cyprus, Ioannis Tirkides and the head economist of Hellenic Bank, Andreas Ashiotis explain this phenomenon. “Under normal circumstances, unemployment doesn’t affect the youth more, while most of the long-term unemployed are unemployed because of limited skills and a skills mismatch. As it comes to unemployment in women, the biggest rate mainly concerns quality characteristics”, Tirkides said. Ashiotis observes that there are higher unemployment rates in people with limited skills. “As the first Cyprus Competitiveness Report mentions, there is a high skills mismatch and overqualified employees, when compared to the needs of the market”, he mentions.



Bank employees, you have a package

Politis’ author reports on the major developments of the past week in the financial world: the announcement of a voluntary departure scheme at the Bank of Cyprus and the 24-hour strike at Hellenic Bank. Both of these developments were related to the operational costs of the banks. This is the next chapter that the banks will have to deal with, after they tackle their NPL problem. The author argues that it is now high time that they clarified their intentions. The BoC’s move to offer a quite generous compensation package to its employees, puts an end to the uncertainty that occupied the organisation’s employees over the past months. Politis’ author argues that reduction of the number of employees that will leave the Bank to 400 and the €200K-compensation, has appeased the organisation’s employees and has improved the image of the bank itself. However, we should wait and see how the employees will reply by 18 October, when the deadline expires for the fourth consecutive VRS. While things are calm at Bank of Cyprus, the announcement of a 24-hour strike at Hellenic Bank on 11 October, has worsened the management-employee relationship.



Overcome your fears

Hellenic Bank presented Paralympian Antonis Tsapatakis in a special awareness speech entitled, “Let’s frighten our fears with out dreams”, at a special event in Annabelle in Paphos. In full room, the Paralympian Antonis Tsapatakis, spoke with a simple and accessible way on how he managed to find the strength to surpass his limitations. He mentioned his accident and made everyone emotional when he said that he never forgave himself for the pain he caused his mother that day, while he explained how much sports helped him stand back on his feet and discover his hidden power.



900 children went to school with joy and optimism

More than 900 children from vulnerable families secured the necessary school supplies before the start of the new school year, through the campaign of the Pancyprian Volunteerism Coordinative Council (PVCC), “School supplies for all children”. The campaign was organised by the PVCC for the fifth year in a row, in cooperation with the Volunteering Council in all regions. The PVCC extends its warm regards to all citizens, civil society organisations, companies and everyone who welcomed the campaign this year, offering school supplies for all the children from vulnerable families around Cyprus. The PVCC especially thanks the supporters of the campaign who played a decisive part in the success of the campaign, Universal Life, Vassiliko Cement Works, Hellenic Bank, Zorpas bakeries, Community Policing and Lithographica.

 

Golden Hat Awards 2019

Hellenic Bank presents the Golden Hat Awards, while the subsidiary of the Greek METRO AEBE in Cyprus is the Main Sponsor of the “Best Value for professionals” award. The “Top Notch Restaurants” award is sponsored by the Top Quality construction company in Cyprus, Quality Group and Mercedes Cyprus. The Golden Hat Awards are sponsored by: Movenpick ice-creams and Nespresso coffee, the waters “S. Pellegrino” and “Acqua Panna” ,”Zabartas” and “Lazarides” wines - Vassos Eliades Ltd. The beers, Esterlla, Estrella Damm Inedit, KEO Ltd, Whiskey Macallan ACM, Christophides Ltd. The company Blue Island Pic Fish farming trading of fresh fish. The champagne Ruinart La Maison du Vin. The Golden Hats of Cyprus are held under the auspices of the Deputy Ministry of Cyprus.



Abusive clauses still in the drawers

Three years after the issuance of six administrative decisions against 4 banks (Bank of Cyprus, Alpha Bank Cyprus, Hellenic Bank, Co-op and Société Générale Bank-Cyprus) by the Consumer Protection Service of the Ministry of Commerce and Industry, which indicate that their contracts include abusive clauses, the matter remains pending and the relevant files remain in the drawers of the Legal Service. Justifiably, the state’s delay has caused discomfort among the affected borrowers and other organised bodies, which support that the delay boosts the leading position of the credit institutions.



One salary to cover their children’s studies

Parents have to pay one salary per month to cover the costs of their children’s studies, in universities of Cyprus and abroad. In some European and other countries, the cost of living for students as well as tuition fees are very high, and as a result, their parents are racing in order to cover the students’ expenses. The average cost of their studies in universities abroad as well as Cyprus including, tuition fees as well as living expenses exceeds €20 thousand, while excluding tuition fees parents are called to pay €8.500-13.000 per year. This means that parents have to pay over €80K for their children’s undergraduate studies. On the other hand, the cost at universities without tuition fees, stands at €34-52 thousand.



The salaries of the state’s “golden boys”

A little before submitting the 2020 budget to the House and the basic principles that must be implemented, it will be interesting to see how some senior officials are paid. The information of the Treasury from 2019, show who are the most highly paid state officials. On the top of the salary scale one will find the Attorney-General, the assistant Attorney-General, the president and the judge of the Supreme Court. Each of the aforementioned officials, receive gross salaries of €108.839, while their net salaries amount to €156,179 per year. Their net monthly salaries amount to €8.460, while their gross salaries stand at €11.771. The President of the Republic receives a net salary of €90,257 per year, while his gross salary with subsidies (8 months) stands at €123,296. The House President receives €74,4414 and a gross salary of €131,090. The net monthly salary before tax amounts to €9578 before tax and €5,804 after tax.



Passports and start-ups

The recent review of the Cyprus Investment Programme, i.e. the investor citizenship programme in return for a €2m-ivestment includes a provision according to which any interested investors can invest in a start-up. However, it seems that not all parameters were taken into account and this attempt was rendered difficult in practice. The clause essentially concerns a €75K sum that instead of being directly paid to the Research and Innovation Foundation of Cyprus, it will be invested directly to an investment, which is included in the MoF list with approved innovative businesses. Today, there are 31 such businesses which are businesses either at a more advanced development stage, but searching for the necessary funds to implement their future business plan. Such a business is the well-known Engino company, which makes smart games. The innovative business catalogue first started being created in 2017, when the government approved the concession of tax incentives to natural persons who invest in innovative businesses. The tax exemption concerns an risk finance investment in an innovative small or medium-sized company and can cover a wide range of investment types, own funds, loans, leasing, guarantees etc. The tax exemption cannot exceed the 50% of the taxable income of the natural person per year and cannot exceed the €150K per year. As previously mentioned, the list includes 31 companies from various sectors. It should be noted that many companies were certified over 2019 (19 in total). This could potentially be an indication that more and more companies are interested in being included in the scheme that could bring necessary fresh capital to their company. The innovative companies are active in a wide range of services, including software development, healthcare, biotechnologies, game development and the development of an aluminum press.



Estia and foreclosures

Discussions at the House Finance Committee about Estia and the government’s plans for the creation of a scheme for the people that are not eligible for Estia, as well as the consistent borrowers will continue tomorrow morning. Moreover, discussions will continue as it comes to the intentions of the government and the Central Bank to tackle the issues relating to foreclosures. The committee is applying pressure and is searching for answers.



Week of strike action in banking sector

ETYK is intensifying strike action this week, as it estimates that specific managements haven’t been adhering to the agreements. Specifically, there will be a two-hour strike at JCC on 10 October, between 13:00-15:00 as a first strike measure. ETYK called on the company to comply with the agreements. “Our organisation in the last 9 months showed excessive patience and tolerance and gave room to the employer side to comply with its contractual and legal obligations, so that labour peace and calm is kept within the company” ETYK’s circular reports. At the same time, ETYK announced a 24-hour strike at Hellenic Bank on 11 October, highlighting that the bank keeps violating the contracts. “Without a doubt we have given Hellenic Bank all the time they needed to complete the integration of the Co-op’s business as well as to keep its contractual obligations, ending outright violations of contracts as well as a dismissive attitude towards its personnel”, ETYK says in a circular. SEK and PEO have also announced a 24-hour strike at KEDIPES and Altamira, for Monday 24 October, if there are no positive developments within the next 10 days. Depending on the developments, the measures will intensify, the announcement reports. “If we sign the contract proposed by them by Friday, then all strike measures will be revoked”, the announcement says.



Ernst & Young LLP (EY US) and SailPoint Technologies Holdings, Inc enter strategic alliance agreement 

Ernst & Young LLP (EY US) and SailPoint Technologies Holdings, Inc., a leader in enterprise identity governance, announced they have entered into a strategic alliance agreement to help organizations transform how they manage the growing number of digital identities in the workplace. EY US and SailPoint will help their common clients implement on-premise, hosted, and cloud-based identity governance more efficiently, focused on both business and technology requirements while driving decreased cost, risk reduction and an increased focus on return on investment (ROI). There are plans to expand the alliance to additional EY member firms outside the US. EY US will leverage its ability to scale across organizations and regions, as well as provide cyber managed service capabilities, while SailPoint will provide its identity governance platform, designed to be deployed in the cloud or on-premise. EY US and SailPoint will address digital identity needs for large organizations across a wide range of industries, such as financial services, healthcare, life sciences, energy, consumer products, auto, media, and government and public services sectors.

 

Wealthy Brits take their money outside the UK

Wealthy British citizens have been depositing their money to Swiss banks as well as the traditional tax havens of Luxembourg and Monaco, as they are trying to protect themselves from the repercussions of a no-deal Brexit. At the same time, some of the richest British citizens, even though they were publicly supporting Brexit, are now transferring their riches and businesses outside the UK, usually in country with low taxation. Among these Brexiters is James Dyson who transferred his company to Singapore a few months ago and Jim Radcliff, founder and CEO of Ineos, a petrochemicals company is planning to transfer it to Cote D’Azur. While companies have been discretely leaving the country since summer 2016 after the Brexit referendum, Swiss bankers who spoke to Reuters anonymously said that this outflow of companies has accelerated in the past weeks.

 

Paphos full of fake banknotes

Paphos police sounded the alarm over the past three days, after realising that a large number of fake foreign banknotes were being used by at least two persons. In the first case, Police arrested a 28-year-old foreign man who purchased valuable objects paying in dollar bills, that were later found to be fake. After investigating the case, it emerged that a second foreign man, aged 32, had circulated a large quantity of Roubles that were also found to be fake. Police found more than $4.000 in the 28-year-old’s possession. The suspect was detained and is being interrogated. As it comes to the 32-year-old, Police sources report that he had at least 165 thousand Roubles in his possession. An arrest warrant was issued against him and he’s now wanted.



EU28 current account records €40.9 b surplus in Q2, €-0.2b deficit in Cyprus

The EU28 seasonally adjusted current account of the balance of payments recorded a surplus of €40.9 billion (1.0% of GDP) in the second quarter of 2019, down from a surplus of €47.4 billion (1.2% of GDP) in the first quarter of 2019 and from a surplus of €67.6 billion (1.7% of GDP) in the second quarter of 2018, according to estimates released by Eurostat, the statistical office of the European Union. In the second quarter of 2019 compared with the first quarter of 2019, based on seasonally adjusted data, the surplus of the goods account increased (+€32.4 b compared to +€16.6 b), while the surpluses of the services account (+€25.7 b compared to +€47.3 b) and the primary income account (+€3.5 b compared to +€5.4 b) both fell. The deficit of the secondary income account decreased (-€20.7 b compared to -€21.8 b). The deficit of the capital account grew (-€19.1 b compared to -€9.2 b). In the second quarter of 2019, based on non-seasonally adjusted data, the EU28 recorded external current account surpluses with the USA (+€40.5 b), Switzerland (+€21.5 b), Hong Kong, Canada (both+€8.3 b), Brazil (+€8.1 b) and India (+€0.2 b). Deficits were registered with offshore financial centres (-€33.0 b), China (-€20.1 b), Russia (-€5.8 b) and Japan (-€2.4 b). Based on non-seasonally adjusted data, direct investment assets of the EU28 decreased in the second quarter of 2019 by €56.7 b, while direct investment liabilities increased by €113.2 b. As a result, the EU28 was a net recipient of direct investment in the second quarter of 2019 by €169.9 b. Portfolio investment recorded a net inflow of €20.6 b while for other investment there was a net outflow of €190.2 b. For Cyprus the current account and trade in services balances stood at €-0.2 billion in the second quarter of 2019, down form  €-0.6 billion in the first quarter and up from  €-0.1 billion in the second quarter of 2018. The trade of services balance was €1.4 billion up from €0.5 billion in the first quarter at same level as in the second quarter of 2018 ( €1.4 billion). Meanwhile the household saving rate in the euro area was 13.3% in the second quarter of 2019, compared with 13.0% in the first quarter of 2019. The household investment rate in the euro area was 9.0% in the second quarter of 2019, compared with 9.2% the previous quarter.



A Turk in… Paris  

In an article about the energy crisis in block 7 of Cyprus’ EEZ, with the arrival of the Turkish Yavuz drillship for hydrocarbon explorations, it mentions among other that Nicosia had pinned its hopes on the EU to impose targeted sanctions on Ankara in the event of new violations. However, if the European Commission seeks to enter discussions with Turkey to achieve a new agreement about the major issue of migration flows, it seems unlikely that it will start imposing sanctions. On the other hand, there is a question mark over whether Total and in extent France have the will and ability to reverse Turkish president Recep Tayyip Erdogan’s plans in the region. France-Turkey relations are currently not at their best. On the contrary, they are quite tense, mainly due to Turkey’s abusive stance regarding the migration issue, while they also disagree on the Libya and Syria issues. The article adds that the lack of will by the rest of the EU countries to convince the other European countries to adopt a harsh stance against Ankara has pushed Nicosia to seek regional alliances with Gulf countries, which are not that friendly with Turkey. The increasing interest shown by Saudi Arabia in Cyprus is due to a combination of geopolitical dimensions: natural gas, investment, tourism and maritime safety. Furthermore, Cyprus is the south-eastern gate to the EU and a viable channel of communication with the European institutions. This tactic by Nicosia has not gone unnoticed, with a recent study by the Italian Institute of International and Political Studies entitled “Why the Gulf Monarchies Have Laid Eyes on Cyprus” referring to the leading role Saudi Arabia plays in the Gulf-Cyprus relations. “In terms of Gulf-Cyprus relations, a leading role played by Saudi Arabia can obviously make the difference. However, as often occurs, the United Arab Emirates (UAE), not the kingdom, opened the Gulf monarchies’ recent route to the eastern Mediterranean island, in the framework of their maritime-oriented foreign policy. In 2016 DP World was awarded a twenty-five-year concession to operate the multipurpose terminal of Limassol; a new 7000 sq.m. passenger terminal was inaugurated in 2018 to turn Limassol’s port into a cruise hub, and new high tech devices (like a mobile harbour crane) were recently introduced to speed up logistical operations,” the study said. It added, “This year saw intensified diplomatic relations between the Gulf monarchies and Cyprus. In June 2019 the Emirati Minister for Foreign Affairs and International Cooperation, Shaykh Abdullah bin Zayed Al Nahyan, travelled to Nicosia to consolidate bilateral relations: the UAE had opened an embassy in 2016. The Cypriot minister for foreign affairs was in Muscat, Oman, in February 2019: that visit was the occasion for signing a Memorandum of Understanding in higher education and science, which included the mutual recognition of degrees and initiatives to foster student exchanges. Construction is another sector of shared interest between Oman and Cyprus, with many Cypriot companies having contributed to building Oman’s infrastructures. In November 2018 the Deputy Prime Minister and Foreign Affairs Minister of Kuwait, Shaykh Sabah Khaled Al Hamad Al Sabah, met with his Cypriot counterpart in Kuwait City: several memoranda for bilateral cooperation were signed, together with an air service agreement. In April 2019, Qatar celebrated the fifth anniversary of Qatar Airways’ direct services to Cyprus (which currently provides twelve direct flights per week from Larnaca to Doha), with an event in Nicosia also attended by the ambassadors of Kuwait and Oman, plus representatives of the business community.”



Giant cruise ships in Cypriot waters

Cruises are a trend that has been gaining momentum over recent years, both among Cypriot as well as foreign travellers. Having all services gathered in one space, along with the bargain prices and packages, have placed cruises high on travellers’ wish lists. As part of its plans to upgrade the multiple use terminal at Limassol port, operator DP World Limassol invested in new equipment and updated the new passenger terminal. According to the company’s General Manager, Limassol port is a key driver of growth and DPW Limassol contributes substantively to its upgrade, in extent having a positive impact on the country’s economy and creating multiple benefits for the local community. Meanwhile, there have been some positive messages regarding cruise tourism, which is on an upward trend that is expected to continue into 2020. From the moment DPW Limassol took over the terminal’s management, it has served more than 180,000 passengers who arrived at the port. By the end of July 2019, DPW Limassol served over 30 cruise ships, while 93 arrivals are expected by the end of the year; which will mean a 35% increase compared to 2018, when there were 68 cruise ship arrivals. Meanwhile, two duty-free shops are expected to open at the terminal soon, while the site reminds that DPW Limassol received the Silver Award for the “Strategy & Innovation” category in the division of “Strategic Investment / Cooperation / Development / Modernization of Infrastructure” at the Cyprus Tourism Awards 2019, and the “Most Efficient Cruise Terminal” award at the maiden MedCruise Awards.

 

We are heading in the wrong direction with the ports

Phileleftheros interviews the President of the Cyprus Shipping Association, Panayiotis Christodoulou, who appears very critical of the problems currently facing Limassol port, the development of Larnaca port and the delays in creating the energy port at Vasilikos. He also says that the Association has established new services for its members, which have to do with their full insurance coverage, the loading and unloading of their ships, the servicing of passengers at Limassol port and other relevant services.  Christodoulou says that there is a lack of equipment, means and properly qualified staff at the ports, while he added that the privatisation of Limassol port has not achieved the required goals. He also expresses concern over the way the privatisation of Larnaca port is being handled, as well as the future of its commercial activities. Christodoulou says that while the Association is not against privatisations, it is against the mistakes that are made in these procedures and which could have serious negative consequences. The paper asks whether he believes Cyprus’ port infrastructure is satisfactory, or whether it limits the association’s members’ business activities. Christodoulou said the port infrastructure at Limassol port could be considered satisfactory, except for the energy and transit trade sections. “if our adequate port infrastructure is not combined with the provision of adequate and necessary services – that is equipment, means and staff with the necessary qualifications and training – it cannot perform to the desired extent,” he said. Christodoulou said the Cypriot ports were lacking the aforementioned, except for when it came to container management. The paper says it heard many complaints and protests by the Association’s members after Limassol port’s privatisation, and asks whether these problems did not exist prior to the privatisation. Christodoulou said there were certainly problems prior to the privatisation, which mainly concerned the Cyprus Ports Authority’s staff and its services. Asked whether he believes the privatisation of Limassol port has achieved its goals, Christodoulou said: “Without hesitation, our answer is negative. Because prior to the privatisation all of the port’s users and ship management companies were fully aware of their port fees. The ships, mainly those that transport general cargo, used to be served more efficiently and without delays or distortions. Today, unfortunately, following the privatisation, the cost on general cargo and the energy sector is unknown and nobody is aware of the port costs in advance, with all the unfavourable consequences this brings. Furthermore, the cost of offshore services for ships has increased excessively, while the servicing of ships with general cargo is not adequate.” He says this is why the Association was fighting with all its power to regulate the tariffs of the ports’ operators, as this was what good administration, strong foreign competition and ensuring the proper service for Cypriot traders demands.



Limassol: Year-round destination  

The need to relax is becoming all the more imperative as we reach the winter. Having waved the summer goodbye, any opportunities to escape routine and everyday life must be grasped. A good option is the island’s second largest town, Limassol. Limassol is a town for everyone; beautiful, cosmopolitan and bustline, offering walks by the port, cafes, concerts and theatre. One hotel that stands out is The Royal Apollonia by Louis Hotels.



Record number of foreclosures in October

There will be a record number of auctions in October. The majority of auctions will be held in Paphos region, while the most expensive properties will be auctioned off in Limassol. The properties under foreclosure, include 33 houses, as well as 30 apartments, and half of them are located in Paphos. More properties than ever will be auctioned off over the course of October, with the total value of the properties exceeding €100m. According to an investigation by Brief, drew took data from the official website of the Ministry of Interior, over the course of October, 262 auctions relating to 371 properties have been scheduled, with a total value of €103.302.228. The biggest number of scheduled foreclosures will take place in Paphos (77), and the smallest number in Famagusta (17), while the majority of properties will be foreclosed in Nicosia (110) and the fewer properties will also be foreclosed in Famagusta (18). 24H notes that the most expensive auction has been scheduled to take place on 16 October, in the Tsiflikoudia area of Limassol, near the Limassol port, which is an area that has been developed significantly over recent years. The auction will be for two plots of land, 1,390m² and 1,670m², with a package price of €25m.







Eurogate invests in its human resources

Limassol port’s container terminal filled with colour and children’s smiles on 22 September. Operator Eurogate Container Terminal Limassol Ltd welcomed its employees and their families, offering them the opportunity to spend a day filled with fun and activities. The aim of the event was for the employees’ families to become acquainted with their family member’s workplace, while the theme of the various activities was “Save the Sea”.



Storm at port police

Police officer Elias Savvas has asked for the immediate transfer of the Chief of the Port & Marine Police, Nicos Sophocleous, claiming that the latter attacked him last Monday due to his failure to withdraw an appeal to the Administrative Court to have Sophocleous transferred. Savvas’ lawyer said in a letter that was sent among other to the Police Chief and Justice Minister that his client could not continue to work in the same environment as the accused, after the latter’s threatening and almost violent behaviour.



Mobilisation for direct trade with the occupied areas

The issue of direct trade with the occupied areas will be discussed during the meeting of the Bureau of the European Parliament in Brussels next Thursday. Most of the political groups (Socialists, Liberals, Greens and Conservatives) support the T/Cs’ position, and if the situation remains the same, the developments will be negative for the Greek Cypriot side, Alithia reports. In an attempt to keep the issue as is (unchanged since 2004), or to put an end to it, the leader of ruling Disy, Averof Neofytou, will visit Brussels to attend the discussions. Speaking to Alithia, Disy’s MEP Lefteris Christoforou stated that “an effort is being made to prevent any negative developments”, highlighting that Disy is in full mobilisation, in collaboration with the European People’s Party (EPP), for this goal. Mr. Christoforou also added that if neither the Socialists nor the Liberals change their position, then things will be very difficult.



Developments in Larnaca

The investor interested in the joint development of Larnaca port and marina visited the Transport Ministry last week and presented the consortium’s final proposal. The negotiation continues, while a second meeting has been scheduled over the next few days, for the investor to provide clarifications on questions that were raised during the presentation.



Energean Power FPSO coming to life

The hull of Energean Oil and Gas’ Energean Power FPSO has been undocked and floated out from the COSCO Shipyards’ dock in Zhoushan, China, about 10 months after first steel cut. Once completed, the FPSO will be deployed at Energean’s Karish and Tanin fields offshore Israel, the international oil and gas exploration and production company said. According to Energean, the build was completed ahead of schedule and with no loss time incidents in about 3 million working man hours. TechnipFMC is managing the project. The Energean Power FPSO hull will remain at the Shipyards’ berth for additional construction works, and its sailaway to Sembcorp Marine’s Admiralty Yard in Singapore for the integration of the topsides is planned later in 4Q. The Karish Development project remains on track and on budget to deliver first gas in 1Q 2021.



Paralimni marina: Significant commercial growth

Paralimni marina is expected to significantly boost financial activity in the free Famagusta area. Through its year-round operation, the marina is expected to help fight seasonality, and create around 250 new and permanent jobs.



Meeting with Pilides

The Board of the Cyprus Shipping Chamber met with the Deputy Minister of Shipping, Natasa Pilides, on 30 September, as part of a series of meetings to exchange views and suggestions to jointly handle matters concerning the Cypriot shipping industry. The two sides discussed current issues facing the industry, in terms of policy, labour and operational matters, as well as further enhancing the cooperation between the deputy ministry and chamber.



Cypriot air

Kathimerini Economy comments on the appointment of the President of the Cyprus Shipping Chamber, Philippos Philis, as the Vice President of the European Community Shipowners’ Association, saying that this is the first time a Cypriot has taken the helm of European shipping and that this is a landmark for Cypriot shipping. Besides, it adds, Cyprus has the third biggest fleet in Europe and 11^th worldwide.



Still counting their losses

The president of the Famagusta hotels association, Doros Takkos told Politis that the tourism industry of the region has been greatly affected by the collapse of Thomas Cook. Firstly, they lost a lot of money - payments by Thomas Cook to hotels, tourist apartments, transport companies, car rentals etc. Moreover, Takkas explained that there is a huge gap in terms of bookings in hotels from 23 September to the start of November. He also expressed his worry about the gap that will be create in view of the upcoming tourist season in 2020. As he explained, there is a “hole” as it comes to bookings, with the region’s hoteliers trying to find alternative solutions from other markets. “Unfortunately, Thomas Cook’s competitors haven’t decided to increase their routes to and from Cyprus. They have been silent as of today.”, he said. He stressed that the tourist expo in London will produce safer results. The only positive aspect of this situation is the fact that the Scandinavian subsidiary of Thomas Cook is still in operation, transferring a large number of Scandinavian visitors to the region.

 

Airline bankruptcies have left huge gaps

The closure of Cobalt and Germania as well as the collapse of Thomas Cook and the suspension of the flight schedule of TUS Air, greatly upset the tourist landscape of Cyprus. Meanwhile, another problem has emerged. Cyprus Airways is suing the republic due to the state’s decision to end its compensation scheme for Cypriot companies due to the Turkish embargo. MoF sources report that the rationale was based on being fair to Cobalt and Cyprus Airways, since the Cabinet had already denied Cobalt’s demand. The same sources report that the denial of a compensation, was due to the fact that Cobalt was on the verge of bankruptcy and such an investment would be futile. Cyprus’ connectivity is not secured by the operation of a Cypriot carrier, but by the existence of many companies, the Minister of Transport comments. Hermes Airports at the same time believes that despite problems, the environment of the air transport sector is positive.



Cyprus Casinos: how much players spent and earned

Article featured in the framework of the Responsible Gaming Awareness Week. A total €210m was spent at the Limassol, Nicosia and Larnaca satellite casinos as of last March, according to the chairman of the Cyprus Gaming and Casino Supervision Commission. €175m of the money that was spent, was returned to the players as profits. It should be noted that the Limassol casino was launched in June 2017, while the satellite casino in Nicosia was opened on 10 December 2018. On 14 December, the Larnaca satellite casino opened in the Larnaca airport. Informing the House Institutions Committee last March, the chairman of the Gaming and Casino Supervision Commission said that 80% of the casino visitors are Cypriots, 4% are Greek and 11% come from other countries. As of last March, the casinos welcomed 460.000-470.000 visitors and €210m was gamed. Profits from gaming amounts to €35.300.000, of which 15% is received by the Authority on behalf of the state. As of last January, the state received €5.5m in taxes on the profits of the casino and €4m from licensing fees. Answering MPs’ questions, Mavrelis said that Nicosia has a disproportionately higher stake in gambling without this being reflected in the amount spent at the casino of Nicosia. Referring to the problems that arose, the chairman of the National Gaming and Casino Supervision Commission said that there were limited cases where people tried to trick the casino and have been banned from entering. He also said that the casinos have 420 cameras, monitoring the gaming tables. “Every move is being monitored”, he underlined and gave the example of the croupier who was arrested. Commenting on the MPs’ observations that the casinos have not attracted tourists, Mr Mavrelis said that there an additional 300.000 tourists will be coming to Cyprus every year, after the casino-resort opens. Referring to the special Fund that aims to tackle and prevent addiction, to which 3% of the casino fees go, Mavrelis said that the Authority recommends that people become aware of the dangers of addiction. He therefore noted that the addiction to gambling is not caused by the casino, but other types of gambling, which are accessible to all. He also underlined to the House Committee, that the casino has banned certain people from entering the casino, as their visits proved damaging for their families. He also mentioned that if someone plays over €2000 in 12 hours, their income must be checked and when this amount rises to €10.000, then the checks become even stricter.



Infographic: All the events and activities of the Responsible Gaming Awareness Week

Plenty of events and actions will take place around Cyprus during the Responsible Awareness Gaming Week, which begins today and will be completed on the 13th of October, aiming to raise awareness and mobilise society about promoting responsible gaming. The actions and events in the context of the week, started since last Weekend, when the footballers from the first and second league, entered the football fields with a banner, wearing shirts with messages about responsible gaming. Today, the 2nd Responsible Gaming Awareness conference is being held from 9am-14:30am at Filoxenia Conference Centre, while the programme for the entire Week includes presentations, educational seminars, interactive workshops and games etc. addressed to people of all ages. The attached infographic includes a schedule with all the events that will take place during the Responsible Gaming Awareness Week.



Educational seminar: Responsibility and its return on investment in the gambling industry

The National Betting Authority and the National Gaming and Casino Supervision Commission of Cyprus are organising the educational seminar “Responsibility and its return on investment in the gambling industry”, on Tuesday 8 October between 9am-13pm, at The Landmark Nicosia, in the context of the Responsible Gaming Awareness Week 2019. The educational seminar is addressed to licensed providers of gaming services. The seminar will explain how a responsible stance as it comes to advertising and marketing can be key for the viable development of companies involved in gaming. The Speaker of the event will be Arno Nagelschmied.



Sports Betting as part of Cypriots’ betting activities

According to the findings of a report prepared by IMR/University of Nicosia in March 2017, sports betting is very popular among Cypriot players. The report found that people believe that they can profit from sports betting, while they also believe that it’s a game connected with fun, entertainment and company. It is also considered as a game where the player’s knowledge increases his chances, i.e. it is not only based on luck, while sports betting makes the game, they’re watching even more interesting.



A casino in Kritou Terra from 1870

More and more visitors of Paphos are discovering that a casino used to operate in Kritou Tera in 1870. Phileleftheros learned that there has been an increase of visitors to the area in the past months, mainly due to the current operation of the casinos in Cyprus. This is why the local Authority and relevant organisations are looking into ways to further promote the community, using the old casino as a vehicle. The local actors believe that the growth of tourist flows, due to the publication of this innovative move is a move that will balance out any other negative factors affecting the community today. When the first casino of Cyprus was still in operation in Kritou Terra, it attracted international visitors such as the Farouk of Egypt.



80% of the population is registered to the GHS

During the 5^th Annual Public Health Day, a lot of interesting data was presented for 2018. Some of which includes; state expenditures for the health sector in Cyprus were the lowest compared to other European countries, 80% of the population is now registered with the GHS, life expectancy in Cyprus is 82 years of age, and there’s been a marked increase in lung cancer and dementia in Cyprus over the last 15 years.

 

A&E departments are weakened

Yesterday, Okypy admitted that the A&E departments are weakened, and due to the staff shortages, they are unable to assist the thousands of patients that visit the A&E. In an attempt to tackle this issue, Okypy asked patients who don’t have urgent health problems to address their GP, in order to avoid long waiting lines and inconveniences. “A&E doctors were instructed to only assist patients in truly emergency situations” Okypy highlighted. Lately it’s been observed that this trend has been aggravated by the fact that many citizens cannot make an appointment with their GP in a short time, so they found this alternative as a solution, but in turn they contribute to the larger issue at the A&E departments.



Racing for the completion by 15 November

The last deadline given to the contractor for the expansion of the Larnaca General Hospital, will expire in a month and a half, and the new wing of the hospital is expected to be delivered. Work is in its final stages, but based on the construction’s present image, it’s doubtful whether the company will be able to complete the necessary work in 6 weeks from today. As it is widely known, the project followed a scandalous course and it’s already three years beyond its schedule.



Akel worries about state hospitals

Akel’s Eleni Mavrou in a written statement, following the recent mess at the A&E Paphos, expressed concern over the problems and complaints raised about state hospitals. She said “the GHS’ philosophy is based on high-quality state hospitals. The fact that its main pillar – and it’s not the only one – is suffering, intensifies our concerns over the upgrading and restructuring procedures in the public health sector.” She continues to question the short-term and long-term actions taken by the Government and Okypy towards the resolution of the issue. The CyMA also expressed concern over state hospitals, stating that the actions – or the lack of – by Okypy and the MoH only worsen these problems, which have adverse consequences on patients and doctors.



Stroke was in fact aggressive cancer

Relatives of an 80-year-old patient made serious complaints against hospitals in Paphos and Limassol about providing a wrong diagnosis and subsequent healthcare. According to the relatives, since last July the elderly man underwent multiple expensive treatments for a cerebrovascular accident (CVA – also known as stroke), after he received such a diagnosis from Paphos hospital. After the lengthy, expensive treatments failed to improve the patient’s health, his relatives transferred him to a specialised doctor in Nicosia, where they discovered that he suffered from brain cancer at an already advanced stage, and had to undergo surgery. Additional complaints include negligence and unwillingness to help the patient after he displayed aggressive behaviour from both hospitals.



New heated tobacco products benefit the heart

New research provides hope for groups with increased cardiovascular risk, as this latest data investigates the effects of the new heated tobacco products, such as IQOS. Researchers investigated the effects of heated tobacco products by looking at specialised markers of cardiac function, as well as biomarkers of oxidative stress and thrombosis. The results of the study were presented at the Paris Cardiology Conference in August 2019, “our study showed that conventional smoking causes a significantly higher arterial stiffness and reduces the oxidative stress compared to the new tobacco products. At the 1-month evaluation, we observed a significant improvement in all the markers of cardiac function, and we concluded that transitioning from conventional smoking to heated tobacco products results in a smaller arterial and cardiac damage”, the researchers stated.



Mobilisation for direct trade with the occupied areas

The issue of direct trade with the occupied areas will be discussed during the meeting of the Bureau of the European Parliament in Brussels next Thursday. Most of the political groups (Socialists, Liberals, Greens and Conservatives) support the T/Cs’ position, and if the situation remains the same, the developments will be negative for the Greek Cypriot side, Alithia reports. In an attempt to keep the issue as is (unchanged since 2004), or to put an end to it, the leader of ruling Disy, Averof Neofytou, will visit Brussels to attend the discussions. Speaking to Alithia, Disy’s MEP Lefteris Christoforou stated that “an effort is being made to prevent any negative developments”, highlighting that Disy is in full mobilisation, in collaboration with the European People’s Party (EPP), for this goal. Mr. Christoforou also added that if neither the Socialists nor the Liberals change their position, then things will be very difficult.