Daily Press Review - 5/11/2019

Hellenic Bank presents E2K19

Hellenic Bank in cooperation with Antenna present the E2K19, the biggest ESPORTS event that has ever taken place in Cyprus, on Saturday 30 November and Sunday 1 December. It is a two-day competition for video game lovers. With three arenas, four games and prizes over €8,000 the Royal Hall in Nicosia which hosts the event is expected to be full.



Ernst & Young Cyprus new auditor for Hellenic Bank

Ernst & Young Cyprus Ltd was appointed by the Boards of Hellenic Bank and its subsidiaries as their new audit firm. The position was held by KPMG, but according to the EU regulation which was also transposed to Cypriot legislation, external auditors must be changed every 9 months. Hellenic Bank collaborated with KPMG for over 10 years and now passes on the torch to Ernst & Young Cyprus Ltd. As it was announced, Hellenic Bank recently conducted a bidding process in order to appoint new external auditors for FY2021. This process was carried out under the supervision of the Control Committee of the Board of the Company as well as the Control Committees of the BoDs of its subsidiaries (Pancyprian Insurance Limited and Hellenic Alico Life Insurance Company Limited). Following the completion of the bidding process, the Boards of Hellenic Bank and each one of its subsidiaries approved the suggestion to appoint Ernst & Young Cyprus Ltd as External Auditors of the Company and its subsidiaries for FY 2021. This decision is contingent on the approval of the regulatory authorities, the company’s shareholders as well as the shareholders of the subsidiaries.



KEDIPES sold properties worth €195.8m

The Cyprus Asset Management Company (KEDIPES) gained €529K by selling 1,039 properties. Most of the properties were acquired by KEDIPES in debt-to-asset swaps of the borrowers of the former Co-op in the framework of debt restructuring. The 1,039 properties were valued at €195.8m, while their accounting value amounted to €195.3m. The sale of the specific properties took place between 2016 and the first semester of the year. Following the Co-op’s deal with Hellenic Bank, the Co-op’s red loans were transferred to KEDIPSE which sells these assets through Altamira.



€5.9m gap in the valuations of former Co-op properties by KEDIPES and Hellenic

The valuations by KEDIPES and Hellenic Bank of the properties of the former Co-op included in the acquisition deal have a €5.9m difference. Despite the fact that the two sides split the difference in order to reach an agreement, a new difference of €626,6K subsequently emerged, which seems to be due to KEDIPES’ incorrect calculation of the plot ratio of a specific property. According to a KEDIPES memo, which was submitted to the House, Hellenic Bank exercised its right to purchase 12 properties of the former Co-op. However, during negotiations, KEDIPES valued the properties’ worth at €46.36m, while Hellenic made a valuation of €40.44m for the same properties. As such, a €5.29m gap emerged, which corresponds to 14.6%. According to the memo, the two sides decided to back down and reached an agreement on the valuation (€43.17m). Moreover, it was agreed that €300K was subtracted from the above amount, as they would go towards the final approval. As such, they ended up agreeing on a €42.87m valuation. However, Hellenic Bank proceeded to an audit concerning the technical specifications of each property, which resulted in a new difference amounting to €626,6K. It should be noted that the Land Registry Department’s valuation of the 12 properties stands at €40.47m. As such, it is closer to Hellenic Bank’s valuation (€40.44m) but is still far from KEDIPES’ valuation of €46.36m.



New charges coming for BoC customers

Bank of Cyprus is increasing its charges for specific transactions as of 13 January 2020, in an effort to harmonise its operations with the international developments in e-banking. Already, the banks one after the other, are implementing increased commission charges aiming to push their clients away from the tills, by imposing disincentives such as charges. Bank of Cyprus customers will be informed with letters on the changed fees, while the new catalogue of commissions and charges has already been posted on the bank’s website. Natural persons will now be charged €40 for the issuance of a chequebook (compared to €25 before) and the issuance of special presentation cheques will now cost €40, compared to €20 previously. The fee of paying bills over the counter and through JCC Smart is increased to €5 compared to €2 for each account valid today. Payment though IBank is free. Moreover, the fee of cash withdrawals over the counter will also increase. Today the charge stands at 1% with minimum €0.05 and maximum €2. The charge will become 1% minimum €0.50 and maximum €5. For cash withdrawals over €15,000, the charge will be 1% with maximum €50. The current catalogue doesn’t include the charge. The fee for the maintenance of a current account will also increase as will the Prepayment to cover any loss of key of the safe deposit box. The charges for Mastercard Classic, MasterCard Gold, Mastercard Platinum will also increase.



ESTIA scheme has failed also at HFC

The Director-General of the House Finance Corporation, Andreas Georgiou informed the House Finance Committee about the changes that are being promoted at the organisation, which aim to make it completely independent from KEDIPES. With regards to ESTIA, Georgiou said that the Corporation have received 26 applications up until now, while it anticipated 700-800 applications. He said that the ESTIA scheme has failed. At the same time, he informed the MPs that the corporation is promoting technology and the installation of new systems and that upon their completion, the corporation will be completely freed from KEDIPES. Responding to MP questions, he said that the new systems will have an annual maintenance cost of €800,000 compared with €400,000 without accounting for its installation cost. The corporation has proceeded to make arrangements for its payment systems, while it has acquired a new BIC code. Georgious added that these changes will result in more products in order to eliminate additional costs.



Pending fines before Competition Protection Committee amount to €82.14

The Commission for the Protection of Competition imposed fines amounting to €95.29m over the past few years, but only €13.15m were paid, according to information submitted yesterday to the House. Fines amounting to €82.14m, which were imposed from 2012 until August 2019 for potential cartels and other irregularities remain unpaid and many of them will probably never be paid back, as the cases are still in legal proceedings.



Malaysian made out €300,000 cheque to the Church along with the citizenship

Politis publishes the €300,000 cheque issued by the Malaysian wanted fugitive, Jho Low to the Cyprus Church on 22 September 2015. Coincidentally, this was the date that the Malaysian’s passport was also issued, following an intervention by the Archbishop to the former Minister of Interior, Socrates Hasikos. The former Minister, in a Facebook post, said that it is a lie that the Malaysian was granted a passport because of the Archbishop’s involvement and supports that the legal procedures were followed. On his part, the Archbishop said that he intervened in three cases for the benefit of Cyprus and revealed that the villa that Jho Low had purchased, was built on land that the Church sold to a businessman. When the cheque was made out to the Church, the Bank of Cyprus contacted the Unit for Combating Money Laundering (MOKAS) and blocked the Malaysian’s accounts. MOKAS conducted an investigation and informed the Ministry of Interior, but no further action was taken to withdraw his naturalisation.



KEDIPES cooperated with valuation agencies for 14,000 properties

Altamira cooperates with 55 valuation agencies. Altamira has been assigned to sell KEDIPES’ properties. According to the relevant data that was given to the House, KEDIPES has appointed 55 valuators for the valuation of 14,179 properties. By analysing the data, it seems that three agencies have conducted the majority of property valuations (2,439). Specifically, one of the agencies conducted 856 valuations (6.04% of the total valuations that were conducted on behalf of Altamira). Another agency conducted 832 valuations (or 5.87% of the total number of valuations). The third agency conducted 751 valuations (5.3% of the total valuations). At the same time, the six other valuation agencies have conducted 3-3.5% of the total valuations that have been conducted over the past years. The remaining valuation agencies cooperating with Altamira do not exceed 3.5% of the total.



Transport Ministry found a problem at Limassol port

The Transport Ministry states that it is ready to resolve the problems that have arisen at Limassol port, with the noise and air pollution. The matter was raised in a letter by Zakaki residents, which was copied to the Environment Committee, Municipality of Limassol, Limassol Police Headquarters, Green Party, Interior Ministry and Labour Inspection Department. A meeting was held on 14 October at the offices of the Cyprus Ports Authority, with the participation of representatives from the Transport Ministry, Environmental and Labour Inspection Departments, the Road Transport Department, Public Works Department, Port Police, Limassol Municipality, POVEK, the port’s private operators and a group of representatives of the affected residents. The conclusion of the meeting was that there was a noise issue and it was decided that the container terminal operator would prepare and send an environmental impact study to the Ports Authority, which would lay out the measures that need to be taken. According to the Ministry, a new meeting will then be hold with all involved parties, to discuss the matter and take the necessary measures.



Environmental study into noise pollution

The operator of the container terminal at Limassol port has taken on the responsibility of carrying out an environmental impact study with the primary objective of coming up with measures to reduce noise pollution, following an intervention by Transport Minister Vasiliki Anastasiadou. After receiving a letter by a group of residents complaining about how the noise pollution is affecting their quality of life, as well as actions by Green Party MP George Perdikis, the minister invited the port’s container terminal operator and Cyprus Ports Authority to a meeting in order to conclude on measures that need to be taken. The residents complained that there are no appropriate measures in place to limit the noise pollution, which is an issue on a 24-hour basis. They said that even if an environmental impact study was carried out, it did not measure the exact intensity of the noise, nor its proximity to the residential zone. There is also the problem of air pollution which is a serious health risk, and the residents want the environmental study to measure its extent both within as well as around the port. Anastasiadou informed Perdikis in a letter that the problems faced by the residents have been discussed with the operator and CPA. During the meeting, it was confirmed that there is a problem and it was decided that Eurogate will commission an environmental impact study, which will propose measures to resolve the problem. The study will be sent to the CPA, as the regulatory authority, to oversee the procedures to implement and control the measures.



A further four-month delay for Larnaca port and marina

The Transport, Communications and Works Ministry needs at least another four months to complete the assessment of the bid that was submitted for the joint development of Larnaca port and marina, and decide whether to assign the project to the candidate bidder. This was the conclusion of a meeting that was held yesterday between a delegation from main opposition AKEL and Minister Vasiliki Anastasiadou, during which the matter – that has been ongoing for three years now – was discussed. The final bid by the Kition Ocean Holdings consortium was submitted back in July; however, three months later, the ministry informed AKEL delegates that at least four more months are needed for there to be a conclusion. The ministry blamed mainly the Law Office for the delay, which is responsible for preparing legal opinions on the concession contracts and the inclusion of safety clauses to protect public interest. The ministry said this procedure was expected to last another month, and from there on, the ministry needed another three months to negotiate with the consortium and conclude on whether it will grant the concession. Kition Ocean Holdings announced on 26 July that it submitted its final proposal to the Transport Ministry, which provides for an upgrade and extension of Larnaca port, so that it can provide services for entertainment cruises, transit trade and energy. It noted that in the first stage, it intended to modernise the existing facilities so current port users can continue to carry out their business if they so wish. As for the marina, the proposal includes an extension to increase its capacity to facilitate 650 boats, of 5 up to 150 metres long. The new marina will also include large onshore developments, such as entertainment areas, green areas, parks, commercial areas and hotels, luxury mansions and a unique educational and medical centre that will be able to host students studying hotel management, medicine and marine studies.



Checkpoints closing to third country nationals

There will be no more free movement of third country nationals through the island’s checkpoints, in a move that is aimed at controlling the situation and reducing migration flows from these countries. Interior Minister Constantinos Petrides is expected to present the Cabinet tomorrow with a proposal, which changes the implementation code of the Green Line Regulation in a way that will ban entry of third country nationals who arrive on the island through illegal ports or airports to the government-controlled areas. Petrides told Phileleftheros that each month, hundreds if not thousands of third country nationals arrive in the free areas through the occupied areas, and because they secure a Schengen visa they can pass through without any controls. This, he said, was a new route being used by migrants, who are taking advantage of a Green Line practice that did not exist previously.



Turkey: Five new drillings in Eastern Mediterranean in 2020

Daily Phileleftheros reports that according to the "Turkish Presidency Annual Strategic Plan for the Year 2020", signed by Recep Tayyip Erdogan and published in the Government Gazette dated November 3, 2019, Turkey will conduct five new oil and gas drillings in the eastern Mediterranean in 2020. According to the plan, Turkey’s drillings in 2020 will be conducted by the state-owned oil company (TRAO) in areas of the eastern Mediterranean that include marine plots around the Turkish occupied areas of Cyprus, illegally authorized by the pseudo-state, Turkish Republic of Northern Cyprus (TRNC). By 2020, state investment for the energy sector is expected to amount to 13 billion 864 million Turkish pounds, with the energy sector becoming the second largest in investments following the transportation sector.



No change to drilling schedule  

Cyprus’ Energy Minister Yiorgos Lakkotrypis yesterday refuted reports claiming that Italian-French consortium Eni-TOTAL is planning on giving up on block 7 of the Cyprus EEZ and opting for another that is outside of Turkey’s energy scope, due to the latter’s aggressive behaviour. In statements to Alithia newspaper, Lakkotrypis pointed out that the relevant licence was granted to the consortium just a month and a half ago, and therefore it will be another one-and-a-half to three years before drilling begins. He told the paper that there was never any intention by Eni and TOTAL to begin drilling in block 7 straight away, and therefore there has been on change of plans brought on by Turkey’s aggressive behaviour. According to the minister, once a block is licensed it can take anywhere between a year and a half to three years for drilling to begin. Many other drilling activities are set to begin in 2020 in other blocks, he pointed out. He added that right from the start, there were querulous whispers that they would not allow us to license, carry out drillings or exploit our hydrocarbons; yet slowly but surely, despite all the difficulties, we are proceeding with our plans. Asked to comment on the reports yesterday, Foreign Minister Nicos Christodoulides said that the plans to drill in block 7 were never an immediate priority for the companies involved, as they only received licensing for the specific block recently. He was addressing the House Finance Committee during a presentation of his ministry’s budget for 2020, and responding to MPs’ questions. As for trilateral cooperation agreements, Christodoulides said that with these, “we protect our EEZ politically and legally”, adding that there was no matter of militarising the situation on behalf of Cyprus or with the help of third parties. The reports in question had claimed that escalating tension caused by Turkey was causing concern to Eni-TOTAL, whose heads were thinking of focusing on other blocks instead. The report also invoked statements made by Eni CEO Claudio Descalzi two months ago that “if someone shows up with warships, I will not be drilling”.



Date in London

Cyprus is participating in the World Travel Market expo in London, which started yesterday and will wrap tomorrow, with almost 50 exhibitors from the island. Representatives from hotels, resorts, tour operators and regional tourism boards have set up their own stands in the Cypriot kiosk and are providing information to tourism stakeholders from around the world, who are interested in Cyprus’ tourism product. A delegation of the Deputy Ministry of Tourism, led by deputy minister Savvas Perdios, is also in the British capital, holding a series of contacts with tour operators and UK airline executives. Once the expo wraps, Perdios is expected to provide a report on how his contacts went and what the prospects are for Cyprus tourism in the coming year. In a press release ahead of the visit, the deputy ministry said: “The deputy ministry’s aim, with its participation, is to promote Cyprus as a quality and multidimensional tourism destination, to gather important information on matters pertaining to promotion and competition, but also to strengthen relations with tourism stakeholders abroad, in order to attract increased flows of visitors to our island.” Besides his meetings, Perdios is also scheduled to give interviews to media from Israel, China, Germany and the UK, where he is expected to promote Cyprus’ comparative advantages.



Opportunity with the Chinese

The increase of direct flights between China and Greece, now that the latter will be connected with Beijing as well as Shanghai as of next summer, could be a good opportunity for Cyprus too, in terms of attracting Chinese tourists to the island, Politis comments. Particularly in view of the Deputy Ministry of Tourism’s efforts to promote synergies and collaborations with neighbouring countries. For the time being, however, all eyes are on the World Travel Market in London, and the messages this is going to give for the coming tourism season. These messages are eagerly anticipated, as they are expected to show the extent of the damage Thomas Cook’s collapse has had on local tourism.

 

Hara Τhea Garden Residences: A unique project with a view of Limassol

Combining comfort, modern aesthetic and luxury has always been a requirement for the Harakis real estate company, and this is exactly the recipe it is following with its new project Hara Thea Garden Residences, which is being constructed in one of the most prime locations in Limassol. The apartment complex is in a central location of the Panthea area and provides easy access to the Limassol town centre, while it is also close to schools and various services. The project is in advanced stages of construction and will be completed within 2020. It comprises 19 one-, two- and three-bedroom, spacious apartments, with smart home automation systems, structured cabling and USB charging ports, among other things.

 

Medicines worth €2.2m in state storages

The medicines’ stock waiting to be transferred from state storages to private pharmacies has an estimated value of €2.2m. The inventory of state storages has been completed, and according to its results, it concerns a large quantity of 400 different pharmaceuticals. The transfer of these products to the private sector requires specific procedures which are expected to begin on Thursday, following the Drugs Council’s approval at a meeting tomorrow. It’s noted that these 400 medicines don’t currently have shortages, however, their transfer is deemed necessary in order to avoid them reaching their expiry date and having to be destroyed. In addition, the situation with medicine shortages is starting to smooth out as many quantities have arrived in Cyprus or are expected to arrive in the upcoming weeks. Meanwhile, pharmacists are preparing for their meeting with the HIO tomorrow, and they’ve recorded a series of problems they’re facing with the GHS’ software as well as their compensation procedure. The Chairwoman of the Pharmacists’ Association, Eleni Piera Isseyiek, stated that pharmacists have drafted their complaints which include technical and accounting issues. Specifically, she said that compensation procedures are unclear and have confused many pharmacists. She also said that there are cases in which prescriptions are under investigation by the HIO for possible abuse of the system, delaying the pharmacists’ compensation until the investigation is completed. The HIO needs to properly inform pharmacists on how to decide whether a prescription is “suspicious” and shouldn’t be executed, to avoid pharmacists being left unpaid while the HIO investigates for potential abuses.



Supplementary budget for health sector

The Ministry of Health submitted a supplementary budget of €5,173,181 on behalf of OKYPY. It was deemed necessary in order to cover the expenses of new employees, as well as benefits, rewards and other expenses. In more detail, €190,053 concerns salaries of 37 new employees who need to be employed for the organisation’s smooth functioning. The remaining amount is to cover infrastructure, benefits, overtime and bank holidays rewards, salary increases, employees’ social security, purchase of pharmaceuticals for the 15 pharmacies which will remain in operation in rural and isolated areas.



Marine litter is a global threat

The European Parliament sent an informal brief about the natural decline of the ocean and its adverse consequences on the global ecosystem and the citizens’ well-being, to MEPs and selected recipients. It highlights that the ocean accounts for more than 2/3 of the Earth, and is a vital element of life on our planet. Beyond the fact that the ocean is a primary source of food, it is also a key element in the carbon cycle, it regulates the climate and produces most of the oxygen in the air we breathe. The ocean also has an important socio-economic role. It’s noted that the ocean is at the heart of the Blue Economy in traditional sectors such as fishing, oil and gas extraction, maritime transport and coastal tourism as well as new fast-growing industries such as offshore wind energy, ocean energy and blue biotechnology, economic growth, job creation and innovation. However, the ocean is facing pressure, mainly due to over-exploitation of resources, pollution and the effects of climate change. Meanwhile, the European Union, on a global level, plays an important role in protecting the ocean and shaping its governance. It has made progress by taking measures in a number of areas; maritime safety, marine pollution, a sustainable blue economy, climate change, marine protection and sustainable fishing.