Daily Press Review - 24/10/2019

A fairer pay system must be enforced in the banking sector

Opinion article by economist Nicos Pantelis, who talks about the disputes between the bank employees union (ETYK) and the banks. He argues that Hellenic’s decision to unilaterally grant horizontal pay raises (2%) and additional raises on the basis of performance (raising the total to 4.7%), was a good decision and that the bank is moving towards the right direction. The author argues that in this way, this new fairer system established by the bank is based on merit. Moreover, the author argues, BoC’s CEO, Panicos Nicolaou who said that the banks must move fast and discuss with the unions, in order to promote a fairer pay system. A remuneration system based on performance and position must be established. Since Hellenic Bank has already enforced such a system, Bank of Cyprus must follow as well as other banks. Because, in this case it is not a matter of austerity not even correction; it is a matter of restoring common sense and adapting to the existing market data, the rapid technological advancements that change also the nature of banking operations. A positive sign is that more and more employees seem not to follow the directions of the union. They understand that in a digital society, effort and productivity must be rewarded.



ETYK announces agreement with Alpha Bank on pay raises

ETYK announced that Alpha Bank decided to grant the annual pay raise and Cost of Living (ATA) subsidy for 2019, with retroactive effect from 1/1/2019. ETYK expresses its satisfaction about this development and congratulates the bank’s management. At the same time, they mention that they want negotiations with Alpha Bank to start as soon as possible, in order to agree on the renewal of the collective agreement for the years 2019-2021, in order to safeguard labour peace and at the same time, boost the prospects of survival of the bank in this risky period we are going through.



New recognition for General Insurance

Every year, the finance magazine “World Finance” awards two insurance companies from each country around the world, as the best in each insurance sector (general and life insurance). The General Insurance of Cyprus was named as the best general insurance company in Cyprus. This recognition represents the culmination of the continuous efforts made by General Insurance to always stand by its customers, providing them quick and effective settlement of claims, innovative insurance products, modern ways of promotion and a high level of technology.







The banks came out on top yet again

The e-auction of properties, which took place for the first time in Cyprus yesterday, was very successful as more than 30.000 individuals participated in the process and 90% of the stock was sold off. Many of the properties were sold to a higher price than the starting price. The auction was implemented by a private platform (bidxl.com), but most of the properties that were up for sale belong to the banks, as they came under their ownership after debt-to-asset swaps. The list initially included 62 properties, but five of these withdrew from the process before the auction began, while one of them was previously sold. Thus, the auction began with 56 properties, 50 of which were sold and 6 remained unsold. The property that concentrated the most interest is a four-storey house in Ayios Georgios in Limassol, which received a total of 213 offers. Haravgi says that the banks were extremely satisfied by the e-auction.



Investors to have a single point of contact with the public sector

According to a new law, which was approved by the Cabinet yesterday the sole licensing authority for strategic investments, will be the Strategic Investment Management Department. The Project Manager will have a significant role in the new fast-pace licensing process. They will be appointed by the Minister of Interior and subsequently their appointment will be ratified by the Cabinet. The Project Manager will be the single contact point between the investor and the public service, they will coordinate and monitor the advancement of bureaucratic procedures and will prepare the catalogue with the necessary permits and deadlines. In cooperation with the head of the Strategic Investment Management Department, they will be preparing a catalogue of deliberations for building permits, while they will prepare recommendations to the Minister of Interior, in case the decision of the licencing authority needs to be re-examined.



2020 budget goes to the House

The discussion on the 2020 budget at the House Finance Committee will begin on Tuesday in the presence of the Minister of Finance Harris Georgiades. The Minister is expected to analyse the state process, the fiscal indexes, the economic policy and fiscal situation. It is the last time that Georgiades will analyse the state budget before the House Finance Committee, since he will be stepping down from his position by the end of the year. Right after Georgiades’ report, there will be a discussion on the 2020 budget of the Finance Ministry, which includes other envelopes that concern among others, the Treasury of the Republic, the Directorate-General of European Programmes, Coordination and Development and the Public Debt Management Office.



Promotion of cruise tourism between Paphos-Alexandria

The promotion of cruise tourism as well as a direct air connection between Paphos and Alexandria were the main topics of discussion at a meeting between Paphos Mayor Phedonas Phedonos and the Governor of Alexandria, Abdelaziz Konsowa, during an official visit of the former to Alexandria. According to an announcement by the Paphos municipality, the two discussed launching 6-8 cruises between Limassol port and Alexandria over the 2020 summer season, with representatives of the Alexandrian port authorities voicing their intention to provide a significant discount on port charges as an incentive. The two also decided to take joint initiatives to set up a direct air connection between the two towns. Phedonos and his delegation visited Alexandria as part of a cruise to the historical Egyptian town. This was the first cruise-ship to sail into Alexandria port for the past 10 years, which was especially appreciated by the town’s governor, as all cruises had been interrupted due to the political instability in the region.



Russian frigates at Limassol port to refuel

A group of the Russian Baltic Fleet’s warships comprising the guard ship Yaroslav Mudry, the sea tug Viktor Konetsky and the tanker Yelnya, has sailed into Limassol port for refuelling and supplies ahead of a long-distance mission to the Indian Ocean, where they will take place in a Russian-Indian naval exercise, according to an announcement by the Baltic Fleet press office on Monday. The announcement said that the visit to Limassol port will be the fleet’s first stop and that it has covered over 7,000 nautical miles since heading off from the Baltic to the Mediterranean Sea. The purpose of the visit to Limassol will be to stock up on supplies, it said. Furthermore, the Russian sailors will get the chance to rest and take a small tour of the region. During their deployment, the group of the Baltic Fleet’s combat ships will take part for the first time in the naval component of the Indra-2019 Russian-Indian drills that will run in the Indian Ocean on December 10-19. The press office said that the warships are carrying anti-terror squads from the Baltic Fleet’s marine infantry force. The Indra-2019 drills will run at land and naval training ranges and at a military aerodrome of the Indian Armed Forces. About 300 troops from Russia’s Eastern Military District will take part in the drills.



Zakaki residents complain about nuisance at the Limassol port

Zakaki residents are protesting the nuisance in the area. According to protesters, the nuisance is due to the operation of the new cranes at the port of Limassol. Residents are planning to stage a protest next Saturday at 10am at the Serifos Road junction. In this regard, the Commissioner for Administration has been appointed as an investigative officer to investigate the complaint already lodged with the municipality by the residents of the Zakaki area.

 

Cavusoglu: We will increase drilling in the Mediterranean

Turkish Foreign Minister Mevlut Cavusoglu likened the operation in Syria once again with the invasion of Cyprus in 1974, stressing that the eastern Mediterranean is equally important for Turkey's survival and national security. Referring to the Eastern Mediterranean, Mevlut Cavusoglu argued that by sending its drilling rigs to the region, Turkey had radically changed the balance in the eastern Mediterranean. The Turkish Foreign Minister once again accused the Greek Cypriot side for unilaterally drilling, but - as he said - "with these moves, we become even stronger on the battlefield and at the negotiating table", adding that Turkey will not only continue its drilling, but it will also increase its drilling in the eastern Mediterranean. "Where is the Yavuz drilling rig? It is drilling within the shelf of Turkey that is declared to the UN; this process is renewed every year. We do not negotiate with anyone on our shelf activities. We are discussing the issue of sovereign rights in the eastern Mediterranean with everyone, including the Greek Cypriot side, and we are always in favour of a regional agreement. I am referring to the Mediterranean countries in the region, but they need to learn to share. The Turkish Republic of Northern Republic (TRNC) is the negotiator with the Greek Cypriot side "the Turkish Foreign Minister said. Mevlut Cavusoglu said that Turkey's second goal in the eastern Mediterranean is to safeguard the interests of Turkish Cypriots, since until now the Greek Cypriot side has taken any steps to accept the rights of the Turkish Cypriots and protect them under warranty. On the contrary, Greek Cypriots continue unilateral drilling and offer permits. "By sending our second drill in this region (the eastern Mediterranean), we have shown around the world that we will protect the interests of the Turkish Cypriots" he said.



Deputy Ministry of Tourism: Investment Forum to promote Cyprus

The Deputy Ministry of Tourism’s participation in the investment forum, “The Mediterranean Resort and Hotel Real Estate Forum”, which will take place in Athens between 29-31 October 2019, is considered crucial so as to achieve its targets. According to the announcement, the main aim for the Ministry’s participation is to promote the advantages and opportunities that Cyprus has to offer, as a tourist investment destination, in the context of the priorities delineated in the 2030 National Tourism Strategy, The Ministry also wishes to network with businesses active in the sector as well as potential investors from different countries. The Deputy Minister Savvas Perdios, heads the Cypriot delegation, and will address a discussion panel entitled “What’s Government Got to Do with it? Travel, Policies, Destinations and Resort Development”.



Limassol Mayor blasts ‘The Times’ for distorting his comments on RAF Akrotiri

The Mayor of Limassol, Nicos Nicolaides sent a letter to the British newspaper “The Times”, claiming that his statements were distorted, as he explained to Insider. In a story published yesterday in “The Times”, entitled “City of Dreams plan puts RAF Akrotiri at risk”, the author quoted the Mayor of Limassol as saying that the area’s development, which is expected to increase even more in the coming years, may lead to the closure of RAF Akrotiri. As the Mayor of Limassol clarified, this is something completely unsubstantiated and argued that he never made these comments. Instead, he said that he only referred to the anachronistic nature of the Base. “The report is totally misleading. I have never said that any development in Limassol, either ongoing or planned, is directed against the British bases,” he told Insider. “When asked by The Times on the matter of the British Bases, I said that the existence of military bases in a sovereign country such as Cyprus, is now an anachronism that should be terminated at some stage in the future”, he continued. They Mayor added that he has demanded from The Times to correct their report. Insider’s article goes on to say that the development of the casino-resort, City of Dreams Mediterranean, within the vicinity of Akrotiri base, is a project that will exceed half a billion euros with substantial short- and long-term benefits to the local economy.



A joint proposal to OKYPY

The three unions (PASYDY, PASYKI, PASESI) convened yesterday and today they’ll submit a joint proposal to OKYPY. Phileleftheros reports that following PASYDY’s initiative, the three unions held a joint meeting yesterday, during which they exchanged opinions about the financial incentives that state specialised doctors will receive for offering their services to GHS’ beneficiaries. Reportedly, each union presented its own proposals, while they also considered the results of Deloitte’s survey on behalf of PASYKI, showing the difference of earnings between doctors of the private and the public sector. Following this development, PASYKI, PASYDY, PASESI are expected to attend the scheduled meeting today with OKYPY so as to enter discussions and reach an agreement as soon as possible. OKYPY has also expressed its intention to complete the negotiation procedure without any further delays.



On alert about GHS’ abuses

The Health Minister, Constantinos Ioannou, was officially informed by the HIO about the abuses recorded in the GHS so far. Phileleftheros reports that the President of the Republic has asked to be continuously updated on the situation, and he has been informed about the latest restrictions that the HIO has put in place over the last few days. Besides, the HIO was ordered to closely monitor the software and promptly implement its measures. GHS’ doctors also highlighted the need to implement strict restrictions, as well as inform the citizens on the proper use of the system’s services. Doctors in the GHS admitted that there were cases where their colleagues abused the system.