Daily Press Review - 29/10/2019

Checkmate move by Hellenic: Acquires 100% of Hellenic Alico

The Hellenic Bank Group is expected to take full control over Hellenic Alico Life in the immediate future. According to Phileleftheros’ sources, Hellenic is apparently in advanced stages of the procedure to acquire the 27.5% stake controlled by Metlife Services Cyprus Limited, which is a subsidiary of the MetLife Group. Even though the bank declined to comment on the information, it appears that the decision is final, which could also indicate that HB has concluded on the general strategy that it will follow as regards its insurance companies. The paper reminds how in the newsletter accompanying HB’S recent capital increase procedure, it was noted that all possibilities relating to the Group’s insurance companies were open and under examination. Hellenic Alico benefited significantly from the acquisition of the Co-op’s operations and its customer base, as the bank signed a group life insurance policy to ensure that the customers, whose credit facilities have been moved from the former CCB to Hellenic, continue to have the relevant coverage. Characteristically, according to the latest data published by the insurance companies’ association on the first quarter of 2019, Hellenic Alico appeared to have the biggest market share with 22.5%, compared with 3.66% just a year earlier. Its total premiums in health insurance reached €25.7m, recording a 457.6% increase. It is clear that the acquisition of the Co-op has created positive synergies for Hellenic Alico, which has obviously not gone unnoticed, hence HB’s decision to acquire full control over the insurance company. Hellenic owns 725,000 shares in the company, while Metlife owns 250,000 shares. According to HB’s annual report, at end-2018, the company’s mixed premiums were €12.1m and its profit after tax €3.1m. Hellenic Alico’s assets were €49m and its total debts €33.6m, so its net assets were €15.4m. The company’s board chairman is Phivos Stasopoulos.



CYHRMA annual meeting took place with great success

CYHRMA – the Cyprus Human Resource Management Association – organised its annual general meeting with great success. The AGM took place on 3 October at the Filoxenia Conference Centre in Nicosia, with the participation of over 250 representatives. Among the AGM’s sponsors was Hellenic Bank as a Bronze Sponsor.



Hellenic Bank: “Jumpstart” scholarships programme

A keen interest has been expressed by students in the “Jumpstart” scholarships programme that was launched recently by Hellenic Bank. The programme is directed at 2019 graduates of private or public schools, technical schools as well as soldiers who have competed their military service and are about to begin their studies. The scheme will support 20 undergraduate students with an annual scholarship of €2,000 for up to four years, as long as the candidate can maintain good grades. The selection criteria include family income and educational attainment. A large number of students have expressed interest and applied. It is worth noting that applicants must have Cypriot citizenship or be legal residents of Cyprus, living in the government-controlled areas. HB will announce the selected students on its website. The students will receive their scholarship in two instalments.



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 to disobey the directions of the union. They understand that in a digital society, effort and productivity must be rewarded.



Bank of Cyprus: Urges beneficiaries to apply for “Estia” scheme

Bank of Cyprus issued an announcement reminding “Estia” beneficiaries that the deadline to submit applications is 15 November, and urging those affected to apply. “The ‘Estia’ scheme reinforces the loan repayment abilities of borrowers who are facing financial difficulties and who have loans with a primary residence as collateral,” said the bank. “The deadline for selected borrowers to submit applications to join the Scheme expires on Friday, 15 November 2019, and for those who join the scheme, the risk of their home being foreclosed is reduced,” it added.



HFC: Just 20 applications to participate in “Estia”

A total of 140 borrowers who have NPLs with the Housing Finance Corporation and who meet the criteria to join “Estia” have been referred by the HFC to the 15 advisors it is cooperating with to advise borrowers on how to fill in the application for the scheme. Speaking to the Cyprus News Agency, HFC general director Andreas Georgiou said the corporation had started referring borrowers who expressed interest in participating in “Estia” to its advisors to help them fill in the applications. He said that so far, the HFC has received 20 properly filled-in applications.



Hellenic Bank’s shareholders

Hellenic Bank (HB) provided the details of its share capital structure in an announcement on the Cyprus Stock Exchange. It is divided as follows: Employees’ Provident Fund – 946,000 shares or 0.22%; Demetra Investment Public Ltd – 86,725,772 shares or 21%; Wargaming Group Limited – 85,068,978 shares or 20.60%; Senvest Group – 20,910,425 shares or 5%; Third Point Hellenic Recovery Fund LP – 51,991,639 shares or 12.59%; Poppy S.A.R.L. – 71,428,572 shares or 17.3%; Cyprus Bank Employees Provident Fund – 25,850,000 shares or 6.25%; Company Employees 1,029,175 shares or 0.24; Diaspora to general public – 68,760,342 shares or 16.65%. Total listed share capital: 412,805,230 shares or 100%.



Hellenic Bank: Digital options for security, speed and customised solutions

Hellenic Bank is adopting technological upgrades across its operations. As part of its strategic planning, technology is becoming the vessel for the bank to offer customised solutions, speed, savings and of course security at every stage of the customer’s experience. With an increased number of communication channels and self-service options, the primary goal is to achieve an unhindered and uniform experience for its customers.



The dive in deposit rates and the new state of affairs

“We are slashing deposit rates because unfortunately deposits are costly,” say bankers; and this is one of the most significant reasons for the dive in deposit rates, but also the introduction of negative interest rates in Cyprus. The plethora of liquidity and lack of viable borrowers to absorb it, are leading the Cypriot banks to examine various alternative solutions. The path that was opened by Hellenic Bank by imposing a negative deposit rate on its big customers is expected to be followed by other Cypriot banks in the future. Bank of Cyprus has made no secret of the fact that it is interested in the idea. Economy Today interviews a number of experts and attempts to present the new state of affairs. The phenomenon of negative rates may be unprecedented for Cypriots, but it is well known in other countries. Besides, it is the European Central Bank’s negative rates that are increasing the costs for the banks. The fact that no banks are facing liquidity problems currently is confirmation that things have changed compared with previous years; however, the huge liquidity reserves are forcing the banks to seek out opportunities that could also potentially lead to profits.

 

Hellenic is keeping its insurance companies

HB’s decision to acquire 100% of Hellenic Alico Insurance Company Ltd is a strong indication that the bank has made its decision to continue its insurance activities and maybe even reinforce them. As Phileleftheros revealed on Saturday, HB is in the final stages of acquiring 100% of the company, buying out MetLife’s share of 27.5%. Even though the bank declined to comment on the information, it appears that the decision is final, which could also indicate that HB has concluded on the general strategy that it will follow as regards its insurance companies. The paper reminds how in the newsletter accompanying HB’S recent capital increase procedure, it was noted that all possibilities relating to the Group’s insurance companies were open and under examination.



The profile of sought-after employees is changing

Each decade, from 1990 up until today at end-2019, has had its own trend when it comes to the profile of the bank employee that is sought by the market and the banks. From the cashiers to the service operators, to the factoring service providers, we have now entered the digital era and the specialisations that this entails. The sale of NPLs or their assignment to third parties has led to a reduction of staff in the departments that were in the frontline from 2013 onwards. Among other, the article refers to HB’s appointment of Meeters-Greeters, whose job is to explain to customers how they can get their job done at the ATMs in a bid to reduce queues at the branches. Around 50 employees have been appointed, and among other, they are responsible for arranging bank cards for those who do not have one. HB has recruited seasonal workers to familiarise former Co-op customers with how to use electronic services.



ETYK persists

ETYK is insisting on having annual horizontal pay rises, the same for all bank employees, Politis comments. In other words, everyone must get a pay rise or else there will be a strike. It points out that no one disagrees with there being a minimum horizontal pay rise. Anyhow, if someone is working below the minimum, the banks as private organisations must find the way to fire them. However, this is not the case when it comes to the row between ETYK and HB. HB, while discussing the renewal of the collective agreement, accepted to pay increments retroactively of 2% to staff, as well as additional pay rises based on each employee’s performance, thus increasing the bank’s payroll not by 2% but 4.7%. So why does ETYK disagree? Is it unreasonable for productivity to be rewarded through a fair system that more importantly has been agreed with the unions? ETYK says that the renewal of the agreement is a matter of principle, and that it is willing to discuss anything with the bank only after it has been renewed. But the paper says it is doing this by ignoring another principle: that of fairness. For example, the new agreement will only concern the old employees of Hellenic and not those with the much lower salaries who were transferred from the Co-op. Is it not concerned about this inequality, the paper wonders? It is clear that Hellenic is attempting to change the quality of the new collective agreement. Namely, to introduce a more official way of awarding pay rises. And this is why ETYK opposes, because it believes that its previous agreement is Gospel. But what really raises questions is the stance of the Labour Minister, says the paper.  Not only was Zeta Emilianidou far from a fair mediator, she also threatened the bank with legal action. Now if workers’ rights were being violated, the paper says it would have been right behind the minister. But when the bank is more or less being banned from giving more than what the agreement provides for, it has a real problem following her. Perhaps the President of the Republic should enlighten us, it concludes.



Scholarships programme for young students by Hellenic Bank

A keen interest has been expressed by students in the “Jumpstart” scholarships programme that was launched recently by Hellenic Bank. The programme is directed at 2019 graduates of private or public schools, technical schools as well as soldiers who have competed their military service and are about to begin their studies. The scheme will support 20 undergraduate students with an annual scholarship of €2,000 for up to four years, as long as the candidate can maintain good grades. The selection criteria include family income and educational attainment. A large number of students have expressed interest and applied. It is worth noting that applicants must have Cypriot citizenship or be legal residents of Cyprus, living in the government-controlled areas. HB will announce the selected students on its website. The students will receive their scholarship in two instalments.



Hellenic Bank by children’s side with the power of Miniature Horse Therapy

Hellenic Bank leads the way when it comes to Corporate Social Responsibility, supporting the initiative “Miniature Horse Therapy” by the NGO Majestic. The programme will take place from October 2019 until December 2020, offering free of charge services to hospitals, organisations, shelters and all special schools with a trained miniature horse.



RCB Bank focused on customer experience

For RCB Bank, investing in technology and innovative digital products is among the main pillars of the bank’s latest strategy. The functionality of the mobile bank, cards, digital payments as well as card services and e-commerce are among the key sectors the bank aims to develop.



Alpha Bank: Priority on the customer’s new needs and demands

Nicolas Mavrogenis, head of operations at Alpha Bank Cyprus, refers to the bank’s transition to the digital era, what is going on with fintech companies and e-branches, as well as the upgraded customer experience. He says digital transformation is the cornerstone for the new, operational and business banking model that will prevail in the future. He adds that the Cypriot consumer is showing an increasing interest in digital banking services.



cdbbank on the path to digital transformation

cdbbank, having proved that it is one of the most reliable institutions in the country after over 56 years of successful operation, is now focusing on reinforcing its technological infrastructure, making strategic investments in the digital systems market.



Bank of Cyprus in new effort to upgrade customer experience

Advertorial on Bank of Cyprus’ effort that is underway to upgrade the customer experience. It says the aim is to move away from the traditional banking culture and adopt a more agile mindset, which will move away from the time-consuming and conservative methods of developing products and instead operate faster and more flexibly, without the fear of failure.



Praise and recommendations from the IMF

Finance Minister Harris Georgiades and Central Bank Governor Erodotou were left fully satisfied with the contacts they had last week in Washington as part of The Annual Meeting of the Boards of Governors of the World Bank Group (WBG) and the International Monetary Fund (IMF). The climate was more than positive for Cyprus in the contacts that were held with the IMF, US government, ratings agencies and investment banks. Speaking to Kathimerini, Georgiades said that special reference was made to the reduction of public debt, the further reduction of NPLs and the drop in unemployment. As for the early repayment of the loan to the IMF, the minister said that the details and procedures were analysed. Herodotou said it was stressed how important it is for a state to have surpluses and to use them properly, while Cyprus was congratulated. He also said that the IMF expressed concern about the amendments that were approved by the House on the foreclosures framework, but that he reassured that he was in the final stages of preparing the control mechanism for NPLs which will be concluded in communication with the ECB.



Integration mission accomplished

AstroBank is now entering the new era, having successfully integrated USB bank’s operations as of 14 October. The bank’s head of operations, George Spyrou, tells Phileleftheros that there are plenty of challenges ahead; however, the mission was accomplished in the most positive way possible.



IDEA Innovation Centre given Gold Award and Silver Award

Bank of Cyprus’, IDEA Innovation Centre was awarded the Gold Award in the category ‘Excellence in Partnership’ for its cooperation with the local community/state and the Silver Award in the ‘Cause Advocacy’ category during the Cyprus Responsible Business Awards 2019.



Public consultation on climate change strategy

Climate change is here. Scientists have been saying, but we are also living it and as such we should take measures. The storm on Sunday afternoon was so strong and lasted so long that Pedieos started flowing. In the meantime on 1 November, there will be a public presentation of the National Strategy of Cyprus on climate. Interested parties can attend in order to listen and express opinions. The presentation will be held in the conference room of the Hellenic Bank headquarters on Athalassas Avenue. We are eagerly waiting to see Cyprus’ climate change measures.



The major shareholders of Cypriot companies

InBusinessNews presents the major shareholders of public holding companies and the corporations with the biggest market value. It presents the shareholders of over 40 public holding companies. According to CSE, the most highly capitalised companies are, among others, Bank of Cyprus, Hellenic Bank, Vassiliko Cement Works, Demetra Investment and Logicom. The data on the shareholders have resulted from the announcements on equity dispersion for CSE-listed companies. The data on capitalisation was received on 25 October 2019. The article goes on to provide a detailed list of CSE-listed companies and their shareholders. It provides the share structure for the Forest Industries of Cyprus in which Hellenic Bank holds 5.3% of equity.



Independent Recapitalisation Fund budget bill submitted to Parliament

“The 2019 law on the Budget of the Independent Recapitalisation Fund of 2020” was submitted to the House a few days ago, after being greenlit by the Cabinet. The Independent Recapitalisation Fund was established according to the "Establishment and Operation of the Independent Fund for Recapitalization Law of 2015”. The Independent Recapitalisation Fund recapitalised the Co-op with €175m, and held a 21.87% stake in the Bank’s share structure. The Independent Recapitalisation Fund has 1.320.401.214 shares (of nominal value 0.28 cents each). The €175m was transferred to the Co-op on Monday, 21 December 2015. The shares and the share percentage of the Independent Recapitalisation Fund were transferred to the Co-operative Asset Management Company (SEDIPES), which is the successor of the former Co-op. The 2020 budget of the Independent Recapitalisation Fund foresees €29,166,667 in expenses and €5,000,000 in proceeds. The expenses concern loan instalments for a €29,166,667 loan, while the proceeds results from the transfer of 35/60 of proceeds from the imposition of the Special Credit Institution Tax for 2020 but these will amount to €5,000,000 so that the total credit doesn’t exceed €175,000,000.





boc Hackathon was successfully completed for yet another year

The 3^rd App Development Marathon was successfully completed for another year, with the participation of a total 14 teams. The marathon, which promotes the technological and business innovation in the financial sector, is an initiative by Bank of Cyprus and IDEA cy. The boc hackathon #fintech brings together teams of coders and startups, who will create innovative solutions around Fintech up until the stage of Minimum Viable Product (MVP), with prospects for further development into fully functional apps. With over 50 hours of coding and more than 120 people, the competition included electronic and smart payments, KYC, micro loans, micro donations, APIs, analytics, robo-advisors etc.



OCCRP: Cyprus laundered $5.5b from Ukraine in PrivatBank scandal

Politis reports on an OCCRP publication, which has been overlooked for months. According to the publication, the $5.5b which was stolen by the state-owned, PrivatBank passed through Cyprus and was then transferred to accounts of companies in various countries. The former chairwoman of Ukraine’s central bank dubbed it one of the biggest financial scandals of the 21st century. According to OCCRP, the bank was controlled by two “masterminds”: Ihor Kolomoisky and Hennadiy Boholiubov, who stand accused of absconding with an amount roughly equal to 5 percent of the country’s gross domestic product. According to court records, both men are said to have recently been living in Switzerland, though Kolomoisky appears to be spending time in Israel. The former chairwoman of the Central Bank of Ukraine supports that the money that the two oligarchs stole along with their associates in Privatbank, caused a loss to the state equivalent to 33 % of the population’s deposits, and 40% of the country’s monetary base. OCCRP’s research found information that reveal the fraud mechanism used by Kolomoisky and Boholiubov to transfer $5.5b outside of Ukraine. Cyprus served as the open door in this case as well, as PrivatBank maintained a local branch in our country. The Central Bank of Ukraine considered that PrivatBank’s Cyprus branch, was local. This simply meant that the cash taken out of Ukraine was not controlled, since the transfers were carried out from one PrivatBank branch to another. This is where the Central Bank of Cyprus can be held accountable, as according to OCCRP, it failed to detect that the various bank transfers totalling $5.5 billion were backed by bogus contracts and subsequently take the necessary measures and put an end to the fraud.



Fine by CBC and forced shutdown in 2016 but…

On the subject above, Politis reports OCCRP requested a comment by the Central Bank of Cyprus, which said that it conducted two onsite examinations of PrivatBank’s Cyprus branch in 2015, leading it to inform authorities in Cyprus, Ukraine, and other countries that money was flowing out of Ukraine. It also imposed a 1.5 million euro fine on the bank on Oct. 31, 2016, only weeks before Ukrainian authorities nationalized PrivatBank. Moreover, a CBC official told OCCRP that in December 2016, the regulators placed restrictions on the license of PrivatBank’s local branch in December of 2016, barring it from conducting further transactions. Cyprus’ Financial Intelligence Unit, MOKAS, said it was aware of the allegations against the PrivatBank shareholders but declined to comment.







An ever-lasting launderette

Politis reports that the two Ukrainian oligarchs involved in the PrivatBank scandal were given Cypriot passports. The money laundering operation was, according to the reports, carried out during Anastasiades’ term but the passports were granted during Christofias’ term.



Companies followed tax overpayment tactic to receive higher returns

Companies are following the tactic of paying more tax than they have to, only to have it returned a few years later with interest on the overpayment. This is because if they deposit their money in the bank they will get a lowest interest rate. An official of the Inland Revenue Department estimated that this phenomenon will be greatly reduced compared to past years. However, as Phileleftheros has learned companies are selecting this specific form of saving. The Inland Revenue Department official reported that in the past especially, when the state was paying a 9% interest rate, overpayments were a regular phenomenon. After the Inland Revenue Department discovered this practice, they reduced the interest rate.



Creation of 207 jobs and abolition of 107 positions in public sector

In 30 June 2019 there were 4,915 fewer public employees compared with the end of 2012 (apart from about 3,000 contract soldiers that came in to replace about 3,400 conscripts). According to the state’s data for employment in the public sector, there was a reduction in public employees from 52,267 on 1.12.2012 to 47,352 on 30.06.2019, not calculating the 3,000 contract soldiers. The article goes on to talk about the state’s 2020 budget which among other things, proposes the creation of 207 positions and cancellation of 107 positions (35 positions will be completely abolished according to the 2020 state budget and 70 are double-crossed and will be abolished after the current employees retire).

 

Egyptian companies in Paphos

The preparations that will lead to the active operation of Egyptian companies in Cyprus have already advanced. Already, Egyptian businesspeople accompanied by the officials from Egypt’s Chamber of Commerce, held meetings with the competent corporate and political officials of Cyprus, in order to clarify the aspects of such a cooperation. This preparation was promoted even more during the latest mission of Paphos’ Chamber of Commerce in Cario and Alexandria. During these contacts, the competent actors of the Republic are analysing the business relations of Cyprus and Egypt, the developmental and financial state of affairs in Cyprus and especially Paphos as well as its growth prospects. They also present the large-scale projects carried out in the private sector and opportunities for investment.



New tax incentives for 2020

New tax incentives are being promoted in 2020, according to the Financial developments 2019 document and 2020-2022 prospects. There will be an increase in deductions on contributions in retirement and insurance funds to 20% ( i.e. from 1/6 to 1/5 of the annual salary) with the submission of tax returns for 2019.



Protest by Zakaki residents over nuisance of Limassol port

Residents of Zakaki held a protest on Saturday morning over what they said was a serious deterioration in their quality of life created by the noise and air pollution from Limassol port. The protest was held on the road parallel to the port, to its north. In statements, the residents said that following the extension of the platform by 500 meters and arrival of new gantry cranes a few months ago, the noise intensity and emissions have increased to the point that it is impacting on their daily life and ability to sleep. They said they have already resorted to the Ombudswoman, who has ordered a relevant investigation, while the problem has been acknowledged during a meeting with the harbourmaster; yet there does not appear to be a solution in sight, as no relevant provisions are included in the concession agreement that was signed with the container terminal’s operator. In a resolution that they handed over to Limassol district MPs, the entire planning surrounding the organisation and operation of Limassol port, under the new conditions that have been created from the commercialisation of its operations, is creating a series of problems relating to the residents’ physical and mental health, resulting from the air pollutants and excessive noise. Affected residents are demanding that legislation on common quiet times is implemented, environmental impact studies are carried out, noise is reduced to permissible limits by the company, by soundproofing or other ways, air pollutants are reduced and a green zone is created around the port. Protestors on Saturday symbolically cut off traffic on the road and handed out flyers to drivers, while they warned that they would step up their protests if they were not heard, and even resort to justice. They added that their intention was not to impede on Limassol port’s operations, but to find a solution that on the one hand allows for the port’s smooth operation, and on the other, puts an end to the noise and air pollution that is negatively impacting on their quality of life.



24-hour noise pollution from gantry cranes is preventing Zakaki residents from getting sleep

Main opposition AKEL MP Costas Costa said that the operation of the new platform at Limassol port on a 24-hour basis has created serious problems for the residents of Zakaki, adding that the huge noise pollution is keeping them from sleeping, while the air pollution from ship engines is unbelievable, now that they are very close to the residences due to the extension that was made to the platform. “The residents have been fighting for a solution for months now,” he said. “Meetings, promises for environmental and noise measuring studies in hindsight; unfortunately, the notorious contracts for the sell-off of Limassol port, which is one of the biggest scandals, do not include any provisions to protect these people, who were living there before the port was built in the area.” He suggested that loading and unloading of containers should cease from 10pm until 6am, that soundproofing is installed, and that a green zone is created south of the residences. “These people do not want to have problems with the port; they want to co-exist, they can co-exist; they simply demand some respect,” said Costa. The AKEL MP, along with other MPs who attended Saturday’s protest and in communication with the Chairman of the House Environment Committee, will table the matter for discussion at the House, in the hope that a solution can be found.



I can’t do my homework

On the topic above, Haravgi writes that the planning for the privatisation of Limassol port has once again proved to be flawed. The selection of the area to place the new gantry cranes has created huge problems for Zakaki residents. During their protest on Saturday, the residents held placards saying, among other: “I cannot do my homework” and “Noise pollution = Slow death”.



Noise is a nuisance

News report ahead of Saturday’s protest, with Politis reporting that Zakaki residents were not left satisfied with the promises that were made during a meeting they had with authorities last Monday, which was why they decided to hold the protest. Representative of the residents Herodotos Chrysanthou told Politis that the Ombudswoman has appointed an officer to investigate the complaint the residents have submitted. In a letter to the Cyprus Ports Authority, the residents said the port has not taken the appropriate measures to limit the noise it is making. The residents are also demanding that police patrols are stepped up in the surrounding road network, which connects the port to the inland. Truck drivers have been using the residential roads instead of the by-roads that have been built, and illegally park there. The Green Party has relayed this complaint to the Limassol police chief, whose response was to refer the party to the Limassol traffic police department.



Answer to AKEL over investments programme is due

Opinion article by the Director of the President's Press Office, Victoras Papadopoulos, which is a response to criticism the government has been receiving by main opposition AKEL over its citizenship-by-investment scheme. He says the island’s investment programme, which provides incentives to foreign investors and citizenship, has proved in action to be a very important, short-term source of inflow of fresh money to Cyprus, amid a transitional period of the economy’s recovery, its exit from the bailout memorandum and its return to growth and the international markets. Papadopoulos says that the revised investment programme that was launched by the Nicos Anastasiades administration has achieved its short- and medium-term targets. Fresh foreign funds flowed to the country, many sectors of the economy were supported and especially from the construction sector and indeed without any lending, so there was no bubble. At the same time, not only were property prices contained, there was also a drop in unemployment. And then there were all the other sectors that the government put emphasis on, such as education, tourism, renewable energy sources, marinas, the casino, agriculture, shipping, the privatisation of Limassol port and much more, which along with a prudent fiscal policy led to a swifter exit from the bailout memorandum.



This is Lanitis Group’s next big project – Photos

The Lanitis Group has secured town-planning and building permits for a new investment worth millions of euros; the Limassol Greens project, which will be located near the under-construction casino-resort in Limassol, on an area of 1,400,000m². Based on the master plan, the project will include 495 luxury mansions and 233 apartments spanning 150,000m²; an 18-hole, high standard golf course; a 1,700m² Golf Club House; shops, restaurants and bars spanning 2,850m²; and a Wellness and Sports Centre, which will include indoor and outdoor pools, spa facilities, a gym, tennis and squash courts spanning 1,000m². The golf course is expected to be completed in two years, while construction on the luxury mansions is expected to begin soon, after some details have been ironed out to complete the company’s agreement with foreign investors. The project will be at a distance of 1km from the casino-resort, 2km from MyMall and Limassol port, and 500m from Fasouri Waterpark.







Savvas Perdios views Cyprus-Greece ferry link in positive light

Deputy Minister of Tourism Savvas Perdios said that even though the Cyprus-Greece ferry link falls under the authority of the Deputy Ministry of Shipping, his own ministry sees the possibility in a positive light. He was responding to a relevant question by MP Annita Demetriou. Perdios said this was an opportunity to further increase tourist flow from Greece, especially when it comes to travellers who have a fear of flying.



The biggest in Europe

Vassiliko Cement Works PLC is counting over 50 years in action and it intends to remain a viable company, continue on its steady upward course and continue to improve the quality of its product. During a press conference to mark its 50^th anniversary, the company’s executive director Antonis Antoniou said that the company runs the biggest production unit in Europe, and is among the 12 of the 33 countries in Europe where there is just one producer. Furthermore, the industrial port, which was exclusively built by the company, is at the heart of the energy hub’s growth.



Letter to seven ministers about the oil facilities  

The Mayor of Larnaca has sent a warning letter to all involved ministers, seven in total, concerning new problems that have emerged in the process to move the oil storage facilities from Larnaca to Vassiliko. He said the new problems are threatening to derail the relevant deadlines. The committee in charge of coordinating the procedure on a technocratic level convened on 9 October, and according to mayor Andreas Vyras, the permanent secretaries of all involved ministries were absent except from the Commerce Ministry’s. Focusing on the oil companies, Vyras said that serious problems have emerged which demand serious decisions. “The delays that have emerged in the licensing of the new facilities due to safety reasons, the conclusion on final decisions on the construction of the anchorage, the legal vetting for the contract to lease land  for the oil pipelines, the procedures to move the asphalt as well as other matters, create real concerns to our municipality that the target of December 2020 is in danger of not being met,” he said, calling for an immediate meeting of the Ministerial Committee so solutions can be found.



Turkey planning naval exercises around ‘Yavuz’ and ‘Fatih’

The Republic of Cyprus in response to the latest Turkish Navtex for two new naval exercises near the illegal drilling of the ‘Yavuz’ drilling rig southwest of Cyprus and the ‘Fatih’ drilling ring west of Cyprus, announced multinational drill exercises in Blocks  2, 3 and 13 of Cyprus, including an area overlapping the target ‘cuttlefish’. Cyprus also committed a maritime section west of Cyprus near the ‘Fatih’ drill area for successive drill exercises. Turkey had issued two irregular Navtex yesterday, committing an area within the sovereignty of the Republic of Cyprus, located near the drilling rig ‘Fatih’, for naval exercises tomorrow Wednesday. It is noted that the ‘Fatih’ drilling rig has completed its second goal west of Paphos and is expected to move within the next 24 hours.



Efforts to boost tourist flow to Cyprus being stepped up

Efforts to boost tourist flow to Cyprus in the winter as well as next summer season will be stepped up in the immediate future. In early November, the Deputy Ministry of Tourism is expected to have a strong presence at the London tourism exhibition, WTM 2019, which is one of the most important expos worldwide. In addition, the agreement signed with Israel for tourism action is expected to start being implemented soon (among other, the two sides have agreed to step up their cooperation in cruise tourism and have decided to participate jointly in international cruise tourism expos). Phileleftheros notes how the Israeli tourism market is showing strong momentum, and is included in the island’s main tourism markets along with the UK, Russia and Germany, while there is potential for an even further increase. Indicatively, according to Cystat, there were 238,946 arrivals from Israel in January-September 2019, compared with 200,558 in the same period of 2018 (19.1% increase). There was also the announcement by Hermes Airports that there will be a 9% increase in airline seats to Cyprus over the October-March 2019 winter season, what with the introduction of new routes to the Larnaca and Paphos international airports, as well as extension of existing ones.



Deputy Ministry of Tourism to participate in 90 expos  

The Deputy Ministry of Tourism is scheduled to participate in around 90 international tourism expos, of both general and specialised tourism, in various countries in 2020. Among the most important is the ITB Berlin expo in March 2020, MITT Moscow also in March 2020, and the WTM London in November.



Low numbers of tourists from Central Europe

Cyprus tourism, despite the challenges it faces each year, is more or less predictable. One in two tourists is either British or Russian. The Deputy Ministry of Tourism is attempting to change this and attract even more visitors, who will appreciate the island’s cultural heritage as well as its sun and sea. Central Europe is one important market that it will attempt to tap in the immediate future. Besides Germany, five countries (France, the Netherlands, Switzerland, Austria and Italy) brought 200,000 tourists to Cyprus in 2018. Switzerland was the biggest market from Central Europe, besides Germany, with arrivals increasing from 58,000 in 2017 to 74,000 in 2018. Also in 2018, Cyprus attracted 46,000 Austrian and 42,000 Dutch tourists. France, despite being a vast market with a lot of potential, only accounted for 37,000 tourists. The Italian market ranked last, with 24,000 tourists.



40% of hotels open in Paphos over the winter

Forty-per-cent of hotels will remain open in Paphos over the winter. The head of the Cyprus Hotels Association – Paphos told the Cyprus News Agency that of the 29,000 hotel rooms available in the district, around 11,500 will stay open for the winter season. He said that Paphos has long been trying to extend its tourism season and become a year-round destination. “We have still not reached the levels we would like, but the fact that even in these difficult times, hoteliers are deciding to invest in the winter, as the winter is not profitable, is a positive development,” said Thanos Michaelides.

 

Doors closed to flights in the Cypriot aerial region

Cyprus Airways CEO and chairman Costas Mavrocostas tells Phileleftheros in an interview among other that Cyprus’ geographical position is impeding on its aviation development, due to the air blockades from the north and east of the island. He adds that the island’s political situation does not help either, nor does the political unrest in the broader Eastern Mediterranean region.

 

Paphos casino opens its doors

The Paphos casino is expected to start operating by the end of the year in Geroskipou’s tourist area, on a 2,600m2 plot. Already Melco has already started the recruitment procedure for 30 people for the casino’s needs, after holding a career day in Limassol on 23 October. The “C2 Paphos” - which will essentially be a satellite of the integrated casino-resort in Limassol - will cover 550sqm. It will have – like Ayia Napa’s casino – around 50 state-of-the-art slot machines as well as the popular Columbia Bistro. It is the last out of the four satellite casinos that Melco is building in Cyprus. Due to Cyprus’ geographic location, the Consortium which is considered as a giant in its field around the world, aims to attract high net-worth tourists, mainly from Europe, Russia, Israel, the Middle East and China.



Building permits on the rise

Building permits for new projects in the Cypriot land development industry are on the rise. This increase continues even though in the past months there has been a stagnation in sales contracts compared to last year. Specifically, the total number of building permits authorised in Cyprus during July 2019 stood at 743 compared with the 589 authorised during July 2018 and 573 in the previous month. The total value of these permits increased by 91.8% and their total area by 50.6%. It should be reminded that the increase in the value of the permits resulted from the approval of the huge casino-resort project last April.



Guitar Hotel in Florida opens its doors

The emblematic Guitar Hotel of the Seminole Hard Rock Hotel & Casino, a $1.5 billion investment, officially opened its doors. Complementing the 137-m high Guitar Hotel are a state-of-the-art Hard Rock Live performance venue for 7000 persons and an expanded and updated casino of 18.,000 sqm, a pool and artificial pool complex, a luxury spa and gym of 3,900sqm, the vast nightclub DAER with entertainment throughout the day, more than 20 pioneering choices for food, relaxation and entertainment, numerous popular shops and common spaces spanning more than 14,000 sqm.



AKEL SG sends letter to MoI over Pyla

The Secretary General of Akel, Andros Kyprianou sent a letter to the Minister of Interior, Constantinos Petrides on the issues faced by the Pyla community. In its letter Kyprianou argues that the general sentiment in the town is that the Greek-Cypriots are paying for the Turkish-Cypriots to live there. He also comments that there is increased crime in the community and that people are taking advantage of the special status quo of the community, especially regarding gambling-related activities. Essentially, there are various venues operating as illegal casinos, which enjoy a privileged status, with free electricity and no community members. This situation has frustrated both G/Cs and T/Cs residing in Pyla and despite the official demarches, nothing has been done to mitigate this situation.



10,000 flu vaccines available by 31 October

The confusion over flu vaccines is starting to smooth out. Reportedly, 10,000 vaccines will arrive in Cyprus by 31 October, and these will be available at MoH’s immunisation centres, similarly to the first batch. The administration of these vaccines will begin, as planned, on 6 November. However, following the chaos observed previously, the MoH decided that citizens will have to call the centres and schedule an appointment in order to receive their vaccination. Relevant announcements and instructions are expected next week, so citizens will be adequately and promptly informed. A larger vaccine batch of about 58,000 vaccines for the seasonal flu, is expected to arrive in Cyprus by the first week of November, and their administration will begin after 15 November. Those vaccines, will be distributed to GHS’ GPs for adults and paediatricians for children following the collaboration of the MoH and the HIO.

Thousands of euros for pharmacists

Pharmacists are due to receive a few thousands of euros from the HIO in uncollected claims, due to the organisation’s tactic to investigate some of the pharmacists’ claims which is causing delays. As it appears, some of these cases have to do with a lot of money, a fact which hinders the daily operation of some pharmacists. Speaking to Alithia, Chairwoman of the Pharmaceutical Association Eleni Piera stated that the organisation hasn’t explained to pharmacists the criteria by which claims will be investigated. The involved parties will meet and the HIO will have the opportunity to explain the criteria under which pharmacists’ claims will be investigated, so pharmacists are informed and there are no further misunderstandings. She said, that the HIO does not move forward with pharmacists’ payments if their claim is being investigated, resulting in pending claims worth thousands of euros, something which hinders the work of some pharmacists.

 

Shifts with only one doctor

The A&E department of Paphos General Hospital is still understaffed, as they are left with 8 doctors instead of 12. As a result, some shifts are carried out with only one doctor. According to Politis, on Thursday another doctor with many years of experience at the A&E submitted her resignation. This was confirmed by Sotiris Koumas the president of PASYKI, who blamed OKYPY and the MoH that despite their reassurances no new doctors were brought in to cover the needs.



Resident Cypriot doctors left without specialisation

During a time when OKYPY is desperately looking for doctors to staff its hospitals, Cypriot resident doctors are left exposed just a step before receiving their specialisation, due to a change in Greek legislation. Resident doctors who’ve completed the necessary time in order to qualify for their specialisation can’t undergo the relevant examination. This issue dates back two years, and Health Ministers of both Cyprus and Greece are discussing possible solutions, however, they haven’t taken a definitive decision yet. Resident doctors reached out to CyMA and the letter they’ve sent will be shared with all stakeholders in the upcoming days.



PASYKI’s 5 demands for resident doctors

On the same issue as above, Politis reports that PASYKI sent a letter to Health Minister Constantinos Ioannou asking for clarification about the current status of the negotiations. PASYKI is concerned that young Cypriot resident doctors will be discouraged from coming to Cyprus for their specialisation, which will further reduce the number of specialised doctors at state hospitals, and subsequently weaken the GHS’ backbone.