By Angelos Anastasiou

BANKS have filed 6,000 foreclosure requisitions with the land registry which remain pending due to heavy workloads, AKEL MP Yiannos Lamaris has said.

Current legislation offers no protection to homeowners’ primary residence, meaning that if the 6,000 requisitions were to be pushed through, the properties would be foreclosed, prompting the submission of a bill conditionally protecting families’ primary residence to the House Legal Affairs committee.

After consolidating three pertinent but separate bills into one, the Legal Affairs committee has decided to resume discussion in two weeks, after the government’s law office has submitted its opinion.

According to the committee’s president Sotiris Sampson, the legislation seeks to avoid creating homeless families by protecting their primary residence against foreclosure requisition, offering similar protection to premises owned by small-to-medium enterprises (SMEs).

“Distressed debtors who have lost their income or otherwise fallen into financial hardship will be eligible to apply for protection from foreclosure requisitions for a specified period of time, at the end of which they may either wish to apply for further protection or resume payment,” he said.

Sampson said that as the law will apply following the exhaustion of loan restructuring efforts, it could prove an incentive for banks to ensure the workability of restructuring agreements.

Lamaris expressed the view that a law protecting the primary residence will be a major step towards alleviating citizens’ concerns.

He said that limiting the scope of the protection by imposing criteria based on value or area will “alter the philosophy of the law”, and clarified that with regard to SMEs the protection will apply to businesses with a maximum of ten employees or annual turnover not in excess of €2 million.

He clarified that the proposed legislation aims to offer protection only in cases where debtors have lost their source of income and are unable to repay their dues.

“Despite the banks’ assurances to the committee that foreclosures are last on their list of options, the House feels that legal protection should be offered as soon as possible”, he said, concluding that the fact that 6,000 foreclosure requisitions remain pending and are not expected to proceed soon at the land registry due to heavy workloads, is not sufficient protection.

By Angelos Anastasiou

THE entire executive board of the Kyperounta co-operative credit institution (CCI), comprising its five members and the chairman have been taken into custody until Monday for ignoring a court order deeming the dismissal of the co-op secretary as wrongful.

The secretary was fired by the CCI management in May 2013 for “disciplinary offences”, but his dismissal was not endorsed by the Co-operatives Registrar as it was found to be “unwarranted.”

Subsequently, the secretary resorted to the courts to appeal the decision, seeking to either be reinstated or compensated for wrongful dismissal.

The court issued an interim ruling in September 2013 ordering his reinstatement until the case was decided.

However, the order was never enforced by the co-op’s management, prompting the secretary  to bring new proceedings, resulting in Thursday’s decision to incarcerate the entire board for disobeying the court’s initial order. They will be sentenced on Monday.

The decision creates serious concerns over the progress of consolidating and restructuring the co-ops s, which is a prerequisite to the troika’s approving a €1.5 billion recapitalisation injection from the €10 billion bailout loan to Cyprus.

The consolidation plan calls for the merging of several CCIs into larger regional entities and requires the Kyperounta co-op to absorb six others from the area, creating a centralised Troodos branch.

However, the absorption of the co-ops, although ratified by the executive board, has not been approved by the Co-operatives Registrar because it does not bear the signature of the secretary – who was not yet reinstated at the time of ratification, in November 2013 – as required by law, putting the entire process at risk.

In order to overcome the legal issues and keep the troika-mandated timeframes for completion of the process, the finance ministry has submitted a bill – not yet voted into law by the House – that enables consolidation to be decided on without requiring the secretary’s signature.

Commenting on the bill, House Finance committee chairman Nicolas Papadopoulos said the mergers will continue and be completed as scheduled regardless of “personal differences or labour disputes.”

“Whether an employee in Kyperounta or elsewhere is right or not with regard to his complaints and civil suits he may have filed is irrelevant to the consolidation process and does not concern the House”, he said, adding that “these are personal issues that will be decided in court and cannot possibly be placed higher than the public interest.”

The deadline for payment of the 2014 road tax for all motor vehicle types has been extended to March 10.

The extension was granted via a legislative proposal passed unanimously by parliament on Thursday night.

Previously, February 9 had been set as the deadline, with officials adamant that no extensions would be granted this time round.

Similar warnings are issued every year, but usually the deadline is extended anyway.

People paying the road tax after the deadline are fined €30 plus 10 per cent on the amount owed.

Information can be found at mcw.gov.cy, where the public can also make payments.

The tax can also be paid at any commercial bank, at the Road Transport Department and Citizens Service Centers.

BRITAIN’S top equity index rose for a second straight day on Thursday, led by strong gains from heavyweight telecoms group which helped the market recover its poise after a recent five-day losing streak.

The blue-chip FTSE 100 index, which had fallen for five straight days during the past two weeks, closed up 100.39 points, or 1.6 per cent, at 6,558.28 points.

Investors had been unnerved by signs of slower Chinese growth and the withdrawal of U.S. monetary stimulus, concerns that spread from emerging markets to the world’s big stock markets.

A 3.7 per cent rise in Vodafone, after the mobile operator expressed confidence that its revenues would improve, contributed the most points to the FTSE 100 index on Thursday.

Toby Campbell-Gray, head of trading at Tavira Securities, said Vodafone kept attracting investors because of its solid dividend yield and because of speculation about a takeover, even though AT&T ruled out a bid for Vodafone last month.

A bounce back in emerging market currencies proved supportive to the likes of consumer goods maker Unilever and brewer SABMiller, which have big EM exposure. For a list of European blue-chips with the most exposure to emerging markets:

And, with much of the market focus on Friday’s U.S. non-farm payrolls report, investors took heart from a better-than-expected report on U.S. weekly initial jobless claims.

“This bounce could be due to speculators abandoning their bearish positions ahead of the NFP. All eyes will be on the 200-day moving average again (currently at 6,563). If the index closes above it… then we could well see some healthy gains next week,” Gain Capital technical analyst Fawad Razaqzada said.

One cause for concern is that the earnings picture overall remains mixed, underscored by a warning from AstraZeneca that it has another difficult year ahead in the face of generic competition for its popular heartburn and ulcer drug Nexium.

Its shares dropped 1.6 per cent, the biggest drag on the UK benchmark. The loss trimmed the drugmaker’s advance this year to around 7 per cent, as analysts flagged a likely downgrade to the consensus forecast for its 2014 earnings.

Cautious results statements are sounding alarm bells for investors who had been betting on a recovery in European earnings as the main driver for an equity market rally in 2014.

With the market already trading at lofty valuations after a bumper 2013, bolstered by central bank stimulus, analysts say that valuations have little scope to make further gains, which means earnings must increase before prices can.

A lacklustre start to the earnings season has contributed to a drop of around 3 per cent on the FTSE 100 in 2014.

Of the 26 per cent of European companies to have reported so far, 39 per cent have missed profits expectations and 44 per cent have missed expectations on revenue, Thomson Reuters Starmine data shows.

But investors with a view over all of 2014 remain bullish, expecting a pick-up in earnings in the next quarterly reporting season.

“The fact that clients are still happy to position themselves long and not to take aggressive shorts on the index against their long equity positions probably suggests that they’re confident that there will be a turnaround,” said Matt Basi, head of sales trading at CMC Markets.

The pupils of the Yiolou-Miliou regional primary school, aided by their teachers, will present a programme and offer a free meal to grandparents and the community’s elderly.

Themed “Healthy living the way our grandparents knew it”, the event will be held in the Yiolou primary school, and will include all nursery schoolchildren.

The event is organised on the occasion of starting a new programme to feed the school’s students, courtesy of the ‘Sofia’ Foundation managed by Marina Shacola.

Yiolou school board member Evgenios Neophytou expressed the board’s satisfaction that efforts to reduce the cost of feeding students have paid off, especially in the current dire economic environment.

Vrachnou and Neophytou jointly extended their gratitude to the ‘Sofia’ Foundation for the ‘Giving by Cooking’ programme, as well as the Shacolas Group for donating and setting up the school’s kitchen equipment.

Cyprus Airways (CY) pilots said on Friday they would go to court to overturn the airline’s decision to reduce its contribution to the workers’ provident fund, an agreement made with other unions but not with them.

Last month’s deal will see the airline reduce its contribution to 1.0 per cent, from 8.0 per cent, a move that will save it some €4.0 million over the 15-month duration of the agreement.

“The agreement was made with the other unions, not with us,” said Petros Souppouris, chairman of pilots union PASYPI. “There was no consultation.”

The union had said it would talk pay cuts only after the company was fully restructured, something which has not happened.

“The catering and engineering departments have not yet left the company, as was the plan. There are our conditions,” Souppouris said.

The PASYPI chairman said they planned to go to court over the decision, not because they wanted to punish anyone but as way to turn on the pressure so that the restructuring plan was implemented.

Souppouris did not rule out further measures, to be decided by the union’s general assembly.

The European Commission this week expressed doubt that the airline’s restructuring plan could ensure its long-term viability, as it started reviewing the scheme.

“The commission has doubts whether the restructuring plan is suitable to ensure Cyprus Airways’ long-term viability and whether the airline is capable of withstanding likely challenges in the air transport market during the next years,” the Commission said.

SYRIA evacuated three busloads of civilians from a besieged area of Homs on Friday, the first stage of a planned three-day humanitarian ceasefire in the city which has suffered some of the worst devastation of the country’s three-year conflict.

The buses carrying dozens of weary-looking evacuees, accompanied by Syrian Arab Red Crescent officials, arrived at a meeting point outside Homs watched by soldiers and police.

The deal is the first positive result of peace talks which were launched two weeks ago between Syria’s warring foes and resume on Monday in Geneva, with little prospect of resolving core grievances behind a war which has killed 130,000 people.

Under the Homs deal, women, children and old men are allowed to leave the Old City which has been under siege by President Bashar al-Assad’s forces for a year and a half, while humanitarian supplies will be allowed in to those who remain.

The World Food Programme said it had trucks ready to take a month’s supply of food on Saturday to the estimated 2,500 hungry and malnourished people who have been trapped for months in the rebel-held heart of the city.

Syrian authorities and aid groups said they expected around 200 people to leave the rebel-controlled neighbourhoods. By Friday afternoon about 80 people had been evacuated, a U.N. official told Syrian television. It was the first time the Red Crescent had gained access to the centre of Homs since the siege began, the aid agency said.

Russia said a three-day ceasefire had been agreed in the city, which was one of the first areas to erupt in protest against Assad nearly three years ago and where street after street has been destroyed in heavy fighting between Assad’s forces and rebels seeking his overthrow.

Syrian authorities had announced that evacuees would be given medical treatment and shelter. They said residents of Old Homs who prefer to remain will be sent humanitarian aid as well.

Moscow, which has supported and armed Assad throughout the civil war, hailed the Homs deal as a “landmark agreement”, but Western officials gave a sceptical response, saying Syria had an unconditional obligation to civilians trapped by conflict, arguing the issue should not have required weeks of negotiation to allow aid to enter.

Rebels have rejected similar offers to evacuate women and children in the past because of concerns about what might happen to any men, including fighters, who are left behind. Dozens of men were detained and disappeared after a similar deal made last year in Mouadamiya, west of Damascus.

There were differing reports about where the evacuees were headed. Officials said they could choose their destination, but an activist in the Old City of Homs said they were being taken to Al-Waar - a neighbourhood on the north-western edge of Homs where many of the city’s Sunni population have already fled.

Humanitarian access to Homs had been the first item on the agenda at the Geneva peace talks when they opened a fortnight ago, intended to be a relatively consensual issue which could build momentum to address the far more intractable political divide between Assad and his foes. Yet the deal took much longer than diplomats expected.

Syria’s conflict began with peaceful protests against four decades of Assad family rule and degenerated into an armed insurgency after a fierce security crackdown.

Now the major Arab state is in a full-scale civil war that has killed more than 130,000 people and forced over 6m – nearly a third of the population – to flee their homes.

RUSSIAN police arrested four gay rights protesters who unfurled a banner in St Petersburg on Friday declaring “Discrimination is incompatible with the Olympic Movement”, gay rights group All Out said.

The police in Russia’s second city were not immediately available to comment on the incident, which took place shortly before the opening ceremony at the Sochi Winter Olympics.

President Vladimir Putin has been criticised abroad over a law he signed last year banning the spread of “gay propaganda” among minors but has said there will be no discrimination at the Games.

Supporters of All Out said the group had been rounded up by police soon after they started to protest.

Gay rights groups say the new law discriminates against gays and that it has fuelled attacks on homosexuals in Russia, but Putin says it is needed to protect young people.

A Turkish newspaper said on Friday one of its journalists had been ordered to leave the country for criticising Prime Minister Tayyip Erdogan on Twitter, raising concerns about media freedom a day after  internet controls were tightened.

The daily Today’s Zaman said its online editor Mahir Zeynalov, 27, from Azerbaijan, was escorted onto a plane in Istanbul by police. The paper is close to influential U.S.-based preacher Fethullah Gulen, locked in a feud with Erdogan revolving around a corruption scandal shaking his government.

Erdogan has cast the scandal as a bid by Gulen, who exerts extensive if covert influence in the police and judiciary, to unseat him and has responded by purging thousands of officers and more than 200 prosecutors. Gulen denies the accusation.

“A body linked to the prime minister received a tip that I insulted high-level officials and informed the Interior Ministry (which) decided to deport me,” Zeynalov said by phone from the Azeri capital Baku, adding his application to renew his permit to work as a journalist in Turkey had been denied last month.

He said he had turned himself in at Istanbul airport and been ordered to pay a 103 lira ($46) fine before being put on a plane out of Turkey.

An aide to Erdogan said no instructions had been given from the prime minister’s office regarding Zeynalov. The Foreign Ministry said it had no information, while the Interior Ministry could not be reached for comment.

“This is an utterly despotic and arbitrary decision,” Bulent Kenes, editor in chief of Today’s Zaman, said. “We don’t see it as an attack against our paper, it’s an attempt to intimidate all foreign journalists working in Turkey.”

He said Zeynalov – who had in the past been an outspoken supporter of the government, even defending the jailing of some journalists – would continue his work from Baku.

Lawyers for Erdogan filed a complaint against Zeynalov in December over two tweets in which he said the prime minister had interfered in judicial process by seeking to block the arrest of suspected al Qaeda affiliates, Today’s Zaman said.

Zeynalov’s tweets constitute a “blunt assault on Erdogan’s honour and reputation and his personal rights,” the premier’s lawyers said in a petition submitted to the Ankara Public Prosecutor’s Office, according to Today’s Zaman.

Erdogan’s supporters say efforts to portray the government as facilitating the rise of al Qaeda in Syria’s civil war, by doing too little to prevent weapons and fighters crossing the border, is part of the Gulen-led effort to undermine him ahead of local and presidential elections this year.

Posts on the Twitter account AK Kulis, an unofficial channel of support for Erdogan’s AK Party with 77,000 followers, accused Zeynalov of deliberately failing to extend his accreditation so that he would face deportation and could play the victim.

Turkey’s record on media freedom has long been under scrutiny and is among the hindrances to it reaching its ambition of membership of the European Union.

Erdogan’s government is under fire from the opposition and European Union after parliament approved tighter internet controls on Wednesday, enabling web pages to be blocked within hours and individuals’ browsing histories to be stored by the authorities for up to two years.

Social media and video sharing sites have been awash with alleged recordings of ministers including Erdogan and business allies presented as proof of wrongdoing in the corruption scandal.

Turkey already has strict internet laws under which thousands of websites have been blocked, from news portals viewed as close to Kurdish militants to gay dating sites.

In the six months to the end of June 2013, Google was asked to delete more than 12,000 items, making Turkey the top country on its “request to remove content” list, a report said.

The government says the law, sent to parliament before the corruption scandal erupted but broadened in recent weeks, is aimed at protecting individual privacy not gagging its critics.

By Bejay Browne

PAPHOS as a quality tourist destination will be further promoted at two International fairs this month.

A spokesman for the Paphos regional board of tourism said that concerted efforts were being made to ensure the coastal town’s attractions would be highlighted in two of the targeted potential growth markets.

Paphos will be represented in both Tel Aviv and Stockholm in the coming days with industry officials attending two prestigious events.

The spokesman said: “Israel was one of the expanding markets for Cyprus in 2013, with a 10 per cent increase over 2012 figures. We are aiming to promote Paphos as an all-year-round destination and hope to build on these figures.”

Representatives from the Paphos regional board of tourism and Paphos municipality, along with local hoteliers, will participate in an event to be held in Tel Aviv in Israel on February 11 and 12.

“We will also concentrate efforts to attract specific markets such as short term visitors, weddings, which are growing in popularity with Israelis, and special-interest tourism.

The second specialised event will be held in Stockholm in Sweden between February14-16.
“The Swedish market is a priority for Paphos and we are determined to increase this market.”

Paphos will have a dedicated booth at the exhibition and will be represented by the local tourism board, the Cyprus Tourism Organisation –CTO-hoteliers and representatives of golf resorts.

“There are already promising figures for the current winter 2013-2014 period from Swedish travelers. In particular, long term visitors and golfers are coming to Paphos.”

He concluded: “The prospect of market growth in general in Nordic countries is achievable and concerted joint efforts will continue unabated.”

The Central Bank of Cyprus (CBC) issued a warning on Friday regarding digital currencies, such as Bitcoin or any other form of virtual currency that is not legal tender.

The CBC underlined that there were no specific regulatory protection measures to cover losses for the users of virtual currencies if the platform that exchanges and deals in that specific currency collapses.

“There is no guarantee or legal obligation to reimburse at face value virtual currency owners, nor to reimburse them at any time. The price of virtual currencies is subject to high volatility. It may rise sharply or even fall to zero value. Acceptance of virtual currencies by merchants is based on their discretion and may cease to exist at any point and with no prior notice, in other words, any merchant may refuse to accept it for payments. Transactions in virtual currencies are more liable to be misused for illegal activities,” said CBC officials, urging the public to look into all risks associated with the use of virtual currencies.

By Stefanos Evripidou

THE TWO leaders are set to kick-start peace talks on Monday after Turkish Cypriot leader Dervis Eroglu accepted the latest version of the joint communiqué on Friday night.

Eroglu released a brief statement giving his nod of approval to the draft text, and opening the door to the resumption of peace talks early next week, a year and a half after he abandoned them.

Eroglu met with the Turkish Cypriot parties Friday afternoon to discuss the latest proposal, receiving the support of all parties to begin negotiations.

According to Turkish Cypriot press reports, the Republican Turkish party (CTP) and Social Democracy Party (TDP) were positive on the communiqué, while the Democratic Party-National Forces (DP-UG) and National Unity Party (UBP) expressed reservations. All the parties, however, agreed on the need to get negotiations started.

The Turkish Cypriot media also reported that Eroglu’s former aide Kudret Ozersay is returning to the negotiating team to provide assistance in the talks. It was not clear whether his return is meant to complement the team or replace incumbent negotiator Osman Ertug.

Following agreement of the two leaders, all indications now are that the talks will begin on Monday.

It remains to be seen whether UN Special Adviser Alexander Downer will travel to the island for the start of talks. Some reports suggest Downer’s involvement in Cyprus is coming to a close.

While Downer stayed abreast of developments from afar, the latest version of the joint communiqué is believed to be the result of heavy US involvement in the UN-led process, culminating in the arrival of top US diplomat for Europe Victoria Nuland in Cyprus last Tuesday.

On Thursday, Eroglu received a phone call from US Deputy Secretary of State William J. Burns on Thursday.

The same day, following tweaks to the previous draft communiqué, President Nicos Anastasiades approved the final text, drawing fire from coalition partners DIKO and EVROKO as well as minority opposition parties EDEK, the Greens and Citizens’ Alliance. Only ruling DISY and main opposition AKEL offered their support for the start of talks.

According to a White House statement, Anastasiades also received a phone call Friday afternoon from US Vice President Joe Biden for what Nuland would likely describe as an “attaboy” conversation, confirming US support for a solution and appreciation for Cyprus as “a key partner in a vital region”.

The statement said Biden looked forward to the resumption of talks in the coming days, and “encouraged creative thinking on ways to improve prospects for success”.

Earlier in the day, Anastasiades was in Athens briefing Greek Prime Minister Antonis Samaras and Foreign Minister Evangelos Venizelos.

Following the meeting, Samaras said the Cyprus problem constituted the top priority of Greek foreign policy. The cornerstone of that policy is the constant consultation and coordination with the government of Cyprus.

“Our common goal is the termination of the illegal Turkish occupation and the comprehensive, agreed just, viable and functional solution which fully secures the single sovereignty, international personality and citizenship of a united Cyprus, its EU and eurozone status and implementation of EU laws throughout Cyprus,” said Samaras.

He went on to say that Greek Cypriots and Turkish Cypriots will be responsible for sitting at the negotiating table to reach a final settlement.

“We must draw, of course, lessons from the recent, including very recent, phases in the course of the Cyprus problem and safeguard the conditions for the widest possible national consensus,” he said, in an obvious reference to the divisive 2004 Annan plan.

Any solution would have to be accepted through simultaneous referenda in which lawful residents of the two communities will participate, said Samaras, adding: “Greece will continue to support the president on procedure and substance.”

The Greek PM also reiterated his country’s continued support to Cyprus in the exercise of its sovereign rights in its exclusive economic zone (EEZ).

“These rights emanate from international law, are recognised by the international community in its entirety with the exception of Turkey, which unfortunately, persists in unacceptable, and for sure, ultimately futile tactics to escalate tensions and impose new facts.”

Speaking at the press conference in Athens, Anastasiades said cooperation with Greece creates prospects for the much sought-after unity on the domestic front, considered vital to move forward.

“I have to say, the hardest part is yet to come,” he warned.

DIKO leader Nicolas Papadopoulos on Friday jumped on Samaras’ comments regarding learning lessons from the past to argue that the Greek PM did not support the joint communiqué.

As far as statements from a Greek premier go, these were the “mildest” comments ever made on the Cyprus problem, argued Papadopoulos.

He reminded that Samaras was against the Annan plan in 2004, while Anastasiades voted in favour.

The DIKO leader fuelled speculation that his party would withdraw from the coalition government any day soon when he criticised the joint communiqué for including worse references than those in the Annan plan.

“We have an unacceptable and dangerous document which we disagree with both in substance and in terms of the tactic followed by the president,” he said.

“We call on the president not to sign it, because unfortunately it poses danger to the very existence of the Cyprus Republic,” he added.

Speaking on CyBC’s main news show, government spokesman Christos Stylianides rejected the view that Samaras was warning against a return to the Annan plan.

The Greek premier left no room for doubt regarding his support for the procedure and substance of the talks, said Stylianides. Samaras sent the message that this is not the time for divisions but national consensus, and warned against repeating the divisive mistakes of the past, added the spokesman.

Using a football analogy, Stylianides said some politicians had yet to realise geopolitical changes in the region were giving Cyprus “a chance to play in the Premier League, yet some insist on keeping us in the lower divisions”.

EDEK leader Yiannakis Omirou agreed that the Cyprus Republic was in “mortal danger” and also called on the president not to approve the communiqué, which adopted “extremely dangerous provisions” and Annan plan elements.

EVROKO leader Demetris Syllouris repeated his view that adopting the joint communiqué was wrong but that his party would try to support the president where it can in the talks. He called on the president to withdraw from talks the moment Turkey violates Cyprus’ EEZ again.

Greens leader Giorgos Perdikis argued the president should have insisted instead on a shorter joint communiqué based on UN Security Council Resolution 1251.

Citizens’ Alliance leader Giorgos Lillikas called on Anastasiades to resign and call snap elections, arguing that the president lost his popular mandate the moment he returned to the “known Anastasiades of 2004”.

In comparison, AKEL leader Andros Kyprianou sounded somewhat upbeat, noting that the content of the agreed joint communiqué was “sufficient to resume talks”.

He voiced his party’s support for the talks process, noting that maintaining unity was the president’s job.

“I hope the parties understand that we need to cooperate in a climate of unity, to see how we can strengthen the chances of reaching agreement. That should be the goal of every party.”

Regarding those who call on the president not to resume negotiations, Kyprianou said: “For five months now, they have been trying to convince us that (an alternative) is possible. In practice, it’s been proven that it’s not.”

The AKEL leader also rejected criticism that the joint text left key issues like single sovereignty open to interpretation. “Some things cannot be open to many different interpretations; they can only have one interpretation.”

On concerns about creating double or triple citizenship in a united Cyprus, he said: “We shouldn’t be looking for problems where there are none.”

DISY spokesman Prodromos Prodromou  highlighted the “important role” of the US in reaching a text which clearly establishes single sovereignty, international personality and citizenship.

“It must be made clear that the joint communiqué is only the beginning of a long negotiations process,” he said, calling for calm and unity.

Non-performing loans (NPLs) in commercial banks and cooperative credit institutions rose to €26.25 billion in November 2013, according to figures released by the Cyprus Central Bank (CBC)

Compared with September 2013 NPLs recorded an increase of 4.0 per cent or €1.01 billion

NPLs in commercial banks reached 39.11 per cent of total loans which in absolute numbers corresponds to €20.29 billion, whereas NPLs in the cooperative sector reached 44.39 per cent of total loans or €5.96 billion.

The most problematic loans in the banking sector were the credit facilities granted to the construction sector that reached €7.25 billion of which 35.2 per cent are considered as non-performing.  Loans to individuals on November 30 amounted to €15.14 billion of which 61.44 per cent fall in the NPL category.

Restructured loans reached 14.25 per cent of total credit facilities.

NPLs in the Cooperative sector reached an even higher ratio climbing to 44.93 per cent of total loans that on November 30 reached €13.42 billion, whereas only 4.63 per cent of total loans have been restructured.

According to the CBC figures the lion`s share in total Coops loans were granted to individuals, with €10.49 billion, of which 53.86 per cent are non-performing, whereas €5.19 billion were granted for the purchase of immovable property.

Credit facilities to companies reached €2.93 billion.

By Mike Collett-White
Russia’s Winter Olympics officially got underway on the Black Sea coast on Friday with a grandiose opening ceremony that President Vladimir Putin hoped would dispel fears of militant attacks and a row over gay rights that marred the buildup.

Putin has staked his reputation on hosting a safe and successful Games in the resort town of Sochi, where a colourful, sometimes muddled show before 40,000 spectators at the gleaming Fisht Stadium signalled the start of full sporting competition.

“I declare the 22nd Winter Olympic Games open,” said Putin, launching an event he has personally overseen and expects will burnish Russia’s, and his own, image on the world stage.
In an embarrassing early technical glitch, one of the five Olympic rings suspended high above the stage failed to unfurl, meaning that the giant structure could not be illuminated by fireworks as planned.

But the show went on, blending cartoon-style inflatable domes, spectacular ballroom dancing amid towering imperial columns, and giant avant-garde shapes hovering above symbols of revolution and upheaval in a sweep through Russian history.
Fireworks filled the sky above the Olympic park surrounding the arena in a rousing finale to a show that drew heavily on Russia’s rich heritage of classical music, literature and dance.

As the ceremony unfolded, a security scare aboard a passenger plane flying from Ukraine to Turkey underlined concerns that the Games could be targeted, although the exact circumstances were not immediately clear.
Turkey scrambled an F-16 fighter jet to accompany a plane carrying 110 passengers arriving in Istanbul after a bomb threat was made by a passenger demanding to go to the Winter Olympics venue of Sochi, Turkish officials said.
The passenger was believed to have drunk alcohol and was calmed down by the crew and persuaded to let the plane land in Istanbul, according to Dogan news agency.
The scare came after the U.S. Transportation Security Administration had temporarily banned carry-on liquids, aerosols, gels and powders on flights between Russia and the United States.

The United States issued a warning on Wednesday to airports and some airlines flying to Russia for the Olympics to watch for toothpaste tubes that could hold ingredients to make a bomb on board a plane.
Some 37,000 security personnel are on high alert in Sochi over threats by Islamist militant groups based in the nearby north Caucasus region to attack the Feb. 7-23 Games, the most expensive ever staged at an estimated cost of $50 billion.
Separatist guerrillas seeking an independent Islamic state in Chechnya and neighbouring regions of southern Russia have vowed to disrupt the Olympics, which they say are taking place on land seized from Caucasus tribes in the 19th century.

Despite a “ring of steel” around venues, Russian forces fear a woman suspected of planning a suicide bombing may have slipped through.
Security analysts believe that an attack is in fact more likely elsewhere in Russia to humiliate Putin, who launched a war to crush a Chechen rebellion in 1999.
Twin suicide bombings killed at least 34 people in December in Volgograd, 400 miles (700 km) northeast of Sochi.
Putin was joined at the ceremony by leaders from China, Japan and about 40 other countries in a show of support despite international anger over Russia’s “gay propaganda” law passed last year, which critics say curtails the rights of homosexuals.

U.S. President Barack Obama, French President Francois Hollande, British Prime Minister David Cameron and German President Joachim Gauck are not attending the Games, and the U.S. delegation includes openly gay representatives.
Putin says legislation banning the promotion of gay propaganda among minors is designed to protect young people, and has stressed that homosexuals would not face discrimination at the Olympics.

In a speech at the opening ceremony, International Olympic Committee President Thomas Bach called for an inclusive Games.
“Yes, it is possible – even as competitors – to live together under one roof in harmony, with tolerance and without any form of discrimination for whatever reason,” he said beneath a fluttering Russian flag.

As he spoke, gay rights activists said Russian police had detained activists who tried to protest on Moscow’s Red Square and in St Petersburg.
Police did not immediately comment on the reports by the activists, who said 10 protesters were detained in Moscow and four in Russia’s second city.
In St Petersburg, the protesters were detained after unfurling a banner declaring “Discrimination is incompatible with the Olympic Movement”, gay rights group All Out said.
Google placed a rainbow version of its logo on its search page featuring the six colours on the gay pride flag – red, orange, yellow, green, blue and purple.
The page also includes a quote from the Olympic charter underlining the right to practise sport without discrimination.
Google Inc. declined to comment.

Organisers have defended the costs of staging the Sochi Games amid concerns from Olympic officials that the huge price tag could put potential bidders off in future.
They said much of the infrastructure built for 2014 was designed to be used long after the Games finished, and the plan was to turn Sochi into a year-round resort, international sports centre and amusement park.

Despite grumblings about poor accommodation and tight security, the mood among competitors and officials after a handful of early qualifying events in Sochi and at the mountain base 40 km (25 miles) to the northeast was upbeat.

“Conditions offered to the athletes are absolutely outstanding,” said French Olympic Committee President Denis Masseglia on a clear, crisp day.
Saturday is the first full day of sporting action, with five gold medals to be decided.

By Michael Levi

A rise in crime rates can sometimes represent social progress rather than decay if it reflects a growth in awareness and intolerance of the conduct in question. So it is with corruption. When officials extort bribes from businesspeople and citizens shrug their shoulders and accept this as an inevitable reality, there is insufficient outrage to solve the problem.

“Problem-oriented policing” requires an assessment of the problem and the development of a strategy to reduce it or eliminate it altogether. Once this process has begun, it becomes harder and harder to deny the problem. That doesn’t mean that there is always enough political will for real change to occur, but it is a start.

The European Commission’s first report on corruption in the EU should be seen within this framework. Ever since Transparency International developed the first crude Corruption Perceptions Index in 1995, corruption league tables have challenged countries to improve their relative standing.

When EU Commissioner for Home Affairs Cecilia Malmström was persuaded that there was a needfor the EU to take a stronger line against corruption, she approved the idea of a biennial review of how well or badly the EU and its institutions were performing against corruption.

EU Commissioner for Home Affairs Cecilia Malmström

The first review was released in a report earlier this week. This report was written by staff in Malmström’s department and went through the commission’s usual internal consultation process. Members of the appointed expert group – myself included – provided feedback on individual draft chapters. The contents of those deliberations are confidential, but what follows is a personal judgment about the exercise and what it communicates.

While the cost of corruption will never be known precisely, the report estimates its cost to the EU economy at EUR 120 billion per year. This does not include social and cultural costs, which may be much larger than the bribes. For example, small bribes for not properly checking road and building construction can have huge environmental consequences.

There are reports on corruption and countermeasures in all individual countries in the EU – though (rather unfortunate for the Commission’s credibility), not on corruption in EU institutions, as was originally envisaged. But the main report is a little shy about naming and shaming. It does not even mention, for instance, that Germany is the one EU member state that has failed to ratify the UN Convention against Corruption. This reflects political sensitivity, but is hard to justify if the commission is claiming to be bold.

The word “corruption” has a flexible meaning. To some people, it means cronyism, or that powerful interests can override popular ones because of political funding (or sometimes personal bribes). So it is not surprising that most of the people who think their country is corrupt have never been asked for or offered a bribe. In this sense, seeing your country as corrupt is a vote of no confidence in its meritocracy and fairness.

There are wide variations within the EU in both the experience and perceptions of corruption. Southern Europeans and those from the former Soviet Union (e.g., Poland, Lithuania, and Slovakia) are most likely to say they have witnessed corruption and that their country is corrupt. As for EU businesses, they stated that corruption was the biggest problem in construction and IT/telecoms.

The report notes that formal anticorruption mechanisms do not necessarily reduce corruption, and that, “In some Member States, politicisation of recruitment for mid-management and lower positions in public administration at central or regional/local level have been highlighted as serious problems.”

The report also makes a tough statement against political opposition: “in the Commission’s view, in order to come to a common approach in the EU, there is a need for a clear harmonisation of criminal liability of elected officials for corruption offences.” (I would add that criminal law alone does not guarantee action, and that we also need civil liability to strip the gains.)

In addition, the report criticizes lack of transparency in party funding in some member states, and pushes for more effective asset disclosure and preventative efforts using non-criminal mechanisms.

Altogether, the report contains a useful range of anticorruption measures and practices that are of interest throughout the world. EU member states vary culturally and economically, and they offer an interesting crucible within which we can see the effects of policies and practices.

This first report shows that the European Commission appreciates that corruption is a serious issue affecting its own legitimacy and credibility. Future reports would benefit from greater boldness and efforts to evaluate anticorruption measures rigorously, as has been attempted recently with procurement.

The key message is that we cannot rely on criminal justice, or on institutions alone. We need to focus on practices of transparency, prevention, and whistle-blowing on the ground – but if you whistle and nobody does anything about the problem, no progress will be made.

Michael Levi was part of an appointed Expert Group that reviewed the report on EU corruption by the Union’s Commissioner on Home Affairs. He teaches criminology at Cardiff University and is a top expert on corruption in Europe.

This article first appeared in www.themarknews.com

TWO MEN aged 27 and 34 were seriously injured in two separate road traffic accidents in Larnaca and Nicosia on Friday night, police said.

The first accident took place at 8.15pm on Kallipoleos Avenue in Niucosia when a car being driven by a 34-year-old collided with another vehicle being driven by a 42-year-old man. The 34-year-old was not wearing his seat belt at the time of the accident, police said. Both men were taken to Nicosia GeneralHospital where the 42-year-old was given first aid and released while the 34-year-old was admitted to the intensive care unit. His condition is considered to be serious.

The second accident took place shortly afterwards at 9.30pm on the Aradippou to Larnaca road when a 27-year-old man lost control of the motorbike he was riding. He was taken to Larnaca GeneralHospital where doctors established he had suffered a serious spinal injury. His condition is considered to be serious but not life threatening.

Syrian activists and officials said mortars were fired early on Saturday in the besieged Old Homs district in violation of a ceasefire that is intended to allow the evacuation of civilians and delivery of aid to people trapped in central neighbourhoods.

There were no immediate reports of casualties from the incidents, which both sides blamed on each other. It was also not immediately clear what impact the incidents would have on the planned humanitarian operation.

The opposition Shaam News Network said the mortar fire had coincided with the entry of two U.N. cars, accompanied by rebel forces, into the besieged districts. It said some of the mortar bombs targeted an area on the edge of Homs near to where negotiations over the aid operation were taking place.

It blamed Assad’s forces for the barrage.

It was unclear whether the cars were turned back and it was not immediately possible to verify the reports. Authorities restrict media operations in Syria and the country’s warring parties often accuse each other of attacking civilian targets.

State news agency SANA quoted Homs governor Talal al-Barazi as saying “armed terrorist groups broke the truce this morning in the Old City of Homs, firing mortars at the police building”.

Syrian authorities describe all armed opposition against President Bashar al-Assad as terrorism.

The Syrian Observatory for Human Rights, an anti-Assad monitoring group, quoted activists in Homs as blaming Assad’s forces for the bombardment. It said five explosions shook the area at around 8.30 am (0630 GMT).

A United Nations convoy with food and medical supplies was on standby on Saturday to enter the OldCity and deliver its first shipment of aid to the district since mid-2012.

On Friday 83 civilians were evacuated from central Homs. Aid workers said some of them showed signs of malnutrition after living under siege for a year and a half in one of the strongholds of the 2011 uprising against Assad, which became an armed insurgency after his forces cracked down on protests.

PRESIDENT Nicos Anastasiades and Turkish Cypriot leader Derviş Eroglu will meet in the United Nations protected area of Nicosia at the Good Offices Mission on Tuesday at 11.30am the UN announced on Saturday.

Both leaders announced their agreement to a draft joint declaration on Friday, paving the way for the resumption of the stalled peace talks. There are no plans, at this stage, for Alexander Downer, UN special envoy, to visit the island over the weekend, according to diplomatic sources.

“Downer, the UN Secretary General’s Special Advisor on Cyprus, is not scheduled to come for now,” the sources said.

The sources added that the UN will be represented by Chief of Mission and UN Secretary General’s Representative in Cyprus Lisa Buttenheim.

On Thursday, Eroglu had received a phone call from US Deputy Secretary of State William J. Burns.

The same day, following tweaks to the previous draft communiqué, President Nicos Anastasiades approved the final text, drawing fire from coalition partners DIKO and EVROKO as well as minority opposition parties EDEK, the Greens and Citizens’ Alliance. Only ruling DISY and main opposition AKEL offered their support for the start of talks.

According to a White House statement, Anastasiades also received a phone call Friday afternoon from US Vice President Joe Biden, confirming US support for a solution and appreciation for Cyprus as “a key partner in a vital region”.

The statement said Biden looked forward to the resumption of talks in the coming days, and “encouraged creative thinking on ways to improve prospects for success”.

By Teresa Larraz Mora

Spain’s Princess Cristina gave testimony before a judge on Saturday in a corruption case that has deepened public anger over graft among the ruling class and discontent with the royal family.

Cristina, the younger daughter of King Juan Carlos, faces preliminary charges of tax fraud and money laundering linked to her use of funds from a shell company she co-owned with her husband Inaki Urdangarin, who is charged with crimes including embezzling 6 million euros of public money.

It is the first time since the monarchy was restored in 1975 after the Francisco Franco dictatorship that a member of the royal family has been summoned in a criminal proceeding.

The princess, 48, arrived at the courthouse shortly before 10 am (0900 GMT) to face dozens of questions from the judge in a closed-door hearing in Palma de Mallorca, capital of the Balearic Islands.

Urdangarin, a former Olympic handball player, is accused of using his royal connections to win generous no-bid contracts from the Balearic government to put on sports and marketing events during the boom years before a 2008 property market crash, when local governments were awash with cash.

He and his partners in a consulting firm called the Noos Institute are accused of overcharging, and of charging for services never provided.

The court gave the princess – accused of using Noos Institute proceeds to pay for items such as an expensive remodelling of her Barcelona mansion – special permission to be driven to the courthouse door, citing security reasons.

The decision sparked public outrage because it allowed the princess to dodge hundreds of television cameras and further heated a debate over whether she has been given favourable judicial treatment.

She was driven down the ramp and walked the last few steps to the courthouse, smiling at the press and dressed soberly in a white shirt and black jacket.

Spanish broadcasters have incessantly replayed footage of her grim-faced husband walking into court along a pedestrian ramp when he went before the judge last year.

“I’m a monarchist, but if they have done wrong they should return what they stole and be exposed just like the rest of us,” said Angel Rodriguez, an 80-year-old pensioner passing by the court.

There were almost 400 reporters outside the court and around 200 police officers.

The scandal has run parallel to a prolonged slide in the popularity of the once-revered King Juan Carlos after a series of gaffes showed his high-flying lifestyle to be woefully out of step with a nation suffering economic hardship.

An opinion poll released last month put the king’s popularity at a record low, with almost two thirds of Spaniards wanting him to abdicate and hand the crown to his son.

As Spain slowly shakes free of a prolonged economic and financial crisis, national and local governments are tightening their belts and judges are looking into hundreds of corruption cases from the easy-money years before 2008.

The multiple probes of top politicians, union leaders and bankers are being pushed by anti-graft groups, while state prosecutors balk at tackling politically sensitive cases.

That is the case with Judge Jose Castro’s investigation of Princess Cristina. He has pursued the case spurred on by private anti-corruption groups and despite resistance from the state prosecutor, who has come out in defence of the princess.

After Saturday’s hearing, Castro could formalise the charges and move to trial, or he could drop the charges or allow the princess to plea to lesser charges.

Many Spaniards think she will get off lightly.

“This is a country where there are no consequences for being corrupt. They get a free ride,” said Maria Gomila, an 18-year-old student.

Dozens of civil servants demonstrated near the courthouse late on Friday against public spending cuts and “institutionalised corruption”.

Castro brought the preliminary charges against the princess in January in a 227-page ruling. Last year he brought charges of aiding and abetting, only to have them thrown out by a higher court. The investigation began four years ago.

Both the princess and Urdangarin – who have not represented the Crown at official events since 2011 – have denied wrongdoing.

The princess has stuck by her husband, but last year moved with their four children to Switzerland to escape media attention. She works for a charitable foundation there.

More than 200 extra police officers were on hand in Palma de Mallorca in case of protests near the courthouse and road blocks were put up in the neighbourhood.

NEIGHBOURHOOD watch programmes are vital if the public wants to prevent crime according to sociologist and criminologist Maria Constantinou.

She is currently coordinating the neighbourhood watch programme in GeroskipouMunicipality.

Constantinou told the Cyprus News Agency on Saturday that there are currently 250 people signed-up to the programme and that her role is to organise informative campaigns, registering people and informing them about public safety.

The neighbourhood watch programme began in Geroskipou in October last year aims to prevent crime and provide safety to residents and their property.

Peyia was the first area to implement a neighbourhood watch programme in Cyprus followed by Dali municipality three years ago. Other communities have since followed suit.

By signing up, members have many benefits according to Constantinou, which include receiving SMS messages about burglaries, thefts, robberies or other illegal activity which may have taken place in Geroskipou so that they can take precautionary measures to protect themselves.

Constantinou said she is in almost daily contact with the community policeman who informs her about any new criminal activity in the area.

She added that it is important to note that the police do not encourage the public to take the law into their own hands and that the responsibility of arresting criminals belongs to the police.