ON THE SURFACE, the scheme by which the state would buy NPLs, in order to protect home-owners, seems a good idea as it would eliminate the need for legislation suspending loan repayments. According to the scheme, discussed on Tuesday by the national council for the economy and endorsed by the president in a letter sent to the House speaker on Thursday, homes of people who have fallen on hard times would be bought from the banks by the state which would then rent these back to the owners, until the latter were in a position to resume repaying loan instalments.

In this way, none of the hard-up citizens would be kicked out of their homes, the NPLs of the banks would be reduced and the workload of the courts would not be increased. This, at least, is the theory the experts that advise president Anastasiades on economics issues came up with. As Nobel prize-winning economist Christoforos Pissarides said, “we are trying to find a way to protect the primary residence without bringing more trouble on the banking system,” but he admitted that this was “something difficult.”

It would be more than difficult for the experts when they try to put the theory into practice.

Pissarides touched on the issue of the funding, which is beyond the capabilities of the state, saying the international lenders could contribute. And if they were unwilling to do so, these non-performing loans could be bought by investment funds, “provided there is assurance that the owner would not be thrown out of the house.” But what investment fund would buy discounted NPLs when it would be unable to evict the tenant when the latter is not paying the rent for the property? And what would be the ownership status of a property with a sitting tenant protected by law?

In the unlikely event that the state finds the funds to take over these properties, what would it do if the tenant/owner simply does not pay the rent agreed? It would not evict them as this would defeat the object of the whole scheme, so it would run the risk of having hundreds, perhaps thousands, of properties that it would be unable to sell and from which it would be collecting no rent. As for the possibility of investment funds buying properties to help the poor and vulnerable home-owners, it sounded more like an April Fool’s yarn than a serious option.

As we said above, on the surface, the scheme seemed like a good idea, but if a modicum of serious thought is given to the practicalities of its implementation – no economic expertise needed – it would be dismissed as nothing more than a fantasy scenario.

By Angelos Anastasiou

IT WAS entrepreneur Nikos Lillis’ turn to testify for the prosecution at the Larnaca Assize court yesterday in the controversial CyTA land scandal trial, in which eight defendants – seven persons and a legal entity – pleaded not guilty to all 28 charges presented against them last month.

The case involves a suspicious land deal in Dromolaxia paid for by the state telecoms CyTA employees’ pension fund. The eight defendants face 28 charges relating to the alleged embezzlement of €22.5 million to construct four office complexes – the ‘Aero Center’ – from the CyTA employees’ pension fund.

The accused are Stathis Kittis, former CyTA board chairman, Charalampos Tsouris, former CyTA board member, Orestis Vasiliou, former secretary general of CyTA’s employee union, Yiannis Souroullas, CyTA employee, his brother Gregoris Souroullas, employee of the land registry department, Venizelos Zannetos, member of AKEL, Antonis Ioakim, a businessman and shareholder of Wadnic Trading Ltd, and Polleson Holdings Ltd.

Lillis, one of the key prosecution witnesses, testified for four hours and offered the sequence of events relating to the case since April 2007, when the proposal to buy Turkish Cypriot Mustafa Mehmet Mustafa’s land in Dromolaxia was made to him through Mehmet’s boss, Charalampos Liotatis.

But the law mandates that the Turkish Cypriot should have resided in the Republic of Cyprus for at least six months before he could be allowed to sell his land, and Lillis said that legal difficulties in the transaction led him to seek assistance from AKEL members Zannetos – one of the defendants – and Christos Alekou, against whom charges were dropped. The two asked him to make “hefty donations” to the party in exchange for their efforts.

Due to the legal tangle that threatened to undo the deal, Lillis sought the involvement of the Central Intelligence Service. The secret police’s then-boss Vasos Georgiou informed Lillis that the agency’s initial report stated that Mehmet was not a resident of the free areas, but Service sergeants Costas Miamiliotis and Lefteris Mouskos – both facing charges along with Lillis in a separate case – later drafted a second “ironclad” report stating the contrary.

He further claimed that his close personal friend Ioakim – another of the defendants – offered to help Lillis through his AKEL connections, and named PEO union’s boss Pampis Kyritsis and Venizelos and Zannetos as possible facilitators. Lillis said that the four pressured him into repaying loans previously made by Alki football club and make donations to “the party.”

Yet later in his testimony he protested that the Alki loans were never repaid, despite Alekou stressing the need to repay them as “indebted people were at risk of jail.” Instead, Lillis claimed two cheques for over €500,000 he issued in order to repay Alki loans wound up in AKEL accounts. During this period, Lillis said, Venizelos would scold him if was late in repaying Alki’s loans.

The prosecution witness commented extensively on the money trail relating to the case, naming Kittis, Vasiliou, Yiannis Souroullas and Grigoris Souroullas as having been paid “hundreds of thousands of euros” in order to ensure that Lillis would receive the investment money from the pension fund.

Lillis’ testimony caused the defence to object at several instances, even suggesting that Lillis had been promised immunity from prosecution in a separate case he is facing charges on. Lillis defended his motives to the judges, saying that he wanted to speak out in order to help the courts dispense justice.

Meanwhile, former CyTA chairman Stathis Kittis was the one who had negotiated the price for the land on behalf of the company’s pension fund, according to the testimony of Georgios Koufaris, a CyTA senior executive.

Koufaris claimed that Kittis, along with former board member Charalampos Tsouris, showed increased interest in finalising the construction of the Aero Center on the land in Dromolaxia purchased by the CyTA employees’ pension fund.

But Koufaris claimed that despite his own disagreements with the investment and the decision to fund it from the pension fund, the issue was brought to the pension fund’s executive committee, which approved it. He also said that he was informed from the media that Lillis had bought the Turkish Cypriot’s plot of land for €1.2m.

The trial will resume on Monday morning, when Lillis will be cross-examined by Kittis’ defence attorney Yiorgos Papaioannou.

By Mubasher Bukhari
A Pakistani judge threw out charges of attempted murder against a nine-month-old baby on Saturday, lawyers said, in a case that cast a spotlight on Pakistan’s dysfunctional justice system.
Baby Musa Khan appeared in court in the city of Lahore, sitting on his grandfather’s lap and drinking from a bottle of milk.
He and his adult relatives were charged this month with attempting to murder a policeman after his family clashed with police and gas company workers trying to collect overdue bills.
Police registered a case against the whole family.
“Police told the court that the nomination of Musa in the case of attacking police and gas company officials was a human error and Musa is not required,” defence lawyer Irfan Sadiq told Reuters.
The baby’s grandfather, Muhammad Yasin, and his three sons still face the charges.
Pictures taken at an earlier court hearing of Musa crying as he was being fingerprinted provoked widespread ridicule and provincial officials called for an inquiry.

A 27-year-old Dutch woman was remanded in custody for eight days on Saturday in connection with possession and trafficking of 16.5kg of cannabis found in her suitcase at Larnaca airport.

Police said the woman arrived from Amsterdam, via Bucharest, on Friday at 11.35pm and her behaviour drew the attention of drug squad officers at customs.

She was asked to open her suitcase but the suspect said it was locked and she did not have the keys.

Officers opened the case and inside they found 14 packages containing cannabis, which the woman claimed she was carrying for other people.

Police believe there are more drugs, thought to be carried by an individual who was travelling with the suspect.

Authorities believe the woman is part of an international gang that ships drugs from the Netherlands to Cyprus and will be seeking the help of Interpol.

Some 90 minutes earlier in Limassol, police arrested three suspects – two Greek Cypriots aged 53 and 30, and a Greek woman, 35 – in connection with possession and trafficking of 1.1kg of cocaine.

The 53-year-old is a taxi driver, who was carrying the pair who reportedly arrived through the Tympou airport in the Turkish-occupied north.

Police intercepted the taxi near the Yermasoyia roundabout and a search of the suspects’ luggage found three packages containing the cocaine.

By Julian Linden

BUBBA Watson made five birdies in a row to snatch the halfway lead at the 78th Masters on Friday as Augusta National turned on some of its favourite sons.
The roars that normally echo through the Georgian pines were replaced by groans and sighs as some of golf’s biggest names, including Phil Mickelson, failed to make it past the second round.

While most of the world’s best golfers struggled to make par in the brutally tough conditions, the free-swinging Watson surged into contention for a second green jacket in three years.

The American produced a masterful display on the back nine to grab the outright lead at seven-under-par and hold a three-shot advantage over Australia’s John Senden.
Another four players, including defending champion Adam Scott, were tied for third at three-under on a congested leaderboard.
The Australian battled to a 72 to join Denmark’s Thomas Bjorn (68), Swede Jonas Blixt (71) and American Jordan Spieth (70), the last pair being among the record 24 rookies in the field.

“It wasn’t exactly what I was looking for,” Scott said. “But given everything, I’m absolutely satisfied with that.”
The unflappable Fred Couples, the 1992 champion, finished with a 71 to join Jimmy Walker (72) and Jim Furyk (68) at two-under after Mickelson missed the cut at the Masters for the first time in 17 years after finishing at five-over.

The three-time champion missed out by a solitary shot after making a mess of the treacherous 12th hole, where he landed in greenside bunkers three times, and signing for a 73.
“I didn’t play great. I didn’t play bad,” Mickelson said. “I just had one bad hole there at 12. And I keep making these triples, they’re tough to overcome.”
Mickelson was not the only high profile casualty on a day of carnage for former champions. Argentina’s Angel Cabrera, the 2009 champion and runner-up last year, missed out after finishing at eight over.

South Africa’s Charl Schwartzel, who won in 2011 with birdies on each of the last four holes, also missed out along with 2007 winner Zach Johnson and 2008 champion Trevor Immelman.

With Tiger Woods absent, every Masters champion from 2004 to 2011 will be missing from the weekend while Northern Ireland’s Rory McIlroy, who drove into a cabin to blow a four-shot lead on the last day three years ago, was lucky not to join them on the way out of Magnolia Lane.

After an adventurous day in which he made two double bogeys and went searching for his ball in the woods and then azeleas at Amen Corner when his approach hit a sprinkler head, he only survived after draining a tricky six-foot putt on the last hole.
“I’ve seen a lot of this golf course in the last few years,” said McIlroy.

Watson, who won the championship in an epic playoff with Louis Oosthuizen two years ago, followed up his opening 69 with a sparking four-under-par 68, matching the best score of the championship.

The maverick left-hander made his first bogey of the tournament at the ninth hole and also dropped a shot at the last when he missed a short putt but he reeled off five successive birdies from the 12th to seize control of the first major of the year.

“It’s not science here,” Watson said. “All I’m trying to do is just hit the greens, that means my tee shots are good and two putts, maybe throw in a birdie here or there.
“That’s really all I was doing and that’s what I’ve done the last two days and it’s worked out so far.”

Senden came into the first major of the year in good form after winning last month’s Tampa Bay Championship. He was two-over after four holes but stormed up the leaderboard with six birdies in his next 11 holes earning a 68.

With the wind gusting across the course and making the notoriously fast greens even more difficult to read, only a handful of players were able to make up any ground.
Scott made a shaky start, spraying his opening tee shot into a fairway bunker.
He dropped three shots on the front nine before three birdies on the back nine saw him settle for a 72 after his first round 69, the exact same scores he carded when he won the green jacket last year.

“It was very difficult out there today,” Scott said.
“Anything even par or better at a major is normally a good score, especially today, I would say. It kept me in the tournament.”

Bjorn, playing in the morning when conditions were less tormenting, birdied four of his last five holes while Blixt picked up two late birdies after a double-bogey at the 11th.
“It’s a tricky golf course…if you’re not quite on, it becomes extremely difficult out here,” Bjorn said. “I just tried to do the right things and I executed it well.”

Spieth, one of the leaders of golf’s new generation, eagled the 15th and then birdied the 18th to show no signs of nerves in his first Masters appearance.
Bill Haas, who led overnight after a first-day 68, tumbled down the leaderboard with a 78, while South Africa’s Oosthuizen, who was tied for second after the first day, finished at even-par for two rounds after a triple bogey on the 15th.

March saw the highest number of applications for company registration filed since February 2013, according to company registrar data.
Applications for the registration of new companies reached 1,018 in March 2014, compared with 935 in March last year.
The figures show that “we are doing better” Spyros Kokkinos, Registrar of Companies and Official Receiver told the Cyprus News Agency, adding that “we expect to do even better”.
New registrations reached 2,615 in the first quarter of 2014 and the total number of registered companies by the end of March was 270,480, from 272,157 at the end of 2013 and 269,345 at the end of 2012.
According to the data, 42 companies went bankrupt in the first quarter of 2014. There were 189 company bankruptcies in 2013 and 133 in 2012.
Voluntary liquidations reached 356 between January and March 2014. There were 1,478 in 2013 and 1,144 in 2012.
Forty-eight people filed for bankruptcy in the first three months of 2014, 364 in 2013 and 561 in 2012, the data said.

EUROPEAN Central Bank (ECB) emergency liquidity assistance (ELA) declined slightly in March, figures released by the Central Bank of Cyprus showed.
The ELA funding declined from €9.55 billion in February to €9.50 billion in March.
Liquidity from the ECB’s monetary operations in March fell €200 million to €1,4 billion million from €1,6 billion in February.
The CBC also holds gold reserves of € 419.3 million compared with €389.1 million in February.
The government’s debt to the CBC stood at €1.35 billion.
Cypriot banks’ reliance on ELA funding peaked to €11.40 billion in March 2013 as Cypriot authorities and the European Commission, the European Central Bank and the IMF, agreed on a €10 billion bailout which featured a haircut on banking deposits over €100,000.

By Swati Pandey

The search for a missing Malaysia Airlines jetliner resumed on Saturday, five weeks after the plane disappeared from radar screens, amid fears that batteries powering signals from the black box recorder on board may have died.

Australian Prime Minister Tony Abbott warned on Friday that signals picked up during the search in the remote southern Indian Ocean, believed to be ‘pings’ from the black box recorders, were fading.

Malaysia Airlines Flight MH370 disappeared soon after taking off on March 8 from Kuala Lumpur bound for Beijing with 227 passengers and 12 crew on board, triggering a multinational search that is now focused on the Indian Ocean.

Search officials say they are confident they know the approximate position of the black box recorder, although they have determined that the latest ‘ping’, picked up by searchers on Thursday, was not from the missing aircraft.

Batteries in the black box recorder are already past their normal 30-day life, making the search to find it on the murky sea bed all the more urgent. Once they are confident they have located it, searchers then plan to deploy a small unmanned ‘robot’ known as an Autonomous Underwater Vehicle.

“Work continues in an effort to narrow the underwater search area for when the Autonomous Underwater Vehicle is deployed,” the Australian agency coordinating the search said on Saturday.
“There have been no confirmed acoustic detections over the past 24 hours,” it said in a statement.

The black box records data from the cockpit and conversations among flight crew and may provide answers about what happened to the plane, which flew thousands of kilometres off course after taking off.

The mystery has sparked the most expensive search and rescue operation in aviation history.
Investigators probing the disappearance suspect that the co-pilot of the jetliner tried to make a call with his cellphone after the plane was diverted from its scheduled route, Malaysia’s New Straits Times reported sources as saying on Saturday.

The newspaper cited unidentified investigative sources as saying the attempted call from co-pilot Fariq AbdulHamid’s phone was picked up by a cellphone tower as the plane was about 200 nautical miles northwest of the west coast state of Penang. That was around where military radar made its last sighting of the missing jet at 2:15 a.m. local time on March 8.
Government officials could not immediately be reached for comment on the report. The New Straits Times quoted acting Transport Minister Hishammuddin Hussein as saying that the report needed to be verified.
But he appeared to cast doubt on the report by saying: “If this did happen, we would have known about it earlier.”
Malaysia is focusing its criminal investigation on the cabin crew and the pilots of the plane – 53-year-old captain Zaharie Ahmad Shah and 27-year old Fariq – after clearing all 227 passengers of any involvement, police have said.

Malaysia’s government has also begun investigating civil aviation and military authorities to determine why opportunities to identify and track the flight were missed in the chaotic hours after it vanished.

Analysis of satellite data has led investigators to conclude the Boeing 777 crashed into the ocean somewhere west of the Australian city of Perth. So far, four ‘ping’ signals, which could be from the plane’s black box recorders, have been detected in the search area in recent days by a US Navy ‘Towed Pinger Locator’.

“We are now getting to the stage where the signal from what we are very confident is the black box is starting to fade and we are hoping to get as much information as we can before the signal finally expires,” Abbott said on Friday.

The US supply ship USNS Cesar Chavez has joined the Australian-led task force to provide logistics support and replenish Australian navy ships, a Pentagon spokesman said.
Up to nine military aircraft, one civil aircraft and 14 ships were scouring a 41,393 sq km (25,720 sq mile) patch of desolate ocean some 2,330 km (1,445 miles) northwest of Perth.
The extensive search and rescue operation has so far included resources from 26 countries.

Australia’s Ocean Shield, which has the towed pinger locator on board, is operating in a smaller zone, just 600 sq km (232 sq miles) about 1,670 km (1,040 miles) northwest of Perth. That is near where it picked up the acoustic signals and where dozens of sonobuoys capable of transmitting data to search aircraft via radio signals were dropped on Wednesday.
Experts say the process of teasing out the signals from the cacophony of background noise in the sea is slow and exhausting.

An unmanned submarine named Bluefin-21 is on board the Ocean Shield and could be deployed to look for wreckage on the sea floor some 4.5 km (2.8 miles) below the surface once a final search area has been identified.

By George Psyllides
There was no question of discussing natural gas as part of the island’s reunification talks, President Nicos Anastasiades said on Saturday, and Turkey can be Cyprus’ customer after a solution but not a strategic partner.
“It (natural gas) belongs to the Republic of Cyprus… it is a sovereign right of the Republic of Cyprus,” Anastasiades said in a speech at a conference in Limassol on the new challenges for Euro-Mediterranean relations after the Arab Spring.
The president stressed that Turkish Cypriots would also receive their share if the Cyprus problem was resolved.
Turkey, which backs the breakaway Turkish Cypriot state in the north, disputes the Republic’s rights to a swathe of sea to the island’s south and southeast that are rich in gas reserves. It has on a number of occasions sent warships to the area.
Cyprus says the waters are part of its own offshore area, where it has awarded research concessions to France’s Total, US company Noble Energy, and South Korea’s Kogas.
Anastasiades said a solution of the Cyprus problem would benefit both Turkey and the Turkish Cypriots.
“Of course we will not discriminate among customers with a solution of the Cyprus problem – if and when it will be possible to have a solution that will also be accepted by Greek Cypriots,” Anastasiades said, stressing that Turkey will not be a strategic partner.
Almost one trillion cubic metres of recoverable natural gas has already been discovered in the eastern Mediterranean Levant Basin, enough to supply Europe with gas for over two years.
Anastasiades also highlighted the island’s upgraded geostrategic role, noting that Europe needed a second source of natural gas and that route passed through Cyprus.
In an interview with Reuters published on Wednesday, Anastasiades said: “Europe will never stop needing Russian gas but there can be alternative supply sources.”
European states have become wary of heavy dependence on Russian energy since Moscow’s annexation of Ukraine’s Black Sea Crimea peninsula last month.
Russia provides around one third of the European Union’s oil and gas.
Also speaking at the conference, Foreign Minister Ioannis Kasoulides said Cyprus’ vision was for its natural gas to be what coal and steel was for the EU 60 years ago.
The island’s first weapon should be its geographical location since it was the EU’ farthest outpost, facing a world where extremism, fundamentalism, and numerous conflicts prevailed.
Natural gas should be the second weapon, being the common denominator for Lebanon, Egypt and Israel, which bordered the island’s exclusive economic zone, the foreign minister said.

By Mike Collett

Everton won 1-0 at bottom club Sunderland to leapfrog Arsenal into fourth place in the Premier League on Saturday and the battle at the other end of the table intensified with wins for three clubs in danger of relegation.

The only goal at the Stadium of Light came after 75 minutes when Sunderland defender Wes Brown chested a cross into his own net to give Everton a seventh successive victory and move them into the Champions League places.

They have 66 points, two more than Arsenal who were playing FA Cup holders Wigan Athletic in the FA Cup semi-final at Wembley.
Sunderland’s defeat left them four points adrift at the bottom after second-from-bottom Cardiff City won 1-0 at Southampton and Fulham, who are 18th, beat fourth-from-bottom Norwich City 1-0 at Craven Cottage.

Crystal Palace eased their relegation fears with a 1-0 home win over Aston Villa but West Bromwich Albion, who started the day in 16th place, drew 3-3 with Tottenham Hotspur after leading 3-0 after 31 minutes. Spurs also missed a penalty.

Palace’s victory saw them climb to 37 points and virtual safety while West Brom stayed in 16th place.

The bottom four positions are occupied by Norwich who have 32 points, followed by Fulham (30), Cardiff (29) andSunderland(25). Sunderland have two games in hand on the teams above them.

The top three sides Liverpool, Chelsea and Manchester City are all in action on Sunday with Liverpool playing Manchester City at Anfield and Chelsea going to Swansea City.

All of Saturday’s matches kicked off at 15.07 local time to commemorate the Hillsborough disaster 25 years ago this weekend when 96 Liverpool fans died at their FA Cup semi-final against Nottingham Forest in Sheffield.

That match was abandoned after six minutes and the seven-minute delay on Saturday marked that duration and also included a minute’s silence around the grounds.

THINGS must have been desperate on the news front for Phil to have a banner headline on Wednesday’s front page that said ‘A fillet for the president.’ Was there such a dearth of news on the previous day, even regarding the Cyprob, that the paper led with a story on what the prez had for lunch?

There was no chance this would be a funny lead story because the paper is renowned for its complete lack of a sense of humour – even the supposedly humorous cartoon on its front page is usually dead serious – but the headline made me want to read the story. I wanted to know whether the fillet for the prez was pork, beef or fish.
Reading the sub-heading it became clear that the story was not about what Nik had eaten but about a ‘fillet’ of land that his wife Andri had bought from the Archbishopric. In colloquial Greek, ‘filleto’ – which has the same meaning as the English equivalent – is sometimes used to refer to a piece of premium land.
The report informed us that the plot of land, adjacent to the house of the prez in Limassol, was bought for €500,000. It also revealed all the payment details – there was a €40,000 down-payment, the second payment of €160,000 would be made at the end of this month and the remaining 300 grand would settled through 75 ‘interest-free,’ monthly installments of four grand.
The story had no by-line, even though you would have thought that the hack who came up with the super-scoop would have wanted his or her name on this fillet journalism. Then again the story was not the product of a big investigation, but the result of someone handing over a private sales contract to the paper.

THE PAPER tried to sex up this non-story by presenting it as a dubious transaction, implying that the Archbishop had done a big favour to the first lady, selling her the filleto, supposedly, below its market value.
This was after all, “the aristocratic area of Mesovounia of Yermasoyia municipality,” which the paper reported “is considered one of the most expensive in Cyprus.” It was “littered with super-luxury homes and even from the pictures of Google earth one could see palaces worth millions, with swimming pools and gardens.”
The paper also reported: “According to respected land appraisers, asked by Philelefteros, even today, with real estate market in crisis the value of the specific plot is in the region of €870,000.” The paper did not name any of these respected land appraisers, but Mrs Andri issued a statement saying that the Land Surveys Department had valued the plot at between 477 and 522 thousand euro.
If the writer was not so keen to make a scandal out of the transaction and put his or her common sense to work he or she would have deduced that in Kyproulla of 2014 plots of land do not sell for close to 900 grand, not even in the aristocratic area of Limassol.
And another thing, the crafty, commercially-minded, penny-pinching, Paphite Archbishop of the cash-strapped Church would not sell a plot for 370 grand less than its market value to Jesus Christ let alone to the first lady. And Chrys is shrewd enough to know that the value of a plot is the price a buyer is willing to pay for it and not that put on it by unnamed land appraisers still living in the bubble times.

WHAT IS weird is that Phil ran such a story. No company has financially benefited from Church largesse over the decades as much as Phil. It is currently a business partner/associate of Church-owned Mega TV, so why did it run a story implying Chrys had acted corruptly, when its case was so weak? I am unable to explain the paper’s ingratitude.
The source of the leak may offer a partial explanation. Our mole at the presidential palace informed us that Nik’s security staff established that that sales contract had been leaked by the Bank of Cyprus at which bank confidentiality is not what it used to be.
The prime suspect would have been Chairman Christis Hassapis, who has been known to leak stories about the BoC to Phil, but this story had nothing to do with the bank, NPLs, board meetings or Hourican. It was an attempt to show Nik and Chrys in a negative light.
If it had been Christis he would not have called Prez Nik to apologise and promised that a full investigation would be carried out at the BoC to find the culprit. It should not be a very difficult investigation because only a handful of bank employees had access to the sales contract. Christis did not tell Nik what he would do to the culprit when he is found.

LAST WEEK our establishment had written that the board of the BoC had vetoed the idea of hiring a deputy CEO but we now realise that our information was wrong. Phil, often briefed by the happy bunny chairman, reported on Monday that the board had decided at its meeting on April 4 to hire a deputy CEO who would be Cypriot to deal with retail banking.
On Tuesday the board committee was to have decided which firm would carry out the recruitment. However by Thursday, Phil reported on Friday, interest for the position had been expressed by bankers from the competition and the board hoped to appoint someone before Easter (this weekend). In the space of a few days the board would vet applicants, short-list candidates, interview them, agree terms and make an appointment.
Firms have been known to take longer hiring a shop assistant or office cleaner than the board of the BoC would need to appoint a deputy CEO. The Cypriot deputy CEO had probably been found before the board decided to look for someone so that an Easter bunny appointment could be made.

AS MENTIONED last week, there is a rift at the bank between the happy bunny and Irish CEO John Hourican who has been repeatedly undermined in the media by unnamed but not unknown sources.
Hassapis was shaken when he read that Hourican would consider the setting up of a bad bank in order to transfer all the BoC’s toxic assets, including the NPLs of the big developers and hoteliers. A board member that was not named told Phil that there was no such plan.
The speculation is that Hassapis wants to appoint a deputy CEO in order to control Hourican who is not prepared to do any favours to the big developers and hoteliers with the big NPLs. And it would not be a surprise if the new appointee is given responsibility for dealing with the NPLs as he would be more inclined to go easy on businessmen not repaying their loans.
But Hassapis is unlikely to have a free ride because the presidential palace is not opposed to the creation of a bad bank. In an interview with Tass news agency on Friday, finance minister Haris Georgiades said the government did not object to the creation of one or more bad banks, stressing that any decision should be based on business criteria.
The decision, he said should not be determined by “political intervention or, worse still, intervention by third parties, that could be affected and hope to safeguard their own narrow interest at the expense of the interest of the rest of the population.”

THE KNIVES are out with the Prez backing Hourican, who has the support of the Russian members of the board and the DISY leadership, which had vehemently opposed the creation of a bad bank when it was mentioned by Professor Panicos last summer, backing Hassapis.
In fact Hassapis has been acting so autocratically as chairman, interfering in the day-to-day running of the bank, because he enjoyed the full backing of the DISY leadership and the employees union ETYK. A guy appointed chairman from nowhere, with no track record or management experience would not have been so arrogant if he did not have political backing. He would not feel so confident to sneakily undermine the CEO less than six months after he was appointed because the guy is doing his best to recover the hundreds of millions the bank had lent to big developers and hoteliers. But strangely, on Friday, even the DISY leader Averof Neophytou publicly declared he did not oppose the creation of a bad bank. Christis would not be a very happy bunny, nor such an arrogant one, if he cannot rely on the backing of the DISY leadership.

FORMER finance minister Vasos Shiarly, who is now jobless, has stumbled on a nice little earner. He is now acting as the ‘loan advisor’ of one of the big developers with big NPLs at the BoC – Michael Leptos.
Shiarly, who was a senior executive at the BoC before becoming a Tof minister, accompanies Leptos when he goes to the bank to discuss what should be done about his group’s NPLs worth several hundred million.
How funny that the guy who was mindlessly granting loans to the Leptos group, even when it was unable to repay its existing loans, is now acting as the consultant of the group and haggling about the loans he granted with the bank on the borrower’s behalf. It just seems wrong.

THERE were plenty of dry eyes at the Central Bank on Thursday as Professor Panicos bade farewell to his staff. In his speech he praised his inner circle and himself for all the wonderful things they did for the country. The 47.5 per cent haircut of the depositors of the BoC, for which he had come under strong criticism, he said would “prove life-saving.”
He also helped save the euro. “Through my participation in the governing council of the ECB, I contributed, together with my counterparts, towards the taking of significant decisions that proved of crucial importance for the saving of the euro.”
But his biggest achievement was warning the ECB against using the term Monetary Outright Transactions, because the acronym would be MOT. After he explained that this stood for Ministry of Transport in the UK, associated with car inspections, his counterparts decided to change the term to Outright Monetary Transactions.
Thanks to Panicos’ intervention, there is now no danger of people getting the programme for defending the euro mixed up with the MOT test.

I FELT like reaching for the sick bag when I heard Prez Nik’s disgraceful flattering of the public parasites at PASYDY’s 51st annual conference on Friday. Referring to the difficult last 12 months he said that “we all paid a very high price, but more than anyone you, the workers of the public sector.” He even thanked the parasites “for your total co-operation in the difficult decisions we had to take” and expressed his appreciation for their “responsible stance.” Words fail me.

OUR DEPUTIES’ tireless, but ultimately unsuccessful efforts to pass the bill protecting primary residences from foreclosure had one positive effect. Their proposed bill helped boost the NPLs of co-op banks. Apparently, in the last couple of months, many people who had been promptly paying their monthly installments on their housing loans just stopped doing so. It just goes to show that if the bill was passed, 90 per cent of people with house loans would have applied to the courts for suspension of repayments.

JOURNALISTS never tire of telling us that people are totally disillusioned with politics and that politicians had fallen into disrepute. An opinion poll conducted on behalf of the CyBC last week was cited as proof of this. According to the poll, 35 per cent of the population would not be voting in the next month’s European elections.
Eighty-five per cent of these people would not vote for the following reason: “I am disappointed with the parties and the politicians.” Are they disappointed because the politicians are a bunch of corrupt, self-serving, ignorant liars, as journalists and TV pundits have been claiming?
I have a different theory. They are disappointed with the parties and politicians, because they are no longer in a position to offer rusfeti – there are no new public jobs to distribute, no promotions in the public sector to arrange, and cash to give as handouts to refugees, single mothers and other deserving voters.

SIGNS of the popular blame-game that has traditionally plagued the Cyprus problem have been appearing rather frequently of late. President Anastasiades and Dervis Eroglu kicked it off several weeks ago but their sparring was characterised by an element of restraint, content to engage in gentle sparring rather than in landing heavy body blows. It was as if they were training – getting in shape – in preparation for the real contest they expected would start in the not so distant future.

Eroglu has complained that the Greek Cypriot side was more interested in pursuing the return of the fenced area of Famagusta than negotiating a solution while Anastasiades has expressed disappointment over the gap separating the two sides at the talks. It was a rather polite exchange of accusations, exclusively for domestic consumption, to show people that their leaders are tough cookies. People have become accustomed to this theatre which is usually followed by assurances that the talks would continue regardless.

This week however the two negotiators, who had been avoiding publicising what they were discussing, took swipes at each other. Kudret Ozersay publicly expressed concern over Greek Cypriot attempts to renegotiate issues related to the EU and the economy that were included in the UN document of convergences. Ozersay complained that Anastasiades had agreed for talks to start from where they stopped, and wondered what the point was of negotiating issues that had already been agreed.

In response, Andreas Mavroyiannis issued a statement criticising Ozersay for ignoring the commitment to keeping the talks confidential. He also added that the convergences document was not on the negotiating table as the two sides were still at the initial stage and accused Ozersay of attempting to create false impressions. Interestingly, a week before this row, a Greek Cypriot source had told the Cyprus Mail that the Turkish Cypriot negotiating team had “completely unravelled positions” agreed by Talat and Christofias, thus creating a “huge distance” between the two sides.

We have been watching the same movie for the last 40 years even though a new element has been introduced to the procedure – ‘screening’ of the issues connected to the different chapters of the problem, a process which has been going on for the last two months and will be concluded, according to the UN, on Tuesday. Having seen this movie so many times, we also know the ending – failure to reach an agreement. Does anyone expect a different ending this time given that the procedure is following the same old script?

The fact is that in 40 years of UN-sponsored talks the two sides have never come anywhere near a deal of their own volition. The only time a comprehensive settlement was offered was 10 years ago and this was achieved, in spite of the two sides, thanks to arbitration by the UN Secretary-General and the setting of a time-frame for a referendum. But the big majority of Greek Cypriots voted against that plan because they were urged to do so by their president, who refused to engage constructively in negotiations.

Why are we persisting with a procedure that experience has shown does not yield results? Are the two sides being allowed to play the doomed talks game, until the US and, possibly, the EU take over the procedure in order to make things happen? This was the case with the joint declaration, the two sides bickering over the wording for months. The US eventually took over and through contacts with the two sides, Turkey and the UN a declaration that was acceptable to everyone was prepared.

This might be the way for a comprehensive settlement to be prepared, even though it would be much more difficult to pull off than the joint declaration and there would be howls of protest against US involvement. But without it the procedure would eventually grind to a halt, as it always does, giving way to the blame game. Perhaps the foreign involvement would materialise once the talks reach the obligatory stalemate, with differences on a range of issues considered unbridgeable.

For now, the two sides will be left to do what they have always done – engage in negotiations for the sake of negotiations and indulge in the blame-game – but the procedure cannot be allowed to go on forever. There will have to be direct foreign involvement at some stage because without it there could be no settlement. What more do the two sides have to do to prove that they are incapable of negotiating a compromise agreement?

Despite the obvious political difficulties and the disappointments of the past, most stakeholders believe, or hope at least, that this time things are different and Varosha could yet materialise even if a Cyprus settlement was a bit down the line.

But this brings on a new set of headaches, mainly money and planning – unprecedented amounts of both.

One Famagusta businessman in exile, who did not wish to be named, has been giving it a lot of thought.

“You can give Famagusta back but what will I do with it?” he said. “I have no savings and no one will loan me money I can’t repay. These are very real problems.”

The businessman said it was easy to talk theoretically about the return of Varosha but without access for experts to assess the costs and timeframe for its re-opening, everything was theoretical and no scenarios could be outlined.

Also unless every single stakeholder, including those in the private and public sectors synchronise their actions, it could be a real mess. “Assuming you and I have hotels on the seafront and 100 metres way there is another hotelier. We get money and refurbish, and in 2015 we’re ready to welcome guests but the other hotelier could not find the money and there’s derelict building there, it will put off our tourists. If the other hotel starts refurbishing later, there go the tourists again,” he said.

“Synchronisation is vital. Sewerage, water electricity, phones, hoteliers will have to move in tandem.”
On top of that special legislation would need to be passed because town planning moves so slowly, but the businessman said some views that the entire town would have to be demolished were “nonsense”. “Many of the buildings were erected in the sixties with good concrete and materials and not done as cheaply as now. There are too many people with bright ideas,” he said.

George Lordos, who is involved with the Famagusta bicommunal initiative and the well-known eco-city project for the town, has been talking to former residents. “People are afraid big business will swoop in and hijack the whole project,” he said. “Also some believe it would be wrong to erase the memories if others want to build a new city. Many people want to return to what they know.”

Lordos said the approach would have to be “top down and bottom up”.

“If people are left to decide on their own it will be chaos. You have to be serious and have a sustainable and sensible plan to attract investors,” he said. “But you also need the solid backing of the people from both communities.”

Or, in the words of Mayor Galanos: “One thing at a time. There are many ideas. The most important thing is a decision. The other headaches will come later.”

By Jean Christou

WHILE ORDINARY Cypriots from both sides have managed to pull off an historic confidence-building event for a Good Friday church service in Famagusta, politicians and diplomats have been slugging it out all week over the return of Varosha.

The historic event – the first Easter service at the Ayios Georgios Eksorinos church in 57 years – is a testament to what can be achieved in Cyprus away from zero-sum games such as the tug-of-war over Varosha.

Famagusta Mayor Alexis Galanos, who was instrumental in securing the Good Friday service, told the Sunday Mail that kind of grandstanding was the reason he left politics.

A former MP and House President, Galanos said he had wanted to do his bit for the Cyprus issue away from the “poisonous party politics” that lead nowhere. He has developed a rapport with Famagusta’s Turkish Cypriot municipal representative Oktay Kayalp, and they are working together on a joint vision for an integrated town.

Galanos sees their cooperation as a means of creating momentum for the return of Varosha, the fenced-off area within Famagusta. “What is happening now is that our ideas are gradually being adopted,” he said.

If the flurry of diplomatic activity during the week is anything to go by, there is plenty of movement in the push for Varosha’s return but whether there is a realistic chance of it happening is anyone’s guess.

“I don’t know,” said Andreas Mavroyiannis, the Greek Cypriot side’s negotiator at the talks when asked what the prospects were. “The Americans are willing to help but it remains to be seen how it will go,” he told the Sunday Mail.

Galanos said he had spoken with US officials. “It seems they’re determined to push ahead,” he said. “We expect to see some developments.”

The Americans, always fond of buzz words like ‘gamechanger’, along with grand gestures and their own role in orchestrating them, are in a hurry. This was evident from statements during the week by Deputy Assistant Secretary of State Eric Rubin.

Like most diplomats, Rubin has the knack of saying a lot without saying very much at all, but several times mentioned that for the US this was the year they wanted to see movement on Cyprus. As for the grand gesture, as soon as news emerges that Secretary of State John Kerry is coming, then something will be afoot. It may not be as big as the return of the ghost town but could consist of allowing experts into Varosha to conduct a feasibility study, funded by the US.

The US is of course looking at the bigger picture of regional stability in terms of natural gas but how long they are willing to commit their resources to achieving movement on Varosha remains to be seen.
Having said that, US support for the initiative is vital as the UN, burned in 2004 for its ‘interference’, is staying clear of the Varosha package lest it be accused of promoting the interests of one side or the other.

That the abandoned fenced-off area would be returned in the event of a solution has always been a given but it’s no secret that the current peace process is not going well, and a comprehensive settlement is no closer than it was when the last round of talks ended in mid-2012.

This is why the Greek Cypriot side is insisting the Varosha initiative runs parallel as a confidence building measure (CBM).

“We want it now,” says Mavroyiannis. “The Varosha package is both a CBM and a gamechanger. We need it before a settlement. Under a settlement we were always going to get it but we want it now to give a boost to the talks.”

Both Galanos and Mavroyianns said there was logic to the demand. Giving back Varosha now would indicate to people in both communities that a settlement was possible. It would also make it easier for
President Nicos Anastasiades to sell a solution to Greek Cypriots by showing that the Turkish side was serious this time around, they both argued.

“It’s important because it gives people hope,” said Galanos.

But unless the Turkish side suddenly shifts its stance or is somehow persuaded by the US, the prospects don’t look promising.

The Turkish Cypriots see the Varosha initiative as a way for Greek Cypriots to distract from the talks.
But for them, the faster the talks, the sooner Varosha is returned. In a way they are also possibly testing Greek Cypriot commitment to the overall negotiations. “We cannot make any concessions purely for the sole purpose of encouraging the Greek Cypriot side towards a solution,” Turkish Cypriot negotiator Kudret Ozersay was quoted as saying on Thursday.

“The concern for the Turkish Cypriots is that the Greek Cypriots will take it and run,” said analyst Fiona Mullen of Sapienta Economics. “The trick for Greek Cypriots is how to persuade Turkey that Varosha is the gamechanger that they say it is.”

Another analyst, James Ker-Lindsay believes the Turkish Cypriot side might have a point in that the Varosha issue could distract from the talks. “I have always been rather sceptical about the place of CBMs. Far too often they have become an unwelcome diversion from what should be the main topic: a comprehensive solution,” he said. “Worse than that, debates over CBMs have often become so heated that they have actually done more to destroy goodwill and confidence than to build it up.”

But Mavroyiannis disagreed the initiative would overshadow the main negotiations he is conducting with Ozersay. “I have not talked with Mr Ozersay about Varosha,” he said. “They [Turkish Cypriots] don’t want to give Varosha before the end, the final stage of negotiations, because it’s their best card.”

The question remains then is what would be acceptable to the Turkish side as a quid pro quo, because the ‘Varosha package’ which offers in return the opening of Famagusta port to international trade under EU supervision, implementation of the Ankara Protocol for Cypriot air and sea traffic, and the lifting of Cyprus’ veto on a number of Turkey’s EU accession chapters, is clearly not tempting enough.

“For me that’s more than enough for the return of Varosha,” said Mavroyiannis ruling out any other concessions.

Ker-Lindsay said it was hard to say what the Greek Cypriots would be willing to offer that the Turkish Cypriots would accept. What the Turkish Cypriot side craves most is recognition. Ker Lindsay said over the years, the Greek Cypriots have been “absolutely determined” not to allow any measures that would give any sort of legitimacy to the Turkish Cypriot breakaway state, he said. “But this has been exactly what the Turkish Cypriots have been after. Unless one side is now willing to moderate its position, it seems hard to see what sort of meaningful concession could be given in return for what would be a pretty monumental decision by the Turkish Cypriot side.”

It may be a contradiction in terms that it should be such a struggle to achieve a confidence building measure, given the very meaning of confidence building. But in Cyprus it’s rare that the two sides ever want the same thing at the same time and more often than not one side or the other will reject something simply because the other side wants it even if they don’t want it themselves.

Just like in Aesop’s fable, Varosha is the proverbial dog in the manger.

Arsenal manager Arsene Wenger breathed a huge sigh of relief after they beat FA Cup holders Wigan Athletic on penalties in Saturday’s semi-final to keep alive their hopes of winning a trophy after a nine-year wait.

Arsenal beat spirited Championship (second-tier) side Wigan 4-2 in the shootout following a 1-1 draw after extra time and will meet Hull City or Sheffield United in the May 17 final back at Wembley Stadium.

Having not won any silverware since their FA Cup triumph in 2005, Arsenal were made to sweat against Uwe Rosler’s plucky Wigan side who gave Wenger serious concerns that his trophy hoodoo would continue.

“I am relieved because we won… It is important that, mentally, we didn’t go out tonight. If you imagine the consequences of going out tonight it is quite worrying,” Wenger told reporters.

“It was a cup game and the difference between winning and losing is very, very small,” said Wenger, who has won the FA Cup four times.

“That win today will give us a lift for the rest of the season,” added the Frenchman whose side have slipped out of the Premier League title reckoning during the run-in.

“The semi-final is all about winning,” said Arsenal midfielder Kim Kallstrom. “It was tough but we did it. We had to stay strong mentally and at 1-0 down it gets tough. We were focused and even though it was on penalties, we will take it.

“We have been struggling in recent weeks but you have to deal with that, it’s part of the game.”

PENALTIES SAVED

Wigan took the lead after 63 minutes with Jordi Gomez’s confidently struck penalty but Arsenal defender Per Mertesacker, who had given away the spot kick with a clumsy sliding tackle on Callum McManaman, redeemed himself in the 82nd by heading past Scott Carson to take the game into extra time.

Wigan’s first two penalties were saved by Lukasz Fabianski, leaving Arsenal’s Spain midfielder Santi Cazorla to convert the decisive spot kick to send the north London side to the final.

“In the first half we were a bit timid,” Germany international Mertesacker told ITV.

“In the second half I think we hit the post twice and had a couple of chances so it was a good comeback. We have great character, even though a lot of people have questioned that.”

Defeat was cruel on Wigan who had dreamt of retaining the trophy they snatched with a last-gasp goal against favourites Manchester City last year, but Rosler was proud of his side.

“Today we faced Arsenal, one of the top teams in the country, and we did very well – missing (out by) eight minutes to win it in normal time,” the former Manchester City striker said.

“Unfortunately we couldn’t hold out, we forced Arsenal long and that is unusual for the way they play.

“I desperately wanted to go to the final but unfortunately it didn’t happen.”

One Ukrainian state security officer was killed and five others were wounded on the side of government forces in an “anti-terrorist” operation on Sunday against pro-Russian separatist militants in a city in the east, the interior minister said.

On the side of the separatists there had been an “unidentifiable number” of casualties during the operation in the town of Slaviansk, the minister, Arsen Avakov, said on his Facebook page.

Ukraine’s Interior Minister on Sunday told residents in the eastern city of Slaviansk to stay indoors, in anticipation of clashes between pro-Russian militants who have seized official buildings and Ukrainian security forces.

Ukrainian security forces have launched an “anti-terrorist” operation to end the grip of separatists on an eastern town, Ukraine’s interior minister said on Sunday.

“An anti-terrorist operation has begun in Slaviansk. It is being directed by the anti-terrorist centre of the state security service. Forces from all the security units of the country have been brought in,” Interfax news agency quoted the minister, Arsen Avakov, as saying on his Facebook page.

Pro-Russian activists carrying automatic weapons seized government buildings in the town about 150 km (90 miles) from the Russian border on Saturday, and set up barricades on the outskirts of the city.

A Reuters correspondent outside the town’s police headquarters, one of the buildings seized, said two military helicopters were flying overhead.

About a dozen women, who had been in the building when it was seized, were evacuated as soon as Avakov’s announcement was made known.

A group of up to a 100 civilians, many of them elderly women, stood in front of the building, chanting messages of solidarity to the protesters inside, including “Referendum!”, a reference to demands for a local poll to be held to determine a separate status for the region.

On the building’s forecourt, which itself was barricaded, protesters beat out a defiant tattoo on shields they were carrying.

At least eight people were killed and 500 houses destroyed over the weekend by a fire that ripped through parts of Chilean port city Valparaiso, causing the evacuation of thousands of residents as authorities battled the blaze.

Pushed by strong Pacific coast winds, the fire killed three men and one woman as it rampaged over 300 hectares (741 acres) of hilly residential neighborhoods including La Cruz and Las Canas, local authorities said.

The country’s Congress, which resides in Valparaiso, and the city’s historic quarter, with its late 19th century architecture, were spared by the blaze.

President Michelle Bachelet declared a state of emergency and sent the army in to maintain order while ambulance crews treated people for smoke inhalation and other injuries.

“”The fire is still not completely extinguished,” said local government official Ricardo Bravo.

Premier League leaders Liverpool took a huge step towards becoming English champions for the first time in 24 years when they defeated third-placed Manchester City 3-2 at Anfield on Sunday for a tenth successive win.

The Merseyside club have not finished top since 1990, two years before the Premier League began.

Nineteen-year-old Raheem Sterling put Liverpool ahead in the sixth minute and the lead was doubled 20 minutes later when defender Martin Skrtel headed in a corner.

City, who lost the influential Ivory Coast midfielder Yaya Toure with an injury after little more than quarter of an hour, recovered with two goals in five minutes early in the second half. David Silva scored in the 56th minute and the equaliser was an own goal by Glen Johnson.

But 13 minutes from the end of a thrilling game, Brazilian Philippe Coutinho drove in the winner. Liverpool’s Jordan Henderson was sent off in added time.

The Manchester side now trail Liverpool by seven points with two games in hand and are still two points behind Chelsea, having played one game fewer.

Russia’s Foreign Ministry said on Sunday that an announcement by the authorities in Kiev that they will mobilise the army to put down a rebellion by pro-Russian militants in eastern Ukraine was a “criminal order”.

The ministry said the West should bring its allies in Ukraine’s government under control. “It is now the West’s responsibility to prevent civil war in Ukraine,” it said in a statement posted on Facebook.

It also said that Russia would put an urgent discussion of the situation in eastern Ukraine on the agenda of the United Nations Security Council.

“The situation in southeastern Ukraine is taking on an extremely dangerous character. The authorities in Kiev, who put themselves in power as a result of a coup d’etat, have set a course to use force to put down popular protests,” the statement said.

“We decisively condemn attempts to use brute force against protesters and activists … We are particularly indignant about the criminal order of (Ukrainian Acting President Oleksander Turchinov) to use the army to put down protest.”

The statement said the West had sponsored the rulers in Kiev and should now “rein in its out-of-control proteges, force them to distance themselves from neo-Nazis and other extremists, stop using armed force against the Ukrainian people, and immediately start a genuine dialogue”

Premier League Hull City were given a fright as they had to come from behind twice to beat obstinate third tier side Sheffield United 5-3 in the FA Cup semi-final at Wembley on Sunday to reach the final for the first time.

In a frantic opening half, Jose Baxter gave Sheffield United a shock lead on 19 minutes. Yannick Sagbo equalised for Hull on 42 minutes, but Stefan Scougall restored the League One side’s advantage just before halftime.

Hull fought back at the start of the second period with substitute Matty Fryatt and Tom Huddlestone scoring in quick succession, before Stephen Quinn’s header effectively wrapped up victory for the Premier League side.

Jamie Murphy snatched a late consolation for United in injury time, before Hull added a fifth through David Meyler.

Hull will now play Arsenal in the final at Wembley on May 17 after Arsene Wenger’s side sneaked past Wigan Athletic on penalties in the other semi-final on Saturday.

Sheffield United looked comfortable against their top-flight opponents in the opening stages, passing the ball crisply round the Wembley turf before taking the lead on 19 minutes when John Brayford’s cross was prodded in by former Everton forward Baxter.

Hull rarely troubled United for much of the first half, but they snatched an equaliser when Sagbo latched on to Jake Livermore’s perfectly-weighted pass to fire the ball into the roof of the net.

The equaliser was harsh on United, who were playing with plenty of vim and vigour, and they restored their advantage two minutes later when Murphy tore down the left flank and cut the ball back from the byline for Scougall to lash past Steve Harper.

In search of more attacking impetus, Hull manager Steve Bruce introduced forwards Sone Aluko and Fryatt at halftime, and it paid off as United failed to deal with a corner and Fryatt was on hand to sweep the ball home.

United were now on the back foot and a neat one-two between Meyler and Huddlestone on 54 minutes enabled the former Tottenham man to burst into the box and place a left-footed shot past Mark Howard, giving Hull the lead for the first time.

With half an hour remaining substitute Quinn, a former United player, headed in Livermore’s chipped cross to give the Premier League side a bit of breathing space.

But United, bidding to become the first third-tier side to reach an FA Cup final, refused to roll over and when Murphy smacked a loose ball into the net it set up a nervy few minutes for the Hull supporters.

With Nigel Clough’s side throwing men forward at will in the push for an equaliser, they were caught on the break by Hull and a sweeping move up field enabled Meyler to apply the finish and send the Premier League side into the final.