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A ‘take it or leave it’ solution Orphanides suppliers told

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Author: 
Elias Hazou

 

A FINALISED ‘take it or leave it’ rescue plan for Orphanides Supermarkets is to be put to suppliers sometime in the next few days, and its rejection could spell the demise of the debt-ridden company.

A draft of the plan, drawn up by the company’s external auditors KPMG, was yesterday presented to the chain’s suppliers and to representatives of the Bank of Cyprus.

KPMG’s sustainability report is said to envisage the continued operation of the company for one to two months, by which time it should become apparent whether an “administrative restructuring” can keep the chain afloat.

Under the plan, priority would be given to repaying suppliers, with the rest of the revenues going toward paying salaries, the electric bill and other essential services.

It’s also understood that the current owners would be excluded from decision-making.

During yesterday’s meeting hosted at the headquarters of the Chamber of Commerce and Industry (KEVE), affected suppliers raised a number of queries and additional proposals.

KPMG said it would take these into consideration and formulate a final plan, to be put before suppliers and to the banks sometime over the next few days.

According to Panayiotis Loizides, KEVE secretary general, the finalised draft would be of the “take it or leave it kind.”

If the suppliers don’t go for it, then matters would take their course, he said, alluding to a winding up of the company.

“The plan is a last-ditch bid to save the company,” added Loizides.

Since the announcement that the chain was going into receivership, various proposals have been put on the table to keep the company running. The future looms uncertain as the company’s two main creditors, Popular Bank and the Bank of Cyprus - collectively owed at least €140 million - rejected the appointment of an administrator to oversee a restructuring.

Orphanides additionally owes €85 million to suppliers and €10 million to other creditors, and posted a loss of €17.7 million for the first three quarters of the year.

The company’s largest commercial creditors then proposed that a strategic investor take over and, failing that, the chain would be placed in administration.

But there is broad consensus that the company may be unsalvageable, and that the banks and suppliers would recoup their debt only if the chain’s assets are sold. The chain’s real estate is said to be worth about €340 million.

Another pitch would have the suppliers jointly buy out the company and use future revenues to gradually settle what they are owed. An initiative has been undertaken by the company Cypra Ltd for the creation of a new chain bearing the name “Orfanides Nea Epohi” (Orphanides New Era).

In the meantime a number of major suppliers are reportedly planning to sue the company for compensation. Others are invoking clauses in their insurance contracts relating to the company’s failure to pay them for a period more than six months.

Under these contracts, merchants are bound to stop supplying goods if they have not received payment for over six months.

Some 1,250 people are on Orphanides’ payroll, while 2,000 more work on the supply end. The closure of the island’s largest supermarket chain could translate into a €400 million loss for the economy, according to one estimate.

 

Last-ditch plan to save failed Orphanides supermarkets, says KEVE chief

Decades of mismanagement have come to haunt us all

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Author: 
George Psyllides

THE ECONOMY is undoubtedly the biggest story of the year and will probably remain so for years to come. 

There is no point delving into the causes of our economic collapse. They have been reported ad nauseam and are quite clear to the objective observer who opted not to pay attention to the bitter blame-game, the recriminations and the political cacophony the public has had to endure this past year.

Beyond the state profligacy, the woeful (mis) management of the economy, and bankers’ greed, there is one underlying cause for the mess.

It is best summed up by a couple of excerpts in a letter written by a Greek national to the Economist. It was published in February and it was in response to the journal’s coverage of Greece’s economic woes.

With a couple of exceptions, one would only have to replace the word Greece with Cyprus to see why this country is going down the drain.

“The country has a corrupt political class, people who featherbed benefits for themselves and their preferred trade unions, (and) operate state-owned enterprises as vehicles for employing cronies rather than as businesses … “

Of course, one should also add the relationship between politics and economic interests in Cyprus.

The letter ends with the acknowledgement that “only foreign pressure for a root-and-branch clean-up of politics can allow Greece to start healing”.

Many people in Cyprus have also come to the same conclusion, but not many say so in public.

The only thing people hear are politicians bemoaning the loss of national sovereignty because of the austerity and structural measures imposed by international lenders.

These are the same people who did absolutely nothing to correct wrongs over the years. Experts say that such changes must be undertaken when the economy is healthy and not during a downturn. And that’s next to impossible in Cyprus as no political party would dare do that.

And now they can blame everything on the troika - not their fear of putting in place any meaningful measures lest they anger their voters.

Unfortunately, the majority of Cypriots have not yet realised that what the island needs are leaders who are prepared to break the bad news to them and take painful decisions for the long-term good of the country.

Instead, this country is governed by crybabies who hide behind the people at the first sign of trouble.

This however is what happens when the whole political system is based on clientelism. Each time a person asks for a favour, a service, they only help perpetuate the sick system that got the country where it is today - economically and politically.

So maybe it is true: people do get the government they deserve.

In the past 12 months Cypriots have had to come to terms with the fact that the island’s booming economy is crumbling and they now have to adjust to a new reality: they will have to learn to live within their means.

To many, this will not come as a shock. The majority of those who endured the hardship that followed 1974 know the drill. Others may find it harder to digest, but going on strike or camping outside parliament will not change anything.

 

Protests outside the House have become an increasingly common sight

Cyprus problem takes a back seat

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Author: 
Stefanos Evripidou

 

IF YOU’RE reading this, it’s highly likely the world did not end on December 21 as the doomsayers predicted, which should be good news to most. 

However, if the Mayans were right, and we all just fell off the cosmic cliff, congratulations! Not only have you entered the seventh dimension, you also managed to take a copy of the Sunday Mail with you. Either that or you nabbed it free in the online ether world. 

In any case, some bad news: the world is actually still turning and despite the relative improvements in personal hygiene over the centuries, it remains a pretty messed up place. 

There was a time of bubbled bliss when residents of this island felt that the goings on in the rest of the world had no impact on the place. When sun and olives ruled the day, when the intractable, unsolvable, never-ending Cyprus problem was all we ever cared about as we poured over politicians’ statements in the daily newspapers (remember those?), digesting their special recipes for solving and ending the Cyprus problem. 

This no more friends. 

We are soul migrants, drifting in a rickety boat in new waters, destination unknown. 

This time last year, I questioned whether the Mari disaster would end up being the catalyst for true change, introducing responsible governance, transparency, accountability and greater civic participation.  

So, that didn’t happen. 

The only civic movement we’ve seen much of is angry public sector workers demonstrating outside parliament against wage and benefit cuts while teachers bunk school to warn us of education’s sacrifice at the altar of fiscal austerity; all blissfully, or perhaps wilfully, unaware of the massive pressures private sector workers have been put under.  

No, I have to say the year has not been a good one. The same responsibility-shifting infrastructures and unaccountable decision-making processes that Mari exposed for being riddled with dangerous holes have stayed true to form, allowing the country to sink deeper into the pit, while the vultures of the financial crisis circle overhead.  

And through all this, amnesiacs abound. The public continues to tolerate the same partisan, cheap, populist level of political debate that dominates the waves.  

Hmm, and I was asked to write something light and funny... 

So, for old time’s sake, let’s take a very brief look at how one issue developed in 2012. 

The year started with the death of one of the most important players in the Cyprus problem world, Rauf Dentkash, whose last few breaths were reportedly spent speaking Greek. 

According to his daughter, from his deathbed in the north, Denktash sent a message to Christofias in Greek telling him that “this is an independent republic”. 

Ironically, Denktash’s protιgι, Dervis Eroglu, has done much to ensure that the breakaway regime will never be independent, nor reunited in a common homeland. Instead, under the ‘fatherly’ or ‘motherly’ direction of Tayyip Erdogan, the daughterland or whatever you want to call it, has become increasingly and intricately meshed in an Islamic lattice more poignant for its inability to unravel than its beauty. 

With the negotiations dead in the water, Eroglu has focused his time in power appealing to Muslim nations for recognition, shamelessly likening the Turkish Cypriots to Palestinians in the Gaza Strip. 

Meanwhile, history will not be kind to Demetris Christofias. No one ever doubted his desire to reach a solution, just his capacity to do so.   

As for the next president, situation normal... Alexander Downer will soon conclude the game is over and tell the UN Security Council so, only to be told the game remains the same, it’s just the players that have to change. 

 

Demetris Christofias and Dervis Eroglu at a dinner in January

Kiosks victims of armed robberies

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HOODED MEN wielding knives and batons attempted to rob two kiosks in two separate incidents in the early hours of yesterday morning. The first armed robbery took place at 2.30am at a kiosk in Ifigenias Street when three hooded men armed with a knife and baton stole €3,000 from the till after beating the employee, who was taken to Nicosia general hospital for treatment. 
At 4am, two hooded men tried to rob a kiosk on Kennedy Avenue, again using a knife. However, the owner resisted and the robbers ran off empty-handed.
 

Thefts in Famagusta

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A SPATE of burglaries were reported to police between Friday and the early hours of yesterday morning in the Famagusta district.
According to Larnaca Press Agency, one man reported to police that his flat in Dherynia had been burgled and a laptop worth €350 stolen. Based on witness testimony, a 28-year-old man was arrested and a laptop found in his flat. Ayia Napa police are investigating the case.
In the Ayia Thekla region of Sotira, a holiday home was reported burgled with a television worth €1,000 stolen, along with a €200 media receiver.
Police are questioning two men, 25 and 31, in connection with the burglary.
Two more holiday homes in Protaras were also broken in to, with robbers making off with a €1,000 television from one of the homes, while nothing was reported stolen from the second. Their owners, both from Nicosia, were absent at the time. 

Private health care crisis in Paphos

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PRIVATE health care is on the brink of collapse in the Paphos district, the head of the region’s medical association has said.
Speaking to the Cyprus News Agency, the head of the Paphos medical association Efstathios Efstathiou highlighted that the occupancy of private clinics in the district was currently at only five to ten per cent, meaning some were no longer sustainable and faced the threat of closure.
There are five private clinics in the Paphos region.
Efstathiou blamed the health ministry pushing both those entitled to free health care and those who are not towards the state hospitals due to the economic crisis.
Private clinics were also coming under huge pressure in other districts of the island, he added.
Asked to comment on criticism that the costs of the private sector’s medical services were too high, Efstathiou said this was a myth, going so far as to claim that prices at private clinics were lower than the actual cost.
He further argued that the Cyprus Medical Association has obliged private doctors to reduce their fees in an effort to survive.

Latchi goes Indian with new yoga and meditation centre

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Author: 
Poly Pantelides

A HOLIDAY village complex in Latchi hopes to attract top-notch customers who are looking for a bit of yoga, meditation and relaxation in a luxurious natural setting.
Elia Latchi Holiday Village, located in the Polis Chrysochou area, has been recently leased out to an Indian investor who has promptly proceeded to gut the complex and pour in between €4 and €5 million to refurbish the place, the Elia Latchi management said.
By June, the hotel should be set up equipped with a spa and fitness centre, and yoga and meditation facilities.
The hotel - situated close to the sea - aims to be open throughout the year, taking advantage of the sunshine and mild winter climate, the management said.
Elia Latchi Holiday Village - that can accommodate 300 people - hopes to attract British, northern European and Middle Eastern customers.
Polis Chrysochous is due to see more development in the coming year with local authorities hoping this will help rejuvenate the area.
The Shacolas group, the largest private commercial group in Cyprus, owns a plot of about three million square metres in Limni, the site of the now defunct copper mines where they plan to build two 18-hole golf courses, a 160 room five star hotel and luxury residences.
And long-delayed plans to upgrade the popular campsite might take place at the end of the year, Polis Chrysochous mayor Angelos Georgiou said.
The Indian investor who is revamping Elia Latchi holiday village has taken a wider interest in the area, a source said adding however that connections need to be improved so that visitors can get to where they want to go on public transport.
Elia Latchi Holiday Village said they will have a new website up and running in the New Year for those interested in visiting.

Arrests after police gambling swoop

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POLICE ARRESTED over 40 people on Friday night in two gambling raids in Aradippou and Larnaca, seizing around €10,000, cards and tables used for gambling.
Larnaca police spokesman Christos Andreou said members of the crime prevention unit and rapid reaction force (MMAD) carried out a coordinated anti-gambling operation between 7pm and midnight on Friday. 
During a search of one establishment in Aradippou police found nine people illegally gambling plus the owner of the premises present. The authorities confiscated €5,870, of which €1,000 was found hidden in the electricity meter, as well as playing cards and four tables.
All ten people were taken to Aradippou police station where they were charged and released pending a court hearing.
At around the same time, another police unit, armed with a search warrant, raided a suspected gambling establishment on Athinon Avenue in Larnaca where they found 32 people engaged in illegal gambling plus the owner of the premises. Eight tables, playing cards and a total of €3,487 were seized as evidence by the police.
All 33 people were taken to Larnaca police station where they were charged and released, pending a court hearing.
Andreou said police operations against illegal gambling would continue throughout the holiday period.
 


Our world has collapsed and we must refashion it

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The year 2012 will be remembered as the year in which the Cyprus economic miracle we smugly boasted about finally collapsed. The old certainties that made life so easy, such as full employment, job security, rising living standards, easy credit have all vanished into thin air replaced by constantly rising, long-term unemployment, soup kitchens, the monthly provision of food supplies to poor families, that increase by the day, and drastic wage cuts.
The island’s biggest and most robust business, the Bank of Cyprus, needs a few billion for re-capitalisation while Laiki Bank requires far, far more; the biggest supermarket chain Orphanides is insolvent and its fate is in the hand of its creditors, some of whom stand to lose several millions if it is left to sink. There were record bankruptcies this year and never before have there been so many empty shops, with ‘To let’ signs, on our high streets.
We would love to say that we have hit rock bottom this year and things can only improve in 2013, but that would be ultra-optimistic.
There is still the issue of the sustainability of the public debt to be tackled - which will make the privatisation of semi-governmental organisations an imperative - before the memorandum is sent for approval to the Euro group and then to national parliaments. We may be forced to make additional cuts, but, more worryingly, there could also be pressure to raise our corporate tax, on the pretext of combating money-laundering - German politicians could set such a condition for approving the memorandum.
The issue might not arise, or if it does, our government could successfully make a case against it, but we should still consider the worst-case scenario on making future plans. After all, there is no guarantee that Cyprus will remain a financial services centre indefinitely. This is a very competitive sector and we could lose business to other countries in the not so distant future so it would not hurt to be prepared. Even if it never happens, developing other sectors of the economy would benefit the country.
The current economic model which has served Cyprus very well over the years, bringing unprecedented affluence and constantly rising high living standards, is no longer viable. We can no longer sustain growth through bank credit and big deficits that ensured employees of the broader public sector had abundant disposable income for consumption. Nor can we rely on the property market as that bubble has burst and we have already entered a major re-adjustment period.
It is an imperative that we use the collapse of the economy and the disappearance of the old certainties to build a new economic model for growth and development. We should stop putting all our resources in the services sector and start producing more, focus on long-term rather than going for quick profit solutions that rarely last. Commentators and presidential candidates alike have spoken about the need for innovation, for more research funding, new technology and so forth.
This is, undoubtedly, the way forward but it will not be achieved by the wave of a wand or by paying lip service to it. We need to have a plan. We must prepare the ground, change attitudes and values, reduce red tape and offer incentives. But we will not succeed unless we reform education. Our schools must cease producing risk-averse graduates whose only ambition is to secure a safe public sector job that would ensure them an easy and comfortable professional life. They need to start producing risk-takers, encouraging individualism and adventurousness and rewarding original thinking. We can have the biggest proportion of university graduates per population size in the world, but their contribution to the economy will be minimal if they are afraid to be creative and innovative.
There are people saying that before long the money from natural gas will start coming in and things will return to normal. It would be a big mistake to take this approach, as it would encourage keeping our old ways and attitudes under the illusion that the old certainties will somehow be restored. There is no guarantee that natural gas revenues will start flowing any time soon, which is why we should seize the opportunity offered by the collapse of our economic model to build a new economy that is powered by risk-taking and innovation. And work on that new project must start in 2013 as soon as the new government is sworn in.

Explosives found near president’s holiday home

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POLICE ARE investigating a possible attempt on the life of President Demetris Christofias after 1.2kg of powerful explosives were found just 500m away from his holiday home in Kellaki yesterday.
According to police spokesman Andreas Angelides, at around 9.30am yesterday morning, police were informed that a car on the Pareklisias-Kellaki road, without registration plates, was seen near the president’s holiday residence.
The co-driver of the unmarked car was seen getting out of the vehicle and putting something under a tree.
On further investigation, police found 1.2kg of powerful explosives believed to be TNT in a bag and a detonator just 15 metres from the road, at about 500m from the president’s Kellaki residence, where he has often entertained high-profile visitors and heads of state during his presidency.
Limassol CID, explosives experts and police sniffer dogs were called to the area, while evidence was collected from the scene and taken for forensic testing.
The detonator was not connected to the explosives though, according to reports, the latter could have been activated by remote control or mobile phone.
Angelides said the explosives were not hidden but in plain view. “Based on the results of preliminary investigations, they seem to be in excellent condition,” he said. 
On the advice of the security services, the president who was due there in the afternoon cancelled his weekend trip to his country residence.
Investigations are ongoing.

Central Bank lashes out at critics

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Author: 
Stefanos Evripidou

CHAIRMAN OF the House Finance Committee Nicolas Papadopoulos yesterday accused the Central Bank of Cyprus (CBC) of “amateur” handling of the negotiations with the troika, saying that its methodologies will lead to the bankruptcy of the state and hurl Cyprus into a recession that will last “decades”. 
The DIKO vice-president made the hard-hitting comments in a letter written in response to a CBC announcement on Friday night which accused the supervisory authority’s critics of running scared after two investigations were launched into the near demise of the island’s banking system.
The CBC launched a scathing attack against “defenders” of the “bankers of the past”, who, it claimed, were trying to paint a picture that everything in the banking system was rosy until May 2012, when a smear campaign was allegedly started against the banks.
The government and CBC have recently come under fire by their detractors for allegedly failing to prevent the upward revision of non-performing loans (NPLs) in the banking sector by accepting without a fight the troika’s demand to define loans with 90-day delays on repayments as NPLs.
This effectively means that Cypriot banks will need a significant amount of money to recapitalise, which they will get from an EU/IMF bailout. In turn, the size of the final bailout determines whether Cyprus will have sustainable public debt or not.
Central Bank sources say the supervisory authority had no say in the matter as the troika made the new method of calculating NPLs a precondition in July 2012. The IMF has adopted the same 90-day standard on NPLs since 2009, as have all other eurozone countries, argued the sources. 
The notion that the CBC had other choices is not realistic, they said, adding that the option they do have before them is to challenge the figure set for the recapitalisation needs of the banks, as estimated by investment company Pimco. And for this, the CBC is seeking external help in verifying the due diligence work done by Pimco.
According to Pimco’s preliminary results as reported in the press, the banks will need €10.3 billion. Sources told the Sunday Mail that the CBC is preparing to challenge this estimate with the help of a foreign consultancy firm and revise the figure downward, aiming closer to €9 billion or lower.
This should go some way to helping make the final figure on Cyprus’ debt more sustainable, said the source. 
In response to Friday’s CBC announcement, Papadopoulos yesterday called on the CB governor Panicos Demetriades to name those he is talking about.
The DIKO deputy accused the governor of politicising the Central Bank: “From the moment he took office, he has behaved as the mouthpiece of party propaganda, trying to convince everyone that the ‘banks are to blame for everything and the government is not to blame for anything’.”
He further warned Demetriades that his actions will be subject to a parliamentary investigation with regard to the estimations and forecasts that have led to a non-sustainable figure for the recapitalisation needs of the banks and cooperatives.
“The amateur way in which the CB is handling these crucial issues is made clear by the fact that everyday they’re looking for new experts to calculate the figure needed to support the banking system. But the damage has already been done. The problem is that the forecasts, estimates and assumptions that the CB and government have already agreed with the troika are part of the memorandum, leading us mathematically to a sum that will make Cyprus’ debt unsustainable,” said Papadopoulos. 
He called on Demetriades to take the initiative to change the methods used to calculate Cyprus’ recapitalisation needs “if we want to avoid a haircut of Cyprus’ debt and the dissolution of its financial centre, privatisations, and a recession that will last decades”. 
CBC spokeswoman Aliki Stylianou said yesterday that the supervisory authority was waiting on legal advice before making a final decision on the firm which will assess the due diligence review carried out by Pimco.
A total of six firms have applied for the assessment work.
“We are committed to implementing certain procedures, which because of the Christmas holidays have delayed the selection process,” she said, adding that the firm will be announced next week.
The firm chosen will verify the methodology used by Pimco, and if the CBC gets its way, help the latter build counter-arguments to Pimco’s estimation of the recapitalisation needs of the Cypriot banking system.
“We would like to be certain that the size of the capital needs will be valid,” said Stylianou.
The memorandum with the troika which the government has reached preliminary agreement on stipulates that if the public debt is not sustainable “the Cyprus authorities will consider a privatisation programme for state-owned and semi-public companies”.
Pimco’s final report will be announced on January 15, just six days before the Eurogroup finance ministers meet to discuss the Cyprus bailout. It is not clear whether Cyprus will be able to challenge Pimco’s final results and get a reasoned response in time for the Eurogroup meeting.
Press reports have suggested that the main contender for the external consultancy job that will analyse Pimco’s methodology is US-company BlackRock. The chosen firm will have to deliver its report by January 15. 
BlackRock is a global investment manager and reportedly the world’s largest asset manager, with US$3.67 trillion in assets under management. It is described by Financial Times as the world’s biggest fund manager, and was in recent years given the task of valuing Spanish and Greek banking assets.
Meanwhile, speaking to state broadcaster CyBC yesterday, Finance Minister Vassos Shiarly did not rule out the possibilty that the bailout memorandum would not be signed by the present government.
“From our side, we are doing everything necessary to sign soon, but this will depend on the Eurogroup meeting,” he said, leaving the door open for the next government to put pen to paper.

Vassos Shiarly - present government may not have time to sign bailout

Hearth and home in focus on New Year’s

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Author: 
Peter Stevenson

 

AN EVENING by the fire with plenty of food and drink, in the company of friends and family is how most people seem have spent New Year’s Eve last night.

With the exception of a few people who said they planned to continue their evening after the countdown at a local club or bar the majority were content with spending the turn of the year with loved ones with food, drink and possibly some card games.

“We will be bringing in the New Year by the fireplace, with ample food and drink,” 47-year-old businessman Koullis Kyriakou told the Cyprus Mail. “We will hopefully be putting this bad year behind us,” he added.

Angelos Sakkas, a 30-year-old insurance broker, Andreas Charalambous, a 32-year-old postman and Eric Berzi, a 34-year-old project manager planned to spend the New Year in the company of close relatives and loved ones, entertaining themselves with cards or board games.

“We, my wife and two boys, will be going up to the mountains, to Kakopetria, where we’ve booked a hotel room with a lovely fireplace,” 34-year-old Koullis Mavroudes said. “The festive period is a time we spend with family and those closest to us,” he added.

Although he will be spending time with his family, 65-year-old artist, Andreas was not swept away with festive cheer. “Tonight is nothing special,” he said. “We will spend the evening at home as we usually do, like every other day of the year,” he added. 

One person we found who was not spending the eve of the end of 2012 at home was 24-year-old Tania. “I plan on welcoming the New Year in the company of friends and loved one at a local bar,” she said. “My husband’s family and my family are both abroad so we thought that we would get together with other friends whose families are also abroad, to see in 2013,” she added.

Stavros Andreou, 29, a café owner planned on continuing the festivities after the countdown. “The plan is to spend New Year’s with the family and then head out to Zoo club with some friends,” he said. “Last year I didn’t end up going anywhere so I thought for a change I would club it,” he added.

 

It’s that time of the year…again

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Author: 
Chloe Hashemi

 

IT’S THAT time of year again. The period when we make the resolutions that we hope will define the next year of our lives. The question is, how many of us still make New Year’s resolutions? Is the concept a trend of the past? Will 2013 be the year of no New Year’s resolutions?

It is often the case that it is effortless to make an entire list of resolutions, but a completely different notion to actually keep them all. It is a belief among the few that making New Year’s resolutions is a craze that has gone out with the ark. For example, Tessa Kolessides says she always makes the usual resolutions to “keep fit, and eat healthier, but by lunch time of the 1st of January it’s ruined!” Her sister, Ellie Kolessides says, “I never make them, because then I’m not failing something. I don’t want to start a new year with disappointment.” This logic makes sense, but year after year, thousands of us still make a new years resolution or two. Will this year be the same?

There is still hope amongst Nicosians, which is an optimistic spin on tough times. Having spoken to the people of the city, it can be concluded that people are still trying to make a change in their lives, and their family’s lives, for the better. Irini Toumazides, an employee of ‘My Shop’ is a grandmother. When asked what her new years resolutions are for 2013, she remarked, “I don’t want anything for myself. I want to help make a better world for my grandchildren to live in…a better life for them.” 

There is not a shortage of optimism. Catherine Ioannou, 47, visual merchandiser wants to “try hard to be more positive in the New Year.” Eighteen-year-old student, Sacha Kovacevic is also staying optimistic, with the intention to keep the motto of: “making more time for the ones you love.”

However, there are always the resolutions we make every year, knowing that they will probably be broken, but we make them anyway. Sometimes, that’s half the fun. Mary Joseph, employee at ‘Pahit Ice’, Ledra, has made one of these. Her resolution is to: “cut out the cigarettes! I say that every year though, let’s see if I can stick to it this year!” Along with Mary, John Lough, retired, has a whole list of what he wants to aspire to this year. The list includes: “To dress better, get a new job, and lose weight, but I’ve been trying to lose weight since 1971”. 

There are also the impulsive resolutions that we make just to see if we can actually accomplish them. This is because for some of us, a new years resolution carries more authority than the standard intention. Katherine Fincham Louis, lecturer at The University of Nicosia, in her 40’s, has the intention of getting a “meaningful tattoo” in the New Year. I’m sure her children will have a few words to say on the matter.

At the end of the day, it is always encouraging to speak to someone who has no need for New Years Resolutions. Imre Domota, employee at Cinnabon Nicosia says he doesn’t have any resolutions for 2013. “My life is good right now.”

 

BoC says not selling Greek ops

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BANK OF Cyprus CEO Yiannis Kypri has denied press reports that the group plans to sell its Greek operations.

He was commenting on reports that the Nomura Group, a Japanese financial services conglomerate, has approached the Central Bank governor with an offer to purchase the Greece-based operations of the three Cypriot banks, which collectively account for around 12 per cent of the banking market in Greece.

Kypri said the island’s largest lender has “reconfirmed” its longstanding policy on maintaining a presence in Greece, and that it aims to return its Greek operations to profit.

He suggested the reports were intended to damage the bank.

However, the bank has drawn up a restructuring blueprint to downsize operations in Greece through the closure of some branches and through voluntary exit packages offered to staff there.

According to BoC data, the bank’s turnover in Greece is approximately equivalent to that in Cyprus.

BoC was one of two local banks that sought state aid this year after its regulatory capital was eroded from heavy exposure to Greek debt. 

Last week the bank issued a profit warning saying that group after-tax results for 2012 and before the impairment of Greek government bonds would be worse than the full results for 2011, while the Core Tier 1 ratios may even be below  the 5 per cent announced last month.

The bank posted a nine-month loss after tax of €211m euros on November 28 after including an impairment in the value of Greek bonds held and on higher provisions for non-performing loans. This followed a net loss of €793m in the nine-month period of 2011 on its Greek bond exposure.

According to European Banking Authority estimates, Bank of Cyprus's capital shortfall to reach a core tier 1 ratio of 9.0 per cent - a measure of financial strength - is €722m.

 

Body found in car at cliff bottom

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POLICE found the remains of a body inside a car at the bottom of a 700 metre cliff in the village of Korfi in the Limassol district on Monday. 

“We are still investigating the incident and we cannot say yet at this moment whether this is a criminal offence,” Limassol CID chief Yiannis Soteriades said. 

According to state pathologist Eleni Antoniou, “Bones from the body were scattered inside a four-metre radius around the car, most likely due to scavenging rodents and birds.”

Police found documents inside the car which could point to the person’s identity but according to Soteriades it had not yet been determined if the documents matched the body inside the car.

“The police force has mobilised since the first moment the body was found and some initial investigations have been made but there have been no reports of missing people fitting the body’s description,” he added. “As well as a post-mortem on the body at Limassol General Hospital, the car will also be examined by traffic department specialists,” he concluded.

 


Strike looms as fuel prices rise

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PETROL stations island-wide could close indefinitely from Friday as station owners have threatened to go on strike in an attempt to show solidarity with colleagues in the Famagusta district who will strike tomorrow.

“Until the government decides to put a hold on the issuing of licences to petrol stations we will be forced to take action,” deputy head of the Petrol Station Owners Association, Stathis Spartiatis said. 

The dispute began when yet another petrol station on the main Paralimni-Ayia Napa road was given a permit despite the association’s protests. “We have contacted the various ministries and we have demanded that changes to the law take place so that petrol stations do not keep popping up every 500 metres, just because according to the letter of the law, they can,” Spartiatis said. “On January 2 the petrol stations in the Famagusta district will go on strike and if within 48 hours we do not receive assurances that changes will be made to current legislature then there will be an islandwide strike,” he added.

Adding to the potential increase in business on New Year’s Eve was the news that fuel prices will rise by seven cents a litre from the start of 2013. “The price of fuel for vehicles – unleaded and euro diesel - will rise by seven cents but heating fuel will remain the same,” Spartiatis said. “We should see an increase in business on New Year’s Eve due to the rise in prices [on January 1] but also because of the threat of a nationwide strike,” he added. “It is likely that people with more than one car will fill it up with petrol in an attempt to potentially save €20 or €30 and why not if they can?” he concluded.

 

Christofias ‘optimistic’ for 2013

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Author: 
Stefanos Evripidou

 

THE POLICIES adopted on a pan-European level have failed to provide solutions to the ongoing economic crisis, said President Demetris Christofias last night in a speech to mark the New Year. 

The outgoing head of the rotating EU presidency characterised the past year as one in which the global economic and social crisis deepened, threatening institutions and values with collapse, while worsening unemployment, poverty and deprivation in the whole of Europe.  

“It must be admitted that the policies implemented so far on a pan-European level have not succeeded in providing a solution to the economic problems created by the crisis.  On the contrary, they have recycled and worsened the economic and social injustice,” he said. 

“The picture presented today by many European countries does not do the European Union honour. The future of a United Europe cannot be poverty, deprivation, unemployment and homelessness,” he added.

Christofias argued that the one-sided focus on austerity measures and ongoing recession created deadlock in EU economies. 

He called for a different approach with the emphasis on economic growth, social cohesion and true solidarity within the Union. “It is with sadness that we observe that this policy is still absent,” he said. 

Regarding Cyprus’ own economic woes, and the exposure of Cypriot banks to the Greek economy in general, the president highlighted the basic goals achieved in negotiations with the troika. 

He referred to the management of natural gas by the Republic of Cyprus, “a fact that constitutes the great hope of our people”.

The government also “averted the privatisation of profitable semi state organizations that the troika pursued” as well as preserving the Cost of living Allowance and the 13th salary, though the latter was by and large only given to the public sector this Christmas.

Also, given estimates on the final size of the bailout, privatisations are considered almost a given to make the public debt more sustainable. 

Christofias once again pointed to the banks’ responsibilities for the current situation, and the former Central Bank governor for failing to adequately supervise the banks: “If we did not have the problem with the banks, Cyprus would not have appealed to the (European Stability) Mechanism, regardless of any structural and financial problems.”

The president acknowledged the difficulties that the bailout will bring, striking a note of optimism, however: “It is clear that the people of Cyprus will suffer sacrifices so that the worst is averted. The Cypriot economy can be rescued by creating prospects in a short period of time to set it on a course of development.”

Regarding the Cyprus problem, Christofias laid the blame for inaction solely on Turkey and the Turkish Cypriot leader Dervis Eroglu, while adding that improvements were made during negotiations under his leadership. 

On a final note, he said: “We express our optimism as well as faith that by making the most of what we have achieved during the 52 years of existence of our Republic, the Cyprus people will manage once more to stand on their feet despite the problems and difficulties.“

 

 

Police promise ‘swift investigation into explosives find

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INVESTIGATIONS are ongoing into the 1.2kg of powerful explosives believed to be TNT found in a bag along with a detonator around 500m from President Demetris Christofias’ holiday residence in Kellaki on Saturday. 

“Our aim is to proceed swiftly with investigations” and find out who is behind this, said police spokesman Andreas Angelides yesterday. 

The explosives were found in a bag under a tree, 15 metres from the Pareklisa-Kellaki road, at around half a kilometre from the president’s country residence, where he often entertains high-profile visitors and heads of state. Police went to the scene after learning that an unmarked car was seen stopped in the area, where the co-driver allegedly got out the car and placed something under the tree. 

Daily Alithia yesterday reported that the whole incident was probably a set up for the sake of earning a promotion, claiming that the person who received the tip off was a member of the Cyprus Intelligence Service (CIS) in Limassol. 

The paper reported that instead of informing the relevant authorities (bomb squad etc), the CIS officer took a colleague and went down to the location first to check out the scene. 

Pressed to comment yesterday, Angelides said from the first moment the information on the explosives was made known, the relevant services were informed and visited the site immediately. 

“All procedures were followed as they should be in such circumstances,” he said. 

According to Angelides, the police chief is the one who decides on promotions and the justice minister approves them. Up until this point, no issue of promotions has been raised, he added. 

 

 

Bit of a flap over ‘airport slap’

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Author: 
Stefanos Evripidou

 

DIPLOMATIC RELATIONS with the new Egyptian government have taken a rather “uncomfortable” turn after the Egyptian ambassador was accused by police of swearing at and slapping an officer at Larnaca airport. 

The diplomat counter-alleged that she was manhandled by police. 

On Saturday afternoon, Egyptian ambassador Menha Mahrous Bakhoum went to Larnaca airport to see off her husband and adult children who were visiting the island. Claiming diplomatic immunity, Bakhoum wanted to accompany her family to the boarding gate. 

The airport authorities obliged but things got a little hairy at the security checkpoint, leaving the police, foreign ministry and Cairo all looking for a rock to hide under.

According to reports, Bakhoum agreed to undergo security checks, putting her purse and coat on the X-ray machine conveyor belt but drew the line on taking her boots off. 

At this point, various media claim Bakhoum swore at police officers and slapped one female officer, resulting in the latter getting a swollen cheek and sick leave. 

Then five male police officers allegedly grabbed hold of the ambassador and took her to a room to explain her actions to a more senior officer. According to sources, affronted by the effort to detain or arrest her, the ambassador pulled the hair of the senior officer, who happened to be wearing a wig. 

At this point, Foreign Minister Erato Kozakou Marcoullis was alerted to the incident and contacted airport police immediately, ordering the release of the Egyptian diplomat citing her diplomatic immunity under the 1961 Vienna Convention. 

Bakhoum was left free to go but by Sunday, the Cypriot media had got wind of the story, leading reporters in Cairo to probe their government spokesman on what exactly happened.  

The Cypriot foreign ministry released a statement yesterday saying that according to a cabinet decision, based on the relevant EU regulations which the Republic of Cyprus is required to apply, only a small specific number of state officials and other dignitaries are allowed to bypass security screening checks at Cypriot airports. These include heads of state and government among a few others but do not include heads of diplomatic missions.  

President Demetris Christofias was informed and requested a thorough investigation into the incident, taking into account the relevant provisions of the Vienna Convention governing diplomatic relations. 

Police Chief Michalis Papageorgiou also requested a report which he received yesterday and was in the process of studying, said police spokesman Andreas Angelides. 

Angelides refrained from further comment saying due to the serious nature of the incident, the foreign ministry would be handling it from now on.  

According to diplomatic sources, the ambassador is claiming she was spoken to in a derogatory manner when she refused to take her boots off and was verbally and physically abused. 

Luckily, all modern airports are equipped with ample surveillance units, meaning getting to the bottom of the matter should prove relatively simple. 

However, Egypt is a strong, regional neighbour meaning that whoever was in the right or wrong, the aim of the foreign ministry will likely be to preserve good relations.  

According to one knowledgeable source, there are lessons to be learnt on all sides from the incident. Could the ambassador have shown more humility? Both Marcoullis and Christofias have been subject to security checks when abroad, even when it was against regulations, and both complied without making a fuss. 

Could the police have handled the matter better, enhancing their people’s skills rather than manhandling the representative of a Muslim country in such a manner? 

Article 29 of the Vienna Convention says: “The person of a diplomatic agent shall be inviolable. He shall not be liable to any form of arrest or detention.”

And Article 41 adds: “Without prejudice to their privileges and immunities, it is the duty of all persons enjoying such privileges and immunities to respect the laws and regulations of the receiving State.”

 

Our View: A chance to re-discover the spirit of community

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IT IS VERY difficult to be optimistic or positive about 2013, especially when we know that the effects of the austerity measures approved last month will kick in. Living standards of the overwhelming majority of the population will fall, the numbers of the unemployed are set to rise and credit will be even harder to come by. The affluence and comfortable way of life we had become accustomed to over the last decade will become nothing more than a pleasant memory as people grapple with the harsh combination of recession and austerity.

People will have to live with less than they were used to, but the rampant consumerism which became the way of life is not the only recipe for individual happiness. Cyprus was a happy country when people had less money to spend and still lived within their means, shunning the option of borrowing, unless absolutely necessary. Now we will have to revert to the old ways, not by choice but by necessity. This is already happening, as the many closing down shops, half-empty restaurants and collapse of car sales would suggest.

Hopefully, 2013 will signal a return to the old social values that became all but extinct as merciless individualism and mindless consumerism held sway. We may re-discover the community spirit – once a very strong feature of Cypriot society – and the sense of social responsibility that were lost during the years of affluence. Not since 1974 has there been such a need for a community spirit. With the numbers of people out of work constantly rising and record numbers falling below the poverty line, those with jobs will be called to offer help and support to their less fortunate countrymen.

Admittedly, the public spirit has not been evident as a host of interest groups have tried to preserve their pay and privileges through protests. On the other hand thousands of ordinary people have been contributing to collections of food and clothing for the poor and will continue to do so throughout the year. If 2013 becomes a year of giving, social solidarity and re-discovery of the community spirit it will be a good year. After all, the real test of a society is not the number of BMWs and Mercs on the roads, but how well it takes care of its most vulnerable and impoverished members.

We can meet this challenge if we unite and help each other. It does not have to be a prosperous new year in order to be a happy one. 

 

 

 

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