AFTER A full day of comings and goings by politicians and businessmen to the DISY offices in Nicosia yesterday, President-elect Nicos Anastasiades said that by today, the names of his new cabinet would be announced.

Speaking after a number of meetings with potential cabinet members, Anastasiades said that consultations with other parties to form a government of national unity had gone well. 

The President-elect, who will be sworn in by parliament tomorrow, making him the 7th President of the Cyprus Republic, said he was in constant dialogue with DIKO, EVROKO and the Greens. “And I must say I’m fully satisfied with the consultations so far,” he added. 

“I believe that through the convergence of positions on important matters, we can form a government that can address the major national issues of our country,” he said.

Anastasiades spoke with EDEK leader Yiannakis Omirou, who supported Giorgos Lillikas in the elections, and was told that the socialist party would take a positive approach to the new government without wishing to participate in it.

The President-elect added that an announcement on the new cabinet would be made today at the latest. 

The rumour mill went into overdrive yesterday as known political and business figures walked in and out of the DISY headquarters on Pindarou Street throughout the day.

Former attorney-general Alecos Markides was one of the last to be seen by reporters in the evening but said he was there to offer his opinion as a legal expert in relation to a number of bills prepared by Anastasiades and his campaign team that the President-elect wanted to submit to parliament. Markides said he was not going there to discuss being a Cyprus problem negotiator or to discuss any political  appointment with Anastasiades.

Former defence minister Socrates Hasikos made two visits, with his name reportedly connected with the interior ministry, though DIKO’s former interior and health minister Christos Patsalides has also been linked to the post, as has Andreas Christodoulou from the Land Registry.

Former head of the Chamber of Commerce and Industry (KEVE) Manthos Mavrommatis - tipped to take the post of the sought after commerce ministry- also paid a visit to DISY HQ but the name of current KEVE chairman Phidias Pilides was  the one bandied about as a possible commerce minister last night.

Anastasiades also held court for DIKO leader and coalition partner Marios Garoyian, EVROKO leader Demetris Syllouris, Greens leader Ioanna Panayiotou, and DISY MPs Christos Stylianides and Tasos Mitsopoulos. 

According to reports flying around yesterday, Stylianides would be made government spokesman, while Mitsopoulos - who enjoys close ties with the Church - has come under heavy pressure from the leadership to take the education ministry portfolio, although reports connected him to the communication ministry as well. Mitsopoulos is believed to have shown initial reluctance due to personal ambitions within the party structure. 

Other unconfirmed reports had DISY deputy Ionas Nicolaou linked to the justice ministry and auditor-general Chrystalla Georghadji to the labour ministry. Reports later in the evening yesterday said Georghadji had rejected the ministry and mentioned current DISY spokesman, Harris Georgiades, as a possibility. 

Defence could well go to DIKO deputy Fytos Constantinou or Fotis Fotiou while the agriculture ministry is reportedly reserved for a member of EVROKO, with spokesman Michalis Georgallas mentioned as a possibility. Reportedly four ministries would go to DIKO which backed Anastasiades in the elections. 

Philippos Patsalis, head of the Cyprus Institute of Neurology and Genetics, is reportedly being considered to head the health ministry, as is DISY’s Stella Kyriakidou, and DIKO’s Vassilis Palmas who served as government spokesman during the government of Tassos Papadopoulos.

Garoyian yesterday brushed aside the issue of how many ministries DIKO would take over, saying the important thing was to form a government that would be effective and reliable to address the serious problems facing Cyprus. 

“So, let’s not steer things towards numerical equations. That is not the point. It’s not how many posts each party gets. The key is how you deal with the challenges and that is what concerns us,” he said. 

Reports also suggested DIKO’s general secretary Kyriacos Kenevezos would get the education ministry.

Speaking after his meeting with Anastasiades, Syllouris said his party would be represented in the new cabinet though he ruled out his own candidacy. 

“Demetris Syllouris will not participate in the cabinet, despite everything that’s been written,” said Syllouris, adding that names and ministries have not been discussed yet.

EVROKO voted by conscience in the first round of elections though its leadership backed Anastasiades in the runoff. The party is represented in parliament by two MPs, Syllouris and Nicos Koutsou. The latter, and a significant number of party members, refused to back Anastasiades in the second round, preferring instead Giorgos Lillikas’ candidacy. 

Speaking to state broadcaster after her meeting with the president-elect, the Greens’ Panayiotou said she was offered the role of Environment Commissioner, to replace the outgoing and hugely successful Charalambos Theopemptou. 

She added that Anastasiades pledged to institutionalise the post and back it up with an Environment Council, which the commissioner would chair, and which would be able to prescribe policy, not just advise on environmental issues.  

The President-elect also committed to setting up a green development fund, which Panayiotou said would go some way to creating new green jobs.

So far the only confirmed posts are those of the ministers of foreign affairs and finance, to be taken up by Ioannis Kasoulides and Michalis Sarris respectively. 

Christopher Pissarides, awarded the 2010 Nobel Prize in Economics, is to head an economic policy council, an advisory body with no executive powers, which will be directly answerable to the President.

Speaking to the state broadcaster yesterday, Pissarides said the council would play a similar role to the council of economic advisors in America.  

“We will examine all aspects of the Cypriot economy, domestic and external, consult with the president on what policy is needed to meet the government’s goals and policies, and what the economy needs to increase competition, economic recovery, lower unemployment and a return to the good days of before the crisis,” he said.

EVROKO's Demetris Syllouris was only one of many people visiting DISY HQ yesterday

Outgoing Finance Minister Vassos Shiarly (L) with new minister Michalis Sarris at DISY HQ this morning

BEING a student in this day and age is becoming harder with an increasing number of students now applying for some form of financial aid to help support themselves through university. 

State benefits given to the parents of children studying in higher educational institutions, which began in 1998, used to come to €1,700 per year per student but this became means tested on a sliding scale as of 2012, resulting in a reduction in aid for many. 

Those applying for state benefits now, must possess the necessary financial criteria to receive any benefit and according to an official at the finance ministry each case is looked at separately. 

“We look at the cost of tuition, the financial state of the student’s family and the income of both parents,” the official told the Mail.  Before 2012 anyone studying in a higher educational institute was entitled to the state funding.

The University of Cyprus has its own welfare department and does not rely on state contributions to help students with financial troubles but their budget has been slashed, coinciding with an increase in student applications. Tuition at UCY is free. 

“We run a small department which has been operating since 1996 and even though our budget was €80,000 in the 2011-12 academic year, we managed to collect around €40,000 extra to give assistance to 206 needy students,” director of the University’s welfare department, Philippos Pattouras said. 

“Our budget for the 2012-13 academic year has been reduced to €50,000 which makes things very difficult for the department as this has come at the same time as an increase in applications from students for assistance,” he added.

Pattouras revealed that last year the department received 650 applications while this year it has received 800.

“The economic crisis, which is severely affecting our society, has affected a large number of our students,” he said.

Pattouras explained that his department and the university in general were troubled by the increasing number of families that are unable to financially support their children during their studies. To deal with the increasing needs of students, the welfare department has organised different activities and events in an attempt to collect funds.

“In the last three months we have successfully organised three events which have helped collect €4,600,” Pattouras said.

As well as financial help, the University also provides moral and psychological support to its students, whether they are suffering financially or otherwise.

“Financial aid is given based on certain financial criteria,” Pattouras explained. “Specifically speaking, the total amount of aid which can be given is calculated each year, taking into account the amount of funds possessed by the department,” he continued. “The amount each student receives is based on their grades and what other financial help they receive from the state or family,” he added.

Applications are usually submitted in October after the department sends out an SMS to all of the university students. Applications can also be submitted during other periods of the year but only in cases that are deemed to be serious enough.

“I assure you, the procedure in judging each case is completely fair and objective,” Pattouras said. “The final decision is made by a 17-member committee which is populated by different members of the university; students, teaching staff, and managerial staff,” he added. “The whole procedure is evaluated at the annual general meetings of each group and is overseen by an independent and private office of approved auditors,” he concluded.

The economic crisis has affected a large number of UCY students in terms of grants and assistance

RESIDENTS and home owners in Peyia in Paphos are being encouraged to install added security measures to try to curb burglaries in the district. 

The warning comes in the wake of a spate of burglaries in the area in the last week despite Peyia having a neighbourhood watch scheme.

A police spokesman yesterday urged homeowners to take precautionary measures to protect themselves and their properties. He said doors and windows should be fitted with strong locks, and a light should be left on when the property is empty. Security lights fitted to the building exterior would also be a good idea and if possible a security system. He also suggested leaving the TV on when not at home.

Thousands of euros worth of jewellery, laptops and other electrical equipment have been taken from properties in recent days.

Keith Allen, chairman of the Peyia NHW (Neighbourhood Watch) management team explained how easy it was for would-be burglars to break into homes fitted with regular door locks.

“Just yesterday, a locksmith visited my home and showed me how easy and quick it was for thieves to break and enter a property,” he said. According to Allen, the locksmith demonstrated in about one minute how to remove a normal door lock.

The procedure is called ‘snapping’. But according the Peyia NHW chairman, there are new locks available on the market which are ‘snap proof’. They are more expensive than normal locks but offer better protection. “I have now had these fitted to my property,” he said.

Peyia’s neighbourhood watch scheme was formally launched in September 2010, with close to 300 households participating. This number has now grown to more than 600.Peyia has a large number of British expat residents and second-home owners, which means numerous properties are often left empty.

Allen said police had updated him on Tuesday night about four new burglaries in the area, three of which were in the Saint George area.

He said police believe they were committed by the same people, as the evidence at each scene was similar - the locks were left lying on the floor.

“We must all look after each other,” said Allen. “There are five houses where I live. We are all alarmed and have keys to each others properties.”

In 2011, Peyia neighbourhood watch organised a security exhibition to highlight the numerous security systems on offer. They are considering organising a second one later this year.

Widow Betty Smith, 78, a resident of Peyia for the last decade said she no longer felt safe in her own home.

“Cyprus has changed over the last ten years and it’s not as safe as it used to be. I know more people are out of work so obviously crime will go up, but now that I’m getting older and since the death of my husband, I don’t feel safe at home any more.”

The pensioner’s adult children, who live in the UK, visit frequently and have insisted on fitting window locks, extra door locks, an outdoor security light and a CCTV camera to her home.

She said: “I still think that living in Peyia is much safer than living in the UK, but we all have to be more careful than we used to be. I don’t leave my doors or windows open and I don’t answer the door after dark.”

And it’s not just residents who need to be wary according to Allen.

“Tourists also need to understand that although Cyprus is still a relatively safe country to visit, it’s not the same as it was ten years ago. They can’t come and leave doors of houses or cars open. We don’t want to scare anyone, but it’s something which needs to be noted.”

A Peyia police officer confirmed that regular police patrols had been increased in the area some time ago.

He said: “We have police patrols in Peyia 24 hours a day - the number was increased a while ago, People should be careful not to leave valuable items in their vehicles, ensure all car doors and windows are locked and also be extra vigilant with home security.”

FINDING themselves on the wrong side of the law after burying their father in a private field, the family of an Old Calendarist – a group that separated from the Orthodox Church in 1924 – were shocked to hear yesterday they might have to exhume their father’s remains. 

A 66-year-old Limassol resident was buried in a private field last week, on a site earmarked for a future cemetery by the Old Calendarists, who split from the Orthodox Church when the latter adopted a form of the Gregorian calendar, rather than sticking with the old Julian calendar.

The interior ministry’s permanent secretary Andreas Assiotis said yesterday the family had violated the legislation on burials. Assiotis said he had issued instructions to the Limassol district officer to liaise with local authorities to kick off legal action so they could “exhume the body and bury it again in a designated cemetery”. A court needs to order an exhumation and reburial. Assiotis said the goal was to “restore legality” but conceded that if and when an application was filed to designate the field as a burial site, it would be considered.

The son of the 66-year-old, who did not want to be named, said that they had already prepared the paperwork necessary to get permission to legally designate the burial plot, when his father died unexpectedly. 

But when the Cyprus Mail told him of the interior ministry’s intentions, the man’s son was upset.  “Are they serious? I will not have my father unburied,” he said. “Where do we live? People are starving in Cyprus and they’re dealing with this (nonsense)?”

Assiotis said that over and beyond the law, procedures for designating cemetery spaces are in place to ensure cemeteries fulfil considerations including those of public health, soil composition, and the site’s location. 

The law allows local communities that belong to a different religious group to set up a new cemetery if they obtain permission from the interior minister. 

The Old Calendarist community had earmarked a private field for that use to build a cemetery and church but there was a sudden death in the community, and the family – wishing to respect their father’s wishes – buried him in the earmarked but unapproved site. 

The community leader of Limnatis, where the burial site in question is located, said he was waiting for further instructions before taking any action. 

The leader, Christakis Chrysostomou, said he and the community council visited the remote field, approachable only by a dirt road, on Saturday, after hearing of the burial. 

Chrysostomou said he confirmed with the family the burial took place, and informed the police, who told him that from the moment a death certificate had been issued, the matter did not concern them. Chrysostomou said that he was not aware of any case of this sort, a sentiment echoed by Assiotis. Though Chrysostomou said the community needed to be respectful to the family, he also made it clear that he would have to follow through on whatever instructions given to him. 

The Bishop of Paphos Georgios said that the Church does not refuse to bury members of other religions in Orthodox cemeteries. But he said the Church does not recognise the Old Calendarists nor did Old Calendarists accept them, he said. The Bishop added the Church acknowledged other Churches, such as the Russian Orthodox Church, that still use the old Julian calendar.

The Church of Cyprus does not acknowledge as clerics any representatives of Greek Old Calendarists because the Church cannot trace their line of ordination back to the Twelve Apostles in what is called the apostolic succession. 

Though unsure of how many Old Greek Calendarists there are in Cyprus, the Paphos Bishop, said they were probably a few thousand.

AROUND 200 people turned up last night outside the Presidential Palace to see off President Demetris Christofias on his last night in power and commemorate the 13 dead of the Mari naval base blast. 

Relatives of the 13 soldiers and sailors killed in the blast also attended the event where protesters held a banner saying: “Christofias you are leaving with your head held high but you’re leaving exposed! The 13 demand justice.”

The crowd sang songs composed after the Mari blast and dedicated to the 13 dead before releasing white balloons in the air and dispersing into the cold night.

The July 11, 2011 blast killed 13 and injured many while incapacitating the island’s biggest power station, causing rolling power cuts for around a month.

It sparked daily protests outside the presidential palace, with people demanding Christofias’ resignation. On the second night of protests,  a small group of people tried to storm the palace gates, throwing stones at police, who responded by firing tear gas into the crowds, including families and children. 

During a lunch given in his honour by the palace staff on Tuesday, Christofias thanked the presidential guard for protecting him and his family during the “orchestrated attack” on the palace. 

One demonstrator at last night’s event said people returned to the palace yesterday to protest against Christofias’ comments. She put the low turnout - compared to the thousands that showed up during the summer of 2011- to a lack of awareness.   

The Cyprus Mail spoke to three women at last night’s protest who met and became friends during the daily and weekly demonstrations that took place outside the palace after the July blast. 

They insisted that the protest was never about politics, but about citizens expressing their indignation with the state’s handling of the whole affair which led to the loss of life. 

“We’re here for the 13 lives. No one has the right to throw away lives,” said Christina. 

Her friend Maria added: “This is not party-related. If the new president does the same thing, we’ll be here again.” 

A group of around 200 people gathered at the presidential palace last night to symbolically 'see off' President Demetris Christofias (Christos Theodorides)

INSTITUTIONALISING the job of environment commissioner will improve the way environmental issues are being handled in Cyprus, the Green Party said yesterday.

President-elect Nicos Anastasiades has chosen to appoint the Green Party head Ioanna Panayiotou as environment commissioner. She will be replacing Charalambos Theopemptou. 

The Greens said yesterday Anastasiades had committed to upgrading the institution of the environment commissioner, and is due to forward legislation to parliament to strengthen the position , and  its staff.

“Institutionalising the commissioner with legislation will propel forward the way environmental issues are being handled in our country,” said Greens spokeswoman Eleni Chrysostomou. 

Chrysostomou said that an environment council headed by the new commissioner is due to be set up to promote green development and oversee a fund relating to environmental issues across various departments such as waste management, energy and health. 

“We have decided to all work together so that the new job positions can be created and so that our country can be harmonised with EU legislation,” she added. 

The new commissioner – a politician – will be replacing Theopemptou – a former lecturer at the Higher Technical Institute – who was first appointed environment commissioner by former President Tassos Papadopoulos in 2006 and then reappointed by Demetris Christofias in 2008. He was effectively a one-man office, with only a secretary provided to assist him in his duties. 

A tireless worker, Theopemptou gained the admiration and respect of those he worked with. On social media websites, Facebook and Twitter, people wished him well and expressed their disappointment that his term was not to be renewed. 

Theopemptou has been keeping a website and blog as environment commissioner, writing articles and commenting on a great range of environmental issues, as well as actively maintaining Facebook and Twitter pages, in addition to his duties.  

Many congratulated and thanked Theopemptou for his work.

Asked to comment on people’s reactions, Panayiotou said that “clearly, (Theopemptou) was very successful, but the commissioner is appointed by the President who was within his jurisdiction to appoint a new commissioner”.

The Greens also congratulated Theopemptou “for his exceptional work”.

Foreign Minister: Ioannis Kasoulides (DISY) 

Born August 10, 1948, Kasoulides served as Foreign Minister in the Clerides government from 1997 until 2003. He was most recently an MEP 

Finance Minister: Michalis Sarris

Born April 14, 1946, Sarris served as Finance Minister under late President Tassos Papadopoulos from 2005 until 2008. He also served as a member of the board of the Popular Bank.

Interior Minister: Socratis Hasikos (DISY) 

Born in Nicosia April 12, 1956 he served as Defence Minister from 1999 until 2003 in the Glafcos Clerides administration. Hasikos took the post from EDEK’s Yiannakis Omirou in 1998 after the S-300 missiles scandal.

Defence Minister: Fotis Fotiou (DIKO)

Born in 1960 in Larnaca, he served as Agriculture Minister during the Papadopoulos administration between 2006 and 2008. He was serving as DIKO spokesman before his appointment.

Education Minister: Kyriacos Kenevezos (DIKO) 

Born in Limassol in 1972, Kenevezos is the General Secretary of DIKO. He currently runs his own lawyer’s office in Limassol.

Communications Minister: Tasos Mitsopoulos (DISY) 

Born May 30, 1965, was serving as DISY party spokesman until his appointment to the cabinet. He served as a special advisor to the Greek Minister of Foreign affairs between 1989 and 1993.

Commerce Minister: Giorgos Lakkotrypis (DIKO)

Born May 30, 1970 Lakkotrypis was a public sector director and worked at Microsoft Central and Eastern Europe.

Agriculture Minister: Nicos Kouyialis (EVROKO) 

Born in 1967 in Deftera, He worked as an electrical engineer for the EAC.

Labour Minister: Haris Georgiades (DISY)

Born in Nicosia on April 9, 1972 was a DISY party representative and was an MP for DISY in Nicosia, since May 2011.

Justice Minister: Ionas Nicolaou (DISY)

Born on January 21, 1963, Nicolaou has been vice-head of DISY and an MP since 2001. 

Health Minister: Petros Petrides (DIKO) 

Served as medical director of Nicosia General Hospital prior to his appointment.

Government Spokesman: Christos Stylianides (DISY) 

Born in Nicosia June 26, 1958, he has been an MP for DISY since 2006 and served as government spokesman during the Clerides presidency from 1998 until 1999.

ALSO APPOINTED: Undersecretary to the President: Constantinos Petrides

Presidential Commissioner: Katy Clerides

Environment Commissioner: Ioanna Panayiotou

Commissioner for Civil Service Reform: Emanuella Moushioutta Lambrianidou

Director of the President’s Office: Panayiotis Antoniou

PRESIDENT-elect Nicos Anastasiades yesterday announced his cabinet, which included a couple of new faces but no women, which resulted in some criticism.

“There is a specific programme, which everyone is obliged to follow and put in place,” Anastasiades said, adding that he was happy with the composition of his cabinet.

Anastasiades has announced plans to create several junior minister positions, a move that will require new laws before it can be implemented.

The President-elect said he planned to submit the necessary bills in March and expressed the hope they would be passed before month’s end.

“We want a functional state, a state that can actively participate in the EU,” he said.

Anastasiades’ government partner, DIKO chairman Marios Garoyian, said the new cabinet was well equipped to tackle the challenges faced by Cyprus.

“The government formation combines experience and knowledge,” Garoyian said. “I think each one will be judged through their work and productivity.”

The absence of women in the cabinet however, has drawn criticism.

“The complete lack of women will not give the best image in Europe where the female presence is strong,” the Green party’s women movement said. “We call on the President-elect to reconsider … and include women in the cabinet.”

The Mediterranean Institute of Gender Studies (MIGS) demanded equal representation.

In a statement issued before the official announcement of the cabinet, the institute said equality between men and women featured as a necessary condition for the effective implementation of the Europe 2020 strategy, as it pertained directly to improving the quantity and quality of women's employment, improving access to and the quality of affordable public services to children and the elderly, eliminating the pay gap and implementing measures to reconcile work and family life.

“In order to achieve the above, an important prerequisite is the participation of women in decision-making where we demand and expect substantial contribution in ensuring the equal representation of women and men in both the ministerial cabinet as well as other key political positions,” MIGS said. “A government cannot claim to be truly democratic without the equal participation of 51.3 per cent of the population and 60 per cent of the electorate at all levels of political and public life.”

The inauguration of the new cabinet will take place tomorrow morning.

AKEL said the new President and his government would be judged in good faith “based on what they do and not on the concerns and fears we voiced previously.”

The party did warn however that it would be a strong critic when necessary.

It started with criticising the absence of women from the cabinet, which AKEL said had taken Cypriot politics “many years back.”

The party also criticised the appointment of Michalis Sarris, a former senior banker, saying DISY was inconsistent as it used to criticise the outgoing president for appointing bankers to the finance ministry.

It also censured the appointment of Haris Georgiades – a hotelier -- to the labour ministry as the majority of his employees were foreign EU nationals instead of unemployed Cypriots, AKEL said.

EDEK said the new cabinet would be judged by its work but noted the absence of women and the “recycling” of a number of individuals from previous administrations.

EDEK had refused to participate in the new government.

Ioannis Kasoulides

DISY said yesterday that statements made by a European Central Bank policymaker not ruling out a haircut of bigger depositors in Cypriot banks, only served to undermine the credibility of the eurozone.

Reuters yesterday reported ECB policymaker Benoit Coeure as saying that depositors in Cypriot banks should not be forced to take losses across the board as part of a eurozone rescue of Cyprus,  but he did not rule out making the biggest depositors share some of the burden.

Speaking at a Reuters Summit on the future of the eurozone, Coeure said it was essential to ensure that Cypriot debt was reduced to a manageable level and that the cost of the bailout was fairly shared and not just footed by taxpayers.

Germany, Finland and some other eurozone countries are pushing for bank depositors and other investors in Cyprus to carry some of costs of a bailout, both to shield their taxpayers and because of suspicions that wealthy Russians and others have used the island to stash possibly illicit funds.

Opponents of such a move are concerned it could trigger a bank run and further undermine trust in the eurozone, rekindling the worst of the debt crisis. 

In a statement yesterday responding to the reports, DISY repeated categorically Cyprus’ stance that there would be no haircut on deposits.

Eurozone finance ministers will discuss the package for Cyprus at a meeting in Brussels on Monday, with Germany and France pressing for a decision by the end of March.

"All solutions should be explored," Coeure said. "I wouldn't include a general bail-in of depositors as part of the solution given the risks that it would pose for financial stability.

"So I think the possible bailing-in of depositors across the board is not an option that can be envisaged given this hasn't been done in any country. It would be entirely new and I don't think it's time to make experiments now."

Pressed to say if that left open the possibility of a narrower bail-in of deposits above the EU-guaranteed threshold of 100,000 euros, he said: "There needs to be an appropriate burden-sharing in the programme because we need to achieve debt sustainability. But no bail-in across the board.

"I don't pre-judge any instruments because the vocabulary matters and there are many ways to achieve burden-sharing."

Asked if that was his personal view or that of the ECB board, Coeure said: "I'm pretty sure that (Mario Draghi) is comfortable with the way I've phrased it. No bail-in across the board of depositors."

Having bank account holders bear some of the costs is a risky strategy not only because there is no precedent in the previous bailouts in the eurozone debt crisis, but also because it raises the risk of a run on Cypriot banks.

Cyprus has a bloated banking system with deposits that reached more than €70 billion, although latest figures show that deposits reached their lowest levels in three years in January, according to a statement released by the Cyprus Central Bank. 

Last month saw a significant outflow of deposits from the domestic banking system, with €1.73 billion taken out of banks, representing a 2.5 per cent reduction compared to December. 

January deposits dropped to €68.42 billion from €70.15 billion the month before, marking the lowest level in three years.  

Around a third of the deposits in Cyprus are from non-residents, including many Russian and British businesses.

One proposal for having depositors foot the bill would involve freezing any amounts above 100,000 euros with the total held in an escrow account and used either to shore up the capital of the banks or as collateral for loans.

Cyprus, which elected a new, conservative president on Sunday, is adamantly opposed to the bailing-in of depositors or bondholders, concerned that it will destabilise its already shaky economy and undermine its business model.

But there may be no way to avoid such a move if the European Central Bank, the IMF and the European Commission, together known as the troika, agree that such a step is necessary to make Cypriot public debt manageable.

THERE is no shabbier business in Cypriot politics than the horse-trading that goes on before the announcement of the members of the Council of Ministers by a new president. Party leaders, party hangers-on, ‘important personalities’ and leading citizens all flock to the president-elect’s office to seek appointment either for themselves or some friend they are convinced would make a great minister. 

It was no different this time. President-elect Nicos Anastasiades had pledged to form a national salvation government in which he would invite all parties to participate, but worse still, he was indebted to DIKO which helped his election and would be demanding a sizeable share of the spoils in exchange for this support. DIKO always cashes in its election support to a successful candidate, to the detriment of the cabinet. 

The problem is that the president is always short-changed in this arrangement, because the people that DIKO appoints rarely add value to the cabinet. For instance, the appointment of the former leader of the state doctors’ union at the health ministry defied belief.  Could a union boss, accustomed to promoting the interest of his members, be trusted to pursue the introduction of the much-needed national health scheme? And was a DIKO party hack the best man to entrust the education ministry to?

In fact there was an over-reliance on senior party members, the president-elect appointing only one minister who did not come from a political party – Michalis Sarris as finance minister. While it is understandable for a president to want to have his close associates working with him in government and to feel obliged to reward the parties that supported him, we still would have expected him to have appointed a few independents; even a staunch party man like Christofias managed that.

Worse still, there was not a single woman in the new cabinet. How representative could a government without a female minister be? It was ironic that Anastasiades invited all parties except AKEL to participate in his government, so it would be broadly representative, but did not consider it necessary to include a woman in the cabinet. After all, women only make up 50 per cent of the population.

In mitigation, it must be said that the president-elect’s choices were restricted as a result of his alliance with DIKO, but people were still entitled to expect a less party- and male-dominated cabinet. We can only hope that the restrictions imposed on Anastasiades in choosing his cabinet will not be evident when he is running the country.

OUTGOING Finance Minister Vassos Shiarly said yesterday the government had funds to cover its obligations until May, as its eight-month wait for an international bailout continued.

"Based on the data before us, fiscal issues can be managed without a problem until May, because we always work three months ahead," Shiarly told reporters after meeting President-elect Nicos Anastasiades and Michael Sarris, the island's new finance minister.

Shiarly, who formally hands over to Sarris tomorrow, said that based on present circumstances the state would not need to resort to additional borrowing for another two months.

Anastasiades said he did not have a clear picture yet of the nitty gritty issues but pledged to handle them in an effective manner.  “We will handle them... in a way that will contribute to tackling the problems and not creating more,” the President-elect said.

Cyprus has been holding inconclusive talks for a loan from the International Monetary Fund and the European Union since an EU-sanctioned debt write-down of Greek sovereign debt saddled banks with losses equalling about 25 per cent of its gross domestic product.

A rapid deterioration of the island's economy since then could see it receiving up to €17.5 billion in aid, almost equal to its economic output.

Anastasiades has vowed to press ahead aggressively to clinch a bailout deal.

Sarris warned that the timeframes were tight.

“We have already had contacts with important people at ministerial and technocratic levels so as to expedite achieving a deal,” Sarris said.

Asked about the possibility of a bilateral loan, Sarris said the priority was to speed up procedures to resolve the problem once and for all.

“I believe this is the most convincing solution, which will bring back stability. This is the best way to manage the situation,” he said.

The new finance minister said room to renegotiate the conditions of the bailout was limited although there were some areas where better targeting of social spending would not change the fiscal adjustment.

It is a matter of small detail and not significant changes, he said.

Sarris said avoiding privatisations was a difficult chapter since they had been linked to debt sustainability. 

International ratings agency Standard and Poor’s said late on Tuesday the island’s sovereign credit ratings and outlook were not affected by the outcome of the presidential elections.

“In our view, Cyprus receiving short-term financing and a bailout agreement depends more on the eurozone’s policy choices than Cyprus’ domestic policy choices”, the agency says in a statement.

It said however it expected Nicos Anastasiades’ election would hasten progress in bail-out negotiations”.

“We expect Mr Anastasiades will quickly form a new cabinet after taking office at the beginning of March,” S&P said.

“In our view, however, Mr Anastasiades` ability to strike a balance between retaining domestic popularity and agreeing a bailout that satisfies creditors and their national interests appears to be limited and narrowing,” it added.

It said that while Anastasiades’ approach to issues such as the partial privatisation of state-owned enterprises would likely help advance discussions with Cyprus` official lenders, other factors such as the timing and terms of a bailout agreement between Cyprus and its official lenders “may be more difficult”.

“Any bailout agreement will likely involve Cyprus accepting already-unpopular measures, such as the sale of SOEs. The monetisation of future gas reserves or any restructuring of cooperative banks could also provoke political or institutional opposition,” S&P added.

The ratings agency also delved into the risks of Anastasiades’ mandate diminishing “amid challenging growth prospects and 14 per cent unemployment,” which it said would rise further.

“Short of stop-gap measures that would, in our view, only temporarily postpone a further deterioration, we note that the troika has yet to agree to a bailout that ensures debt sustainability without sapping Cyprus` remaining growth drivers,” S&P warned.

The agency believes that “measures such as significantly increasing the corporate tax rate or introducing a tax on bank deposits or proposed financial transactions tax could further stifle growth and reduce incentives for bank privatisation”.

“The sources of future growth in Cyprus remain uncertain”, the statement says, forecasting “real GDP growth would average -1.5 per cent over the next three years”.

S&P’s sovereign credit ratings and outlook on Cyprus are CCC+/Negative/C.

New Finance Minister Michalis Sarris (right) with his outgoing counterpart Vassos Shiarly yesterday as they met to discuss the bailout (Christos Theodorides)

THE LATEST EU-wide statistics on the risk of poverty or social exclusion in the EU placed Cyprus just below the EU average, but the country fared far worse in terms of the perceived risk to persons aged 65 or over than any other eurozone member state in 2011.
As bad as it sounds, in reality the number of both elderly men and women at risk in Cyprus has dropped since 2008 by a small percentage. In other words some were far worse off more than five years ago than they are now but women over 65 are still at great risk.
And, the long-predicted nightmare of an aging population by 2060 is already evident.
The number of pensioners in Cyprus rose from 117,496 in 2008 to 127,837 in 2010, according to the latest available data by the social insurance services. In the worst-case scenario, by 2060 will be 365,000 out of a total population of 1.2 million.
In 2008, in terms of the over 65s, the risk was at 50.2 per cent in 2008 compared with 40.4 per cent in 2011. But whereas in 2008, men were at a 43.1 per cent risk, the risk for women was 56.1 per cent. And while the risk continued dropping for both men and women in the past five years, women continued being at higher risk with the latest available breakdown in 2010 showing that men were at a 42.8 per cent risk, versus 48.7 per cent for women.
Elderly women who are more vulnerable to poverty or social exclusion than their male counterparts, usually because they live longer and are often on smaller pensions, a sociologist at the Research Unit in Behaviour and Social Issues in Nicosia said.
Christina Loizou said that historically part of the problem was that women would get low pensions because they did not contribute social insurance, sometimes because employers did not pay it. This would make women entitled only to the minimum pension for someone over the age of 65 with no dependents, which as of 2011 came to only €340.78 a month. Pensions go up relative to the amount of social insurance contributions paid in over a person’s working life.
 In Cyprus, life expectancy at birth for women is roughly 83 years compared to 78 years for men. Loizou said with the crisis purchasing power was also being compromised, which was another contributing factor. She also said the elderly who are at a care home may spend allof their pension on care, leaving them unable to do anything else – from getting a gift for their grandchild to going on a day trip. “All of this excludes these people from society,"  Loizou said.  She also stressed that there has been no extensive study or research on the subject matter in Cyprus.
The government that has just left office, that of party AKEL, has said that the decreasing risk to the elderly over the last five years was a result of its active support to vulnerable groups. Social contributions increased by 23.8 per cent between 2008 and 2011, AKEL MP Stavros Evagorou said.   In 2010, the state spent €921.7 million on pensions, compared with €773 million in 2008. But spending was increased across the board.
New President Nicos Anastasiades has also said he would look at targeted social help for the vulnerable, it is still unclear if and how that will happen.

A FISCAL surplus of €61.41 million, or 0.35 per cent of Cyprus' GDP was recorded in January, according to data released yesterday by the ministry of finance.
The same data shows that in January 2012, the surplus reached €9.13 million euros, or 0.05 per cent of GDP.
Revenue increased in January 2013 by 10.10 per cent (€55.56 million), reaching €605.60 million compared to €550.04 million in January 2012.
Expenditure increased by 0.28 per cent reaching €544.72 million, compared to €543.19 million in January last year.
Tax revenue rose in January 2013 by 10.93 per cent (€560.39 million compared to €505.18 million in January 2012).
VAT revenue increased in January 2013 by 45.63 per cent to €116.17 million from €79.77 million in January 2012.
Meanwhile, current expenditure also increased in January 2013 by 1.55 per cent to €540.02 million compared to €531.77 million, while spending on salaries decreased by 5.22 per cent to €135.69 million from  €143.16 million in January 2012.
A significant increase of 29.80 per cent was recorded in the expenses for pensions and gratuities. In January 2013 these stood at €66.68 million compared to €51.37 million in January 2012.

THE NATURAL Gas Public Company (DEFA) is due to begin discussions next week with one of three companies interested in supplying Cyprus with natural gas until the island can start bringing in its own supply.
Three companies have been selected for the final stages of an evaluation procedure for beginning to supply gas by early 2015 through to September 2018.
Head of DEFA Costas Ioannou said that the financial aspects of the bids would be examined next Wednesday by the board if all other requirements were met.
“If they do not fulfil all the other requirements, there is no reason to know what price a company set,” Ioannou said.
DEFA is due to examine the technical aspects of the tenders’ proposals, including any requested clarifications that were due until 12pm yesterday.
DEFA has said that the bids’ details are bound by a confidentiality agreement between itself and the interested companies.
A total of 17 expressions of interest were initially received with 14 companies meeting the minimum criteria to submit tenders’ proposals.
In addition to supplying fuel, companies will be required to make infrastructure arrangements, leaving the technology aspect up to the companies, though DEFA has said that it will not go through any deal if it more costly than the electricity produced from diesel.

THE STATE is losing millions of euro in revenue due to increased passenger traffic at Tymbou (Ercan) airport in the occupied north, according to reports.
Phileleftheros yesterday reported that the state lost €12m in revenue last year due to an agreement with Hermes Airports which ties the amount owed to the state by the airports operator to the increase in passenger traffic at the illegal airport in the north.
According to the local daily, the agreement signed between Hermes and the state in 2006 includes a provision relating to a possible increase in traffic at Tymbou, where if the number of passenger arrivals at the airport in the north exceeds one million, Hermes gets something of a subsidy per passenger, reducing its final contribution to state coffers. 
It is believed this clause was added to protect Hermes’ investment in Larnaca and Paphos airports in the event of a Cyprus solution and increased competition from Tymbou.
In the summer of 2011, passenger arrivals at Tymbou airport exceeded one million, triggering implementation of the special clause, which resulted in a loss of revenue to the state of €6m.
In 2012, the number of arrivals at the illegal airport came to 1,382,595, resulting in the state losing €12m in potential revenue. With arrivals at Tymbou expected to rise, the prediction is the state will lose even more revenue this year. 
Phileleftheros said the €12m figure was cited in a confidential document of the communications ministry.
Last month, Hermes Airports spokesman Adamos Adamou said the operator was “deeply concerned” about the increased passenger traffic at Tymbou airport in the occupied areas.
He called on the government to take measures to limit the problem and damage caused to the country’s legitimate international airports at Larnaca and Paphos.
“We find ourselves before a considerable dynamic which appears to be evolving in a dangerous manner and causing significant damage to the economic and general interests of the country,” he said.
Aspris was not available for comment yesterday on the Phileleftheros article.

 

RYANAIR looks set to operate four new flights out of Paphos airport from the end of March, although the low-cost airline is being cagy about making an official comment.
The Paphos regional board of tourism confirmed that as of March 28 four new flights would commence to Dusseldorf Germany, Manchester UK, Charleroi Belgium and Girona in Spain, totaling 40 incoming flights per week.
If these new flights commence, the development will help to boost tourism in Paphos, which has been hard hit by the economic crisis, the tourist board said.
Ryanair declined to comment on whether or not they planned to reinstate flights using Larnaca airport. Robin Kiely, Head of Communications for the budget airline said: “Ryanair does not wish to comment upon, or engage in, rumour or speculation regarding Larnaca or Paphos airports,”
The low-cost carrier terminated flights to Larnaca airport from November 1, 2012 and reduced the number of flights at Paphos airport from 15 to 4.
Ryanair announced last year that Larnaca flights were cancelled until spring of 2013. The announcement came after lengthy negotiations with the Cyprus Tourism Organisation (CTO) failed to have the flights continue throughout the winter period November-March. The airline also cited high fuel costs.
Ryanair was quick to point out however that Cyprus was an important destination for the airline and had proved to be a successful venture so far.
Kiely said: “Ryanair has carried almost 650,000 passengers to and from Cyprus, which has sustained 650 jobs, underlining Ryanair’s commitment to Cyprus tourism.”
The airline currently has two aircrafts based at Paphos airport.

PROMISING a number of administrative and judicial changes including introducing a Constitutional and an Administrative court, new Justice Minister Ionas Nicolaou said yesterday.
Nicolaou, who is vacating his deputy seat for DISY party in the Nicosia district, said that he will prioritise institutional change, including that of creating a Constitutional and Administrative Court.
He also said that he would create a court for international commercial disputes that would help push Cyprus as a centre for resolving disputes between states and companies.
The proposed changes are part of the electoral promises made by President Nicos Anastasiades.
“We must restore the feeling of justice and the prompt serving of justice, to secure the public’s rights to enjoy legal protection in the courts,” Nicolaou said yesterday during his confirmation address.
Referring to the police, Nicolaou said the force needed to become more effective by merging departments and decentralising power so that the police headquarters “will have a purely coordinating and supervising role”.
“A prerequisite of the difficult challenge ahead is restoring the public’s trust to the police,” Nicolaou said adding that the force needed to become incorruptible and lack of discipline within the police itself should not be tolerated.
Among the new minister’s plans are reinforcing and redesigning the institution of community policing and upping the number of patrols in city hubs as well as quiet neighbourhoods.
Loucas Louca, the outgoing minister, said that when he took over the police were unpopular but through hard work and with help from police leadership, he was handing over a much more popular institution.
“Unfortunately I did not manage everything I wanted to do but I think I did enough of what I wanted. Unfortunately, the crisis has impacted on us,” Louca said.
Louca congratulated the new minister and wished him well.




 

THE POLICE seem satisfied with the method they have introduced for collecting unpaid fines. We refer to the threat of preventing people who have not paid their fines from flying out of the airport. In the end, this was just a threat because according to the police spokesman, people were stopped and reminded of their unpaid fines at the airport, the idea being that they would pay before they travelled again.
In the month and a half that this measure was in place, police collected close to €3 million which accounted for 8,000 warrants of the 155,000 pending. The amount is just two per cent of the €132 million fines’ total owed to the state, but so pleased are the police with the results that they plan to broaden the measure – people applying to state services for driving or hunting licences would also be reminded of their unpaid fines. In Nicosia, the police have started name-checking motorists, whom they stop, and reminding them about unpaid fines.
We have our doubts about the effectiveness of this softly-softly approach, aimed at ‘encouraging’ citizens to pay. People who have refused to pay their fines and have had court warrants issued against them, should not be politely encouraged to pay, but very rudely forced to pay. And if the police command believes polite reminders would work, it is not living in the real world.

CHARALAMBOS Theopemptou, who served as Environment Commissioner since the creation of the post in 2006, received hundreds of messages of support from well-wishers on his Facebook page and blog site after it was announced that his term would not be renewed.
The new president appointed the leader of the Green Party, Ioanna Panayiotou to the post and there are plans to set up an Environment Council to support the Commissioner. The government’s objective is to upgrade the post and give it more powers, including managing a fund relating to environmental issues in different government departments.
Many people expressed disappointment at the decision to remove Theopemptou from the post because he was considered a very effective commissioner, who had singlehandedly raised environmental awareness on the island. Without any staff apart from a secretary and no resources Theopemptou was a successful one-man show, undertaking many awareness initiatives, expressing views through his blog on a range of environmental issues, organising campaigns and visiting schools to explain green issues to children.
We do not know how effective the new Environment Council would be, as committees are notorious for their inability to take quick decisions, let alone be pro-active. Theopemptou, who was commendably pro-active throughout his six-and-half-years in the post, was a very successful Environment Commissioner because he was not answerable to any committee or Council. We can only hope that the new structure introduced by the government will not prove an obstacle to action and restrict initiatives by the new Commissioner.

NEW FINANCE Minister Michalis Sarris yesterday left open the door to the privatisation of telecommunications company CyTA, arguing that this could help in getting Cyprus out of its financial crisis.
On his first day in the job and asked about possible privatisations, Sarris said many state or semi-state organisations were not really in a position to be privatised. He suggested it would be easier to attract a strategic investor for an organisation like CyTA, which could help Cyprus in its effort to get out of its current predicament.
“What we all must understand is that in these very important areas, the real test is not how many persons work in these organisations and how many jobs we have created, but what we offer to the Cypriot citizen,” he said.
Sarris said Cyprus is one of the few countries in the world where important and productive sectors are still in the hands of the state.
Regarding German press reports of a possible haircut of Cyprus-based bank deposits, Sarris said: “There is nothing more foolish than talking about a haircut on deposits,” adding, “this is something unprecedented, not only for Cyprus but also the world economy and the eurozone”.
Outgoing finance minister Vassos Shiarly yesterday handed over the reins to Sarris just three days before a key Eurogroup meeting in Brussels on Monday.
President Nicos Anastasiades held his first meeting yesterday at the Presidential Palace to discuss ongoing negotiations for an international bailout, including Sarris, new Labour Minister Haris Georgiades, Undersecretary to the President Constantinos Petrides and DISY number two Averof Neophytou.  
Speaking at the handover ceremony, Sarris said Cyprus must convince Europe and others of its determination to implement the terms of a bailout agreement, while dealing with unreasonable demands and accusations against the Cyprus model of economic development.
The new minister said the “conditions are very different” from the last time he was finance minister under the Tassos Papadopoulos government: “We are facing serious problems as our friends are getting fewer and the challenges have multiplied.”
He added however that Cyprus has paved the way for a return to growth and reduction of unemployment, by agreeing on fiscal and structural changes.
Sarris referred to “positive developments” following the discovery of natural gas in Cyprus’ exclusive economic zone but also to serious challenges, adding that “if we manage both well, we can be optimistic”.
Sarris thanked outgoing minister Vassos Shiarly for his work and for reaching a draft agreement with the troika for an international bailout. 
For his part, Shiarly expressed hope that by the end of March, Sarris will succeed in getting a loan agreement signed with the troika.
Handing over the reins, he said: “Be sure that patience and persistence are necessary and inexhaustible elements to achieve the goal set, and we must never forget the goal,” adding that Cyprus was “within reach of the final target” of signing a loan agreement.
Shiarly expressed trust in Sarris and his ability to make “a big contribution in Brussels where he is known in the corridors very well”.
“Dear Michalis, I offer you the baton. Hopefully by the end of the month you will end the race as a winner and I will be the first to come to the airport to welcome you and with all of Cyprus enjoy the success,” said Shiarly.  
The outgoing minister apologised to ministry officials for the “absolutely necessary” cuts in wages and benefits. 
Accountant-general Rea Georgiou noted that Shiarly worked “tirelessly and selflessly” day and night from the moment he took over the ministry, refusing to take a wage or benefits for his work.
“I assure you that not only did he not take anything from the state, but many times he took on various work expenses himself,” she said. 
Meanwhile, the Central Bank yesterday announced that it will officially inform the Bank of Cyprus and Laiki Bank of the amount needed for the recapitalisation of each bank, as stipulated by PIMCO, on Monday.
The US auditing firm PIMCO delivered its final report containing the capital needs of the banks on the basis of a baseline and an adverse scenario on February 2. The central bank had to ask for permission to inform the two local banks of the results as the agreement with the troika was that the information would only be made available on the signing of a bailout agreement.
The banks needed the estimations on their capital needs to complete preliminary financial reports for 2012. From next week, they will also be able to proceed with drafting their restructuring plans, with a view to cover their capital deficit by the end of the year.
 

Finance Minister Michalis Sarris