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Say cheese: halloumi mooted for confidence building

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Author: 
Peter Stevenson

 

BRITAIN believes the European Commission could use halloumi as a confidence-building measure to improve Greek Cypriot and Turkish Cypriot relations.

According to the Independent the British Foreign Office (FCO) told the European Commission that its ultimate verdict on Cyprus’ protected designation of origin (PDO) application for halloumi must “ensure that its decision takes due account of inter-community relations”. 

The issue of halloumi and hellim which is the Turkish Cypriot name for the Cypriot cheese, is a bone of contention both for Greek Cypriot cattle farmers, and for the Turkish Cypriots themselves.

The Pancyprian Organisation of Cattle-Farmers (POA) has re-launched its attempt to register halloumi as a PDO product but object to the inclusion of hellim in the application. The Turkish Cypriot side objects to having the Greek Cypriot side unilaterally making a PDO application on their behalf for hellim.

The Independent claimed that Greek Cypriot officials had said their Turkish-Cypriot colleagues were more interested in “scoring political points” than looking after the interests of local dairy producers.

Cyprus Mail sources confirmed yesterday a confidential FCO briefing on the issue had stated that attempts to gain protection for halloumi could be used as a “confidence-building measure” that could improve relations between the two communities in Cyprus.

Speaking last week at the Chamber of Industry in the occupied areas, Turkish Cypriot leader, Dervis Eroglu called on officials to register the traditional products of Turkish Cypriots, which were “an inseparable part of their culture and life”.  Otherwise the products could be lost as time goes by, or they could be taken by others, he said.

The Turkish Cypriot leader added that he was closely following the efforts for registering halloumi in the EU. Eroglu noted that Turkish Cypriot officials had brought up the issue of halloumi within the framework of confidence building measures with the Greek Cypriot side, but because of what he described as the Greek Cypriot side’s intransigent stance, there were no results. 

Head of POA, Nicos Papakyriacou told the Cyprus Mail yesterday that he did not believe halloumi could be used to help build confidence between the two communities. “We have provided Turkish Cypriots with free healthcare and benefits, is that not enough, they want to use halloumi to help reconciliation,” he said. Papakyriacou said halloumi and hellim were not the same product and that the previous government’s attempts to include hellim in the PDO application were a mistake. “If hellim and halloumi are seen as the same product then Turkish Cypriot producers can claim they have been making halloumi all these years which is absurd,” he added.

Cyprus’ previous attempts to gain PDO status for halloumi had broken down after disagreements emerged over the type and proportion of milk used. Agriculture Minister, Nicos Kouyialis, told farmers earlier this month that Cyprus was about to enter discussions with European Commission officials over the objections.

The Independent revealed that the Cyprus High Commission in London confirmed last week that the proposed PDO application had been raised with Turkish Cypriots during “bi-communal talks”, and later at a committee on economic and commercial matters. 

“The Turkish Cypriot members of the committee responded by demanding the withdrawal of the application, the cancellation of the procedure and the launching of a new joint application, not through the competent authority,” a High Commission spokesman said.

“Regrettably the position of the Turkish Cypriot members remained unchanged, thus revealing an approach which was seeking to score political points rather than genuinely aiming best to serve the interests of Turkish Cypriot producers,” he concluded.

To compound the issue, the Court of Justice of the European Union rejected an appeal last week lodged by the Cyprus Milk Industry Organisation - the holder of the community collective trade mark Halloumi - against the judgment of the General Court of the European Union in connection with hellim.

In 2005, German company Garmo AG applied for the Community trade mark “Hellim” for dairy products. The Cypriot organisation filed a notice of opposition to that application which was rejected by the Board of Appeal of the Office for Harmonisation in the Internal Market (OHIM).

 

The halloumi wars are being fought on at least two fronts; political and culinary

Free training for would-be farmers

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Author: 
Maria Gregoriou

THE MINISTRY of agriculture is accepting applications from the unemployed to take part in free agricultural training sessions.

The programme is part of the government’s attempt to support the unemployed who want to learn about agriculture and work the land. Sessions in animal husbandry, plant production, and how to keep bees for the production of honey are part of the programme.

“The idea for free training sessions came about after the president’s announcement that we should find ways to re-boot the economy,” said agricultural officer Marios Adamidis. 

The ministry also took into consideration suggestions made by the Cyprus University of Technology (TEPAK), and the actions made by the Church and the University of Cyprus to help the unemployed find work.

The intensive training programme will last for 40 hours and be spread out over ten working days. It will be held in the ministry’s training centres, and participants will receive a certificate of participation. They can then use this knowledge to farm land they may own or ask to use government land from the department of lands and surveys.

“The programme is open to anyone who is unemployed and really has the enthusiasm to learn and work in agriculture. We will offer general theoretical and practical training on how to plant crops, how to breed and raise livestock, and how to keep honeybees. How to plant and grow traditional vegetables and fruit such as, cherries, grapes and potatoes will be part of the training as these are more specific to Cyprus,” Adamidis said.

Adamidis also added that any newly-graduated agriculturists who were registered as unemployed could also apply to be part of the training programme.

Agricultural officers, who are specialists in how to cultivate the land to produce crops, breed animals and keep bees will perform the training.  They will also offer advice on best practices for participants who already have some knowledge of agriculture.“The idea is to provide general training so an extensive service can be offered to these individuals who will then go on to plant and grow products. If an agricultural officer knows a new farmer has already received this training they will know exactly how to advise them,” Adamidis added.

“The ministry began accepting applications on April 30 and will look over all applications when the deadline is up. From April 30 until May 2, just before the Easter holiday period, we received 40 applications. I am not aware of what the average personal profiles of applicants are so far, but we do get many young people coming to us for advice or asking about the programme.”

Certain criteria such as, how long someone has been unemployed, if they own land or if they are a permanent resident will be considered. The ministry wants to offer training to people who will use this knowledge to create employment for themselves and who will put training into practice,” Adamidis said.

If there is a good response the training will be held in all districts. If the response is on a smaller scale sessions will run in certain districts and participants from different areas will be combined.

Applications are being accepted until May 31. An application must be submitted along with an original certificate of unemployment (ES 19 form) issued by the public employment service of the department of labour.

Training sessions are expected to start at the end of June, which is a slow period for agriculture. 

Application forms are available at the district agricultural offices and at www.moa.gov.cy/da 

For further information about applications go to or call the relevant district agricultural offices.

Nicosia district: 19 25th March Avenue, 2408 Engomi, Nicosia

Tel: 22819704, 22819714 or 22819736

Limassol district: 4 Agchistou Street, 3048 Zakaki, Limassol

Tel: 25803900, 25803901, 25803905

Paphos district: Neophytou Nicolaide Street, 8011 Paphos

Tel: 26804601 or 26804596

Larnaca district: 59 Constantinou Paleologou Street, Larnaca

Tel: 2480220

Famagusta district: 71 Sotiras Street, 5286 Paralimni

Tel: 23812130 or 23812135

Pitsilia district: 1 Anthimou Panaretou Street, 4860 Agros

Tel: 25874031 or 25874070

Polis Chrysochous: 1 Timocharis Street, 8830

Tel: 26321531

Bee farming will be one of the courses on offer during the programme

Code of conduct and ethics for public workers

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Author: 
Stefanos Evripidou

THE CABINET yesterday approved a Code of Conduct and Ethics for public workers, authorising the finance minister to take the necessary steps to ensure its implementation. 

Introduction of the new code is aimed at improving the service provided to citizens and the image of the public sector by describing in a clear and simple manner the responsibilities, obligations and expected behaviour of public servants throughout the public service and across all ranks.  

Last week, President Nicos Anastasiades announced a series of measures aimed at restoring the public’s trust in government following the banking fiasco. He set June 15 as the final deadline for completing all outstanding bills that parliament will need to approve. 

The measures include lifting MPs’ immunity for all offences, but preserving their freedom of speech during the exercise of their duty; legally regulating ministers’ and independent officials’ civil and criminal responsibilities for actions and omissions committed while on duty; obliging more state officials to file income statements at fixed intervals, making public tenders in the wider state sector; and, setting up a committee in each ministry to ensure compliance with suggestions made in the Auditor-general’s annual reports.  

Cabinet also decided yesterday on a legal amendment of the 1985 law on cooperative institutions relating to the share capital of the cooperative movement. 

The amendment aims to increase the share capital of cooperative credit institutions, by extension converting the unlimited liability of their members to a limited liability of shares in order to strengthen their capital base.  

The conversion of liability is to begin 30 days after a notification has been published in the official gazette. 

The amendment will also allow cooperative institutions, beyond the cooperative central bank, the capacity to issue ‘B’ class shares for the purposes of strengthening the core equity tier 1capital of each institution.

Provision will also be made for cooperative societies, under certain conditions, to purchase class ‘A’ shares as well as class ‘B’ shares.

Eurozone finance ministers to ratify Cyprus’ first bailout tranche

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EUROZONE finance ministers will on Monday politically ratify the agreement reached at the technical level for the disbursement of Cyprus’ first tranche of €3 billion out of the €10 billion EU-IMF bailout loan.

A senior Eurozone official said yesterday in Brussels that at the meeting on Monday there would be a first review of the course of the Cyprus aid programme, while a political decision on the disbursement of the first €3 billion would be taken.

He also said that the priorities were clear and included the restructuring of banks and the gradual lifting of restrictions on capital movement.

In response to a question, he said that there was no timetable for the full lifting of capital restrictions, “but the sooner the better”, he added.  

He also said that the easing of restrictions and administrative formalities had gradually begun, while the restrictions would be permanently lifted with the completion of the restructuring of the banks.

The official further said that with a letter sent to the Cyprus government, Moscow had confirmed that the terms of the €2.5 billion loan had changed “in the direction we expected”.

The interest rate for the €10 billion financial assistance loan to Cyprus is set at around 2.5 per cent and is repayable over a 12-year period after a grace period of a decade.

The bailout deal needed to be ratified by six national parliaments and the Eurogroup.

On Monday, the Eurogroup will also decide on the disbursement of the next two instalments to Greece totalling €7.4 billion.

Stavrakis says he objected to excessive spending

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Author: 
George Psyllides

FORMER finance minister Charilaos Stavrakis yesterday blamed the banks and their regulator for the collapse of the economy as he portrayed himself as the “bad” minister who was always trying to curb government spending.

Testifying for the second time before a committee of inquiry looking into the economic debacle, Stavrakis frequently repeated that Cyprus went bankrupt because of the huge losses incurred by the banks.

The former minister said every week he used to raise objections to expenditure increases and he had also communicated his concerns over the state of the economy to former president Demetris Christofias.

Under Stavrakis’ and Christofias’ watch a 3.5 per cent surplus in 2007 became a 6.1 per cent deficit in 2009. 

In the first 10 months of 2008 -- Christofias came to power end of February – public spending rose by 11.3 per cent while the state budget was overshot by 5.6 per cent. 

The former minister said Christofias’ policies and the budget prepared by the previous government were not in full harmony.

The administration managed to cut the deficit somewhat in 2010 – 5.3 per cent – but it was up again the next year – 6.3 per cent – mainly due to a munitions explosion that incapacitated the island’s main power station. 

Stavrakis was replaced in a cabinet reshuffle in August 2011.

Asked whether he had any responsibility, Stavrakis said when one disagreed with cabinet decisions, either they resigned or they continued to work expecting to offer the best they could.

Stavrakis said he should have left the Christofias government two to three months before August 2011.

Of the banks, Stavrakis said there was no balance between salaries and bonuses, adding that a banker could make millions in bonuses if they took big risks.

If they were unsuccessful, they could pin their failure on the economic crisis or other factors so that they would not take the blame.

Stavrakis, who served as deputy CEO of the Bank of Cyprus before his appointment, said his revenues ranged between €150,000 and one million euros per year, depending on the bonus.

When he left the bank, Stavrakis said he received €2.0 million from his provident fund and a €500,000 bonus.

Former finance minister Charilaos Stavrakis studies some documents during his second appearance at the panel of inquiry into the economy (Christos Theodorides)

Our View: Government needs a concrete, comprehensive proposal for a LNG plant

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ON THE SURFACE President Anastasiades’ visit to Israel was a success. He had a productive though short meeting with Prime Minister Benjamin Netanyahu he met President Peres, members of the Knesset and addressed a business forum in Israel. “We are inaugurating a new era in relations between our two countries,” he said pointing out that Cyprus was Israel’s “most reliable neighbour”. 

His Israeli hosts also restricted themselves to generalities, Peres stating that the two countries were linked in many ways and that “we regard Cyprus as a close friend both politically and geographically.” But other than the exchange of diplomatic niceties little of substance came from the president’s visit, other than the discussion of pending agreements on health, research and development, technology, culture and fighting terrorism.

Nothing was mentioned by the Israeli side about the main concern of the Cyprus government – energy co-operation – despite Anastasiades raising the issue in his public addresses. It may have been too early to expect any response from Israel although the president stated that Cyprus had decided to go ahead with plans to build an onshore LNG plant which would export LNG to Europe and the Far East. He conceded that the two sides were still at the “stage of consultations”.

It could not be otherwise, given that the Cyprus government does not seem to have carried out an in-depth viability study of this project that would cost in the region of €15 billion. All we know is that during one of his television addresses, Anastasiades declared that the government would go ahead with the construction of a LNG plant. Perhaps this was an attempt at boosting public morale, but a declaration of intent is not enough, when discussing a multi-billion euro project, especially before we have a reliable estimate of the quantities of natural gas in our exclusive economic zone.

The government needs to have a concrete, comprehensive proposal for a LNG plant to attract any interest in the enterprise from Israel. But Israel could have other plans as Netanyahu’s recent apology to Turkey over the flotilla incident would suggest. This was a significant retreat by Israel which seems determined to mend relations with Turkey. Could this have anything to do with the fact that the most cost-effective way for Israel to sell its natural gas is through pipelines running through Turkey? 

Nobody knows the answer, but what we do know is that the Cyprus government needs to commission an in-depth study by experts, regarding the viability of a LNG plant if it wants its plans to be taken seriously by prospective partners.   

‘Indecisiveness and delays led to bailout’

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Author: 
Poly Pantelides

 

CYPRUS was censured by top EU officials yesterday for its foot-dragging over a bailout from as early as November 2011 when the first warnings were issued, to the clinching of a deal some 16 months later, a timeframe, which had only made things worse, they said.

European Commissioner for Economic and Monetary Affairs,  and vice president of the European Commission, Olli Rehn were briefing members of the European Parliament (MEPs) at the committee on economic and monetary affairs.

Rehn said the Commission warned Cyprus about its accumulating problems early on. Warnings and policy guidance to tackle the banking problems and consequent fiscal and macroeconomic imbalances were included in the reports and Country-Specific Recommendations under the first European Semester in June 2011, he said.

In November 2011, the Commission has communicated to the Cypriot authorities that a financial assistance programme would be unavoidable, unless the persistent economic problems were immediately addressed. 

Eventually, Cyprus asked for financial assistance, but only in June 2012, said Rehn. 

“It is unfortunate that it took Cyprus more than half a year to accept the gravity of the situation and the unsustainability of its business model. And it is similarly unfortunate that it took Cyprus another nine months to reach an agreement with the Eurogroup,” he said.

Rehn said the Commission had worked hard for a more gradual adjustment of the Cypriot banking system and real economy, while aiming to ensure debt sustainability and adequate financing.

“However, indecisiveness, delays and a very firm financial constraint severely limited the options available,” he added.

“By March [2013], the economic situation had deteriorated so badly that the scenario of the more gradual economic adjustment was not on the cards any more. Especially, the state of the banks worsened rapidly.”

He said the banking problems were aggravated by poor practices of risk management, and that lacking adequate oversight, the largest Cypriot banks built up excessive risk exposures.

“In Cyprus, and I speak with some experience of years of crisis management, we saw the usual pattern of a country in front of an impossible situation and leading to a programme,” Rehn said. 

“First there is a sense of denial, which leads to delays. Then there is a draining of funding.”

But while Cyprus managed to buy time by securing a loan from Russia in 2011, the authorities did not use it to implement structural reforms, Rehn added. 

“By the time the government finally asked for a bailout in June last year, the people of Cyprus were forced to face “a very painful process of negotiations with even more limited options,” Rehn said. 

European Central Bank Executive Board member Joerg Asmussen who also addressed the MEP’s talked of an inflated but poorly supervised banking sector that attracted deposits by offering high deposit rates and fuelled a domestic boom that left banks – after the bubble burst – with non-performing loans. And when the banks incurred losses following a Greek debt restructuring, the government’s rising fiscal deficit and public debt left them unable to support the banks, Asmussen said.

References during the briefing by either Asmussen or Rehn over the unprecedented and controversial Eurogroup decision on March 16 to tax insured depositors remained vague however. 

Rehn said that with the EU ready to offer up to €10 billion, Cyprus was expected to mobilise resources “through a range of fiscal measures and by sharing the burden with the creditors of its banking sector”. 

Skipping over parliament’s rejection of the decision to impose a levy on both insured and uninsured depositors to raise the funds to recapitalise the banks, Rehn said that by March it had become clear that “the second biggest bank, Laiki, had to be resolved immediately” to prevent the banking system’s collapse “and a disorderly default of the sovereign.” 

The “final decision” to wind-down Laiki and restructure the Bank of Cyprus “does not include this kind of levy and protects secured deposits as indeed it must protect,” Rehn said.

The most pointed question yesterday came by Greek MEP Thodoros Skylakakis who asked the ECB’s Asmussen why Laiki was allowed to accumulate emergency liquidity assistance to the tune of €9.6 billion, or more than half of Cyprus’ yearly economic output. The emergency assistance is given to banks that are solvent but need liquidity. Under what criteria was Laiki considered solvent? Skylakakis asked. 

Asmussen said the decision was fair given the bank’s Greek debt exposure, and that the emergency assistance was given on the belief that Laiki could “become solvent again while it (was) being recapitalised as part of an adjustment programme.” “But the negotiation on the memorandum of understanding (for the bailout) took extremely long,” he said. 

He also said short-term risks were high in Cyprus, as the deep recession was expected to take a toll on banks' balance sheets.

"The reliance of the largest bank on emergency liquidity assistance (ELA) continues to be exceptionally high," he said, referring to the Bank of Cyprus.

 

Olli Rehn, the European Commissioner in charge of Economic and Monetary Affairs

Kurdish families camp outside interior ministry

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Author: 
Maria Gregoriou

AROUND 150 Kurdish refugees from Syria have been camped outside the interior ministry since April 29, waiting for an answer for their application for subsidiary protection.

Subsidiary protection is given to refugees who have fled their country in a time of war but who are expected to return home after the situation is more peaceful.

A large tent and a picnic table have been set-up outside the ministry.  Sheets have been spread out on the ground under trees as beds. Some children were running around in the parking area as their parents continued to wait for an answer from the ministry for the eleventh day.

The Kurds and their families say they are stuck in a hopeless situation. Although they are forced to remain in Cyprus, they are not allowed to work because they do not have residence permits. 

They have been told by police to move on but they are determined to stay outside the ministry for as long as it takes as it is a matter of life or death for them, they said. 

“We have been here day and night for eleven days and still we have received no answer. We just want the protection that is allowed to us, just like other refugees in other European countries under the EU,” said Kamal Shaykih, 56.

“The first time we approached the ministry they asked us how many Kurds are seeking protection and we managed to get a list of 192 names. This was a year and a half ago and we didn’t get a reply yet.”

Shaykih said the refugees approached the UN on March 10 to help them leave Cyprus and find refuge in another country.

“We do not want to be a load on the Cypriot people. We understand that Cyprus is going through a crisis of their own right now and we do not want to make the situation worse but we must also protect our families and support each other in this struggle for our rights,” he said. 

The UN told them they would receive an answer within ten days but  they never did so they decided to camp outside the ministry. “We just want a yes or no answer,” Shaykih added.  Shaykih himself is legally allowed to work in Cyprus but he chose to camp with his fellow Kurds to support them. 

Ramie Mamo, 46, a mother of three said some of the refugees had tried to leave Cyprus. “There is a family here who sold everything they had and tried to leave but the husband was arrested at the airport. Now his wife and children are on the streets without a home or anything to eat. The government has left us without any choices,” she said.

“I am sunburned. It doesn’t matter.  I sleep on the ground and that doesn’t matter. We have been through much worse and we will be patient until we get protection. Even if we get a negative answer, we will not leave until it becomes a positive one,” Mamo said.

Another woman who said she has been in Cyprus for 18 years said she had had both of her children on the island. “Now that one is 17, he got a paper from the government to go for his army service,” said 46-year-old Forgae Nalla.

Interior ministry permanent secretary Andreas Assiotos said he had spoken to the representatives of the Kurds and explained to them that they were allowed to work in the agricultural sector. 

“We have asked the labour ministry if there are jobs in these areas, and we have been told there are,” he said.

“I know they are asking for protection but protection from what? We are not threatening them. I believe that they are asking for a permanent residency in Cyprus and to have equal rights as Cypriot citizens to work in all sectors. With the situation being as it as and more Cypriots becoming unemployed, we cannot accept people coming from Syria due to war to work in all sectors. Maybe they do not want to work in these types of (agricultural) jobs,” Assiotis said.

He said there was no problem with the Kurdish people staying in Cyprus until the situation in Syria calms down. 

“We understand their situation and we will not kick them out of the country,” he said.

However the Kurdish group says they will go on a hunger strike as of Monday if they do not receive an answer from the ministry.

“Some Kurds living in Cyprus gave in an application to work in Cyprus and were rejected, others are not even able to apply. Others have had their nationality taken away from them because they come from the area where the border between Iraq and Syria is so if they go back to Syria they will be imprisoned or even murdered. These people have no where left to turn and are living very desperate lives,” Anthoula Papadopoulou, a KISA steering committee member, said.

Papadopoulou said most countries in the EU provide subsidiary protection to Kurds but for some reason the Cypriot government is ignoring this. Some of these people have been here for many years and can speak Greek very well. Their children were born and raised here and they ask to be given Greek names so they can fit in and even go to the army,” she added.

Kamiran Muhamad a 33-year-old father of four, committed suicide on April 17 after being denied asylum. He had fled Syria three months before that.  

KISA’s Doros Polycarpou said the implementation of the decision to provide Kurds with subsidiary protection would not affect Cyprus to a large extent as 95 per cent of all funding would be covered by the EU.

“The government has only given the Kurds the status of a visitor for humanitarian reasons but this does not really give them any rights. They are told that they can work in Cyprus but companies are not allowed to employ people from third countries,” he said.

KISA has prepared a petition in Greek in support of the Kurds, which is due to be issued. An English version will also go out. It also urges people to offer material and moral support to the families outside the ministry.

A woman prepares food at the camp (Christos Theodorides)

Nadir renounces British citizenship

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JAILED Turkish Cypriot tycoon Asil Nadir has renounced his British citizenship in order to return to Turkey, reported Turkish Cypriot daily Afrika yesterday.

According to the paper, the Turkish Cypriot businessman, who is currently in Belmarsh Prison in the UK, is now one step closer to returning to Turkey after being sentenced to ten years in jail last August by a British court after being found guilty of stealing £28.8 million from Polly Peck and its shareholders.

Afrika reported that Turkish Justice Minister Sadullah Ergin gave instructions to the Turkish ambassador in London to assist proceedings for Nadir to be transferred from Britain to Turkey. As part of the effort, Nadir was asked to renounce his citizenship and hand over his British passport. 

Last February, the Daily Mail reported that Nadir who was ordered by a UK court to pay back £5 million of the money he stole from his Polly Peck business empire, came up with the money despite telling British judges he was broke.

According to the Daily Mail, the payment paved the way for him to secure a prisoner transfer to Turkey, from where reports suggest he will be allowed to return to the occupied north, where he will be put under ‘house arrest’.

Nadir fled from the UK to northern Cyprus in 1993 but returned in 2010 to face trial and ‘clear his name’. Polly Peck, a leading stock exchange conglomerate, collapsed in 1990 after Nadir stole money which he sent abroad through a complex series of companies.

‘Boosting TV ratings at the expense of a child’

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Author: 
Peter Stevenson

CHILD Commissioner Leda Koursoumba yesterday called on the media to act with more responsibility and critical judgement when broadcasting stories of any kind about children. 

The comments came after TV channels aired news stories about a ten-year-old Romanian girl and her grandparents who were evicted by their landlord on Easter Sunday and forced to sleep on the street. 

Koursoumba, who was speaking at a press conference yesterday with Cyprus Radio and Television Broadcasting Authority Director General, Neophytos Epaminontas, had previously criticised the police’s handling of the situation and has asked the justice and labour ministers for a report on the incident.

“Due to the current crisis I am sure we will witness many incidents where children and families will be put out on the streets, and coverage of such incidents is welcomed when it is done correctly,” Koursoumba said. 

The commissioner was troubled however by news reports on TV on Wednesday night which although hid the child’s face, still showed her grandparents and an unobscured view of the back of the ten-year-old’s head.

“Any actions on behalf of the media need to take into consideration whether any child’s rights are being violated,” she added. 

According to the law, parents’ or a guardian’s permission must be given for their child to speak in public but sometimes that is not enough because the parents themselves might be in a desperate position where they cannot exercise sound judgement, Koursoumba said. 

The commissioner went on to say that all journalists must consider the long-term consequences of any news piece they publish as it could have long-lasting effects on a child. “Having a child repeat a traumatic story over and over again, which is what members of the press did, can prove to be very distressing and it can be seen as exploiting the child,” she said.

“Families who are suffering due to the economic crisis should not be turned into a product to help increase viewer numbers,” Koursoumba concluded.

Epaminontas told reporters that the Cyprus Radio and Television Broadcasting Authority would fully investigate whether any TV reports violated children’s rights. “I’m sure, unfortunately, that during the crisis we will see more and more cases like this one and it is the TV stations’ responsibility to demonstrate critical judgement and be careful with stories involving children,” he said. The director general added that if the investigation showed the law has been broken then the authority would take action and fine those responsible. “In general it is a sin to take advantage of a child’s pain just to boost ratings,” Epaminontas said.

Koursoumba had asked Labour Minister, Zeta Emilianidou, on Wednesday to inform her if welfare services were aware of the ten-year-old’s case.

She had also asked for the child’s family history, what actions welfare services had taken to ensure the child’s safety and if her grandparent’s parenting ability had been evaluated. Lastly, she had asked the minister if a plan had been put in place to help protect the child. It is understood that the little girl’s parents are in Romania. 

Koursoumba asked Justice Minister, Ionas Nicolaou to investigate why the on-duty officer from the welfare services had not been immediately informed by police that a ten-year-old girl was sleeping on the streets. 

She also asked the minister to inform her whether police had fully investigated the allegations that the landlord where the family was staying had physically abused them before evicting them. 

“We are investigating the case of whether the landlord struck the grandparents or the child and are still waiting to take statements,” police spokesman Andreas Angelides told the Cyprus Mail yesterday. He added that a report would be completed, detailing the events on and after Easter Sunday regarding the child, which would be given to the child commissioner.

According to Koursoumba the child is now safe and with family members under the guidance of welfare services, while her grandparents are still being evaluated by welfare services to see if they are fit to care for her.

Child Commissioner Leda Koursoumba (left) accuses journalists of being intrusive and preying on the vulnerable

Pressure builds for resumption of Cyprus talks

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Author: 
Stefanos Evripidou

 

FOREIGN MINISTER Ioannis Kasoulides will meet today with US Secretary of State John Kerry in Washington after meeting with the U.N. chief in New York a day earlier. 

The meeting with Kerry comes at a time when key players in the international community are talking up the chances of pushing for a Cyprus solution, with the development of the energy sector in the Eastern Mediterranean clearly in the back of decision-makers’ minds. 

UN Secretary-General Ban Ki-moon met with Kasoulides in the very early hours of yesterday morning, local time, after the foreign minister’s plane got stuck at a New York airport for three hours due to bad weather. 

According to a UN statement, the two discussed the latest developments in Cyprus, particularly the prospects for a resumption of peace talks on the island, as well as the situation in Syria and recent developments between Serbia and Kosovo.

Speaking after the meeting, Kasoulides said: “There is an understanding that the talks cannot commence earlier than the autumn.”

The minister said he passed on three messages on behalf of President Nicos Anastasiades, namely the need to show understanding and patience due to the financial and economic crisis in Cyprus which is taking up all the government’s time and resources; the fact the president is not bound by all previous decisions made in the talks; and, the need to improve trust and confidence between the two communities.

Regarding the latter, Kasoulides referred to a long-standing proposal for the fenced-off part of Famagusta to be handed over to its legitimate owners before any other agreement was reached.

In exchange, the Turkish Cypriot community could use the port of Famagusta for direct trade under the supervision of the EU, while Cyprus would explore the possibility of unfreezing some chapters blocked in Turkey’s EU accession talks.

“It’s a win-win situation for all sides,” said Kasoulides. 

Asked about confidence building measures in relation to the exploitation of hydrocarbons in Cyprus` exclusive economic zone (EEZ), Kasoulides said issues concerning natural gas were independent of any efforts to solve the Cyprus problem.

“It is indeed an incentive to solve the Cyprus problem. However, it is under the exclusive jurisdiction of the legal state, which is the Republic of Cyprus,” he said.

After the meeting, Kasoulides departed for Washington where he is due to meet with Kerry, the leadership of the Greek Issue Group at the US Congress, the Foreign Affairs Committees of the House and Senate, the National Security Advisor to Jo Biden, and the leadership of the American-Israeli Lobby.

He will also speak at the Brookings Institution.

Politis newspaper yesterday reported that the Cyprus Foreign Ministry was surprised to receive a US request to set up a meeting between Kasoulides and Kerry in May, much earlier than originally expected. 

The paper cited diplomatic sources saying that the US was taking a much more proactive approach in the region, with Kerry taking an active interest in solving many outstanding problems. 

The US Secretary of State has visited the region three times in the last two months. According to Turkish media reports, US diplomats have met repeatedly with Turkish officials to discuss a range of issues, from the Syrian crisis to the Kurdish problem and Turkish-Israeli relations. 

Today’s meeting is seen by some commentators as an extension of this active approach, with the US keen to ensure the energy sector’s development in the Eastern Mediterranean plays out in an advantageous manner. 

With the competing interests of Turkey, Egypt, Lebanon, Israel, Syria and Cyprus all in the mix, the chances of a flare up in the region could not easily be ignored. 

Given long-standing American support for Israeli interests, and the involvement of US-based Noble Energy in Cyprus’ EEZ, as well as a close reliance on Turkey to ensure its security interests in the region are met, the US is in a good position to play a background role of mediator in the Cyprus-Turkey dispute over natural gas deposits in the Eastern Mediterranean. 

How much this will be connected to the nuts and bolts of the Cyprus peace talks remains to be seen. 

Perhaps indicative of the general feeling within the international community, EU Economic and Monetary Affairs Commissioner Olli Rehn told a European Parliament finance committee in Brussels on Wednesday that he regretted the lack of decisive progress in the peace talks.  

“The reunification of the island would give a major boost to the economic and social development of Cyprus,” he said during a discussion of the economic crisis and subsequent ‘bailout’ of Cyprus. 

“Now it is indeed high time to revitalise the process leading toward the reunification of Cyprus,” he added. 

This came on the heels of another comment by NATO Secretary General Anders Fogh Rasmussen who said the Cyprus problem should be solved in order to advance NATO-EU cooperation.

Speaking at a press conference earlier in the week, Rasmussen called on all sides in Cyprus to advance, find a solution and unite the island. 

Rasmussen said a number of issues remained at risk as a result of the island’s division, referring specifically to oil and natural gas drilling. 

After a solution, hydrocarbon exploration could begin, he said, adding that political obstacles regarding NATO-EU relations will also be removed.

Commenting on the NATO chief’s statement, Kasoulides said he would do well not to make such statements, as they could only lead to extending the time needed to solve the Cyprus problem, while also keeping NATO-EU problems unsolved. 

Meanwhile, Turkish Prime Minister Tayyip Erdogan is due in Washington next week for an official visit. 

According to Turkish daily Sabah, Erdogan is going to the US with five messages, one of which is that Turkey will not accept allowing the marketing of the island’s natural gas to go to Russia. 

 

Foreign Minister Ioannis Kasoulides at his meeting with UN Secretary General Ban Ki-Moon in New York

Flooding in Nicosia after heavy thunderstorm

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A FLASH thunderstorm lasting some two hours swept through the capital yesterday afternoon, flooding dozens of basements and trapping motorists in their cars.

The downpour of rain and hail started around 2.30pm and was most severe in the suburbs of Strovolos, Dasoupolis and Lakatamia.

The Fire Department responded to around 80 calls, a spokeswoman said. Most concerned flooded households and basements, while firemen rushed to the aid of three persons trapped in their cars from gushing waters on roads.

In the Sopaz area, firemen arrived in the nick of time to extract a driver just as his vehicle was about to be swept into a nearby river. The water level had reached the window of his vehicle, reports said. 

No injuries were reported. The Fire Department also removed debris from a number of locations after several trees were felled by strong winds.

The Meteorological Service said the area around the island is currently under a low-pressure system. For the next three days, the service forecasts scattered showers and possible flash storms, mostly in mountain areas and the interior.

Temperatures will be near normal for this time of the year, ranging from 20C in the mountains to 28C inland.

A member of the fire service signals to cars yesterday after the flooding (Christos Theodorides)

Previous government hired over 5,000 people in four years

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FROM 1995 to date, the number of people employed in the broader public sector has increased yearly by about 2 per cent, an official yesterday told the panel that is probing the circumstances that led to Cyprus’ near financial collapse.

George Georgiou, director of the Statistical Service, said also that over the years public-sector employees have accounted for 18 to 19 per cent of the country’s total workforce.

The panel is currently focusing on fiscal actions and decisions in the past few years and their impact on government finances.

According to data furnished by Georgiou, in 2007 the broader public sector (civil service, local authorities and semi-governmental organisations) employed 66,150 persons, or 18 per cent of the total workforce; in 2010, the number rose significantly to 71,529 persons or 19 per cent; and in 2011, there were 71,553 people employed.

Although in 2012 the figure dipped to 70,268 persons, this accounted for 19.2 per cent of the total workforce at the time.

In 2010, the then AKEL administration stated its intention to slash the size of the civil service by 1000 persons a year by 2013, in a bid to contain the payroll.

Yesterday Georgiou did not provide a year-by-year breakdown for the number of civil servants, but cited 2012, when 33,784 people were employed by the central government.

The official has been asked to re-appear before the panel to provide more detailed data.

Kazamias: Greek haircut was lesser of two evils

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Author: 
Elias Hazou

Ex-finance minister Kikis Kazamias said yesterday he was not aware whether former President Demetris Christofias either sought or received guidance before sanctioning a 2011 euro-area decision to write down Greek debt – a pivotal moment now widely acknowledged as having broken the back of Cyprus’ two largest banks.

Kazamias said that during his stint no governmental meeting was held in 2011 or subsequently to discuss specifically the impact on the economy from the Greek PSI (Private Sector Involvement), also known as the Greek ‘haircut’.

Testifying before the committee of inquiry that is looking into Cyprus’ near financial collapse, Kazamias said that to the best of his knowledge “no special meeting took place to discuss this topic exclusively.”

He was responding to a question as to whether following the Greek haircut he informed the then president that the decision entailed disastrous consequences for the Cypriot economy.

Kazamias was equally unaware if Christofias, having decided to rubberstamp the Greek haircut, had asked his eurozone counterparts for trade-offs to mitigate the impact on Cypriot banks, heavily exposed to Greek government bonds and private debt.

The former economy chief went on to say that, in his view, it would have been next to impossible for Cyprus to negotiate the Greek haircut, given the urgency of the matter at the time.

“Any delay in taking a decision might have led Greece to a disorderly default…the President had no choice,” said Kazamias.

Under the circumstances, the decision to go along with the Greek debt write-down was the correct one; the alternative was far worse, as it would have meant the collapse of the Greek economy, leading the Cypriot banks to total bankruptcy.

“It was a case of the lesser of two evils,” he noted.

Kazamias was quizzed on comments made by European Commissioner for Economic and Monetary Affairs Olli Rehn, who on Wednesday censured Cyprus for taking too long to ask for financial assistance.

But Kazamias sought to discredit Rehn: “Anyone can say whatever they want after the fact,” he remarked.

Sticking to his guns, Kazamias reiterated that after speaking at length with Rehn in November 2011, the European Commission was satisfied with the fiscal steps Cyprus had taken and shortly thereafter it removed the island from a list of five countries under probation.

On January 13, 2012, ratings agency Standard and Poor’s slashed Cyprus’ sovereign ratings to ‘junk’; Kazamias repeated yesterday that the reason for the downgrade were the banks, not government finances.

Kazamias served as finance minister from August 2011 to March 2012, when he resigned citing health reasons. His term coincided with the summer 2011 decision for the Greek PSI or ‘haircut’. The first PSI agreed in July 2011 called for a 21 per cent reduction in the the Net Present Value of the Greek bonds. The PSI was finalised in February 2012, when euro-area finance ministers finalised a second bailout package for Greece, which had the effect of raising the level of the ‘haircut’ from the initial 21 per cent to around 70 per cent.

It’s estimated that the Greek PSI’s hit on Laiki and Bank of Cyprus was in the order of a little over €4bn.

Former Finance Minister Kikis Kazamias prepares to be quizzed on the economy yesterday (Christos Theodorides)

Our View: Without a Cyprus settlement it will be difficult to exploit our hydrocarbons

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NATO General Secretary Anders Fogh Rasmussen angered the Cyprus government and all the political parties after stating that drilling for natural gas and oil should start only after there was a settlement of the Cyprus problem. It was Cyprus’ sovereign right to exploit the hydrocarbon deposits in its exclusive economic zone, responded President Anastasiades, warning that statements like Rasmussen’s reinforced Turkey’s intransigence and did not help efforts for a solution.

The political parties were less diplomatic in their reaction to the NATO chief’s “unacceptable” position, the EDEK spokesman saying the only way it could be interpreted was as “as crude blackmail of Cyprus and Cypriot Hellenism.” A DIKO spokesman said the problems Rasmussen was concerned about stemmed from Turkey’s threats. AKEL condemned the statement but was not surprised, as NATO always “considered Turkey especially important to its plans in the area.”

All were agreed that it was Cyprus’ sovereign right to decide when it would drill for hydrocarbons and Turkey’s threats were in violation of international law. They were absolutely correct, in theory, and their knee-jerk reaction was understandable to an extent, but we hope that Rasmussen’s unacceptable position would have made them think about the country’s exploration plans. 

His comment could also have been interpreted as advice that it would be unwise for Cyprus to proceed with exploration or drilling for hydrocarbons before a settlement, because Turkey could carry out its threat to stop it by force. An attack would be a violation of international law, but who would stop it? Does Cyprus have the means to defend its sovereign rights and offer protection to a company that is drilling for gas? In fact, would any company invest in a platform for extracting natural gas from the sea, with the threat of a Turkish strike looming?

It is very easy to pontificate about our sovereign rights but our politicians need to get real and understand that without a Cyprus settlement it would be extremely difficult to exploit our hydrocarbons deposits. Is there anyone who thinks that Turkey is bluffing and we should call her bluff? If the threat is carried out, no drilling company would want to have anything to do with Cyprus again, even if the UN condemns the act of aggression.

We suspect that Rasmussen’s comment was a warning in diplomatic language and our politicians would do well to take note. After all, is there anyone who doubts that regional security and stability must be guaranteed before any company invests in the costly preparations for extracting natural gas from the sea?


CBC boss sees no reason to quit

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Author: 
George Psyllides

CENTRAL Bank of Cyprus (CBC) Governor Panicos Demetriades said yesterday he had no intention of resigning, as a rift with the government appeared to persist over the way he was handling the island’s banking crisis.

“There is no such issue,” Demetriades told a news conference. “I said it in the past and I would like to close this matter. As the CBC we did everything possible … to avoid much worse, catastrophic scenarios, which we actually had before us.”

In exchange for a €10 billion bailout from the eurozone and International Monetary Fund, Cyprus had been forced to close Laiki, its second biggest bank, and restructure its biggest, Bank of Cyprus (BoC), including imposing losses on deposits over €100,000.

Commenting on the CBC’s reportedly strained relationship with the new government, Demetriades said:"There is no problem as far as we are concerned. We would like to see respect of the independence of the Central Bank, which is very important and stems from Cyprus` obligations to the EU.”

Despite the CBC boss’ protestations that everything was fine The government however appeared to be unhappy yesterday over the delay in the BoC restructuring process.

“I would not say I am satisfied with the progress at the BoC,” Finance Minister Harris Georgiades told state radio earlier yesterday.

The government did not want the process to drag on until September, as the CBC suggested at some point, the minister said, adding that Demetriades had pledged to wrap up procedures last week, on May 2.

“We think we are already late,” Georgiades said, though acknowledging there were practical and legal issues in the way.

The minister said cooperation with the CBC boss “could have been much better.”

Demetriades and Georgiades met President Nicos Anastasiades yesterday at the presidential palace for two hours but no statements were made afterwards.

The CBC chief said there was no problem from the regulator’s side.

“Of course we will cooperate but always within the framework of respecting the institutions.”

On the delays concerning the BoC, Demetriades said the administrator would go when suitable person was found – “I hope within the next days” -- to take over as CEO.

Restructuring the lender would take more time however, because it depended on a string of lawsuits filed by depositors against the decision to seize their cash.

The government is also keen to see more capital controls lifted as they were not conducive to the recovery of the economy.

The restrictions were deemed necessary to prevent a run on banks after the raid on deposits.

Controls have since been relaxed but more was needed for the situation to return to normalcy.

Demetriades said the CBC shared the government’s views on lifting the restrictions as soon as possible, but the possible effects on bank liquidity were a concern.

“However, we must always take into account the liquidity and the effects these measures would have on deposit outflows,” he said. “Certainly, the restrictions have not helped the recovery of the economy, but they are necessary until the depositors’ trust is restored.” 

Demetriades said most of the depositors who lost money at BoC were from overseas and that Cypriots had not been hit as hard as might have been expected.

"Seventy per cent of the value of deposits concerned overseas residents, leaving Cypriot households and businesses unaffected to a greater extent than was possibly expected," he said.

Demetriades said overall 96 per cent of deposits in Cyprus were unaffected by losses on larger accounts required by the eurozone in exchange for aid.

"Certainly what happened was very painful for many depositors, particularly those who did not have loans (which were netted against deposits). But 96 per cent of deposits were not affected," Demetriades said.

The CBC chief sought to strike a positive note, stressing that despite the hardship, the bailout agreement had averted catastrophic scenarios like the collapse of systemic banks or the disorderly bankruptcy of the state.

“We avoided the liquidation of the affected banks, an action that would not only have affected all depositors but also borrowers, who would be forced to pay off all their loans,” Demetriades said.

The governor warned however that short-term prospects remained gloomy.

Central Bank Governor Panicos Demetriades at his news conference yesterday (Christos Theodorides)

NEW: Iran recalls ambassador after extradition to US

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Iran has recalled its ambassador to Cyprus for consultations after an Iranian national was recently extradited from the island to the United States on suspicion of violating U.N. arms sanctions, Foreign Minister Ioannis Kasoulides said yesterday.

"Only today ... I received word from Nicosia that Iran has decided to recall its ambassador there for consultations. Why? Because an Iranian citizen was apprehended for trying to buy, to contravene the arms embargo against Iran," Kasoulides told a conference in Washington.

A diplomatic source in Nicosia said the Iranian was ordered to be extradited to the United States by a court "after exhaustion of all domestic legal remedies in Cyprus" about two weeks ago.

The source added that the nature of the alleged offence was "to buy and have delivered in Iran goods and material falling under the sanctions regime," but would not go into any more detail.

Kasoulides, speaking to an audience at the Brookings Institution, later told Reuters Iran had attempted to apply political pressure on Nicosia to avert extradition. "In Cyprus in principle we follow the decision of the court."

Cyprus saw its worst peace-time disaster two years ago when a cargo of confiscated Iranian arms destined for Syria exploded, destroying its largest power station.

 

Defence minister shocked at number of needy in Larnaca

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Author: 
Peter Stevenson

DEFENCE Minister Fotis Fotiou expressed his shock at the hundreds of people queuing up to get aid from the Larnaca community market, after his visit there yesterday. 

The minister said he expected plans to give surplus ready-meals from army camps around the island to needy families to come into effect very soon.

“I am shocked at the number of people here at the market but I am truly pleased by the work done by the Mayor, the town council, volunteers and everyone else who has contributed which is truly deserving of congratulations,” Fotiou said. 

He also thanked the Red Cross for the work they were doing for the needy on the island. “We must all contribute to this work so we can give hope to the people that come here every day who need our help,” he added.

The minister went on to say that the message which needed to be sent out was that Cyprus would survive. “We need to dig-in, to repeat the miracle recovery we achieved in 1974 and we must all work hard together to achieve what the people need, the rebuilding of our economy in order to give new hope,” he said. 

Fotiou handed over surplus army food to Larnaca Mayor, Andreas Louroudjiadis and representatives from the Red Cross.

Larnaca’s Mayor expressed his pleasure at the initiative taken by members of the National Guard to donate food which had not been consumed at army camps.

“I would like to wholeheartedly thank the defence minister for taking the initiative but also for showing his sensitivity as these actions come from our children, the children who are serving in the National Guard which demonstrates that with solidarity, we can stand together side by side, as a people and community,” Louroudjiadis said.

Head of the Red Cross in Famagusta, Kika Konia, also thanked Fotiou for the “concern and sensitivity” he had shown. “We would like to reassure people that with this donation we will try to support as many families as possible during these difficult times,” she said.

Head of the Red Cross in Larnaca, Aliki Neocleous also thanked the minister, adding that the Red Cross helped out around 100 families by giving free breakfasts to students at two secondary schools in Larnaca. “Any donations of money or food are always welcome,” she said.

Defence Minister Fotis Fotiou (left) on a visit to the Larnaca community market yesterday with surplus army food

Cyprus Briefs

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Soldier killed in car accident 

AN 18-YEAR-OLD national guardsman, Andreas Aresti was killed yesterday in Paphos when the car he was a passenger in struck a mound and flipped over, police said. According to reports, the driver Demetris Andreou,  also 18, lost control of the vehicle on the Kalepia to Polemi road in the Paphos district at around 4.45am yesterday,  swerving left and right before hitting a mound and flipping over. 

The two 18-year-olds were taken to Paphos General Hospital where Aresti, who was not wearing a seat-belt, was pronounced dead on arrival. The driver, who was wearing his seat-belt at the time was only slightly injured but was kept in hospital for observation. Paphos police spokesman Nicos Tsiappis said investigations showed that Aresti’s death was most likely due to the car’s high speed but also that the 18-year-old was not wearing his seat-belt.

 

Woman critical after being run over 

A 31-YEAR-OLD woman is in a critical condition in Nicosia General Hospital after she was struck by a car on Thursday night as she was attempting to cross the road near Athienou, police said. At around 8pm on Thursday a 27-year-old woman was driving her car on the Avdelleros – Athienou road when she struck the 31-year-old who was attempting to cross the road. She was taken to Larnaca General Hospital but due to the severity of her injuries she was then taken to Nicosia General Hospital and placed on a respirator. Athienou police are investigating.

Municipality angered by indifference to flood woes

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NICOSIA Municipality yesterday blamed the government for the havoc caused on the roads after the flash thunderstorm in the capital on Thursday.

In a statement, the municipality said the government had acted with indifference and irresponsibility.

The thunderstorm lasted almost two hours flooding dozens of basements and trapping motorists in their cars, a scene that has been replayed islandwide for decades during heavy rains. 

According to the municipality the bridge on Ammochostos Road in the SOPAZ area had overflowed again, shops on Larnaca and Kennedy Avenues flooded while Constantinoupoleos Street in Kaimakli turned into a lake.

“Residents of the area are completely within their rights to be outraged because for years they have been warning the relevant government departments of the situation and they have not taken any action,” the statement said.

The fact that municipality crews were on scene to help the owners of flooded shops is not a proper solution to the problem, according to the statement.

“A country which wants to be labelled as European, cannot be taken hostage by adverse weather conditions,” the statement concluded. The municipality called on the relevant departments and the Ministries to assume their responsibilities. 

Cars plough through water for a second day in Nicosia (Photo: Christos Theodorides)
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