Quantcast
Channel: Cyprus Mail
Viewing all 6907 articles
Browse latest View live

Early ‘parliamentary’ elections in the north

0
0
Author: 
Stefanos Evripidou

INTERNAL STRIFE within the ruling National Unity Party (UBP) in the breakaway regime yesterday led to the announcement of early ‘parliamentary’ elections in the north. 
According to reports, seven or eight UBP rebels led by Ahmet Kasif had planned with the Turkish Cypriot opposition to table a motion of censure in ‘parliament’, forcing Turkish Cypriot ‘prime minister’ Irsen Kucuk to resign. A provisional government would then have been set up until new elections could be held three months later at the end of September.
Trouble within the UBP has been brewing for some time with the party seemingly divided between the old guard, supporting former UBP head and current Turkish Cypriot leader Dervis Eroglu, and the new guard, who back the incumbent party head Kucuk.
Eroglu is fighting a battle for survival and relevance within the breakaway regime after having reportedly fallen out of favour with Turkey’s ruling Justice and Development Party (AKP).
The AKP government has shown a clear preference for Kucuk over ‘president’ Eroglu, and played an active role in getting Kucuk re-elected head of Eroglu’s UBP last October.
Reports suggest Kucuk is more amenable to Ankara’s persuasion than the septuagenarian Turkish Cypriot leader who has another two years in office.
During last year’s UBP leadership election, Kucuk had to fight off the strong candidacy of Eroglu-backed Ahmet Kasif.   
Kasif is believed to have played a big role behind the scenes in getting UBP rebels to coalesce with other Turkish Cypriot parties to topple the ‘government’ in the north.
Kucuk reportedly cut his trip to New York short to come and fight off the rebellion.
However, it transpired yesterday that Kasif’s efforts were betrayed by the main opposition, the Republican Turkish Party (CTP). When push came to shove, the CTP agreed to a counter-proposal by Kucuk.
Instead of bringing about the fall of the ‘government’, Kucuk proposed calling for early ‘parliamentary’ elections on July 28, just over two months away. In this way, Kucuk gets to stay in office until then, while the UBP rebels will not secure the requisite three months needed before an election to set up their own splinter party.  Reports suggest the rebels will consider aligning with the Democratic Party (DP) headed by Serdar Dentkash, son of the late Rauf Denktash. 
Should the elections provide no clear winner, the next ‘government’ in the north could be a coalition one between CTP (the former party of Eroglu’s predecessor Mehmet Ali Talat) and DP. The latter scenario could go some way to explaining why CTP decided to agree on July elections, putting a spanner in the works for Kasif’s rebels. 
It is believed the decision for early elections will be discussed and voted on in the coming days.
According to Turkish Cypriot daily Halkin Sesi yesterday, Kucuk was quoted as saying that Turkish Foreign Minister Ahmet Davutoglu is expected to visit the occupied north at the weekend. 
Commenting on Davutoglu’s visit, CTP leader Ozkan Yorgancioglu suggested there would be an “issue” if he is coming to interfere in internal politics in the north.
  

Turkish Cypriot leader Dervis Eroglu: supported by the old guard within the UBP

Neophytou suggests removing CyBCs rights to sell ads

0
0

DISY LEADER Averof Neophytou yesterday raised the issue of removing the right to advertising from state broadcaster CyBC during discussion of its 2013 budget in the House Finance Committee.
Speaking before the committee, Neophytou said the ruling party plans to table a legal amendment removing the right of CyBC to sell advertising since it is a recipient of state grants. He gave as an example, the operation of the BBC.   
By removing itself from the advertising world, the state broadcaster can get out of the race for viewers and instead focus on its main aim of producing TV programmes that promote Cyprus’ culture, regardless of ratings.
The state broadcaster is expected to earn around €4.5m this year in advertising sales, while receiving €27m from the state.
CyBC chairman Makis Symeou counter-argued that apart from the BBC, in the rest of Europe, state broadcasters are permitted to raise advertising revenue.
He also argued that the Cyprus taxpayer pays less for its state broadcaster in relation to the island’s GDP compared to the average cost to GDP ratio in Europe.

BOC’s restructuring must be a priority, top businessmen say

0
0
Author: 
Poly Pantelides

THE BANK of Cyprus’ survival must be secured so that the economy and the financial sector can have a future despite the gloomy forecasts, the chairman of the employers and industrialists federation (OEV) said yesterday.
Speaking at OEV’s annual general meeting, Philios Zachariades said that the deterioration of economic indicators has been the most dramatic the island has known during a time of peace.
Cyprus’ GDP is expected to contract by 8.7 per cent this year.  Borrowing rates for businesses and the price of electricity remain “prohibitively high,” Zachariades said while unemployment continues edging closer to an unprecedented 15 per cent, “testing the limits of society and the state”.
Cyprus must now set as a priority the restructuring of its financial system particularly of the Bank of Cyprus (BoC), Zachariades said. As part of the terms of Cyprus’s €10 billion bailout, the island’s biggest lender, the BoC will be restructured and has already absorbed the balance sheet of Laiki Bank that used to be the second biggest lender and is now winding down. “Right now the bank’s rescue and restructuring has priority. Our financial sector’s future and that of the rest of the economy depends on the (BoC),” he said.
His counterpart at the Chamber of Commerce and Industry (KEVE) Phidias Pilides also painted a bleak picture and urged the government to take actions to increase liquidity in light of capital controls placed to contain their outflow from the country as the government negotiated a bailout. Accomplishing any of the goals set by the government, from reducing state bureaucracy to attracting investments, everyone needs to change mentality, he said.
The head of the Turkish Cypriot Businessmen’s Association, Metin Shadi, said that they were ready to cooperate, “talk and exchange thoughts for activity in the direction of everlasting peace and prosperity” for Cyprus.
President Nicos Anastasiades who also addressed the AGM said that the state would focus on cutting costs, not raising taxes. “It is my personal conviction that only through a faithful implementation of the memorandum (agreed with Cyprus’ lenders) that we can recover foreign investors’ trust but also of our fellow citizens,” Anastasiades said.
But although he mentioned state measures to reduce unemployment as examples of the government’s efforts to also support businesses, his labour minister Zeta Emilianidou told the House earlier in the day that only 1,000 applications were lodged to participate in a scheme designed to secure jobs for 6,000 jobless people in the hotel industry. But a related work-experience scheme subsidising university graduates was oversubscribed, she said adding they were thinking of diverting funds to meet demand.
 

President Nicos Anastasiades addresses businessmen at the OEV AGM last night in Nicosia

Troika team arrives to monitor developments

0
0

A TEAM of troika technocrats arrived in Cyprus yesterday to monitor developments in the island’s financial sector.
The troika contacts will begin tomorrow with meetings with finance ministry officials, the Central Bank and management of commercial banks. The troika delegation departs on Saturday.
The technocrats are on an “interim mission” to screen developments in the local banking sector. It’s understood they will be looking at steps taken so far to recapitalise the island’s largest lender Bank of Cyprus through a haircut on deposits.
Cyprus has struck a deal with the troika to receive a €10bn bailout after bailing in bank uninsured deposits in a bid to recapitalise the island’s troubled banks.
The island’s second largest bank, Laiki, will be wound down and its good part (loans and deposits below €100,000) will be folded in Bank of Cyprus (BoC).
So far 37.5 per cent of uninsured deposits in BoC have been converted to equity, whereas an additional 22.5 per cent remains frozen until the conclusion of an independent valuation of the bank’s balance sheet after absorbing the ‘good’ Laiki.
Under the deal with the troika – the memorandum of understanding – an independent valuation of BoC must be completed by the end of June.
International lenders have already cleared the first aid tranche consisting of €3bn.
In July, a high-level mission of the troika will again visit Cyprus to monitor overall compliance with the loan deal; if they are satisfied they will be releasing the second tranche.
Meanwhile the International Monetary Fund said Friday that substantial risks still loomed for the Cypriot economy even after a multi-billion bailout aimed at averting a debt default.
A new IMF report predicted a deep recession in Cyprus this year and next, and warned of a danger that the downturn could be even more severe unless authorities adhere strictly to conditions imposed as part of the bailout deal.
The report served as a stark warning to Cypriot authorities not to slacken strict implementation of the bailout deal's tough terms.
The IMF said the impact of the banking crisis on economic growth is “highly uncertain” and an economic slump could result in a “vicious cycle” of bankruptcies, drops in real estate prices, bank losses, and unemployment. If that happens it «could also lead to a deeper recession than anticipated,” the report said.
The IMF report projected that the Cypriot economy would shrink by 9 per cent this year and another 4 per cent in 2014 with unemployment forecast to peak around 17 per cent in 2014. However, it said there is a risk this contraction could be even deeper.

House was ‘coerced’ in Laiki rescue

0
0
Author: 
Elias Hazou

LAWMAKERS were coerced into backing a rescue package for ailing Laiki Bank last May, European Party MP Demetris Syllouris said yesterday.
“Parliament was forced to vote for the €1.8bn,” Syllouris told a panel that is looking into the circumstances leading to the economy’s near-collapse.
In May 2012 parliament overwhelmingly voted in favour of the state underwriting the issue of €1.8bn in new shares for Laiki to help it recapitalise from its exposure to toxic Greek debt.
A government bill had been rushed through the House plenum, leaving legislators little time to study it, Syllouris said.
MPs were then told to pass the bill “as is” on the same day - before the bank re-opened for business - or else Laiki would go under, taking the rest of the economy with it.
He and his colleagues were forced to go along, even though they lacked the information to make an informed decision, said Syllouris.
One crucial bit of information that was missing was the bank prospectus for the share issue. At the plenary session, Syllouris said, he proposed that parliament postpone the vote until the prospectus came out the following Monday.
“At the time I was personally in favour of the bank closing,” he said.
When in May 2012 the state underwrote €1.8bn to float stricken Laiki, the lender was already neck-deep in emergency liquidity assistance (ELA) to the tune of €3.8bn due to a steady outflow of deposits since the summer of 2011.
In July of 2012 Cyprus’ sovereign debt was rated junk, meaning it could not be held as collateral for underwriting the bank, and it’s understood that at that point Laiki was technically insolvent.
The House Watchdog Committee, which Syllouris chairs, is itself investigating cash withdrawals from banks in Cyprus ahead of the March 16 decision on a ‘haircut’ of deposits - the suspicion being that these depositors had inside information.
The committee had asked the Central Bank to furnish data going back an entire year prior to the haircut decision, however the regulator provided information only on the period from 1 to 15 March.
Syllouris informed the panel yesterday of various information obtained by the House committee, such as the case of a senior bank executive who took €2.2m out of Cyprus on March 16. The allegations against the bank exec came from an employee of the same bank, Syllouris said.
The MP further claimed that a number of bank whistleblowers had received either death threats or threats of legal action.
Commenting on the broader malaise in the Cypriot economy, with regard to the public sector in particular, Syllouris noted that “we wouldn’t be in this mess today had we promoted ability rather than cronyism.”
Asked to elaborate, the MP retorted: “Name one board of semi-governmental organisation, cooperative or government department without a son-in-law, daughter-in-law or father-in-law.”

European Party MP Demetris Syllouris testified at the inquiry into the economy yesterday

Our View: CyBC should not expect the taxpayer to cover loss of advertising revenue

0
0

IT DID NOT take the leadership of the CyBC long to respond to the DISY plan to pass an amendment bill depriving the state broadcaster from carrying advertisements. Just a few hours after the new DISY leader Averof Neophytou spoke about the party’s intention, the chairman of the CyBC board Makis Symeou declared that if the corporation was deprived of advertising revenue it would not be able to carry out its mission.
General Manager Themis Themistocleous went a step further. He said advertising was taken in order to limit the state subsidy, but if it was stopped then the state subsidy would have to be increased. When you have been accustomed to leeching from the taxpayer for decades it is difficult to think of any other way to operate. Has it not occurred to Themistocleous that the shortfall from advertising revenue could be covered by cost-cutting, the method followed by all other companies faced with a fall in revenue?
On average, the CyBC’s advertising revenue is between €5-6 million, a small part of its budget which in 2010 was €42.6 million (state subsidy €37.8m) in 2011 €41.4m (state subsidy €30.1). This year, after cost-cutting the corporation claims its budget would be in the region of €34 million but advertising revenue, as a result of the recession, would also be significantly less. So even after the state subsidy, the corporation has been making a loss; it has an annual payroll in the region €17.5m a year. More interestingly, its pension fund, to which its overpaid employees contribute nothing, has a deficit of €52m.
It is a bit rich, under the circumstances forThemistocleous to expect the taxpayer to cover any loss of advertising revenue, which, according to DISY’s thinking, the CyBC should not be competing for. The advertising cake should be left to the private stations which do not take any money from the taxpayer and depend exclusively on ad revenue for their survival. It is outrageous that the CyBC is sustained by the taxpayer and at the same time making the survival of private stations more difficult by taking a cut of the advertising cake. Nobody was bothered about this in the good economic times, but now we are in a deep depression.
Perhaps an alternative to DISY’s proposal would be cut the state subsidy of the CyBC by €10m a year, allow it compete for advertising and distribute a part of the taxpayer’s money saved among all other media organisations that also have a mission to carry out. It is not as if the CyBC’s broadcasting output is of such a high standard that it justifies such a big state subsidy. In fact it is no better than that of the private stations that cost the taxpayer nothing.  

     

BoC caught in the crossfire

0
0
Author: 
Elias Hazou

FURTHER signs emerged yesterday that Bank of Cyprus (BoC) has been reduced to a hapless hostage caught in crossfire between the government camp and the banking regulator.
A legislative proposal spearheaded by DISY envisages increasing the number of board members at the Central Bank of Cyprus (CBC) from five to seven, two of whom will act as executive directors.
The bill is co-sponsored by DISY’s Averof Neophytou, DIKO’s Nicholas Papadopoulos, the Greens’ George Perdikis and the European Party’s Demetris Syllouris.
The point of contention is a clause stipulating that, though final decisions rest with the governor of the CBC, the latter must have the consent of the board’s majority.
The bill, discussed yesterday at the House Finance Committee, struck a raw nerve with CBC officials arguing it would dilute the powers of the CBC chief and that it was possibly unconstitutional.
Weighing in, opposition AKEL charged the DISY-led government of trying to place the regulator under its thumb.
AKEL MP Stavros Evagorou said the bill seeks to “turn the Central Bank into a branch of DISY.”
But DISY’s Neophytou countered that the proposal related to the management and running of the regulator and had nothing to do with issues of monetary policy which remained the exclusive domain of the CBC chief.
Debate on the bill is set to continue into next week. The CBC meanwhile has been without a board since April, when three of the remaining board members quit. The government has yet to appoint replacements.
But in a roundabout way, the lack of a board at the CBC has in turn impacted on Bank of Cyprus (BoC), which since March has been placed under the regulator’s administration as it undergoes restructuring.
Under a deal with international creditors - for which Cyprus will receive a maximum of €10bn - an independent valuation of BoC must be completed by the end of June.
Cyprus had to meet certain conditions to obtain the funds. They included forcing depositors to take major losses on savings over €100,000 in the country's two largest lenders. And Laiki, once the second-largest lender, is being wound down and folded into the larger BoC.
So far 37.5 per cent of uninsured deposits in BoC have been converted to equity, whereas an additional 22.5 per cent remains frozen until the conclusion of an independent valuation of the bank’s balance sheet after absorbing the ‘good’ Laiki.
Failure to complete the valuation would constitute a breach of contract and possibly jeopardise the loan agreement, sources close to the Central Bank said.
The government wants the bank’s restructuring to be wrapped up as soon as possible allowing the lender to run its own affairs.
In turn the banking regulator says it has selected the company to undertake the valuation, but that under CBC rules it cannot activate the contract because the funds need to be approved by its board – which currently does not exist.
But a deputy belonging to the government camp yesterday dismissed this as a ploy by the regulator to delay the valuation – and thus the restructuring of BoC.
“It’s a flimsy pretext,” said the MP, speaking on condition of anonymity. “Is it so necessary that the company be paid in advance so they can start the valuation? The Central Bank is stalling, and I think it’s got something to do with this bill which they say limits the CBC chief’s powers.”
The CBC has picked KPMG London to carry out the valuation, the Mail is told.
Central Bank chief Panicos Demetriades - appointed by the previous AKEL administration – has been fiercely criticised by DISY for his handling of the banking crisis.
The CBC is relying on a legal opinion furnished by the Attorney-general’s office recommending that BoC’s status of administration should end only once the haircut amount has been finalised.
In a bid to interdict this and speed up the bank’s return to normalcy, DISY has drafted a bill that would create an escrow agent whose sole job would be to oversee the 22.5 per cent of ‘frozen’ deposits in BoC.
This arrangement, DISY hopes, would bypass the pending matter of the final haircut amount at BoC and thus take the regulator out of the equation.
Amid the controversy, BoC’s board yesterday convened for the first time at the former headquarters of Laiki in Nicosia.
The choice of venue, according to a statement released by the board, was “both substantive and symbolic.”
“It expresses the ongoing union [of the two banks] and their joint mission,” the statement said.
The move comes just days after Laiki’s insignia were removed from its head office.

DISY's Averof Neophytou

Authorities suspect fishy goings on at crossing points

0
0
Author: 
Maria Gregoriou

A TOTAL of 32 people have been charged so far this year in relation to selling fish allegedly from Turkey, which is coming in through the north.

Between January and April of this year, nine infringements were recorded at the Ayios Dhometios checkpoint, where 300 kilos of fish products have been confiscated. Another 23 cases have been recorded at fish markets, restaurants and other selling points for fish. 

This number of infringements so far this year is almost as many as were recorded during the whole of last year - 33 cases.

These violations have to do with illegally caught fish, fish products not supported with the proper documentation, stating where their place of origin is, or fish that are undersized. 

The violations were discovered after complaints were received or during checks performed by the department of fisheries and marine research, which have recently been increased in line with the growing number of infringements.

“Within the framework of the traceability of fish products, the department of fisheries and marine research conducted inspections at the Ayios Dhometios checkpoint, where fish is allowed to be brought in, and at market areas where fish is sold. At the checkpoint the department detected nine infringements which concern the movement of fish products without the proper documentation or that did not meet the technical requirements,” said Yiannos Kyriacou, senior fisheries officer at the department of fisheries and marine research.

According to law, the only animal product allowed to cross from north to south is fish but the vendor must have documentation stating to where the fish were originally caught. The fish must also be no more than 24 hours out of the sea and be of a minimum size.  If there are no documents or if the origin is not stated, then it is considered an infringement. 

“The infringements, the quantities of fish, and the species of fish transported through the checkpoint or being sold at different establishments, raise concerns as to the actual origin of the fish. “We have reliable indications that the fish were originally caught in Turkey,” Kyriacou said.

Due to these suspicions, Agriculture Minister Nicos Kouyialis, has given strict instructions to the department of fisheries to investigate the matter further and to conduct stricter checks. 

When offenders are detected the fish is confiscated and kept as evidence, and a fine is administered. Checks are made daily but not on a 24-hour basis. Checks are increased during seasons when more fish is consumed or when more people are on holiday and are more likely to fishing. 

The department of fisheries and marine research may be looking into creating a working system where members of the department will work in shifts to further increase checks throughout the day.


‘State will gain millions in taxes from sale of Venus Rock’

0
0
Author: 
Poly Pantelides

THE STATE stands to earn hundreds of millions through taxes relating to the purchase by international buyers of the Paphos-based Venus Rock Golf Resort, one the sellers said yesterday. 

Investors from Hong Kong have bought the Venus Rock Golf Resort in the Paphos district for €290 million. 

The project will include two golf courses, a five-star hotel called Nikki Beach Hotel, two large sport centres, a shopping mall and residential areas, that will be sold to international organisations which are based in Hong Kong, an announcement by Dolphin Capital Investors said. Dolphin is a company with an international investment portfolio holding 49.8 per cent strategic participation in Aristo Developers Ltd, one of the largest developers in Cyprus, established in the early 80s.

Aristo Developers’ founder, Theodoros Aristodemou, said at least €40 million would go to the state in the short term from taxation resulting from the purchase, such as income tax and capital gains tax. 

The sales agreement consists of handing over all the plots and land, permits and licences, contracts and agreements relating to the project as well as any related machinery and stock. 

The buyers, who have not been named yet, have a “high income client list” in mind for the residential areas, Aristodemou said. 

With the project’s completion in an estimated two to three years, the government may see another €400 million, Aristodemou said. “There will be capital inflow of roughly €2.0 billion-plus, so I estimate the state stands to gain another €400 million,” Aristodemou said. 

Aristodemou said that the transaction showed that Cyprus could continue attracting serious foreign investors.  And with the investors wanting a tight deadline for the project’s completion “and even want to set up a marina,” the project is bound to generate jobs, Aristodemou said. 

Venus Rock’s valuation at the end of December 2012 stood at €370 million, though Aristodemou said the discounted price contradicted more pessimistic estimates much bigger drops of property prices. 

Managing Partner of Dolphin Capital Partners Limited, Miltos Kambourides described the transaction as a landmark deal.

“In line with our strategic objectives for 2013, we are pleased to execute this landmark transaction, which has enormous benefits not only for Dolphin but also for the Cypriot economy in general,” he said in a news release by Dolphin investors made earlier this week.

Kambourides added that “in a period of very challenging market and operational conditions in Cyprus due to the current banking crisis, the sale of Venus Rock for a significant cash consideration demonstrates the quality of Dolphin’s real estate portfolio and proves the resilience of the Cyprus property market”.

Some €33.5 million from the agreed purchase price is conditional on the re-zoning of agricultural land plots included in the projects within a year of the final property ownership transfer, Dolphin investors said. This “may be expected with more than 50 per cent certainty,” Dolphin said. 

Aristo developers boast high profile projects including a joint venture for a mall in Paphos, and the Secret Valley golf course also in Paphos. Theodoros Aristodemou stepped down as Bank of Cyprus chairman in August last year citing health reasons weeks, after the bank revealed an unexpected €500 million capital shortfall. 

The Bank of Cyprus is now under restructuring as part of the terms of the island’s €10 billion international bailout. 

Up to €103 million from the Venus Rock transaction has been identified as going towards releasing Venus Rock properties’ existing mortgages, related to other Aristo projects, “with the benefit of deleveraging Aristo,” Dolphin investors said. 

“The transaction will result in the deleveraging of Aristo’s overall debt liabilities by approximately 50 per cent,” the news release added.

Reform of public service underway

0
0
Author: 
Poly Pantelides

A TEAM of World Bank and British experts are on the island to support the reform of public administration, the commissioner for civil service reform Emanuella Moushioutta Lambrianidou has said. 

The team of experts are to follow the Cyprus authorities’ reform policy to guide a plan for reforms and support their implementation, Lambrianidou said according to online news portal Sigmalive. 

A British High Commission spokesperson confirmed at their end that two UK experts have been on the island to see what technical assistance they could offer but added that talks are at initial stage. 

Cyprus has agreed to reform its public administration in the Memorandum of Understanding (MoU) agreed with its international lenders as part of a €10 billion bailout. 

The MoU terms state that “authorities will commission an independent external review of possible further reforms of the public administration”. 

The first part of a review is expected by March next year and authorities are expected to pass agreed reforms to parliament by June next year at the latest. 

The MoU states this will include an examination of the organisational structure, size and staffing of “relevant ministries, services and independent authorities”; “the possibility of abolishing or merging/ consolidating Non-profit Organisations/ Companies and publicly owned enterprises; and the “re-organisation/re-structuring of local government.”

By the end of next year at the latest, parliament is expected to pass through agreed reforms based on the second part of a review that needs to be completed by September. This relates to wages and working conditions of civil servants, including holidays, sick leave and maternity leave and working times “in relation to the private sector and to other EU countries and based on best practices. Additionally, Cyprus authorities are expected to submit to parliament a new performance-based system in the public sector, linking performance with wages and raises, and using it for the purposes of promotion and staff development. 

Lambrianidou’s office is expected to present a modernisation master plan by the end of July on a broad mandate to simplify structures and procedures, restructure services, modernise the appraisal system for state officials and introduce e-government. Her mandate also includes reducing expenses, set quantifiable goals per ministries to evaluate quality and efficiency of services as well as institutionalising public law entities’ obligations and regulate board members’ jurisdiction and responsibilities. 

President Nicos Anastasiades has asked for the action plan’s timeframe by December this year at the latest.

Staff strike at Sigma and Hard Rock cafe

0
0
Author: 
Peter Stevenson

SIGMA TV channel employees went on strike yesterday in protest at proposed pay-cuts and redundancies as staff at the brand new Hard Rock Cafι in Nicosia have also been striking since Tuesday because they have not been paid for the last two months.

Employees from the TV channel gathered outside Sigma headquarters in the capital at 8am yesterday to protest against the decision by the channels top brass to go ahead unilaterally with pay-cuts and lay-offs. Employees working for magazine publications for the DIAS media group, of which Sigma is a part, also went a two-hour strike to mark their support, Cyprus News Agency said.

Counter-proposals from trade unions PEO and SEK and the labour ministry were given to channel chiefs who had appeared unwavering in their decision on redundancies and pay-cuts.

“TV channel heads have unilaterally made a decision to implement a plan for the survival of the station which has found the employees in opposition,” trade unionist, Costas Hadjithomas from PEO told the state broadcaster yesterday. “Efforts by trade unions and the labour ministry have found the head of the station unmoved,” he added.

Michalis Kazamias from SEK said that after the pleas from the ministry and the trade unions were unsuccessful, the only option was to strike.

But after a labour ministry intervention later in the day, Sigma management appeared willing to withdraw the plans to make staff redundant and reduce wages for the remaining workers, ahead of a meeting this morning, mediated by the labour ministry.

In response, Sigma TV staff returned to work at 4.30pm. 

Kazamias said they were going in to the meeting expecting that labour relations would be respected as would “any suggestions or proposals already submitted by the labour ministry”. He did not elaborate on what those were. 

Channel heads could not be reached for comment. 

Employees from newly-opened Hard Rock Cafι also began striking on Tuesday after they had not received a salary since March. A sign on the Cafι’s front window read “Closed till further notice” as staff carried banners with the words ‘Our struggle is fair’ and ‘We haven’t been paid in two months’.

Managers from the cafe were not available to comment on rumours that it would be forced to close down.

The famous Hard Rock chain opened its doors in Nicosia on October 14 last year in one of the key nightlife areas of the capital.

The new 560-square-metre establishment features three floors with space for 300 guests, including an 80-seat rooftop garden, a live music area and two bars.  The cafe also features a Rock Shop with limited-edition items and city-specific merchandise that can only be purchased there.  

Memorabilia from Hard Rock’s iconic collection adorns the walls of Hard Rock Cafe Nicosia, including items from legendary musicians from around the world, as well as today’s top contemporary artists.   

Hard Rock has 179 venues in 54 countries, including 140 cafes and 18 Hotels/Casinos and it one of the world's most globally recognised brands.

Employees of Sigma outside the TV station's offices yesterday

Limassol marina receives first yachts

0
0
Author: 
Peter Stevenson

LIMASSOL Marina has welcomed the first yachts just months after delivering the 94 luxury Nereids Residence apartments.

“The delivery of the south eastern breakwater and the arrival of the first yachts mark a new era for Cyprus,” Limassol Marina public relations officer, Sophia Paraskeva said.

The new marina boasts a capacity of 650 berths, for yachts up to 115 metres in length and is the first full service super-yacht marina on the island. It provides facilities and services of the highest standard, combined with a team of experienced marina professionals to ensure the smooth running of all operations. 

“Limassol Marina is setting new standards for living and sailing in the Eastern Mediterranean and positioning the island on the nautical yachting map,” Paraskeva said. It is already changing the face of the town and the waterfront development is improving the image of Cyprus as a destination on a global scale according to Paraskeva. “Aiming to boost the economy, it is creating new prospects for Limassol and Cyprus, as a whole, by upgrading the surrounding area, reviving the historical centre of town, encouraging investments and attracting a higher calibre of tourism to the island,” she added.

Speaking to the press yesterday, Chairman of the board of directors of Limassol Marina Ltd, Marios Lanitis said that companies in the private sector on the island were working hard to face the current challenges. “The completion and operation of yet another phase of this ground-breaking project, is sending out a positive message both locally and internationally, that the private sector in Cyprus, and more specifically local businesses, are here and doing all they can to support the government’s efforts to promote development,” he said.

Construction work continues across the entire project, with more apartments due for delivery in July and completion of the Peninsula Villas expected in 2014. Work on the commercial area is progressing rapidly and its completion is expected by the end of the year with the official opening taking place in spring of 2014.  It will have 54 shops and 12 restaurants with parking space for up to 750 cars.

The starting price for one bedroom flats in the project is €370,000 while the villas which are still incomplete will cost between €1.7m and €15m and come with a berth for a yacht at the marina and access to a private beach. 

Paraskeva said 15 per cent of the villas in the Peninsula and Island projects had been sold and 50 per cent of the apartments at the Nereids and Thetis project have been sold.

“Local buyers have bought-up around 50 per cent of the property which means the project has their stamp of approval guaranteeing the quality of the work done and a reflection of the locals’ trust,” she said.

She added that more foreign buyers were expected to invest in the project with more people moving in during the summer.

“We have had interest from Russia and the Middle East and have received a lot of interest after visiting the various boat shows around the world,” Paraskeva said.

There have been delays in the project but work continues to go on and funding has been received from the Bank of Cyprus despite the current crisis. “We could have delayed the opening even more, stating that our hands were tied but we have doubled our efforts because you never get a second chance to make a first impression,” Paraskeva concluded.

A small tug guides a yacht into the new Limassol marina

New CEO for BoC imminent

0
0

THE board of stricken lender Bank of Cyprus (BoC) has decided on a new CEO and has passed on its proposal to the Central Bank (CBC), which will have the final say.

The name of the chosen candidate was not officially released but reports suggested it was banker Michalis Kolakides, currently the deputy CEO of Greek lender Eurobank.

Kolakides, 59, has also worked for Greek banks Citibank, National Bank, and Piraeus.

The final decision will be taken by the Central Bank (CBC) as the resolution authority.

It followed a Eurogroup decision to resolve Cyprus’ second biggest bank Laiki and transfer part of its assets to BoC while financing BoC’s recapitalisation by taking a chunk of uninsured deposits – over €100,000.

The affected depositors will receive equity in exchange and will decide on the lender’s new leadership after the restructure was complete in a couple of months or so allowing BoC to come out of administration.

So far 37.5 per cent of uninsured deposits in BoC have been converted to equity, whereas an additional 22.5 per cent remains frozen until the conclusion of an independent valuation of the bank’s balance sheet after absorbing the ‘good’ Laiki.

Meanwhile reports yesterday suggested that the CBC has launched a purge in the BoC, so far forcing two high-ranking executives to resign.

The two were senior general director Christis Hadjimitsis and IT chief Leonidas Esodiou.

News portal Sigmalive said the CBC was turning the screws on other executives in a bid to force them out.

Central Bank sees 'substantial' risks to economy

0
0
Author: 
Stefanos Evripidou

CYPRUS is confronted with an “extremely challenging road ahead” with the outcome by no means certain, warned Central Bank of Cyprus (CBC) Governor Panicos Demetriades yesterday.

In a speech delivered by a CBC senior manager on behalf of the governor who was visiting Israel, Demetriades warned that Cyprus faces substantial risks to its economic outlook while the anticipated recession could be deeper than expected.  

In his address to the Nicosia economic conference organised by the Institute of Certified Accountants of Cyprus and Gold magazine, Demetriades said Cyprus faces “unusually high” macroeconomic and banking sector risks given the “uncertain impact” of the banking crisis and fiscal consolidation on economic activity and the adaptation of the business model. 

“Given the size of the banks having been resolved, the losses faced by uninsured resident depositors, temporarily frozen corporate accounts and the need to impose payment restrictions, there are concerns that recession could prove to be deeper than anticipated, with negative feedback loops on public finances, including government debt,” said Demetriades in the text of the speech.

He highlighted the balance needed to maintain yet gradually ease capital controls. Eliminating them abruptly could trigger rapid outflows from the banking sector and cause liquidity problems, he said.

Regarding the recapitalisation needs of the cooperative movement, in his speech the governor said time will be allowed for the coops to raise capital and preserve private ownership. 

However, if they fail to raise new capital, “viable banks will receive government support according to state aid rules involving dilution of existing shareholdings and junior debt holdings, but without contributions by depositors”. 

On the upside, as soon as the banking system is seen as having stabilised, confidence could return sooner, allowing for the earlier removal of controls and a faster recovery of economic activity, said the governor, noting that restoring financial stability will in turn help to spur economic growth and job creation.  

“Looking forward, Cyprus is confronted with an extremely challenging road ahead. However, after a long period of uncertainty, there is now at last a paved path towards financial stability and economic recovery,” concluded Demetriades. 

Also addressing the conference, Finance Minister Harris Georgiades said the state was committed to rationalising its expenditure, noting that the government would not pursue a policy of increasing taxes, particularly in a period of recession as it only results in stifling economic activity.

Regarding the state payroll, he said: “It’s not so much the level of salaries, that also, but more so, it’s the number of civil servants which we were and are employing, resulting in our public payroll being the highest in relative terms in the whole European Union.”

Georgiades said the government was not looking to further reduce the public payroll but rather find ways to further reduce public expenditure.

“There is great scope for savings,” he said, referring to the many observations of public money being wasted in the annual reports of the Auditor-general.

Speaking to reporters after the conference, Georgiades said the ministry will be ready to present a budget framework for the next year and the next three years at the next Cabinet meeting. 

He explained that the framework will define the level of expenditure for the government as a whole and for each ministry separately. It is up to each ministry, he said, to evaluate its expenditure and to ensure that every euro spent will be put to good use.

Economist Fiona Mullen warned the conference that “complacency” got Cyprus into the mess it’s in and complacency over the issue of gas exploration could prevent the country from getting out of the mess. 

She noted that certain public officials were of the view that Cyprus will witness a few years of decline followed by an inflow of gas revenues. 

Mullen argued that the gas money is not going to come anywhere near as fast as people think for a number of reasons, including the fact that it takes around ten years to build a liquefaction (LNG) plant. 

Also, Cyprus needs to find long-term buyers of its natural gas but before it can do that it needs to secure financing for an LNG plant, creating a “chicken and egg” conundrum.  

Cyprus cannot guarantee financiers that it will get a good price for its gas, given the fluctuations created by shale gas. Nor has it proven high volumes of commercially viable gas, creating security of supply. 

When Cyprus is ready to enjoy the fruits of its natural resources, probably in 15 years time, no one can predict what the geopolitical situation will be like regarding its neighbours in the region, particularly Israel and Turkey, said Mullen. 

Instead of seeing natural gas as the panacea for Cyprus’ economic woes, the country should harness the entrepreneurial spirit of its people and look to innovation, entrepreneurship, venture capital and angel investors, as Israel and Ireland have done. 

“So let’s use the brains, the entrepreneurial spirit, let’s monetise the sunshine. Let’s start using that today instead of sitting around waiting for the gas money to fall like manna from heaven,” she said. 

Central Bank of Cyprus Governor Panicos Demetriades: an extremely challenging road ahead

Ministry official points the finger at Stavrakis

0
0
Author: 
George Psyllides

THE way the public debt was being managed by former finance minister Charilaos Stavrakis could have caused the state’s liquidity problems, a finance ministry technocrat who later recommended seeking EU financial assistance as early as July 2011, told an inquiry yesterday.

Phedon Kalozois, the director of the finance ministry’s debt management office, had warned in February 2011 of the risks of the minister’s short-term borrowing policy, effectively falling out with his superior over the issue.

“The lack of medium-term strategic management of public debt and flexible yearly borrowing policy inevitably leads to transactions of an opportunistic nature with the only parameter being temporary lending cost and uncontrollable levels of fiscal risks,” Kalozois said in a memo.

Such risks included liquidity, “with the state being unable to settle its loan and other obligations.”

“Because the management of the public debt concerns public monies, any transactions of a speculative nature are not allowed,” the finance ministry technocrat said.

Kalozois told the inquiry that the last time Cyprus borrowed mid-term from the European market was November 2010.

Until then there was agreement between his office and the minister but that changed when later that month ratings agency Standard and Poor’s downgraded Cyprus for the first time.

This caused jitters in the market, Kalozois said, forcing the island’s bond rates to rise.

Due to that, the minister changed the borrowing policy, resorting to short-term borrowing from the domestic market to avoid the higher rates.

In light of the worsening crisis in Greece and other eurozone countries at the beginning of 2011, and the anticipated rush to raise funds from the markets, which would have raised rates further, Kalozois said his office insisted that Cyprus should borrow mid or long-term as soon as possible.

“And this is where the disagreement with the minister arose,” he said.

Short-term borrowing as a percentage of the state’s overall loans was 19 per cent in 2010. By 2011 it jumped to 46 per cent.

The disagreement led to Kalozois asking for a transfer, a request that was eventually denied although the understanding was that his views would be taken into consideration from that point onwards.

Despite the need of ensuring there was no connection between public debt policy and fiscal policy, it was not until December 2012 that independence was achieved – when a relevant law was passed.

“It has been proven internationally that one cannot use debt management to achieve fiscal goals,” Kalozois said.

He said Stavrakis’ forecasts differed from theirs’ in that they were overly optimistic.

“Our position was that data must be prepared by the (government) services and not politicians,” Kalozois said.

In May 2011, Stavrakis gave the green light for the office to go ahead with mid-term borrowing, only to find out that the markets were shut.

The investment banks the island hired as advisors for the issue said there was “absolutely no interest,” Kalozois said.

Until that time, the island could borrow €100 million in the short-term with just a phone call, he added.

To make things worse, at the end of that month, ratings agency Fitch downgraded the island three notches on its banks’ links with Greece, fiscal conditions and eurozone indecisiveness to deal with the ongoing crisis.

“We established that the Republic had no access to international markets. There was absolutely no possibility, not even short-term,” Kalozois said.

He added: “In a nutshell, the countdown to a possible default had started.”

Kalozois said being shut out of the international markets had not been expected.

“We could not borrow a single euro,” he said.

He said Cyprus became a global phenomenon as there was no other state with an A- rating that had been excluded from the markets.

“In other words, markets ignored ratings agencies,” he said.

From then on the state tapped into domestic banks but they could not cover the government needs on their own.

On July 25, 2011, Kalozois prepared a memo recommending seeking EU assistance, accompanied with data to prove that the state was effectively broke.

A second memo in August confirmed the data but the issue was put in the backburner due to a cabinet reshuffle.

The technocrats were then told that Cyprus did not have enough time to prepare its application – the island was on the brink of bankruptcy – and that a bilateral loan would be a temporary solution.

The government secured a €2.5 billion loan from Russia towards the end of 2011 and wasted another six months before applying for assistance, which was granted in March – under a different administration – with Cyprus paying a high cost for the delay.

And it was not before the end of 2011 that the previous administration decided to put measures in place to tackle the situation.

Phedon Kalozois, the director of the finance ministry's debt management office testified yesterday at the inquiry into the economy

Our View: Both AKEL and DISY guilty of double standards when it comes to CBC Governor

0
0

THERE is a sense of deja vu in the political row over the powers of the Governor of the Central Bank, but the roles have been reversed. Whereas three years ago, AKEL was publicly pillorying the then Governor Athanasios Orphanides, accusing him of undermining the government and attempting to curtail his powers it is now the biggest champion of the Governor’s independence and staunch defender of his powers.

Meanwhile DISY, which passionately defended Orphanides’ independence back then is now accusing Governor Panicos Demetriades of working against the government and has prepared a bill that would curtail his powers, if approved by the legislature. The Governor’s independence is suddenly a problem for DISY but not for AKEL who abhorred it when a non-party man was running the Central Bank. Now that an AKEL loyalist is running the show, his independence and powers have to be safeguarded.

It is a reflection on the totally partisan way the political parties view things. To have the spokesmen of AKEL, which made sure party loyalists were appointed at all state posts, giving lessons about the need to respect the independence of state officials, is nothing more than a joke. DISY is not quite as opportunistic, as Orphanides was not a party appointee, in contrast to Demetriades who, during the Christofias presidency, had turned the Central Bank into an AKEL satellite, but guilty of double standards.

There is little doubt that Demetriades has proved an abysmally poor Governor, in his one year in the job. He went out of his way to destroy the banking sector by assisting in the maximisation of their capital assistance needs, allowed Laiki to build up an astronomical €9.1 billion debt to the ELA because AKEL instructed him to keep it afloat until the presidential elections and he sold off the Greek operations of the Cypriot banks for peanuts to mention a few of his negative achievements. 

That a Governor, whose bad decisions and very poor judgment have caused so much harm to the country, would remain in his post for another four years is a terrifying prospect. Under the circumstances, the concerns of DISY and some other parties are perfectly understandable and as there is no way the Governor could be removed from his post they have thought of a way of restricting his powers. The bill proposed the appointment of more members to the Central Bank board, including two executive members, who would have to give their consent to the Governor’s decisions.

An attempt to use the Central Bank board to restrict the Governor’s powers by the previous government (when AKEL did not defend his independence) was ruled unconstitutional by the Supreme Court. So DISY will have to think of another way to limit Demetriades’ powers to cause harm to the economy. But even if it does it will be too late because maximum damage has already been done.

Schulz calls for ‘spirit of solidarity’ towards Cyprus as Anastasiades attends EU summit

0
0
Author: 
Stefanos Evripidou

PRESIDENT NICOS Anastasiades yesterday asked the European Union to provide additional funding to help Cyprus get out of the mess it’s in. 

Speaking from Brussels where he attended the European Council meeting on energy and tax evasion and held bilateral contacts with EU leaders, Anastasiades said he asked the EU to increase economic aid earmarked for Cyprus within the multi-annual financial framework and to take a greater role in the co-financing of Cyprus-based projects. 

According to the president, European Council President Herman Van Rompuy responded positively to the request. 

Anastasiades thanked European Parliament President Martin Schulz for showing his clear support to Cyprus by asking European leaders to commit more funds so the island could face the current crisis.

“Not only did Mr Schulz support our request fully, but in the first session of the European Council he made special reference to Cyprus, asking that everyone contribute and work towards satisfying our request.” 

Speaking at a press conference on the sidelines of the Council meeting in Brussels, Schulz said the EU had to show “the spirit of solidarity” to Cyprus. 

He said he asked for a political commitment on the part of EU leaders towards helping Cyprus, noting that it would not be necessary to use money allocated for other countries.

The aim is for European leaders to recognise that Cyprus is a country affected greatly and that it needs EU solidarity, he said.

“We all know how difficult the situation in the country is,” he noted, adding that when in Nicosia, he felt as a citizen “how difficult the life can become in times of crisis and how difficult it is to manage such a crisis”.

Once European leaders accept this, he added, it will be possible to find more money from EU funds without affecting another country.

What is needed more than ever, Schulz said, “is mutual trust between the institutions and the member states and I think the European Parliament across all the different political tendencies gave (me) a mandate to express once more my solidarity with the Republic of Cyprus”.

During a bilateral meeting with Schulz, Anastasiades also spoke about the unfair treatment Cyprus suffered regarding allegations of money laundering, which were largely proved untrue in the reports by Moneyval and Deloitte. 

In an interview with Euronews, Anastasiades said: “I have the impression we are replying to indicators demanded by international rules on anti-money laundering in a much better way than some big countries that forced us to suffer this ordeal. It doesn’t appear Cyprus belongs to those countries considered money launderers.” 

During the Council discussion on tax fraud and evasion, the president said he seized the opportunity- because Cyprus was recently a target of money laundering allegations- to emphasise the importance Cyprus attaches to the “institutional framework against money laundering and its implementation by all European countries”/ 

He noted that Cyprus was evaluated positively in this sector, following the demand by its EU partners for a detailed evaluation by Moneyval and Deloitte as a precondition to approving a bailout. 

The general picture that emerges from the reports “does not justify at all the recent attempt by some to defame Cyprus”, he said.  

On the discussion of energy, Anastasiades said he emphasised “the importance of the hydrocarbon deposits in the Levantine Basin and the prospect of making Cyprus a regional energy hub”. 

“I stressed that the south route is, under the circumstances, a safe and beneficial proposal for Europe. As revealed by the whole debate, the EU leadership includes in its plans, as one of the proposed alternative routes, the connection of Israel-Cyprus-Greece and rest of Europe.”  

Using domestic energy sources would be a major contribution to the EU’s energy security and make the 

EU more competitive while promoting growth and job creation, he argued. 

Regarding his meeting with British Prime Minister David Cameron, Anastasiades said the two discussed the economic situation in Cyprus, requesting British support for additional EU funding. 

He also discussed the need to prepare properly for peace talks, noting that Turkey needed to help create trust between the sides, and referred to his proposal to return the fenced off part of Famagusta. 

Asked by a reporter why peace talks could not get underway now, he replied: “When people are hungry, when they stop their children’s education, when they are unemployed, the last thing troubling them would be if their leaders, instead of tackling their problems, are dealing with a problem which is largely a result of Turkish intransigence.” 

And given the lack of trust held towards Turkey by Greek Cypriots, who believe Turkey either wants no solution or to control Cyprus’ natural resources, such efforts would not be beneficial at present, at a time when Cyprus was economically weakened, he added. 

On Cyprus’ gas exploration in its exclusive economic zone, “the British prime minister acknowledged the importance of the energy sector for the Cyprus Republic particularly at this juncture, and noted that exploitation (of hydrocarbon deposits) was its sovereign right”. 

The president also held bilateral contacts with the German chancellor, the prime ministers of Finland and the Netherlands and with Greek PM Antonis Samaras. 

“European leaders are aware that Cyprus needs the solidarity of Europe. At the same time, they realise that a failure of the tough decision taken on our country would essentially be a failure of Europe,” he said.  

President Nicos Anastasiades arriving at the EU summit yesterday

Green light expected for net metering

0
0
Author: 
Elias Hazou

THE CABINET IS today likely to green-light a government-funded programme subsidising net-metering for residences – a policy aimed at generating savings from electricity consumption, a big drain on households’ disposable income.

Commerce minister Giorgos Lakkoktrypis will be issuing a decree to credit the Renewable Energy Sources (RES) fund with at least some €5m. The fund’s budget will be submitted to parliament for approval at a later date.

The cash will be used to subsidise - to the tune of around 50 per cent - the installation of small photovoltaic (PV) systems in households.

The grants will be given based on income criteria, with eligible households selected from a list of financially vulnerable groups that has been drawn up by the ministries of commerce and labour and the energy regulator.

Net metering is an electricity policy for consumers who own (generally small) renewable energy facilities, such as wind, solar power or home fuel cells. “Net,” in this context, is used in the sense of meaning “what remains after deductions” — in this case, the deduction of any energy outflows from metered energy inflows. Under net metering, a system owner receives retail credit for at least a portion of the electricity they generate.

The programme is intended to cater to some 2,000 households with PV systems of a maximum output of 3 kilowatts, for a combined output of 6 megawatts.

The cost of installing a typical PV system of up to 3kW is anywhere from €4,500 to €5,000.

The PVs will be connected to the grid of the Electricity Authority of Cyprus (EAC), and the ‘credit’ per household will be calculated every two months.

Electricity consumption is offset by the electricity generated by PV system into the grid, with the household being billed for the difference. In addition to bringing down the electric bill, a positive side-effect is the lower consumption bracket and hence lower rates for electricity usage.

Both this scheme and a subsequent one – covering some 3,000 more households, though without a subsidy – have the blessing of the energy regulator.

Under a law passed last year, disbursements from the RES fund must have the approval of the Cyprus Energy Regulatory Authority (CERA).

CERA chairman George Shammas said the electricity grid should easily be able to accommodate an extra 6MW, and did not foresee any technical issues.

A debate in parliament last October concluded that the net metering is vital in order to reduce fuel poverty and promote economic development in the country. However, the deepening economic crisis seems to have triggered large-scale application of the mechanism as a way to boost economic activity. Jobs in the design and construction of the PV projects are also expected to be created.

Packs of stray dogs roaming Green Line

0
0
Author: 
Peter Stevenson

PACKS OF stray dogs are causing problems for both the residents and authorities in the capital but especially in municipalities bordering the buffer-zone. 

Ayios Dhometios, with municipality limits beginning at the Grammar School and ending at the central prisons, has one of the biggest problems in the Nicosia district with stray dogs, according to its Mayor, Costas Petrou. Commenting on a recent letter published in daily Phileleftheros from a resident of his municipality, complaining about a pack of stray dogs which killed one of her cats, Petrou said the matter was being investigated.

“Municipality health services visited the lady’s home but unfortunately she was not home so we could not fully investigate the incident,” he said. “We spoke to one of her neighbours but unfortunately he could not shed any light on the incident which allegedly took place at around 3am on Tuesday while he was asleep,” he added.

Petrou explained that the house the woman lives in is not close to the buffer zone, where most stray dog sightings happen, and that she has two dogs and several cats.

“Whether the strays were attracted to her dogs is a matter we will have to look into,” he said. 

With the fee to microchip and register dogs being between €20 and €50, many residents have not gone ahead with it, making the municipality’s job of returning stray dogs to their owners even harder, according to Petrou.

“Once a dog is picked up by Municipality health services it is taken to a special shelter until we can either find its owner or it is passed on to the Nicosia Dog Shelter which will deal with the dog,” he said. “If a dog has a microchip then he can be returned swiftly to his owner but in cases where dogs have not been chipped, if we don’t find the owner within a week the animal is handed over to another shelter,” he added.

During municipality working hours there are patrols carried out by health service workers but that is not sufficient to cover the problem, and residents are asked to contact police if they see any strays when the municipality is not operating. 

“We are trying our best to combat the problem but there is nothing to stop dogs from crossing the Green Line throughout the municipality,” Petrou said. “If there was barbed-wire or something blocking dogs from coming across the border then we wouldn’t have such a big problem,” he added.

The Mayor told the Mail that he has contacted the UN to help with the problem, and despite carrying out their own patrols in the buffer-zone, the problem has not decreased.

DISY deputy tables simple health-care solution

0
0

RULING DISY tabled a proposal to the House Health Committee yesterday which would provide healthcare for all through a levy on wages.

The proposal would mean all those currently registered with the Health Insurance Organisation (HIO) would be able to receive free healthcare from both private and government employed doctors. 

Speaking after the committee meeting, MP Nicos Nouris, who handed over the plan, explained that funds would be raised by charging employers and employees both 0.4 per cent on their income, excluding civil servants who were due to start contributing 1.5 per cent of their income to healthcare under the deal with Cyprus’s international lenders.

With the DISY proposal, parents would also have to contribute 0.4 per cent for each child or dependent in their care. Nouris added that from these charges, the amount of €59 million would be raised, which should cover the costs for first-rate healthcare for all. 

The continuing financial crisis, long waiting lists and the delay in implementation of the National Health Scheme (NHS) require measures to be taken to provide everyone with quality healthcare, Nouris said.

The HIO would be responsible for the plan which would come into operation within the next six months. Residents would then only need to register with the HIO and would be entitled to free healthcare from a doctor of their choice.

The plan would not bring any disagreement from the troika, Nouris said, as there would be no expenditure on behalf of the government. Doctors would receive payment directly from HIO’s funds.

Speaking after the Committee meeting, Health Minister, Petros Petrides who was present, told reporters that it was a proposal which reflected the public’s current state of anguish.

“We accept that it is a proposal which must be discussed extensively so the Committee can review any amendments as soon as possible,” Petrides said.

Head of the Committee Costas Constantinou labelled Nouris’ proposal as very useful.

“The ministry of health will be able to thoroughly study the proposal and submit any recommendations,” Constantinou said. “We expect the Ministry to adopt these helpful opinions and suggestions within a short time,” he added.

DIKO MP, Athena Kyriakidou and EDEK MP, Roula Mavronicola both hailed the idea while AKEL MP Stella Misiaouli stated that any plan would need to be included in the NHS. 

Viewing all 6907 articles
Browse latest View live




Latest Images