Day: April 21, 2022

Cyprus Police have drafted an operational plan for the Holy Week, which includes frequent patrolling in crowded places and on the roads and certain directives for the confiscation of firecrackers, the force’s Spokesperson Christos Andreou told the Cyprus News Agency.

He said that the plans are followed by all police units in all districts adding that the Chief of the Police had a videoconference with all heads of district units to whom he gave instructions.

As regards firecrackers and the collection of wood for the tradition of bonfires on Holy Saturday, Andreou called on parents to be extra vigilant and to check on their children adding that minors are usually involved in certain incidents. He said that firecrackers are extremely dangerous and people were severely injured in the past.

Police Spokesperson also said that measures are in place for the prevention of home burglaries.

Source: Cyprus News Agency

A loss of €11.7 million, mainly related to the forecasts of the Starlight project, was presented for 2021 by Hellenic Bank, which, however, made significant progress in reducing the risks to its balance sheet and is now within breathing distance of its medium-term target for reduction of non-performing loans (NPLs) to 3% of its loan portfolio.

The ratio of non-performing loans (NPLs), adjusted for the transaction of sale of loans with a gross value of €720 million and the acquisition of a portfolio of non-performing loans by RCB Bank fell to 3.6%, while with the inflow of the second tranche of loans from RCB, it will fall to 3.4% from 53% at the end of 2017.

Hellenic Bank is now turning its attention to the transformation plan, with the bank’s CEO, Oliver Gatzke, highlighting the reduction of the high cost / return ratio as key. “We are focusing our efforts on both increasing interest income through new lending and generation of miscellaneous income, as well as containing all administrative expenses,” he says.

He emphasises, however, that “the most effective way to reduce cost to income ratio is the overall reduction of the payroll cost through necessary headcount reductions and more rational salary increases in the future.”

“And the plan for this year is basically to reduce the number of staff between 300 and 350 people and we plan to do it through redundancies,” said Gatzke.

He noted that “we are doing our best, to agree on a mutually beneficial collective agreement for our staff and at the same time to maintain the Bank on a solid and sustainable path”, expressing the hope that “the leadership of the Union will rise to the occasion and demonstrate a constructive stance, for the benefit of our employees.”

Hellenic Bank entered into an agreement with Pimco for the “Starlight” project, which concerned the sale of a €0.72 billion NPL package and the APS Debt Servicer, with a positive impact of approximately 20 basis points on its capital. This transaction reduced non-performing loans to € 650 million, corresponding to 10.9% of total loans, while excluding loans covered by the Asset Protection Program and adjusted with the purchase of loans by RCB, the NPL ratio falls to 3,4%.

The bank’s capital ratios at the end of 2021 were maintained at high levels, with the Capital Adequacy Ratio and the Class 1 Common Shares Ratio (CET 1) at 21.67% and 19.30% respectively, while the new borrowing for in 2021 amounted to €908 million compared to €1.04 bln in 2020. Moreover, the liquidity coverage ratio at the end of 2021 increased further to 499.5% compared to 477% at the end of 2020, with the liquidity surplus in 2021 to amount to €6.4 billion.

Net interest income for 2021 amounted to €256 million, reduced by 10% compared to €285.5 million for 2020, mainly reflecting the lower income from serviced loans (reduction of key lending rates) and lower revenues from Cypriot government bonds, reductions which were partially offset by continuing reductions in the average cost of deposits.

The Group’s net interest margin for 2021 decreased to 1.52%, compared to 1.88% in 2020.

A small decrease, at a rate of 3%, was noted on an annual basis to the total non-interest income in 2021, which amounted to €103 million compared to €105.8 million in 2020, while the net income of fees and commissions for 2021 amounted to €58.2 million, increased by 1% compared to €57.6 million in 2020, an increase mainly due to increased banking rights and commissions in 2021, after the announcement of the revised List of Rights and Charges effective from February 2021, and the increase in electronic transactions.

Impairment losses in 2021 amounted to €108.4 million, which are related to the Starlight project.

According to the results, the group’s expenses in 2021 remained unchanged, amounting to €263.5 million and compared to €264.0 million in 2020. Personnel expenses for 2021 amounted to €133.7 million and represented 51% of the total expenses of the Group (50% in 2020). Compared to €131.1 million in 2020, staff costs for 2021 increased by 2%.

The expense-to-income ratio for 2021 stood at 73%, compared to 67% for 2020, pushed upwards by the decrease in total net income.

At the end of 2021, the Group’s total assets amounted to €18.8 billion, and increased by 19% compared to €15.9 billion on December 31, 2020, mainly due to the increase in cash and deposits with Central Banks, primarily as a result of the new lending to Targeted Long-Term Refinancing Operations (SPL / TLTROs) of the ECB.

Gross lending to customers as at 31 December 2021 amounted to €5,952 billion, down 12% compared to €6.8 billion at 31 December 2020, with the net lending ratio falling to 38.4% on 31 December 2021, compared to 43% at 31 December 2020.

Moreover, the bank’s real estates at the end of 2021, which mostly resulted from the settlement of customer debts, amounted to € 69.4 million at 31 December 2021, compared to €208.4 million at the end of 2021. Additions amounted to €18.7 million and sales to €44.2 million, as reported.

Total investments in securities amounted to €4,463 million as at 31 December 2021 (31 December 2020: €5,024 million), down 11% and representing 24% of total assets (31 December 2020: 32%). The Cypriot Government Bonds and Bonds that the Group held on 31 December 2021 decreased to €1,485 million, showing a decrease of 39%, compared to €2,443 million on 31 December 2020.

Source: Cyprus News Agency

In March 2022 the Harmonized Index of Consumer Prices increased by 6.2% compared to March last year while, when compared to the index of February 2022, the HICP increased by 1.8%.

According to the Statistical Service, for the period January – March 2022 the HICP recorded an increase of 5.7% compared to the corresponding period of the previous year.

Compared to March 2021, the largest changes were noted in Housing, Water, Electricity, Gas and Other Fuels (17.2%), Transport (10.0%) and Food and Non-Alcoholic Beverages (10.0%).

Compared to February 2022, the largest change was recorded in Clothing and Footwear with a percentage of 8.5%.

For the period January – March 2022, compared to the corresponding period of the previous year, the largest changes were noted in Housing, Water, Electricity, Gas and Other Fuels (14.9%) and Transport (10.7%).

As regards the economic origin, the largest change when compared both to the index of March 2021 and to the index of the previous month, was observed in Energy with percentages of 28.3% and 4.7% respectively.

Source: Cyprus News Agency

Defence Minister, Charalambos Petrides, has said that the Russian invasion of Ukraine has a serious impact on Cyprus’ National Guard since plenty of its arms programmes rely on the Russian market, adding that alternative solutions and all possibilities are being examined.

Moreover Petrides said that existing arms programmes which are currently implemented have not in any case been affected, adding, however, that due to the crisis and the uncertainty as regards the economy this is possible to happen with all EU member states, since their financial potentials can change.

Speaking during a round table discussion organized by the ruling Democratic Rally party, Petrides said that it seems clear that the EU moves towards a defence and military autonomy, adding that this means that we do not in any case discuss about a European army.

In his intervention, the Defence Minister noted, among others, that the EU is moving slowly but steadily towards a defence and military autonomy, and has achieved to reach a conclusion on the Strategic Compass.

Moreover, he said that the rapid reaction force could be implemented pending on the developments and the issue of Ukraine.

Petrides noted that the EU is moving towards a defence and military autonomy in cooperation with NATO, noting that 21 out of its 27 member states are members of the Alliance.

“We consider that this cooperation is unavoidable, but there are certain countries, including Cyprus, which say that we are in favour of the EU strategic autonomy,” he added.

He went on to say that “there is cooperation when this is necessary. We belong to this family, so that road is clear, “he underlined.

The Minister said that “we implemented and we implement all sanctions from the first day. We closed our ports before the EU’s directives, so we fully harmonized with the EU decisions.”

Petrides noted that the Russian invasion of Ukraine has a serious impact on Cyprus’ National Guard as plenty of its arms programmes are based on the Russian market and that they are looking into alternative solutions and all possibilities.

Source: Cyprus News Agency

Significant improvements are included in the State Department’s Human Rights Report on Cyprus for 2021, compared to previous reports, Government Spokesman Marios Pelecanos told CNA.

At the same time, he said the report is a source of reflection and improvement and that as a democratic state, Cyprus is always open to examine recommendations for improvement in the field of human rights.

Invited by CNA to comment on the State Department’s Report which was made public on Wednesday, Pelecanos said that some headlines give the impression that the report is negative for Cyprus, however “if we compare it to older reports, there are significant improvements in certain areas.”

For instance, the report acknowledges the efforts of many services of the Republic of Cyprus, for instance the Labour Ministry, the Ministry of Justice and Public Order and the Prisons.

He added that “it is a fact that observations are recorded for the Republic of Cyprus regarding the management of refugee flows”, and it points out that “the EU itself acknowledges the pressure on the Republic of Cyprus from the increased and ongoing migratory flows.”

The Spokesperson recalled that President of the Republic Nicos Anastasiades had convened a number of meetings recently and decisions have been taken to handle the problems arising due to the emergency caused by the increased migration flows.

Regarding the comments in the report on corruption, Pelecanos said that measures were taken, investigations took place and cases are being brought before justice against legal and natural persons. Therefore, it is more correct to read the report in its entirety and not merely titles or parts of the report, he added.

It is acknowledged, he added, that the Republic of Cyprus has taken concrete steps to identify, investigate prosecute and punish officials who, through their actions, committed corruption and violation of human rights.

The Spokesperson further said that the issues highlighted in the report are a “useful source of reflection and improvement”, adding that as a democratic state, Cyprus is always open to recommendations to improve human rights”.

Source: Cyprus News Agency

President of the House of Representatives Annita Demetriou discussed the initiatives of national parliaments to protect women and children from Ukraine escaping the war. The discussion was held at a special session of the Polish Parliament held on Holy Wednesday in Warsaw.

Demetriou described her mission as “very difficult” noting that she was deeply moved when a little girl asked her to help her return home.

The Cypriot House President is in Warsaw attending a meeting of Women Speakers of the Parliaments of the EU and of special guests from Ukraine and European Parliament, hosted by Speaker of the Polish lower house, Elzbieta Witek.

The two-day get-together featured top women lawmakers from Austria, Belgium, the Czech Republic, Cyprus, Latvia, Lithuania and Spain. The top female lawmakers visited a humanitarian relief facility near the capital Warsaw, before holding talks in the Sejm, the lower house of Poland’s parliament.

“We are talking about children who are unaccompanied, women who are alone and have no idea what has happened to their loved ones. We have realised that these people are choosing a future, a country and which bus to board, the country of their choice, either Germany which most of them go to, or some other country”, she said.

She thanked her Polish counterpart for the extraordinary experience, adding for the first time after so many years, she realises what “our parents and grandparents went through when they recalled leaving their homes with only a suitcase and a pair of shoes on their feet and had to rebuild their lives”. Demetriou was referring to the Greek Cypriots refugees due to Turkish invasion in 1974.

Regarding the deliberations of the meeting, she said each speaker expressed her own feelings about the experience, conveyed exactly what each parliament has done and “together we have suggested initiatives that can protect the women and the children, who are the greatest victims of these atrocities”.

Demetriou said they have suggested setting up a website in the Ukrainian language to help the children continue their classes, as provided by the European Parliament resolution of the 7th of April, in collaboration with state, parliaments and local authorities of each country.

In two months, she added, they will meet again to see how things are progressing and “as women speakers to convey a special message that we understand more than ever how these people need to be supported and especially women and children”.

Let us not forget that there are too many cunning people exploiting this situation, we have victims of human trafficking, we have victims of torture, sexual abuse and all these are stories that need to be made known so that we can help these people in any way we can, she added.

Source: Cyprus News Agency

GDP at current prices for the year 2021 has been revised due to revised data of public finance and balance of payments and is estimated at €23,436.7 mn, the Cyprus Statistical Service said on Thursday.

According to CyStat, the annual change at current prices is estimated at 8.4%.

Source: Cyprus News Agency

President of the Cypriot House of Representatives Annita Demetriou has underlined the strong parallels between the dramatic situation of refugees on the Ukrainian-Polish border and the situation with refugees in Cyprus following the Turkish invasion in 1974.

Demetriou was speaking during a meeting of Women Speakers of EU Parliaments and of special guests from Ukraine and the European Parliament, hosted by Speaker of the Polish lower house, Elzbieta Witek in Warsaw.

In statements to CNA, she said that her visit to the reception sites of Ukrainian refugees and the concerns raised there about the risks of trafficking, exploitation, torture and sexual abuse of children and women, reminded her of the Cypriot people’s descriptions of Turkey’s atrocity and barbarity during the 1974 invasion against Cyprus.

Demetriou stressed the importance of initiatives, such as the meeting of women Speakers of European Parliaments, to adopt a common set of actions to support and offer relief to refugees. She told CNA that such meetings serve as a reminder to the international community of the situation in Cyprus, which is occupied by Turkish troops since 1974 in violation of international law and fundamental human rights.

We understand more than anyone else what it means to become a refugee, to have relatives who are missing and to live through such horror, Demetriou said.

Speaking at the meeting of the nine women Presidents of Parliament (Czech Republic, Austria, Belgium, Spain, Lithuania, Latvia, Cyprus, Ukraine and the European Parliament) Demetriou stressed that there can be no double standards as regards compliance with international law.

Pointing out the similarities between Turkey’s actions against Cyprus in 1974 and Russia’s actions in Ukraine, she said that the international community maintains an outrageous position of double standards towards Russia, on the one hand, and Turkey, on the other. Equally outrageous, she added, is the fact that Turkey does not abide by the sanctions that have been collectively imposed on Russia, thus weakening the effectiveness of the measures.

She referred to the horrific consequences of the Turkish invasion against Cyprus in 1974 that left behind thousands of refugees and a military occupation of 37% of Cyprus’ territory which continues until today, saying that this is an additional reason for maintaining a firm position in abiding by the principles of international law alongside the people of Ukraine.

Cyprus, she said, is hosting 15,000 Ukrainian refugees and recalled that the country is already faced with a big challenge due to the disproportionately large number of asylum applications, compared to the country’s population.

In statements to CNA before returning to Cyprus, Demetriou said thatwomen and children are always the worst victims of war and added that discussions in Polandalso focused on providing assistance to these vulnerablegroups and lifting the risk oftrafficking, exploitation or sexual abuse. During the meeting, she noted, she stressed the need for solidarity with them, but also between European countries that accept refugees, with a coherent policy for granting asylum.

Concluding, she pointed out that some Parliaments in Europe have adopted resolutions referring to a genocide in Ukraine, but said that this is an issue that has not been raised yet at the Cyprus House of Representatives but could be discussed in the near future.

Source: Cyprus News Agency

The increase in the ESI-CypERC resulted from stronger business confidence in services, retail trade and industry, says the announcement issued by the two organisations.

The Services Confidence Indicator increased as a result of improved assessments of past performance (business situation and demand) and upward revisions in demand expectations, while the increase in the Retail Trade Confidence Indicator was driven by upward revisions in sales expectations, despite more pessimistic assessments of the current stock levels.

On the other hand, the decline in the Construction Confidence Indicator resulted from less favourable assessments of the levels of order books and downward revisions in employment expectations, data shows.

The increase in the Industry Confidence Indicator was due to more favourable views on the current levels of order books and stocks of finished products, as well as more optimistic views on future production.

The Consumer Confidence Indicator remained unchanged at the level registered in March. The deterioration in the assessments of recent household financial conditions was offset by the upward revision in expectations about the general economic conditions in the country.

In April, economic uncertainty decreased as a result of lower uncertainty in services, construction and industry as well as among consumers; uncertainty among firms in the retail trade sector increased further. Firm’s selling price expectations rose again in April, indicating a continuation of upward price pressures.

The Surveys gather information on firms’ perceptions and expectations about different economic variables such as their turnover, production, employment and prices. The data also contain information on consumers’ perceptions and expectations about the financial condition of their households and various aspects of the economy such as consumer prices and unemployment.

Source: Cyprus News Agency

Cyprus is the technological capital of the Mediterranean, Deputy Minister of Research and Innovation Kyriacos Kokkinos said on Thursday.

He was speaking to reporters after a meeting with the Pafos Chamber of Commerce and Industry during which research, innovation and how the digital transformation is used by businesses, as well as the business ecosystem of Pafos, in order to transform research and innovation into competitiveness of the economy and entrepreneurship, were discussed.

Speaking to reporters, Kokkinos said that “we have agreed on specific actions of collaboration where the business community will be paired with the research and academic community,” while aiming to accelerate the digital transformation for the Pafos business community.

Asked to comment on Pafos’ effort to develop into a smart city, the Deputy Minister of Innovation replied that Pafos is a smart city, noting that a lot has already been done.

He added that Pafos has a balanced development with an emphasis not only on tourism and land development, but also on higher education, since in 2023 the American University of Beirut will start operating, along with other private institutions. There is, he continued, a system of innovation and start ups, which is growing in the area and the real responsibility of the State and the Municipality of Pafos is to encourage and support them.

He also pointed out that Cyprus in general is the technological capital of the Mediterranean. There is a large community of digital units and scientists working in Pafos to provide services outside Cyprus, he said.

On his part, the president of PCCI, Yiorgos Mais, said that the announcement of some programs related to subsidies for upgrading technology is imminent, stating that this is very essential and beneficial for businesses and society.

Source: Cyprus News Agency