Day: December 16, 2022

Cyprus was one of the five sovereigns who saw its long-term credit rating upgraded in 2022, international rating agency DBRS Morningstar said in a sovereign ratings review for the outgoing year.

“The conflict in Ukraine has further strained the public finances of many sovereigns, which were already stressed by the impact of the COVID-19 pandemic,” the agency said.

The review noted as the adverse effects of the pandemic faded, the continuation of stronger growth and improved public sector balance sheets led to upgrades across five DBRS Morningstar-rated sovereigns: Ireland, Cyprus, Greece, Portugal, and Uruguay, noting however that the weaker growth outlook for 2023, the continuation of the conflict in Ukraine and the ongoing energy crisis have resulted in a stabilization of rating trends across our sovereign rating universe.

“As of December 16, 2022, none of DBRS Morningstar’s sovereign ratings have positive trends,” the agency said.

But the agency added that “overall, the majority of DBRS Morningstar’s rated sovereigns have weathered the crisis well.”

According to DBRS, three credits in Europe have seen downward rating pressure. These include the rating on Belgium which was downgraded to AA given budgetary pressures and high government debt relative to peers, while the trend on Slovakia (A [high]) was revised to Negative due to the growth outlook and on the back of the possibility of a full stoppage of Russian gas supplies.

Moreover, the agency said that unexpected developments in the UK have resulted in the rating (AA [high]) being placed Under Review with Negative Implications. “This rating action reflects risks to the fiscal outlook, concerns about the inconsistency between fiscal and monetary policies that led to a large sell-off of UK assets, and potential risks to the UK’s financial flexibility,” DBRS added.

On Asia, DBRS said that the negative trend on China reflects expectations of weaker economic performance in the medium term, due to continued property sector weakness, China’s ageing demographics, and heightened U.S.-China tensions.

On North America, DBRS said that the region’s economies which are energy self-sufficient retain a high degree of resilience, “but we expect medium-term fiscal challenges to persist, particularly for the United States.”

Source: Cyprus News Agency

A joint Search and Rescue (SAR) Exercise, titled «CYPUSA 01/22» was conducted on Thursday 15 of December, within the Search and Rescue Region of the Republic of Cyprus, with the participation of SAR Units and Personnel from the Republic of Cyprus and USA.

According to a press release issued by the Joint Rescue Coordination Center (JRCC) Larnaca, the US Navy Helo «MH-60S» of MSC-28 from Sigonella, the fast patrol boat «THISEAS» of Cyprus Port and Marine Police, the FBP «TSOMAKIS» of the Cyprus Navy, and a helicopter from 460 SQN of the National Guard participated in both day and night SAREX scenarios under the operational control and coordination of the JRCC Larnaca, in close cooperation with the US Navy. Specialized registered nurses of the State Health Services participated in the exercise on board the SAR units.

The exercise was part of the wider framework of cooperation between the Republic of Cyprus and the USA in SAR-related matters and humanitarian operations in general in the South-East Mediterranean region, the press release noted.

Source: Cyprus News Agency

US Ambassador to Cyprus Judith Garber has expressed the wish for the creation of circumstances that will lead to the resumption of the dialogue for a viable solution of the Cyprus problem.

The Ambassador had on Friday a farewell meeting with President of the House of Representatives Annita Demetriou, with whom she discussed a series of issues such as bilateral relations, Ukraine and the protection of the environment.

According to a press release by the Parliament, they both expressed satisfaction for the “significant upgrading of bilateral relations between Cyprus and the USA,” as well as their desire to further strengthen those ties.

Referring to the Cyprus problem, the House of Representatives President expressed hope that soon there will be a resumption of the process to solve the problem, noting that Cyprus can become an example and offer prospect for the prevalence of peace and stability in the entire region.

It is added that the US Ambassador expressed the wish for the creation of the conditions that will lead to the resumption of the dialogue to achieve a viable solution to the Cyprus problem.

On the humanitarian crisis of the ongoing war in Ukraine, they both stressed the need to support the country to become a safe place for Ukrainian refugees to return.

Demetriou said that the respect and protection of human rights is not limited in the case of Ukraine, saying that Turkey’s ambivalent attitude to the crisis should not divert the attention of the international community away from the violation of universal principles, including the respect for human rights.

Concluding, the press release says that Demetriou and Garber also discussed issues of common interest, such as the empowerment of women, respect for human rights, the fight against corruption and the protection of the environment.

Cyprus has been divided since 1974, when Turkey invaded and occupied its northern third. Repeated rounds of UN-led peace talks have so far failed to yield results. The latest round of negotiations, in July 2017 at the Swiss resort of Crans-Montana ended inconclusively.

Source: Cyprus News Agency

Green transition is a huge opportunity for Cyprus despite challenges, Energy, Commerce and Industry Minister Natasa Pilides said on Friday.

She was addressing a conference in Nicosia on the steps and measures that need to be taken in order to achieve the green transition of Cyprus.

The Energy Minister pointed out the difficulties arising from the effort to fulfil the goals for “Fit for 55”, but expressed the belief that Cyprus can fulfil its obligations by applying the right policies. “The funds are there, it’s up to us to implement the upgrades in the timeframe set out in the ‘Cyprus – Tomorrow’ plan,” she stressed.

Pilides outlined the actions and reforms her Ministry has gone ahead with, pointing out that green transition is a huge opportunity for Cyprus, despite challenges and particularities which stand in the way. In order to achieve it, she stressed, we must cast aside personal and other interests.

On his part, Costas Kadis, Minister of Agriculture, Rural Development and Environment, whose address was delivered by Andreas Gregoriou the Ministry’s Permanent Secretary, pointed out that this decade is the most important for the protection of the environment and requires decisive action in all sectors of the economy.

On her part, Klelia Vasiliou, Commissioner for the Environment, said that the government of Nicos Anastasiades used all the tools that the state had at its disposal to implement the European Green Agreement and through specific projects it is correcting longstanding distortions.

“We consider it extremely important to inform businesses about everything they have to adjust,” she stressed, adding that teamwork is needed to achieve the goals.

Charalampos Theopemptou, President of the Cyprus Green Party and President of the Parliamentary Committee on the Environment, said that the “Fit for 55” policy will force our country to comply with it and there are many things we need to do in order to be right to our obligations. For example, he noted, fuel taxation will soon change, and taxation will be imposed on the transportation of goods by ships, resulting in an increase in the prices of several products that Cyprus imports.

DISY MEP, Loucas Fourlas, whose address was delivered by his MEP assisant, Marios Papaelia, emphasised that the European Green Agreement is our road map to achieve the sustainability of the member states’ economy. “We will only achieve this when we turn environmental and climate challenges into opportunities in all sectors, if we achieve a just and inclusive transition for all,” he noted.

Source: Cyprus News Agency

The Harmonized Index of Consumer Prices (HICP) in Cyprus continued decelerating for the fourth consecutive month in November 2022.

According to data published by the Statistical Service of Cyprus (CyStat) November 2022 harmonised inflation amounted to 8.1% compared with November 2021 while HICP dropped by 0.4%.

The harmonized inflation rate increased with a reduced pace for fourth consecutive month since the peak of 10.6% registered in July 2022.

For the period January – November 2022 the HICP recorded an increase of 8.1% compared to the corresponding period of the previous year, CyStat added.

Compared to November 2021, the largest changes were noted in Housing, Water, Electricity, Gas and Other Fuels with 17.6%, Food and Non-Alcoholic Beverages with 15.1% and Transport with 9.4%.

Compared to October 2022, the largest change was recorded in category Restaurants and Hotels with a reduction of -2.5%.

As regards economic origin, the largest change when compared to the index of November 2021 was observed in Energy with a percentage of 21.4%, while compared with the index of the previous month, the largest change was monitored in category Services with -1.7%, CyStat said.

Source: Cyprus News Agency

Cyprus Ministry of Finance said on Friday it will introduce a 15% minimum corporate tax rate on multinational and domestic groups or companies with a combined annual turnover of at least €750 million while examining ways to mitigate any possible adverse impact on the Cypriot economy.

The Finance Ministry said in a press release that following a unanimous agreement on the European Directive over the global minimum tax rate, it will prepare the necessary bills transposing the EU directive into national law.

In parallel, the Ministry added that it “will examine ways to mitigate any possible adverse impact on the Cypriot economy.”

EU member states reached an agreement to implement at EU level the minimum taxation component, known as Pillar 2, of the OECD’s reform of international taxation, aiming to impose a minimum rate of 15% on profits of large multinational and domestic groups or companies with a combined annual turnover of at least €750 million.

Member states must transpose the EU directive into national law by December 2023.

Source: Cyprus News Agency