Russian navy vessels will dock in Cypriot ports as part of an agreement signed between the two countries on Wednesday, Russia’s President Vladimir Putin said.

Speaking through an interpreter during a joint news conference with Cypriot President Nicos Anastasiades, at his country house in Moscow, Putin said one of the agreements allowed Russian vessels to dock in Cypriot ports.

This concerned vessels taking part in international efforts to combat terrorism and piracy, the Russian President said.

The two countries signed eight bilateral agreements, along with a Memorandum of Understanding between the Cyprus Securities and Exchange Commission and the Central Bank of Russia.

An MoU was also signed between the Cyprus Investment Promotion Authority (CIPA) and Invest in Russia.

Anastasiades, on an official visit to Moscow, noted that from the Cyprus was in favour of a constructive dialogue with Russia and expressed his government’s determination to work for the restoration of the strategic cooperation between Moscow and Brussels.

Referring to the Cyprus issue, Putin reiterated Russia`s commitment to a principled stance for a comprehensive and just solution, in accordance with UN Security Council resolutions.

Political parties and government officials on Saturday greeted the previous day’s Eurogroup agreement with Greece with relief, with some demanding of the president go ahead and renegotiate Cyprus’ bailout terms.

Finance minister Harris Georgiades took to Twitter to express his opinion on the matter. With a late night tweet Georgiades said the Greek deal was a very positive development.

“Greece remains in the Eurozone and on the path to reform,” tweeted the minister.

Ruling party DISY issued a statement welcoming the agreement saying that the deal struck has a twofold meaning.

“On the one hand it ensures that Greece keeps the effort of restoring its economy within the boundaries of the Eurozone and in cooperation with the rest of Europe. On the other hand, the agreement proves that with goodwill and responsibility we can deal with our problems through the EU institutions,” it said.

Main opposition party AKEL, which has criticised the government, accusing president Nicos Anastasiades of accepting the troika terms without putting up a fight, said the deal proves that every government can gain something for the people if it is willing to negotiate.

“Our government conceded to the bail-in and selling off the Greek branches of our banks, accepted damaging privatisations and number of other needless measures. He did not fight on behalf of the Cypriot people but instead succumbed to pressure,” AKEL said.

The rest of the parliament parties also railed against the government. DIKO said the Greek deal “proves beyond the shadow of a doubt that the problem is the government doesn’t want to re-negotiate with the troika,”. Socialist party EDEK demanded the government renegotiate the privatisation of semi-govermental organisations, reconsider foreclosures and ask the European Central Bank for better lending terms.

EVROKO, the Citizens’ Alliance and the Greens also called upon the government to renegotiate the terms of the Cyprus agreement, the way Greece did.

Euro zone finance ministers reached an agreement on Friday to extend Greece’s financial rescue by four months. The agreement removes the immediate risk of Greece running out of money next month and possibly being forced out of the Euro.

Cyprus agreed with the troika of international lenders – the European Commission, the European Central Bank and the International Monetary Fund – a €10 billion bailout in 2013.

By Constantinos Psillides

International Monetary Fund managing director Christine Lagarde, European Commissioner for Economic and Financial Affairs, Taxation and Customs, Pierre Moscovici, and Dutch Minister of Finance and President of the Council, Jeroen Dijsselbloem, give a press briefing at the end of a special Eurogroup meeting of Finance ministers, at the European Council headquarters, in Brussels on Friday night. Greece has reached agreement with its eurozone partners on a four-month bailout extension (EPA)

The extended discourse surrounding Cyprus’ essential – and as yet, unimplemented – foreclosures and insolvency legislation continues, will latest developments reportedly pending approval from the island’s Troika of international lenders.

According to unconfirmed media sources, the Government is currently awaiting Troika’s endorsement of the fifth and final bill of a proposed insolvency framework, set to complete the legislative package purportedly aimed at protecting vulnerable groups from the foreclosure of primary residences.

Should the lenders – comprising the European Central Bank, European Commission and International Monetary Fund – indeed give the green light, the fifth bill will be presented to and approved during the forthcoming Cabinet meeting.

The enforcement of the foreclosures legislation is a crucial component of Cyprus’ economic adjustment programme agreement with its international lenders, acting as a precondition for the sixth tranche of international funding of €436 million. The further suspension of this package would hamper Cyprus’ commendable fiscal progress thus far and impede further efforts for growth, the island’s Finance Minister, Harris Georgiades, has repeatedly explained.

Eurozone finance ministers were unable to agree with Greece a final statement or a way to continue talks until their next meeting on Monday, following hours of discussions in Brussels to extend an international bailout.

“We explored a number of issues, one of which was the current programme,” Jeroen Dijsselbloem, who chaired the meeting, told a news conference in the early hours on Thursday in Brussels.

“We discussed the possibility of an extension. For some that is clear that is preferred option but we haven’t come to that conclusion as yet. We will need a little more time.”

Greek Finance Minister Yanis Varoufakis played down a failure to reach a common position with the rest of the eurozone and said he believed a “healing deal” on Greece’s finances could be reached on Monday.

Looking calm and composed after seven hours of talks in Brussels that lasted into Thursday morning, Varoufakis told reporters that the emergency Eurogroup meeting had never been intended to produce an accord but had been a good discussion.

EU diplomats said a broad common statement on finding a way forward for Greece and the eurozone had been drafted but that the Greek delegation, which consulted Athens by telephone, had not agreed to it. The radical new government insists it will not extend an international bailout that expires in two weeks but its EU partners say it must accept some conditional financing.

By Robin Emmott and Jan Strupczewski

Cyprus’ Troika of international lenders – comprising the European Commission, European Central Bank and International Monetary Fund – yesterday tabled a new proposal on the fifth bill of the insolvency framework.

According to local media sources, the lenders proposed that in case of insolvency, a borrower will be discharged of his secured debt, while the relevant guarantor will be liable to repay the remaining unsecured debt.

For instance, in case of a debt amounting to €100,000 covered by a collateral with a value of €80,000, the bank will seize the collateral – discharging the borrower of that amount – and the guarantors will be called upon to repay the remaining €20,000.

The same will apply in cases of a mandatory repayment scheme sanctioned by a District Court Order, provided for under the bill.

Political parties reportedly reiterated their disagreement as regards the proposal. In most cases, they said, loans include excessive bank charges; thus, guarantors should be discharged of their obligations. Parties also noted that the banks could share some of the debt burden as an alternative solution. 

Troika technocrats argued that the bill cannot impose losses to the banks, more than those the bank would sustain after seizing and selling the property pledge as collateral.

The Royal Institution of Chartered Surveyors (RICS) launched its first ever international property measurement standards last year, entitled IPMS: Office Buildings. The first internationally adopted standards for measuring office property, IPMS aims to ensure consistency and transparency in the way this information is collected, enhancing public confidence in property valuation, occupation and building use, investor confidence and market stability.

To bring RICS best practice in line with the new international standard, RICS has revealed that it intends on revising its own Code of Measuring Practice - currently in its sixth edition - to reflect IPMS, by adding the Professional Statement for the Measurement of Office Buildings.

The institution thus intends on working with members and their stakeholders to support the transition to the new IPMS standard.

A full consultation on the proposed professional statement will run throughout February 2015 to capture views and feedback from members and other industry stakeholders across the profession.

About IPMS

IPMS are not owned by RICS but are developed and agreed by more than 50 professional organisations from around the world. All organisations will implement the high-level standards through their guidance to members. 

Property measurement information is a vital metric at the heart of the world’s multi-trillion dollar commercial property sector. Consistency in the way this data is produced and reported will create the market conditions required for international investment and business growth. IPMS will de-risk commercial property markets and make them attractive to all property users.

While these standards are created internationally, they are delivered locally. The IPMS consultation will be critical in assessing and responding to the needs of RICS members as we move towards implementing IPMS.

RICS

RICS Europe represents over 6,000 members Europe wide. These professionals provide expert advice on land, property, construction and the associated environmental issues. An independent organization, RICS Europe acts in the public interest, upholding standards of competence and integrity among its members and providing impartial, authoritative advice on issues affecting business and society.

Cyprus recorded the highest decrease (-5.1%) in the ratio of public debt during Q3 of 2014, compared to Q2.

As a result, public debt stood at 104.7% of GDP during the third quarter, compared to 109.8% of GDP during the second quarter.

According to Eurostat, the Statistical Office of the European Union, the government debt to GDP ratio in the euro area (EA18) stood at 92.1% at the end of Q3 2014, compared with 92.7% at the end of Q2 2014.

In the EU28, the ratio decreased from 87% to 86.6%. This decrease in the EU28 government debt to GDP ratio comes after fifteen consecutive quarters of increase.

The highest ratios of government debt to GDP at the end of the third quarter of 2014 were recorded in Greece (176%), Italy (131.8%) and Portugal (131.4%), whilst the lowest were registered in Estonia (10.5%), Luxembourg (22.9%) and Bulgaria (23.6%).

The highest decreases in ratio, meanwhile, were recorded in Cyprus (-5.1%), Malta (-2.7%) and Hungary (-2.6%), and the highest increases in Bulgaria (+3.1%), Portugal (+1.9%) and Denmark (+1.6 %).

A number of land registry officials were taking bribes according to an internal audit and are under investigation for corruption; warrants have been issued to locate the money they took.

AUTHORITIES are investigating at least five land registry workers for corruption, Interior Minister Socratis Hasikos said on Tuesday. The employees are suspected of carrying out official business for various applicants but pocketing the fees themselves. “The normal way is for an individual or bank to pay the fee and receive a result.

In this case there was a detour and there was a relation between land registry officials with legal entities,” Hasikos said. The alleged fraud concerned certificates issued by the department to interested, and authorised, parties who pay to find out what property an individual or company have in their name.

Such a search could cost between €50 and €70 if done through the official channel. These are carried out by banks for example but the cost is usually paid by their customer. Banks usually do bulk searches. It is understood that the case concerns thousands of applications.

Hasikos did not say whether the suspects charged the official fee or less. But it is understood that one of the motives for clients may have been the speed with which their application was processed. “What is certain is that they took money,” the minister said.

Hasikos said it was an old story, reported back in 2012. “At some point it froze and we had no result,” he added. “Our administration revisited the matter and we are seeing with satisfaction that the legal service is investigating.” Hasikos told reporters to ask the previous administration why nothing incriminating came up two years ago.

The European Commission has said that it cannot continue with the next review of the Cyprus adjustment programme following a decision by parliament to delay the Foreclosures Law.
FOLLOWING a decision by the Cyprus parliament ratifying the suspension of the foreclosure law on Thursday, the European Commission has stated that it cannot continue with the next review of the Cyprus economic adjustment programme.

At a plenary session of parliament 32 MPs voted to suspend the foreclosures law until the end of January, while 21 voted to support President Anastasiades.

According to Stockwatch a European Commission spokesperson said “We take note that the House of Representatives has confirmed its December adoption of a bill that suspends the application of the Foreclosure Law ’til end-January. “As we said last December, the suspension of the implementation of the so-called Foreclosure Law (the adopted legal framework for private debt restructuring) conflicts with the programme requirement to have it applied immediately.

We recall that tackling non-performing loans is a main challenge in Cyprus.” Figures released by the island’s Central Bank on Friday show that non-performing loans at the end of November reached €28.2 billion, approximately 160% of Cyprus’ GDP and 50% of all loans.

The spokesperson added “We are in close contact with the Cypriot authorities on this matter in order to hear from them how they plan to address this issue and maintain Cyprus’ good record of programme implementation. “That said, the conditions are not being met to institutionally conclude a full review of the programme implementation (6th review) in February.”

It would appear that relations between Cyprus and its troika of international lenders are deteriorating. After making a positive start to the implementation of the economic review programme, the foreclosures law has been delayed and it seems extremely unlikely that, with only two weeks to go, the five insolvency bills will be in place by the end of January deadline.

By Nigel Howarth