Cyprus’ GDP growth is expected to reach 3.8% in 2018 following 4.2% in 2017, according to the winter interim economic forecast issued on Thursday by the European Commission.

According to the forecast, GDP growth is expected to reach 3.3% in 2019 and 2.7% in 2020.

Meanwhile inflation is expected to be 0.8% for 2018, 0.7% for 2019 and 1.2% for 2020.

In 2019 and 2020, growth is projected to slow down to 3.3% and 2.7%, due to the less favourable external environment.

“Slowing growth in the euro area and persistent uncertainties in major trading partners weigh on Cyprus’ outlook and increase downside risks,” warns the European Commission.

According to the Commission, “Cyprus’ economy grew strongly in the first three quarters of 2018, although real GDP growth in the third quarter (3.7% y-o-y) was the lowest of the year” and “economic sentiment rebounded in the fourth quarter after a soft patch in the second and third”.

“The labour market continues to perform strongly,” the forecast reads, as employment increased by 3.7% (y-o-y) in 2018-Q3 and compensation per employee by 1.9% (compared to 0.7% in 2017). Survey data signalled that the construction sector continued hiring in the fourth quarter.

But the report states that “despite rising household income, consumer confidence dipped, influenced by the sale and winding down of the Cyprus Cooperative Bank. The bank was the second largest in the country and held many household and SMEs deposits”.

According to the Commission, “employment gains and higher wages are expected to boost disposable income and to support private consumption”.

Public consumption is also expected to grow “amid rising wages and employment in the public sector”. Investment should make a “positive contribution in 2019 on the back of strong construction activity,” the report said.

Finally, inflationary pressures remain very weak. Consumer price inflation stood at 0.8% in 2018, only marginally higher than a year before. Inflation accelerated in the second half of the year, driven by energy and unprocessed food prices. Core inflation throughout 2018 fluctuated around zero, as moderately higher prices of services were offset by falling prices of non-energy industrial goods.

Over the coming quarters, two opposing forces will be at play: rising disposable income, which will fuel price pressures; and lower oil prices, which will dampen them. Overall, headline inflation is expected to ease to 0.7% in 2019. As the impact of lower oil prices fades, inflation should pick up moderately in 2020 to 1.2%.

Source: CyprusMail

Οι επιχειρηματίες ανάπτυξης γης αντιμετωπίζουν θετικά την εισήγηση της κυβέρνησης να καταβάλλεται ποσό €80 χιλ. για κάθε διαβατήριο που εκδίδεται σε επενδυτές αλλά διαφωνούν με την προτεινόμενη αύξηση του ποσού της ελάχιστης επένδυσης.

Εν μέσω της διεθνούς κριτικής που ασκείται στην Κύπρο για το σχέδιο πολιτογράφησης επενδυτών, οι επιχειρηματίες είχαν χθες συνάντηση με τους υπουργούς οικονομικών Χάρη Γεωργιάδη και εσωτερικών Κωνσταντίνο Πετρίδη, ώστε να εξετάσουν τις κυβερνητικές προτάσεις για τροποποίηση του σχεδίου.

Σε δηλώσεις στη StockWatch ο πρόεδρος του συνδέσμου μεγάλων αναπτύξεων Ανδρέας Δημητριάδης ανέφερε ότι τη Δευτέρα απέστειλαν γραπτώς τις θέσεις τους προς τους δυο υπουργούς και χθες πραγματοποιήθηκε σύσκεψη για να αναλύσουν τα σημεία στα οποία διαφωνούν.

Εξήγησε ότι τα κύρια σημεία τα οποία εγείρονται είναι κατ’ αρχήν η αύξηση του ποσού της επένδυσης στα €2,5 εκ. όπως εισηγείται η κυβέρνηση.  Είπε ότι πάνω στο ποσό των €2 εκ. που ισχύει σήμερα προστίθεται άλλο μισό εκατομμύριο που σχετίζεται με το ΦΠΑ και διάφορα αλλά έξοδα.

Ανέφερε ότι «εάν κάποιος αγοράσει επενδυτικό ταμείο ή μετοχές δεν θα του επιβληθεί ΦΠΑ ενώ στον τομέα των κατασκευών θα έχει 19% ΦΠΑ, άρα τα €2 εκ. αυξάνονται ακόμη κατά €380 χιλ.  Αν αυξηθεί το ποσό της επένδυσης στα €2,5 εκ. τότε το ποσό πλησιάζει ουσιαστικά τα τρία εκατομμύρια».

Η δική μας εισήγηση, σημείωσε ο κ. Δημητριάδης, είναι να παραμείνει η επένδυση έναντι παραχώρησης διαβατήριου στα €2 εκ.

«Οι επιχειρηματίες δεν φέρουν ένσταση στην καταβολή ενός ποσού για το ταμείο του κράτους για την προσιτή ή κοινωνική κατοικία. Δεν τοποθετούνται όμως στο θέμα του ύψους του ποσού των €70 εκ. το οποίο θα διατεθεί για την έρευνα και την καινοτομία. Θεωρούμε εντούτοις υπερβολικά ψηλό το ποσό ενώ ελλοχεύει και ο κίνδυνος να οδηγήσει σε διαφθορά και διασπάθιση χρήματος».

Ο κ. Δημητριάδης διευκρίνισε ακόμη ότι οι επιχειρηματίες είναι διατεθειμένοι να πληρώνουν €80.000 για κάθε αίτηση στο ταμείο του κράτους το οποίο να διατίθεται όπως επιθυμεί ανάλογα με τις ανάγκες.

Όσον αφορά το μέτρο που εισηγείται η ΕΕ και η κυβέρνηση, σύμφωνα με το οποίο ο επενδυτής που θα υποβάλει αίτηση για την εξασφάλιση κυπριακής υπηκοότητας αν δεν μπορέσει να εξασφαλίσει Schengen Visa αυτόματα να απορρίπτεται στην Κύπρο, οι επιχειρηματίες, γενικώς, συμφωνούν.

Παράλληλα προτείνουν προς τους δύο υπουργούς να διαφοροποιήσουν το μέτρο που εισηγούνται για τις εγγυήσεις διότι εξέφρασαν την εκτίμηση ότι δεν θα δουλέψει και εξήγησε τους λόγους.

Η κυπριακή κυβέρνηση υπολογίζει ότι μπήκαν στην οικονομία γύρω στα €5 δισ. τα τελευταία χρόνια από το σχέδιο και, παρά την κριτική, ευελπιστεί να το διατηρήσει με αλλαγές που να διασφαλίζουν την ποιότητα των επενδυτών.

Στο πρόσφατο παρελθόν η Κύπρος κατηγορήθηκε ότι παραχώρησε διαβατήρια σε άτομα που διώκονται ποινικά από τις χώρες τους.

Source: Stockwatch

Την ανάγκη αλλαγών στο σχέδιο πολιτογραφήσεων ξένων επενδυτών ώστε να τερματιστεί η στόχευση επενδύσεων στον τομέα κατασκευών εισηγούνται οικονομολόγοι, επικρίνοντας τη μονόπλευρη και ευκαιριακή ανάπτυξη που τροφοδοτεί το υφιστάμενο σχέδιο.

Εν αναμονή της οριστικοποίησης των αλλαγών από την κυβέρνηση για το σχέδιο πολιτογραφήσεων μετά την κατσάδα της Ευρωπαϊκής Επιτροπής, οικονομολόγοι κακίζουν την υφιστάμενη κατάσταση και σημειώνουν την ανάγκη αλλαγών που διασφαλίζουν τη διοχέτευση πόρων σε παραγωγικούς τομείς της οικονομίας.

«Θα πρέπει να σταματήσει η στόχευση των επενδύσεων στον τομέα των κατασκευών επειδή αυτό αποτελεί μη παραγωγική επένδυση και ο τομέας αυτός (ανά το παγκόσμιο) είναι επιρρεπής στη δημιουργία φούσκας», αναφέρει ο καθηγητής οικονομικών στο Πανεπιστήμιο Κύπρου Μάριος Ζαχαριάδης.

 «Θα πρέπει πλέον να γίνει πιο δίκαιο ως προς το ποιος επωφελείται από αυτό και με βάση το γεγονός ότι το κυπριακό διαβατήριο είναι δημόσιος πλούτος και τα κέρδη από αυτό θα πρέπει να διαμοιράζοντα ισόποσα στην κοινωνία. Π.χ. θα μπορούσε να γίνεται απευθείας πληρωμή ενός σεβαστού ποσού στο κυπριακό κράτος για απόκτηση διαβατηρίων και αυτό να χρησιμοποιείται αποκλειστικά για αποπληρωμή δημοσίου χρέους το οποίο θα είναι επωφελές για τον μέσο κύπριο φορολογούμενο. Επίσης θα μπορούσε να δίνονται διαβατήρια μόνο μετά από αγορά κυπριακού χρέους, κάτι που επίσης θα ήταν επωφελές για τον μέσο κύπριο φορολογούμενο», σημειώνει.

 «Τα πιο πάνω θα βοηθούσαν να αλλάξει η αντίληψη των ξένων ότι το υπάρχον είναι ένα πρόγραμμα φτιαγμένο για μια μικρή ομάδα κατασκευαστών, επαγγελματιών, κομματικών και άλλων (φίλων και συγγενών) οι οποίοι έχουν πρόσβαση στην εκτελεστική και νομοθετική εξουσία. Αυτό κάνει τεράστια ζημιά στην υπόσταση του αρχηγού του κράτους και του ίδιου του κυπριακού κράτους», αναφέρει χαρακτηριστικά ο κ. Ζαχαριάδης.

Σύμφωνα με τον κ. Ζαχαριάδη, οι επενδύσεις που απαιτούνται θα πρέπει να είναι παραγωγικής φύσης και να έχουν πιο μεγάλο χρονικό ορίζοντα, πιο κοντά στα 10 έτη καθώς αυτό θα δημιουργούσε και μια πιο μακροπρόθεσμη σχέση του επενδυτή με την Κύπρο.

Προσθέτει ότι θα πρέπει να απαιτείται πλέον μερική διαμονή στην Κύπρο ενώ θα πρέπει να αυξηθεί ο βαθμός διαφάνειας του προγράμματος, για σκοπούς ασφάλειας αλλά και επειδή η έλλειψη διαφάνειας εκλαμβάνεται ως προσπάθεια μιας μικρής ομάδας ανθρώπων να συνεχίσουν να επωφελούνται από υπερκέρδη.

Οι οικονομολόγοι ζητούν και περισσότερους ελέγχους. «Θα πρέπει να βελτιωθούν οι έλεγχοι έτσι ώστε να μην υπάρχει το δικαίωμα της αμφιβολίας (benefit of the doubt) για αιτούντες διαβατηρίων. Δηλαδή, αν δεν μπορούν να αποδείξουν ότι η περιουσία τους έχει προέλθει από νόμιμες πηγές να μην εγκρίνεται η αίτηση τους. Η ζημιά στη φήμη του κράτους από τυχόν παραλείψεις βλάπτει όλους μας και δεν μπορεί να είναι ελαστικό το κράτος με τους έλεγχους προς όφελος μιας μικρής ομάδας ανθρώπων», σημειώνει ο κ. Ζαχαριάδης.

Ο καθηγητής οικονομικών στο Πανεπιστήμιο Κύπρου Σωφρόνης Κληρίδης αναφέρει ότι ένα σχέδιο προσέλκυσης επενδύσεων πρέπει να στοχεύει επενδύσεις που θα αυξήσουν την παραγωγικότητα και τις παραγωγικές δυνατότητες της οικονομίας και θα έχουν μακροπρόθεσμα οφέλη με ευρύ κοινωνικό αντίκτυπο.

«Οι επενδύσεις σε ακίνητα δεν πληρούν αυτές τις προϋποθέσεις: Δεν είναι παραγωγικές επενδύσεις και τα οφέλη τους είναι βραχυπρόθεσμα και συγκεντρωμένα σε ένα μικρό κομμάτι της κοινωνίας. Ουσιαστικά χρησιμοποιείται δημόσιος πλούτος για να επωφελούνται μερικές επιχειρήσεις ανάπτυξης γης και κάποιοι μεσάζοντες», σημειώνει.

Σύμφωνα με τον κ. Κληρίδη, ο έλεγχος δέουσας επιμέλειας πρέπει να γίνεται από ανεξάρτητο οίκο και πολιτικά εκτεθειμένα πρόσωπα δεν πρέπει να δραστηριοποιούνται ως πάροχοι υπηρεσιών για τους σκοπούς του σχεδίου. 

«Η διαχείριση του σχεδίου είναι καλύτερα να γίνεται από ανεξάρτητη, εξειδικευμένη αρχή η οποία να προσφέρει υπηρεσίες στους επενδυτές ούτως ώστε να περιοριστεί η ανάγκη καταφυγής σε μεσάζοντες. Η αρχή αυτή θα πρέπει να λογοδοτεί για τα πεπραγμένα της παρέχοντας στοιχεία για το πρόγραμμα και τους αιτούντες. Η διαφάνεια είναι η καλύτερη απάντηση στην κριτική», επισημαίνει, προσθέτοντας ότι θα πρέπει να μπουν πολύ πιο αυστηροί περιορισμοί στη διαφήμιση του σχεδίου και να επιβάλλονται αυστηρές ποινές στους παραβάτες.

Ο αναπληρωτής καθηγητής στο τμήμα λογιστικής και χρηματοοικονομικής του Πανεπιστημίου Κύπρου Ανδρέας Μιλιδώνης συμφωνώντας με τις πλείστες επισημάνσεις αναφέρει ότι σαν θέμα αρχής, τα διαβατήρια πρέπει να «κερδίζονται» και όχι απλά να «αγοράζονται».

Ο κ. Μηλιδώνης τάσσεται υπέρ της έμμεσης φορολογίας προς αποπληρωμή του δημόσιου χρέους και επενδύσεων σε μακροπρόθεσμο ορίζοντα σε όσο το δυνατόν περισσότερους και βιώσιμους τομείς της οικονομίας. «Είναι σημαντικό επίσης να αποκαταστήσουμε το όνομα της χώρας μας, αφού έχει άμεσο αντίκτυπο και στον εγχώριο τραπεζικό τομέα», σημειώνει.

Τη σύσταση Ειδικού Ταμείου μέσω του οποίου τα έσοδα από το Κυπριακό Πρόγραμμα Επενδύσεων (ΚΠΕ) θα διοχετεύονται, με στοχευμένες επενδύσεις, σε τομείς αιχμής έρευνας, καινοτομίας και ανάπτυξης, καθώς και σε επενδύσεις με μακροχρόνιο αναπτυξιακό χαρακτήρα, εισηγείται, μεταξύ άλλων και το Συμβούλιο Οικονομίας και Ανταγωνιστικότητας προς την κυβέρνηση.

Source: Stockwatch

The property market in Cyprus follows an upward trend following a deep decline in recent years due to a financial crisis.

The Chairman of the Real Estate Registry Board, Marinos Kineyirou, said that in the last two years there has been an increase in real estate sales, while the prices of houses and apartments for sale began to gradually increase. 

According to Mr. Kineyirou, on average, the purchase price for a detached house in Nicosia amounts to 330 thousand euros, while the price for an apartment purchase starts from 100 thousand euros and reaches 200 thousand euros. 

Prices in Larnaca for apartment purchase start from 60 thousand euros and reach 130 thousand euros. When the property is near the sea, the price may well exceed one million euros. As far as houses in Larnaca are concerned, market prices range around 280 thousand euros.

Higher property prices are recorded in Limassol. On average, the price for an apartment purchase starts from 110 thousand euros and reaches up to 220 thousand euros. To purchase a detached house around 330 thousand euros, while for an apartment or a detached house near the sea, the price exceeds in some cases 5 million euros. 

In Paphos, the prices for buying a house are around 280 thousand euros and for an apartment purchase, 60 thousand euros up to 130 thousand euros. 

In the area of Famagusta, the prices for real estate market are at the same level as Paphos and Larnaca.

Source: RIK

Cyprus President Nicos Anastasiades congratulated on Wednesday the Prime Minister of Greece Alexis Tsipras "for his courage and determination" as regards the Prespes Agreement, noting that the ratification of the Agreement terminated an unnecessary conflict.

Welcoming Tsipras, with whom he held talks at the Presidential Palace, Anastasiades noted that the ratification of the Prespes Agreement opens the doors for cooperation and the road for peace and stability in the Balkans, creating prospects for a balanced and stable relation with Northern Macedonia, something which will allow a closer financial cooperation and the creation of a new environment.

Anastasiades said that their meeting was held in the framework of their very close cooperation with a view to examine the latest developments in the Cyprus problem ahead of the forthcoming visit of the UNSG’s envoy on Cyprus Jane Holl Lute to the island and the meeting sipras will have on February 5 with the President of Turkey Recep Tayyip Erdogan.

He stressed that the aim is to achieve a settlement of the Cyprus problem which will allow peaceful co-existence and stability and will fully abide by the European principles and values and the international law, so that the functionality, the viability and the compatibility of the settlement with the international law and the EU acquis will be ensured.

On his part, the Prime Minister of Greece referring to the Prespes Agreement  noted that a historic step was made and that they solved a conflict which went on for decades “in the best possible way for our national interests.”

Moreover, he noted that “we enhanced the credibility of Greece before the international public opinion and the international community.”

He said that when a country acts according to the international law and proves that it can make honest compromises on the basis of the international law, it clearly shows that it wants to solve the major issues that it has to address. 

“This is an important development and I think that it will help our effort to pursue  a just and viable solution of the Cyprus problem in the framework of the international community, the UN,” he added.

Moreover, he thanked Anastasiades for hosting on Tuesday the 5th Summit of the Southern EU Countries, noting that unity and coordination among the countries of the European south is very important for Europe.

He noted that “our region is unfortunately particularly destabilized and Cyprus together with Greece and all the other EU countries has proved  that it is fighting for stability, it constitutes a pillar of stability.”

Tsipras expressed strong support to the peaceful settlement of conflicts and to cooperation among countries, noting that these messages were sent out by the Summit of the Southern EU Countries on Tuesday, in the best possible way.

On his part, Anastasiades wished Greece all the best and noted Tsipras’ efforts for the ratification of the Prespes Agreement, adding that when there is courage, pragmatism and dialogue then there are prospects to terminate unjustified conflicts.

He said that the agreement reflects not only the determination, but also secures the prospects for excellent relations and cooperation, adding that cooperation already exists.

The President said he looked forward to their talks to coordinate in the best possible way and to look into ways for the resumption of the Cyprus talks, with prospects for a settlement of the Cyprus problem.

After their private meetings, Anastasiades and Tsipras presided over expanded talks between the two sides that were attended by the Ministers of Foreign Affairs and Defence of Cyprus, Nikos Christodoulides and Savvas Angelides, and the Greek National Defence Minister Evangelos Apostolakis.

Cyprus has been divided since 1974, when Turkish troops invaded and occupied 37% of its territory.

Source: Stockwatch

Release of funds to subsidise nonperforming mortgage loan repayments is credit positive for Cyprus' banks, according to Moody’s rating agency.

On 21 January, Cyprus' parliament, through its finance committee, approved the release of €33 million (0.2% of Cyprus' GDP) to fund this year’s cost of Estia, a new government-sponsored subsidy scheme which aims to address nonperforming exposures (NPEs) backed by primary residences.

“The scheme's finalisation is credit positive for Cypriot banks because it will help reduce their high burden of NPEs and facilitate the resolution of a more troublesome segment of their problem loans”, the agency states in it’s weekly outlook.

Estia seeks to encourage distressed borrowers to start servicing their primary residence mortgages, subject to certain eligibility criteria such as income, wealth and property value. The criteria have been tightened to ensure that the scheme targets borrowers who are unable to repay their mortgages and excludes strategic defaulters.

The criteria include that loans must be secured by a primary residence with an open market value of less than €350,000; at least 20% of the borrower’s total credit obligations is past due for more than 90 days as of September 2017; annual gross income does not exceed certain thresholds, depending on the number of dependants, ranging from €20,000 for single people to €60,000 for families with at least four dependents; and that household net wealth, excluding the primary residence and associated loan, should not exceed 80% of the primary residence's open market value, with a cap set at €250,000.

The scheme aims to reduce outstanding principal, reduce the interest rate on loans and extend repayment. Eligible loans will be restructured to the contractual amount owed and secured by a primary residence or the open market value of the primary residence, whichever is lower. Eligible borrowers will then pay two-thirds of the installment on the restructured loan, with the government subsidising the remaining one-third. For borrowers who default during the repayment period, the subsidy will cease and the bank will initiate a foreclosure procedure.

Estia is a one-off initiative that is available to all Cypriot banks and other financial institutions, including credit-acquiring companies.

According to the authorities, gross mortgages of €3.4 billion are potentially eligible under the scheme. As a result, all Cypriot banks will benefit from the scheme's introduction, including Bank of Cyprus Public Company Limited (B3 positive, caa11) and Hellenic Bank Public Company Ltd. (B3 positive, caa1).

Bank of Cyprus will benefit most because it has gross mortgage NPEs of €900 million identified as potentially eligible under the scheme, based on the bank's available data, out of a total €5.0 billion of NPEs. If all its eligible loans are regularised, its NPE ratio would fall to 30% from 37% as of September 20182. Hellenic Bank's preliminary estimates indicate that €260 million of its €2.5 billion of

NPEs would be eligible under scheme, and its NPE ratio would fall to 28% from 31% as of September 20183 if all its eligible loans are regularised.The remaining balance of around €2.2 billion mainly relates to mortgages of the now-resolved Cyprus Cooperative Bank Ltd. that were transferred to a residual asset management company.

According to the agency, the banks' asset quality metrics will take time to reflect the improvement because the restructured loans will need to be performing for a year before they can be reclassified as performing.

Estia will help banks resolve a difficult segment of their loan book, given that foreclosing on primary residences is socially sensitive in Cyprus. The scheme will go live once the government and the participating banks finalise the governing legal agreement. The application process is likely to begin in the coming weeks. As the exhibit below shows, residential mortgages account for a significant proportion of rated banks' NPEs. The scheme also sets clear guidelines for banks to pursue foreclosures of primary residences above a certain value.

Source: Stockwatch

Scattered showers are expected on Monday morning, while the light dust will clear quickly the met office said.

It said that there will be intervals of sunshine and cloud in the morning with scattered showers and the possibility of thunderstorms. Snow or sleet is expected in the higher mountain peaks.

In the afternoon the weather will become gradually mainly fine.

Temperatures will be 17 C inland and on the coasts and around 6 C in the mountains.

Tonight will be mainly fine, but increased cloud on the west and north coasts may lead to light scattered showers.

Temperatures tonight will fall to 5 C inland, around 10 C on the west coast, around 8 C on the remaining coasts and around 0 C in the mountains.

Tuesday will be partly cloudy and cloudy at intervals.  In the morning it will be mainly fine inland and in the east. Scattered light showers are expected. Temperatures will edge up particularly inland in the mountains, to above average for the time of year.

Wednesday will be partly cloudy and cloudy at internals, with scattered showers and isolated thunderstorms. Dust is possible, while there may be sleet in the mountains. Temperatures will drop slightly to close for average for the time of year.

Thursday will be partly cloudy and cloudy at intervals, with scattered showers and isolated thunderstorms and snowfall in the mountains. Temperatures will remain close to average for the time of year.

There is 54 cm of snow in Troodos Square.

Source: InCyprus

Moody’s Investors Service on Thursday said it had upgraded Bank of Cyprus and Hellenic Bank long-term deposit ratings to B3 from Caa1, and their long-term Counterparty Risk Ratings (CRRs) to B1 from B2.

At the same time, Hellenic Bank’s baseline credit assessment (BCA) and adjusted BCA were upgraded to caa1 from caa2, and its long-term Counterparty Risk Assessment (CRA) to B1(cr) from B2(cr).The outlook on both banks’ long-term deposit ratings is positive. All other ratings and assessments of the two banks have been affirmed at their current level, it said.The rating action concludes the review for upgrade on Hellenic bank’s ratings that was initiated on 13 July 2018. The upgrade of Bank of Cyprus’ ratings is driven by changes in the bank’s liability structure. In particular, the issuance of €220 million of  Additional Tier 1 (AT1) securities in December 2018, enhances the buffers  that are available to protect depositors and non-debt counterparty financial liabilities captured by the CRR.

The upgrade of Hellenic Bank captures its strengthened franchise, asset  quality and capital following (1) the integration of EUR9.3 billion of  predominantly performing assets and liabilities, mainly deposits, acquired in the summer from the now resolved Cyprus Cooperative Bank Ltd (CCB), and (2) a capital increase of €150 million, for which the bank  has already received binding commitments and which will be completed in the first quarter of 2019. Hellenic Bank’s deposit ratings continue to benefit from one notch of rating uplift following the acquisition of, predominantly, retail deposits and the application of Moody’s advanced  Loss Given Failure (LGF) analysis.

“For both banks the positive outlook assigned reflects Moody’s expectations of further improvements in the banks’ financial fundamentals, mainly asset quality over the next 12-18 months, in the context of an improved operating environment in Cyprus,” it said.

The rating actions incorporate the improvements in the operating environment which have prompted the rating agency to raise the Macro  Profile for banks operating in Cyprus by one notch to “Weak+”, from “Weak”.

The rating agency expects strong growth trends with a 3.7 per cent growth in real GDP for 2019, a rate significantly above the average forecast for euro area countries of 1.8%, and a continued decline in unemployment that stood at 9.2 per cent as of November 2018.

£Cyprus has registered one of the sharpest declines in unemployment amongst EU countries since 2013. The improvements in economic conditions raise loan demand by local businesses and households, strengthen repayment capacity, and support asset values benefiting banks’ revenues and bad loan recoveries,” Moody’s said.

Source: CyprusMail

British ferry and shipping freight operator P&O will shift the registration of its UK vessels to Cyprus ahead of Britain’s departure from the European Union, in part to keep its tax arrangements in the bloc, the company confirmed on Tuesday.

P&O currently has six UK-registered ships operating on the English Channel route to France, although it announced last month it was moving two of those to the Cyprus registry and one has already been transferred.

All commercial ships have to be registered, or flagged, with a country partly to comply with safety and environmental regulations.

The move could complicate any attempts by the UK government to secure extra space on ships to help cope with potential disruption to trade if it fails to secure a negotiated departure from the EU.

“In advance of Britain leaving the European Union on March 29, 2019, we undertook a review of the flag status of our ships on the English Channel,” a P&O spokesman said in a statement.

“For operational and accounting reasons, we have concluded that the best course of action is to re-flag all ships to be under the Cyprus flag.”

The spokesman said Cyprus was among the world’s leading flag registries, “resulting in fewer inspections and delays”.

He added the move “will result in significantly more favourable tonnage tax arrangements as the ships will be flagged in an EU member state”.

“We have no plans to make any other changes, including the terms and conditions of any of our seafarers, as a result of the new arrangements.”

Such a taxation system like the EU’s allows shipping companies to pay corporation tax based on the tonnage of their vessels rather than on profit.

Industry sources told Reuters in December that the UK government had made approaches to companies including P&O, to secure back-up vessels in case Britain failed to secure a negotiated withdrawal from the EU.

Since then, Britain has awarded contracts worth more than 100 million pounds ($129 million) in total to three shipping firms to provide extra ferries, comprising French firm Brittany Ferries, Denmark’s DFDS and a new British company Seaborne Freight.

When asked on Tuesday if P&O could provide space on ships if needed by the government, the company declined to comment.

Source: CyprusMail

Reflect Festival is the largest future casting festival between Southern Europe and the Middle East. For the second time, trendsetters, decision-makers, pioneers and challengers of our time will come and challenge the status quo of our current age and present possibilities the future will bring in the fields of AI, health & wellbeing, philosophy/mindset, cities, travel, art & design, money and impact.

In May 2019, over 1000 attendees – entrepreneurs, managers, innovators, students, future enthusiasts will meet in Limassol, Cyprus together with 60 speakers from over 30 countries to get inspired and think beyond today.

Among the notable speakers of Reflect, the Founder of Aeromobil, a pioneer flying-car company, the first human Android citizen Sophia, one of the early investors at Spotify, the Head of AI at Adobe, the Founder & CEO of Jungle Creations, the CEO at JIVR, an electric folding bike brand, the Business Development Manager at NVIDIA and many more world innovators will join festival. For more speakers check out www.reflectfest.com.

Reflect will take place at Carob Mill, located in the heart of Limassol, next to the Limassol medieval castle. The area is surrounded by restaurants, bars and cafes and is next to the Limassol marina and the lively old port square.

Be part of the festival where the history of the future is being shared!

You can find more information about tickets  and speakers on www.reflectfest.com. The list of speakers will continue to grow and new key people will be added soon.

Source: CyprusBeat