The council of ministers decided on Monday to limit the number of naturalisations of investors to 700 a year, starting this year.

The citizenship-by-investment scheme will also be renamed the “Cypriot Investment Scheme”, the Press and Information Office (PIO) said in an announcement after the cabinet meeting.

Every application will also be subjected to an enhanced due diligence, the PIO said, after the cabinet meeting.

Applicants, who will foot the bill for the enhanced due diligence process, will have to wait up to six months for their applications to be examined.

“A code of conduct has been adopted with clear provisions to avoid exaggerations and abusive practices,” it said. While investors have to remain owners of their investment for a minimum three-year period, in the case of buyers of real estate, the period now begins with the issue of a town planning permit.

The government’s golden visa scheme introduced in the current form in 2014 and amended on a number of occasions thereafter, allows investors to receive Cypriot citizenship for an investment of as little as €2m.

In 2017, the government issued 503 passports to an equal number of investors and 510 additional passports to members of their respective families, compared to 443 and 461 in 2016, 337 and 342 in 2015, and 214 and 186 in 2014.

In March, the European Commission said that it would investigate golden visa schemes of member states and prepare a report amid complaints that such schemes were vulnerable to abuse, undermined the fight against corruption and increased the risk of money laundering.

Source: CyprusMail

The number of building permits for the construction of new homes in Cyprus rose 12.5 per cent in February 2018 compared to February 2017 providing for the construction of 431 new homes.

Compared to February 2017 the total value of these permits rose by 35.3% to reach €213.2 million, their total area rose by 27.7% to reach 207.8 thousand square metres and provided for the construction of 431 new homes. During February 2018, building permits were issued for:

Residential buildings – 334 permits

Community buildings – 2 permits

Non-residential buildings – 88 permits

Civil engineering projects – 11 permits

Division of plots of land – 35 permits Road construction – 11 permits

Building permits for new homes

The 334 residential building permits approved in February provided for the construction of 431 new homes (dwellings). These comprised 256 single houses (compared with 255 in February 2017) and 78 multiple housing units such as apartments, semis, townhouses and other residential complexes (compared with 63 in February 2017); a rise of 12.5%. Of those 431 new homes, 183 are destined for Nicosia, 138 for Limassol, 62 for Larnaca, 33 for Paphos, and 15 for Famagusta.

According to the Cyprus Statistical Service, building permits constitute a leading indicator of future activity in the construction sector.

Source: Cyprus Property News

Tourist arrivals for the period of January-April 2018 totaled 683.581 compared to 572.024 in the corresponding period of 2017, recording an increase of 19,5% and outnumbering the total arrivals ever recorded in Cyprus during the first four months of the year, according to data released on Thursday by the Statistical Service.

According to the figures on the basis of the results of the Passengers Survey, arrivals of tourists reached 314.143 in April 2018 compared to 286.331 in April 2017, recording an increase of 9,7%. April 2018 had the highest volume of tourist arrivals ever recorded in Cyprus during the specific month.

Tourist arrivals from the United Kingdom increased by 4,1% in April 2018 compared to April 2017 while an increase of 4,3% was recorded for tourists from Russia. Increases were also recorded from other important tourist markets, such as Greece (25,1%) and Sweden (42,9%). A decrease of 17,5% in tourist arrivals from Germany and 21,4% decrease from Israel were recorded.
 
The Statistical Service says that the United Kingdom constitutes the main source of tourism for Cyprus for April 2018, with a proportion of 35,2% while arrivals from Russia comprise 15,6% of total arrivals, from Greece 6,5% and from Germany 6,3%.

For a percentage of 80,4% of tourists, the purpose of their trip in April 2018 was holidays, for 11,9% visit to friends and relatives and for 7,7% business.

The Statistical Service also announced on Thursday that on the basis of the results of the Passengers Survey, 113.477 residents of Cyprus returned from a trip abroad in April 2018 compared to 117.178 in the corresponding month last year, recording a decrease of 3,2%.

In April 2018 there was an increase of 1,0% in the trips of residents to Greece (42.655 in April 2018 compared to 42.218 in April 2017) and a decrease of 36,7% in the trips of residents to the United Kingdom (13.864 compared to 21.886 last year).

Source: Stockwatch

SOMETHING is changing in Larnaca with many projects underway both of the public as well as the private sector. What is noticeable is the “renovation” of the old city extending from the coastal line up to Gregoris Afxentiou avenue and from Makenzy beach to the gas installations.

At long last, there are a couple of potential suiters for the Larnaca port/marina, but there are problems requiring the Larnaca operator to pay some sort of compensation to the Limassol port operator. We understand that this is not a large amount, but rather than losing the long-awaited foreign investors, better that the government undertake the burden (estimated to be around €100.000 p.a.).

There are six new small boutique hotels recently erected, which coupled with the Ayios Lazaros square and the renovation of old buildings and including the new Municipal market will add to the old town’s popularity.

The troubled Phoenicoudes hotel and shopping center seems to have its problems on the way to being resolved but it is a project that even when the legal tangles between the investor and Municipality are over its operation/completion will not become true prior to the lapse of four years.

The Radisson Blu hotel and the new skyscraper at Makarios Avenue across the road from the marina will add an air of glamour to the town, as well the other projects at the Makenzy fishing harbour that are now underway.

Makenzy beach is still in a mess regarding the legal occupation issues, but notwithstanding these, it is becoming more and more popular both with tourists and Nicosia families.

The Larnaca Shopping Mall is also under consideration/expecting permits and this will also help to add a cosmopolitan development for both Larnaca and the suburbs.

The recent decision to remove the fuel storage tanks is a major issue for the town. We understand that the extended beach area will be (should be) zoned for high rise office and apartment developments which are nowhere to be found in the seaside area of the town. A lot of work is required and nothing is likely to come to fruition earlier than five to six years.

The town has not become the subject of high end sales and demand for real estate is forthcoming mainly from the lower end budgets, mainly apartments in the region of €100,000-€250,000 forthcoming mainly from the Lebanese/Libyan nationals, whereas Nicosia buyers show now an interest for units near the beach. Demand is also being shown for residential plots with a high building density (over 140%) for apartment development.

There are many ifs and buts regarding Larnaca’s development but at least it is moving in the right direction. It seems new Mayor Andreas Vyras has the prerequisites for good management and success as long as he can ‘deliver’.

Let’s keep our fingers crossed.

The European Central Bank (ECB) has welcomed a bill which sets out to amend the legislation of the Cyprus Central Bank clarifying the division of competences between its decision-making bodies.
 
The ECB’s opinion, dated May 11, says the draft bill was submitted by the Cypriot government to it for its opinion in February noting that it “reorganises the governance of the CBC with a view to rendering it more efficient and effective.”
 
According to the explanatory memorandum, the opinion notes, “the draft law establishes a new decision-making body, the executive committee, comprised of the governor, the deputy governor and two executive directors.”
 
The ECB “welcomes the amendments introduced into the CBC Law clarifying the division of competences between the decision-making bodies of the CBC, in line with past ECB opinions on the CBC’s governance,” it points out.
 
The composition of the board of directors remains as it is, consisting of the governor, the deputy governor, two executive directors and five non-executive directors, it adds.
 
The draft bill abolishes the article of the key legislation on the Cyprus Central Bank which concentrates competencies on the governor.
 
It further “replaces the section on the tasks of the governor and provides that the governor participates ex officio, as an independent personality, in the Governing Council and the General Council of the ECB and represents the Cyprus Central Bank in its relations with external persons, including the Cypriot government and in legal proceedings to which the CBC is a party”
 
He or she also “signs any contracts concluded by the CBC, its annual reports, financial statements and other documents on behalf of the CBC.”
 
It is also added that “the governor will chair the meetings of the board of directors and the executive committee and will have the casting vote.”
 
“Under the draft law the governor will no longer be responsible for the tasks of implementing the CBC’s policy; managing and controlling the CBC’s business; appointing, suspending or dismissing CBC employees; carrying out the tasks and powers granted to the CBC by virtue of the Treaty and the Statute of the ESCB; and overseeing the payment, clearing and settlement systems,” the ECB opinion says.
 
It continues noting that “the provision granting the governor the power to take decisions as to the issuing of licenses to credit institutions and the carrying out of the business of credit institutions is also removed from the CBC Law.”
 
In addition, the draft law introduces a new provision stating that without prejudice to the provisions of Article 10.2 of the Statute of the ESCB, the Governor may appoint an alternate as a member of the Governing Council of the ECB.
 
The draft text also “introduces a fit and proper criterion to the eligibility criteria for the appointment of the CBC’s executive and non-executive directors.”
 
According to the new procedure for the appointment of the CBC’s directors, “the Cypriot Council of Ministers appoints the directors following receipt of a formal reasoned opinion by a newly-established independent selection committee.”
 
“This selection committee will be comprised of three members appointed by the Council of Ministers for a term of five years and will have the mandate of identifying at least three eligible and qualified candidates for every vacancy.”
 
“Directors are appointed for a period of five years and may be re-appointed for one additional term of office, provided that the term of office for three of the five members appointed for the first time after the entry into force of the draft law would be three years and the term of office of two members would be four years,” the opinion says.
 
“The draft law provides for an automatic recapitalisation of the CBC whenever the CBC’s net equity falls below the level of the CBC’s capital provided in the CBC Law,” it adds.
 
“Under the draft law, the level of CBC’s capital will be raised from €30 million to €90 million,” it notes.
 
The ECB “understands that under Article 119 of the Constitution of the Republic of Cyprus the governor is responsible for the management of the CBC and exercises all powers and performs all functions and duties within the scope of the CBC’s competences, assisted by the deputy governor.”
 
It adds that it “therefore understands that given that the draft law confers on the executive committee all ESCB-related competences and on the board of directors all residual competences, the draft law and Article 119 of the Constitution may need to be aligned.”
 
“In such an event, the ECB would like to remind the consulting authority of the obligation to consult the ECB on any relevant draft legislation,” it points out.

Source: Stockwatch

A groundbreaking ceremony for Cyprus’ new casino-resort will be held on June 8, according to the Melco Resorts and Entertainment CEO Lawrence Ho.

At a presentation of their new casino Morpheus for Cypriot journalists visiting Macau, Ho said: “A week before the Morpheus opens we are going to have a ground breaking in Cyprus and even the temporary facility is due to open this summer.”

The island’s casino will be located in Limassol and is set to start operating in 2021. In the meantime a temporary facility is set to operate until works are completed on casino-resort to be named City of Dreams Mediterranean.

Ho told reporters that the revenue generated by the casino, estimated to bring in an additional 300,000 tourists a year, is expected to 4 per cent of Cyprus’ GDP.

“We are very happy and fortunate that we won the competitive bid for the licence in Cyprus,” he said.

The project is expected to cost €550 million and to create approximately 4,000 jobs annually during the construction period. When it is fully operational, the casino is expected to generate approximately 4,500 direct and indirect full time jobs.

Source: CyprusMail

The Cooperative Central Bank (CCB) announced on Monday it has received two bids as part of its privatisation process launched in March.
 
Sources told CNA, that Hellenic Bank, a Cypriot commercial bank and US assete Manager, Apollo Global Management, submitted binding offers, as the deadline for the submission of bids ended today.
 
“The Cyprus Cooperative Bank is pleased to confirm that it has received today two proposals from interested parties relating to a Strategic Transaction as per the Invitation for Expressions of Interest,” a press release issued by the CCB writes.
 
According to the press release, the proposals are now under review by the Bank’s senior management working closely with Citigroup Global Markets Limited as exclusive financial advisor to CCB.
 
“We anticipate that the Board of Directors will meet as part of that review to consider the proposals and will provide further information at the appropriate time,” the CCB adds.
 
Saddled with non-performing exposures (NPEs) amounting to €6.2 billion roughly 60% of its total loans and facing mounting capital needs due to new assumptions concerning the valuation of collateral connected with the its NPEs, the CCB on March 19launched a bidding process offering prospective investors with two options. Either to acquire the whole banking entity through a capital raise or to acquire performing part of the bank, that is, performing loans, deposits and part of its banking network.

Source: Stockwatch

The Expandables' Mia Parres explains how you can use natural light and the right furniture from Leon's to make the most out of your living and dining spaces.

After a week of hype and excitment in Cyprus over coming in as the bookies’ favourite to win the 63rd Eurovision Song Contest in Lisbon, Portugal on Saturday night Eleni Foureira despite an energetic performace of the song ‘Fuego’, failed to clinch first place in the popular show, coming in second to Israel.

Foureira garnered a total of 436 votes, 183 from the judges and 253 points from the public vote. It was the second highest public vote after Israel’s 373, which took its total to 529. Austria was third with 342 points in total.

‘Fuego’ took Cyprus the closest it’s every been to winning in the 35 years of participating in Eurovision.

At one point early in the country voting Foureira was in first place with a spate of 12 points coming from six countries, Belarus, Malta, Spain, Sweden, Ireland and of course, Greece. She received 10 points each from the Former Yugoslav Republic of Macedonia and from Albania, the Greek singer’s birthplace.

‘Fuego’ was written by Alex Papaconstantinou (better known as Alex P). A Spanish version of the song was also released on Friday.
Foureira appeared in the same sequined bodysuit as the semi-finals and again during her final chorus, flames shot from the stage.

Betting agencies were on Saturday still placing Foureira as the sure favourite to win. Bars hosted Eurovision parties in Larnaca, Nicosia, and Limassol while food outlets with delivery services did a roaring trade in takeaway specials for those who stayed home.

On Friday, the usually parsimonious Finance Minister Harris Georgiades said that he would open the state coffers if Foureira won.

Cyprus entered the Eurovision song contest for the first time in 1981 with Monika by Island, which came 6th, and has participated 34 times since. According to the official Eurovision website, “as of 2017, Cyprus held the record for the most times participating in the Eurovision Song Contest without winning”.

The best place Cyprus reached at the contest until Saturday night was fifth; in 1982 with Anna Vissi and the song ‘Mono I Agapi’, in 1997 with Hara and Andreas Constantinou with ‘Mana mou’ and in and 2004 with ‘Stronger Every Minute’, sung by Lisa Andreas.

Source: CyprusMail

Greece’s Eurobank and its subsidiary Eurobank Cyprus aspire to help their corporate customers in exploiting export opportunities by participating in the Trade Club Alliance, a strategic partnership with Spain’s Banco Santander, the Greek lender said.

“Cypriot and Greek enterprises acquire access to over 15,000 companies (or) customers through the Trade Club Alliance,” Eurobank said in an emailed statement on Friday, a day after the network was presented to the public at an event in Nicosia. Eurobank’s “Exportgate,” introduced five years ago, served as a model in developing the Trade Club Alliance.

By 2020, the number of participating companies is expected to rise to 100,000 resulting from the participation of 15 other bank groups from currently 10 operating in 40 countries, the bank added. Eurobank’s participation offers advantages to its customers as it links Cypriot and Greek companies to the largest and most credible global trade networks.

Currently, in addition to Santander and Eurobank, the Trade Club Alliance includes Nordea, KBC, Banco BPM, IBK, Attijariwafa, SCB-Siam Commercial Bank, Abu Dhabi Commercial Bank and Credit Agricole, it said. “By the end of 2018, the club is expected to have expanded to over 50 countries, covering a wide range of target markets, such as the US, Latin America, North and West Africa, China, Scandinavia and a significant number of European Union economies”.

Eurobank’s deputy managing director Stavros Ioannou said that the Greek lender will continue to support entrepreneurship as it did in the past, also in difficult times, in exploiting opportunities abroad.

“In the new, globalised environment, cooperation with partners such as Banco Santander, creates great opportunities and important prospects for Greek and Cypriot companies in playing a key role in economic recovery,” he said. “We consider companies as driving force of extroversion and we support them not just financially, but also with a number of initiatives so that they can benefit from being networked with powerful and credible partners”.

Michalis Louis, the top executive of Eurobank’s Cyprus subsidiary, said that initiatives such as the Trade Club Alliance, are in line with the group’s decision to offer its customers “upgraded services and products, adjusted to contemporary global market trends and trade”.

Lastly, the chairman of the Trade Club Alliance, and global head of non-financial services at Banco Santander, Jon Baranhano Gavinha, said that the two lenders share a common vision of offering support to companies by providing the means, the tools and services that will allow them to reach new markets.

Source: CyprusMail