Woolworth Properties Plc has agreed to sell three properties worth €44 million to Bank of Cyprus, the company said on Thursday in a filing with the Cyprus Stock Exchange.

The deal concerns the Shacolas Tower on Ledra Street, the Superhome Center (DIY) department store in Strovolos, and Debenhams Apollon in Limassol.

The properties are to be sold to the bank’s subsidiaries Ravenica Properties Ltd, Wiceco Properties Ltd and Arleta Properties Ltd.

According to Woolworth, the transfer of these properties will be completed within February.

The proceeds will go toward boosting the Group’s liquidity which will help implement new planned development projects as well as reduce its credit facilities and other obligations.

Based on the properties’ book value, the net accounting loss to the Woolworth Group will amount to approximately €5 million.

Source: CyprusMail

 Eni has made a lean gas discovery in Block 6 Offshore Cyprus with Calypso 1 NFW. The well, which was drilled in 2,074 meters of water depth reaching a final total depth of 3,827 meters, encountered an extended gas column in rocks of Miocene and Cretaceous age. The Cretaceous sequence has excellent reservoir characteristics.

An intensive and detailed data collection (fluids and rock samples) has been executed on the well. Calypso 1 is a promising gas discovery and confirms the extension of the “Zohr like” play in the Cyprus Exclusive Economic Zone (EEZ).

Additional studies will be carried out to assess the range of the gas volumes in place and define further exploration and appraisal operations.

Eni is the Operator of Block 6 with 50% of participation interest while Total is partner with the remaining 50%.

Eni has been present in Cyprus since 2013 and detains interests in six licenses located in the EEZ of Cyprus (in Blocks 2, 3, 6, 8, 9 and 11), five of which are operated.

Source: eni.com

Egypt on Wednesday warned Turkey against any infringement of its economic rights in the eastern Mediterranean under a maritime border demarcation agreement signed in 2013 with Cyprus that allows exploration for gas in the area.

The discovery of the massive Zohr gas field in 2015 has spurred a race for exploration in the eastern Mediterranean, an area that is believed to hold big natural gas deposits crucial for energy-hungry Europe.

Turkish Foreign Minister Mevlut Cavusoglu appeared to raise objections over the 2013 agreement when he announced that Turkey was planning to start exploration work in the eastern Mediterranean soon.

Cavusoglu accused Greek Cypriots of conducting “unilateral hydrocarbon activities in the eastern Mediterranean”.

He was speaking in an interview with Greek Kathimerini newspaper published on Sunday.

“Turkish Cypriots, as co-owners of the island, have inalienable rights to the natural resources around it,” he told the newspaper.

Turkey claims a part of Cyprus’ Exclusive Economic Zone (EEZ) as belonging to its continental shelf.

In addition, Ankara maintains that exploiting the island’s resources can only take place after a comprehensive settlement, where both communities can share in the wealth.

But Egypt’s Foreign Ministry spokesman Ahmed Abu Zeid warned on Wednesday against any attempt to contest the 2013 accord and said it had been deposited with the United Nations.

“Abu Zeid warned against any attempt to infringe or diminish Egypt’s rights in that area,” the statement said, adding that any such attempt “was rejected and would be confronted”.

Relations between Cairo and Ankara have been strained since then army chief Abdel-Fattah al-Sisi toppled President Mohamed Mursi of the Muslim Brotherhood in 2013 after mass protests against his rule.

Egypt has started production from the massive Zohr gas field, which was discovered by Italy’s Eni with an estimated 30 trillion cubic feet of gas.

ENI and Total may have also made a substantial gas discovery at their Calypso prospect in Cyprus’ offshore block 6, according to reports in the foreign press.

Israeli financial daily Globes reported on Monday that the Calypso field may contain an estimated 170-230 billion cubic metres – corresponding to between 6 and 8.1 trillion cubic feet (tcf).

By comparison, Cyprus’ Aphrodite prospect in block 12 holds an estimated 4.5 tcf of natural gas.

The Globes article comes on the back of statements made late last week by energy minister Giorgos Lakkotrypis, who hinted at a gas find in block 6.

Lakkotrypis had said the findings were encouraging, but that more time was needed for analysis in order to provide final confirmation.

But he did go on to suggest that an announcement from the companies could be imminent.

Citing unnamed Israeli energy sector sources, Globes said rumours of a gas discovery in Cyprus leaked as long as two weeks ago.

State broadcaster CyBC said the minister will announced the results on Thursday.

Source: CyprusMail

ENI and Total may have made a substantial gas discovery at their Calypso prospect in Cyprus’ offshore block 6, according to reports in the foreign press.

Israeli financial daily Globes has reported that the Calypso field may contain an estimated 170-230 billion cubic metres – corresponding to between 6 and 8.1 trillion cubic feet (tcf).

By comparison, the Aphrodite prospect in block 12 holds an estimated 4.5 tcf of natural gas.

The Globes article comes on the back of statements made late last week by energy minister Giorgos Lakkotrypis, who hinted at a gas find in block 6.

Lakkotrypis had said the findings were encouraging, but that more time was needed for analysis in order to provide final confirmation.

But he did go on to suggest that an announcement from the companies could be imminent.

Citing unnamed Israeli energy sector sources, Globes said rumours of a gas discovery in Cyprus leaked as long as two weeks ago.

But the same sources added that the reports “should be taken with a grain of salt, because Cyprus is currently in the middle of an election campaign”.

The Israeli news outlet stated that the Cypriot gas find, if confirmed, did not bode well for Israel’s export plans.

“At a time when there are still not enough contracts to develop the second stage of Leviathan, and it is unclear when export contracts will be signed, Cyprus is likely to become one of the main players in the natural gas market,” it reported.

The problem for Israel is the long lead time in developing and monetising gas reservoirs.

Globes drew a comparison between Israel’s Leviathan reservoir, discovered in 2010 and expected to begin supplying gas no sooner than 2020, and ENI’s Zohr find in Egypt, which the company was able to develop in two-and-a-half years.

It noted also that ENI is a partner in the Damietta liquefaction facility in Egypt, which is likely to make it even easier for Cyprus to export gas to Egypt.

Moreover, ENI and Total, operating in Cyprus, do not face financing challenges.

Daily Phileleftheros meanwhile reported that the mooted reservoir at Calypso may extend into adjacent blocks.

According to energy analyst Charles Ellinas, these reports are “somewhat strange”, given ENI’s strategy of not disclosing any information until there is final corroboration from an analysis of the drill cuttings.

He surmised that, whatever the results at Calypso are, an official announcement from the companies – who are bound by stock market rules – might take a little longer.

Regarding Globes’ concerns about Cypriot gas edging Israel out in the Egyptian market, Ellinas said he was unconvinced with this line of thinking.

“It is doubtful whether anyone – be it Cyprus or Israel – will export gas to Egypt, as Egypt is expected to become self-sufficient in its power needs by June or July this year,” he said.

That leaves the option of liquefying Cypriot gas at the Damietta plant for export to Europe.

But as things stand, the liquefaction surcharge would make Cypriot gas uncompetitive in European markets.

Source: CyprusMail

Building permits rose in January to November an annual 45 per cent in terms of construction area, to 1,354,786 square metres and 53 per cent in terms of budget to €1.6bn, the statistical service said.

The increase was mainly on a 43 per cent rise in the construction area of housing projects that received a building permit from local authorities in the first eleven months of 2017 to 1,063,650 compared to the respective period of 2016, Cystat said in a statement on its website on Tuesday. The overall value of housing projects rose 49 per cent to over €1.1bn.

Less than 30 per cent of the construction activity which received the go-ahead from the local administration is in Nicosia while that in Limassol makes up more than 37 per cent, Cystat said. Around 13 per cent of the projects are in Larnaca and Paphos each and 6.6 per cent in the Famagusta area.

The construction area of non-housing construction projects licensed by the local administration rose an annual 38 per cent to 225,238 square metres while their total value rose 41 per cent to €298.3m in January to November, Cystat said.

Source: CyprusMail

Banks in Britain and the United States have banned the use of credit cards to buy Bitcoin and other “cryptocurrencies”, fearing a plunge in their value will leave customers unable to repay their debts.

Lloyds Banking Group Plc, Britain’s biggest lender, said on Sunday it would ban its credit card customers from buying cryptocurrencies, following the lead of US banking giants JP Morgan Chase & Co and Citigroup.

The move is aimed at protecting customers from running up huge debts from buying virtual currencies on credit, if their values were to plummet, a Lloyds spokeswoman said.

Concerns have arisen among credit card providers because their customers have increasingly been using credit cards to fund accounts on online exchanges, which are then used to purchase the digital currencies.

However, other banks said on Monday they will continue to allow credit card customers to buy cryptocurrencies.

“We constantly review our protections for customers as a responsible bank and lender, and are keeping this matter under close review,” a spokeswoman for Barclays said.

“At present UK customers can use both their Barclays debit card and Barclaycard credit card to purchase cryptocurrency legitimately,” she said.

Spain’s second-biggest bank BBVA also said it has no restrictions in place on such purchases.

Last week Mastercard Inc, the world’s second biggest payments network, said customers buying cryptocurrencies with credit cards fuelled a 1 percentage point increase in overseas transaction volumes in the fourth quarter.

At that time Bitcoin was staging a spectacular rise in value, reaching a peak of $19,187 on Dec 16 on the Luxembourg-based Bitstamp exchange.

But the biggest and best-known cryptocurrency has since fallen dramatically and on Monday was down by 10 per cent to $7345 at 1608 GMT on Bitstamp, extending losses from Friday amid worries of a global regulatory clampdown.

CREDIT RISK

The decision on whether to allow credit card users to buy cryptocurrencies is a credit risk decision made by the card-issuing banks, a spokesman for Mastercard said.

A spokeswoman for Chase bank said it is not currently processing credit card purchases of cryptocurrencies because of the volatility and risk involved, while a Citi spokeswoman confirmed a similar ban, but did not give a reason.

The bans extends only to credit card purchases, with debit card users still able to buy cryptocurrencies.

“Across Lloyds Bank, Bank of Scotland, Halifax and MBNA, we do not accept credit card transactions involving the purchase of cryptocurrencies,” the Lloyds spokeswoman said in an email.

Lloyds did not say how it planned to enforce the ban, although the Telegraph newspaper reported on Sunday that its credit card customers will be blocked from buying Bitcoin online through a “blacklist” that will flag sellers.

A spokeswoman from the Royal Bank of Scotland declined to comment on the bank’s policy.

Europe’s biggest bank HSBC did not respond to requests for comment on whether it permits credit card purchases of cryptocurrencies.

Concerns about the use of Bitcoin and other such currencies extend beyond the use of credit cards for borrowing.

British Prime Minister Theresa May has said Britain should take a serious look at digital currencies such as Bitcoin because of the way they can be used by criminals

Source: CyprusMail

Nicos Anastasiades comfortably held on to the presidency on Sunday, winning a second five-year term with a 12 per cent lead over Akel-backed Stavros Malas and garnering 55.99 per cent of the vote to his rival’s 44.01 per cent.

In a brief victory speech to hundreds of supporters and officials at the Tassos Papadopoulos stadium in Nicosia, which was crawling with security, Anastasiades, 71, said his government still had a lot to offer and “there’s still a lot more we need to do”.

“This is why I insist we should cooperate,” he said. “It is only through cooperation we will achieve everything we owe to the people of Cyprus.” He spoke of continuing “with the same determination… to combat corruption”, to help vulnerable groups, and to find a Cyprus solution “which does not disregard the concerns of Greek Cypriots but also bears in mind sensitivities of Turkish Cypriots”.

The results of the runoff election in his favour will be seen as the electorate’s approval of Anastasiades’ handling of the Cyprus problem even after last year’s failed talks, along with approval of his economic policies over the past five years for which his government has received plaudits, political opposition aside.

Alternatively, the numbers could indicate that Anastasiades may have gained more of the centrist hardline voters that were up for grabs on Sunday, while Malas could have benefitted from the more pro-rapprochement members of the electorate who have been disillusioned with the president’s handling of the Cyprus issue over the past 12 months, especially the collapse of the talks in Switzerland last July.

“There are two narratives in the Greek Cypriot community: one that he bears responsibility for the failure of talks and the other – that Turkish intransigence is responsible. It’s apparently the second which prevailed,” political analyst Hubert Faustmann told Reuters.

On Sunday almost five per cent of the electorate cast protest votes by means of invalid or blank ballots, signalling their disaffection with both candidates. This was in addition to over a quarter of the electorate who did not vote at all.

Indications came early that Anastasiades would win when exit polls gave him a minimum 10-point lead over Malas, and early counts consistently put him ahead in line with predictions. The Akel-backed independent conceded with less than 70 per cent of the vote counted but the celebrations had already started at the presidential palace some time before that, and for hours after the capital and Anastasiades’ hometown of Limassol resounded with celebrations. A giant screen was set up outside his campaign office in Nicosia where supporters gathered early in the evening. Some carried placards with photos of Disy founder and former President Glafcos Clerides, Anastasiades’ mentor.

Before Anastasiades addressed the crowds there, Disy leader Averof Neophytou told supporters: “These elections were carried out without trade-offs. We will continue with our honest efforts to reunify Cyprus. We have big visions for the future and we know there is no room for big visions in a divided country.”

Anastasiades in a short speech outside the campaign office before heading to his victory event, told supporters he wanted to repeat his assurances that he was willing to cooperate with everyone. “I will continue to operate as the president of all Cypriots,” he said. “The biggest challenge we face is reunifying our country. I will continue to work with the same determination in a bid to achieve our common goal – ending occupation and reunifying our country.”

He added that he wanted the opportunity to invite all, Greek Cypriots and Turkish Cypriots, to understand that the current state of affairs “cannot be the solution to the Cyprus problem”.

At the ‘losing camp’, in statements to the press shortly after he conceded, Malas said: “The people have spoken and their decision is respected… I know the result has disappointed you but we have to respect it. We fought an honourable battle”.

A grim-faced Andros Kyprianou, the leader of backers Akel said: “We are not satisfied with the vote but we respect the choice of the people. The fight doesn’t end here – it continues throughout next five years”.

He called on Anastasiades to convince Akel that he considers the Cyprus problem a top priority, criticised the centrist parties and said that Akel were the “political and moral winners” of the elections.

Voter turnout on Sunday came in at 73.7 per cent, an abstention rate of 26.3 per cent compared with a 71.4 per cent turnout in the first round of the elections on January 28, which saw a 28.1 abstention rate. Invalid votes registered at 2.5 per cent compared with 1.4 per cent on January 28, an indication that many voters took seriously the conscience vote suggested by the centrist parties which had refused to back either Anastasiades or Malas in the runoff. Similarly, blank votes cast on Sunday clocked in at 3 per cent compared with only 0.8 per cent in the first round. The percentage of valid votes was 94.5 per cent compared with 97.6 per cent on January 28.

Despite the ‘protest vote’ most of the ‘floating’ electorate appear to have backed the incumbent. According to the results, Anastasiades gained 20 per cent over his first-round results of 35.5 per cent, and Malas 14 per cent on his initial 30 per cent, indicating that the former took the bulk of 34 per cent or so-called conscience votes that were up for grabs after the first round – the 25.7 per cent from Diko leader Nicolas Papadopoulos, 5.65 per cent from far-right Elam and 2.8 per cent from Citizens Alliance candidate Giorgos Lillikas.

Akel, whose candidate outright rejected any engagement with Elam during horse-trading over the past week, suggested on Sunday that seven out of ten members of Elam had voted Anastasiades. Like his rival, the latter had also attempted to keep his distance from the far-right party at least in public, but he did answer Elam with a letter when they sent him a questionnaire on his policies.

The centrist parties, Solidarity, the Greens, socialist Edek and Diko, who are seen as hardliners on the Cyprus issue offered grudging congratulations to Anastasiades on Sunday but all warned that the problems they had highlighted throughout the campaign still remained. “The people expect the president and the government to address seriously the issues that concern the country and to find solutions,” Diko said in a statement.

Source: CyprusMail

IT IS THE PARADISE island in Europe which has not suffered from deteriorating relations between Moscow and the West. Quite the opposite.

Cyprus is home to thousands of Russians seeking sun, tax benefits, and an EU entry point. The biggest spenders on property can even apply for a Cypriot passport and therefore EU citizenship.

It is a controversial scheme but a lawyer working in the field told Euronews it has all helped the economic recovery in Cyprus since 2013.

“Some 4 billion euros have entered the Cypriot economy, through these programmes,” explained lawyer Dimitris Dimitriades.

“It’s a significant amount which represents at least 20% of the country’s GDP.”

Critics, however, say that Cyprus has failed to carry out due diligence in relation to applications and that the scheme raises security concerns.

These are fears the island is eager to play down, insisting that regulations are in place.

“First of all, I must stress that we can’t talk about ‘selling’ passports,” said Dimitriades.

“In any case, the illustration of the Cypriot passport in advertisements won’t be allowed anymore. More precisely the marketing of the programme won’t be allowed – only in a very strict way and there is also a special monitoring committee and a list of the service’s providers.”

Limassol is a particular favorite of those who have made the move from Moscow. Last year, Cypriot authorities said that more than 2,000 passports were issued, with half of them going to Russians.

Source: Cyprus Property News 

Bitcoin, the world’s largest cryptocurrency, skidded 11 per cent on Thursday to its lowest since late November, as a Facebook ban on cryptocurrency adverts and a growing regulatory backlash against the nascent market frightened investors.

Thursday’s drop to as low as $9,022 on the Luxembourg-based Bitstamp exchange left bitcoin trading at less than half the peak price of almost $20,000 it reached in December. It slid more than 26 per cent last month, in its worst monthly performance since January 2015.

Other cryptocurrencies, including Ripple, the third-largest by market value, and Bitcoin Cash, have also racked up double-digit declines in the last 24 hours, according to Coinmarketcap.com, which tracks the industry. Ethereum was up slightly on the day.

Last year’s explosive rise in the value of digital coins and the flood of new retail investors drawn to the market have rattled global regulators nervous about a sector used largely for speculation.

Officials have also warned cryptocurrencies can be used by criminals to launder money. India, which has likened the market to a Ponzi scheme, on Thursday vowed to eliminate their use. .

Facebook said in a post on its website this week that it was banning all advertising that “promote financial products and services that are frequently associated with misleading or deceptive promotional practices, such as binary options, initial coin offerings and cryptocurrency”.

It was not clear whether the ban would affect all cryptocurrency adverts on the social media site. Facebook could not immediately be reached for comment.

A $530 million hack of Japanese cryptocurrency exchange Coincheck late last week has also weighed on the market, along with a subpoena US regulators sent to two of the world’s biggest cryptocurrency players, Bitfinex and Tether .

“Sentiment towards cryptocurrencies is turning sour with negative headlines pouring out from left, right and centre,” said Fawad Razaqzada, an analyst at FOREX.com

“Concerns that Facebook is banning ads and major crypto exchanges shutting down have really silenced the hype and some people are probably having second thoughts about investing their hard-earned cash into digital currencies.”

In a development welcomed by cryptocurrency investors, the finance minister of South Korea, a major hub for digital coin trading, said on Wednesday there was no plan to outlaw their buying and selling after regulators had earlier pledged to do so .

Critics call cryptocurrencies a speculative mania that will end in tears for thousands of retail investors. Supporters say the price volatility is a distraction from the value of the underlying technology, which will transform the way money is stored and transferred and upend conventional banking.

“Short-term pessimism misses the point that it could make the ecosystem thrive in the long term,” said Charles Hayter, founder of London-based Cryptocompare.

International regulators are expected to debate how to address the risks posed by the market at the next G20 meeting in March.

Source: CyprusMail

Economic sentiment in Cyprus strengthened as the Economic Sentiment Indicator (ESI-CypERC) increased in January 2018 by 3.3 points compared with December 2017.

According to a press release by the University of Cyprus, the increase was driven by a boost in services confidence and, to a lesser extent, confidence improvements in construction, industry and among consumers.

The Services Confidence Indicator increased as a result of firms’ more optimistic views on past business situation as well as past and expected demand.

The Retail Trade Confidence Indicator decreased as a result of deterioration in firms’ assessments of past sales and current stock volumes.

The Construction Confidence Indicator increased marginally due to upward revisions in employment expectations.

The rise in Industry Confidence Indicator was driven by improved assessments of overall order books and upward revisions in production expectations.

The Consumer Confidence Indicator increased as a result of consumers’ more favorable responses regarding their future financial situation and the future economic conditions in Cyprus, including the future state of the labor market.

Source: Stockwatch