Five more high rise towers are set to be built in Limassol, already home to several skyscrapers along the city’s coast road.

The developments come in the form of two new projects. The first, by Cybarco, has been christened Trilogy and consists of three towers set to be built on a seafront plot next to Enaerios.

Cybarco said all permits have been obtained and construction is set to begin in the new year. The completion date is expected to be 2023.

The project entails the construction of three towers. The west tower which will be 39 levels, the east with 36 levels and the north with 37 levels.

Meanwhile, the Blue Marine project, by Leptos, has received the nod from the environment department – under conditions – and is now awaiting a planning permit from the Limassol municipality.

Set to be built next to the Limassol Marina, it entails four buildings. Two towers 29 and 33 floors and two buildings, five and nine floors each.

The buildings will house luxury residences as well as indoor and outdoor swimming pools, a health and spa centre and eating facilities.

Before a building permit is issued, the company must first prepare an environmental baseline survey and a disposal plan for underground water that may need to be drawn during construction.

If approved by the environmental department, then a building permit can be granted for construction to move forward.

Environmentalists have voiced concerns over Limassol’s quickly changing coastline that already boasts many high rise buildings including Cybarco’s Oval project, the tallest office building in Limassol at 16 floors or 75 metres.

They argue residents living behind the tall buildings will be cast in shadow and there are concerns over inadequate parking spots – the city’s eternal problem. Both new projects include the creation of more parking spots.

Other high-profile buildings include One Residence on the sea-front, which will rise 170 metres and consist of 37 storeys, making it, according to developer Pafilia, the tallest residential sea-front tower in Europe. However, plans are also underway for the Lanitis Seafront that is to be built on the Lanitis mansion site where one of the towers will boast 37 floors.

Another concern is that after being purchased the luxury residences will remain empty as they will be popular mostly with those wanting to take advantage of Cyprus’ citizenship by investment scheme, introduced in the wake of the 2013 economic crisis.

The scheme states that foreigners who invest €2 million in the property market or Cyprus-based companies, including a residence worth at least €500,000, can obtain citizenship.

Source: Cyprusmail

JCC Payment Systems, a consortium of Cypriot banks, said that the use of plastic money in Cyprus rose 21 per cent last month compared to November last year to €234.1m.

In January to November, the use of Cypriot cards for purchases and payments in Cyprus rose an annual 13 per cent to €2.4bn, the payment processing company said in an emailed statement on Monday. The value of purchases and cash withdrawals by holders of Cypriot cards abroad last month rose 10 per cent to €141.8m and in January to November 12 per cent to €1.4bn.

The value of purchases and cash withdrawals by holders of foreign cards in Cyprus rose an annual 11 per cent to €80.3m in November and €1.1bn in January to November, JCC said. The value of purchases with foreign cards alone rose 16 per cent in November and 19 per cent in January to November to €59.8m and €870.5m respectively.

The amount of purchases with the use of Turkish cards processed by JCC was €2.1m in November and €23.7m in January to November, the company said. Local cards were used last month for purchases worth €866,385 and €275,222 in the Turkish occupied areas and Turkey respectively. In January to November, the respective amounts were €8.3m and €3.1m.

Source: CyprusMail

The economy of Cyprus grew by 3.9% in the third quarter of 2017, the Statistical Service of Cyprus reported on Friday. 

“Τhe GDP growth rate in real terms during the third quarter of 2017 is positive and estimated at 3.8% over the corresponding quarter of 2016” Cystat said. 

“Based on seasonally and working day adjusted data, the GDP growth rate in real terms is estimated at 3.9%” it added. 

The GDP growth rate is mainly attributed to the sectors of "hotels and restaurants", "retail and wholesale trade", "construction" and "manufacturing". 

A negative growth rate was recorded in the sector of "financial and insurance activities". 

Source: Stockwatch

Seasonally adjusted GDP rose by 0.6 per cent in both the euro area (EA19) and the EU28 during the third quarter of 2017, and by 0.9 per cent in Cyprus compared with the previous quarter, according to an estimate published by Eurostat on Thursday.
In the second quarter of 2017, GDP grew by 0.7 per cent in the EA19 and the EU28 and by 1.0 per cent in Cyprus.
Compared with the same quarter of the previous year, seasonally adjusted GDP rose by 2.6 per cent in both the euro area and the EU28 in the third quarter of 2017, and by 3.9 per cent in Cyprus.
Meanwhile data released on Thursday by Cyprus’ Statistical Service (Cystat) showed that inflation increased by an annual 0.3 per cent in November, mainly due to price increases in housing, water, electricity, gas and other fuels.
November is the second consecutive month with a positive inflation rate.
The Consumer Price Index in November 2017 registered at 99.44 units compared to 99.34 units in the previous month.
In the January – November 2017 period, the CPI marked an increase of 0.6 per cent compared with to the same period in 2016.
Transport and Education also helped in maintaining inflation on a positive track.

Source: Cyprusmail

The number of property transactions rose an annual 39 per cent in November to 906, the highest figure this year, the Department of Lands and Surveys said.

The increase last month was mainly on an annual 98 per cent increase in the number of properties changing owners in Nicosia to 170, the department said in a statement on its website. Property transactions in the Famagusta district rose 174 per cent to 52 while those in Larnaca and Paphos rose 32 per cent to 151 and 16 per cent to 212 respectively.

The number of property transactions in Limassol rose last month 29 per cent compared to November 2016 to 321, the land department said.

In January to November, the number of properties changing hands rose 21 per cent to 7,197, the department said. In Nicosia, the number of transactions rose 31 per cent, in Limassol 28 per cent, in Famagusta 32 per cent and in Paphos 26 per cent while in Larnaca it fell 4 per cent.

The above figures include properties onboarded by banks as part of restructuring agreements or foreclosures.

Source: Cyprusmail

The Board of the Bank of Cyprus (the “Bank”) has approved the engagement of Pepper Cyprus Limited (“Pepper”), a fully owned subsidiary of Pepper Europe (UK) Limited, to assist the Bank in resolving non-performing loans from its SME and Retail portfolio. 

According to a statement, the Bank already has a specialist in house team, containing c.220 people dedicated to the servicing of SME & Retail NPE’s. This team has built an impressive track record, delivering a net reduction in NPE’s of €1.1bn over the 18 month period to June 2017. This team is unaffected by this announcement and will continue to operate in the same way and with the same staff as it has done in recent years. 

Pepper will bring their own experienced workout professionals, initially amounting to around 40 employees, who will focus on resolving a specified portfolio of c.€800m Retail and SME NPE loans. This will accelerate the pace at which the Bank can resolve specific problematic small ticket loans, which is critical to, and entirely consistent with, the Bank’s commitment to fully resolve the NPE issue in the shortest possible time. 

Pepper will operate within the Bank’s existing Restructuring and Recoveries Division, which is headed by Nick Smith, and will be held to the same level of professional conduct that is expected of all Bank staff. 

The Bank will retain full ownership, control and responsibility for all loans allocated to the Pepper team to manage. 

This is a strategically important engagement for the Bank, and Cyprus. It improves the ability to deliver NPE reduction across Cyprus in a category of loans critical for the entire economy. 

Given that the dialog with ETYK is successfully completed, Pepper will commence their work immediately. We also expect the servicing solution to be scalable during 2018 which will allow the Bank to achieve greater pace in delivering asset quality improvements. This could also provide opportunities to assist other banks on the island in delivering faster improvements and wider strategic options. 

Pepper Group Limited, the ultimate parent entity of Pepper Cyprus Limited, Pepper Europe (UK) Limited, and their affiliated entities (collectively the “Pepper Group”) is a public company listed on the Australian Stock Exchange (ASX: PEP) with a global headcount of over 2,000 and assets under management of over €35bn. The Pepper Group is a leading specialist servicer of European Non-Performing Loans operating across the UK, Ireland, Spain and Portugal servicing in excess of €30bn for various institutional investors. 
Nick Smith, Director of RRD, said “Like most financial institutions in Cyprus, the Bank’s Retail and SME non-performing loans remain one of its biggest challenges. This partnership will see experienced Pepper professionals working alongside the Bank’s existing teams and represents a unique opportunity for the Bank to accelerate its resolution of these problem loans. The senior Pepper team have worked extensively on similar portfolios in different jurisdictions and will bring a wealth of experience and knowledge into our institution.” 

Fraser Gemmell, MD of CRE Pepper Europe, added “We are always keen to explore opportunities in new markets and a move of this significance into Cyprus demonstrates our commitment to the region. We are now seeking to place a team of 30-40 people into the Bank and relish the chance to work hand in hand with Nick and his team on this portfolio.” 

Source: Stockwatch

Cyprus’ gas discovery in Block 12 has remained stranded since 2012 with no outcome in sight.

The Aphrodite natural gas field off Cyprus is commercially viable and the field could produce 300 billion cubic feet (BCF) a year, which could be transported to Egypt by pipeline, the partners behind the project said.

Texas-based Noble Energy, Shell and Israel’s Delek Group own the deposit in Cyprus’ offshore, estimated to hold 4.5 trillion cubic feet (TCF) of gas. It also contains nine million barrels of condensate.

Egypt and Cyprus have agreed to start discussions in December on an agreement to build a gas pipeline from Aphrodite to Egypt. The agreement came from the talks during the recent visit by Egypt’s President Abdel Fattah el-Sisi to Cyprus.

The gas pipeline will make use of an existing at half-way pipeline network from depleted Egyptian gas fields to liquefaction plants at Idku and Damietta, which will contribute to lowering the cost of getting the Cypriot gas to the Egyptians’ LNG plants.

President Nicos Anastasiades told a joint press conference that he and el-Sisi agreed in their talks that the discovery of natural gas was opening up a unique opportunity for joint action aimed at benefiting the peoples of the two countries.

Idku LNG plant, on the Mediterranean coast, is partly owned by Shell, which further facilitates the negotiations.

But there are other complications and conditions that need to be resolved before a final go-ahead can be reached.

Egypt, which announced in 2015 the discovery of a 30 TCF gas reserve at Zohr in its EEZ close to Cyprus’, is only interested in buying Cypriot gas for re-export via its two largely idle liquefaction terminals at Idku and Damietta. The most populous Arab nation can amply cover its domestic demand for energy with Zohr and Atoll, and does not need to import any gas.

Furthermore, on the commercial side of the move, Cypriot gas has to be transported to Egypt, liquefied and re-exported to potential markets and remain price-competitive at its destination markets. Energy Minister Yiorgos Lakkotrypis told MPs at the House finance committee: “During this period the oil and natural gas industry is not at its best, it is under pressure […] The talks are made difficult by internationally low oil prices,” he said. Negotiations between companies involved in the Cyprus and Egypt project progressed through 18 rounds of talks during the last two years. Negotiations fell apart when the parties could not agree on a fair price.

An additional hurdle to realising this costly project, estimated at US$3 billion, is whether the two LNG plants will have spare capacity to treat the Cypriot gas. Egypt will give priority to treating its own gas before allowing foreign gas to be treated in its LNG plants.

However, Egypt plans to maximise the economic benefit from natural gas and to add value to these resources not only by selling it as gas or LNG but in using it as feedstock to develop a leading petrochemical industry in the area. With its strategic location and large domestic market, the country is well positioned for this business. The government is focusing on increasing value-added production of natural gas through the petrochemical industry.

Egypt’s Minister of Petroleum and Mineral Resources Tarek El-Mulla said that the petroleum sector is currently mulling the establishment of new projects in the sector to increase the economic revenues of the state, next to maximising the added value of hydrocarbons wealth.

Since 2011, most of Egypt’s petrochemical companies have operated at 50 per cent or less of their total capacity because of natural gas scarcity. The Zohr discovery as well as other future discoveries are expected to play a very important role in reviving the industry. Petrochemical companies are expected to boost their capacity by up to 80 per cent.

The natural gas feedstock, a primary consideration for the petrochemical industry, is expected to be available in Egypt at competitive prices as soon as new gas discoveries come online. The government is planning to monetise the newly discovered natural gas to foster its utilisation in value-added industries. Natural gas is increasingly at the heart of the global petrochemical industry’s ability to produce the components of many products.

In addition, Egypt supplies petrochemical products to about 50 countries worldwide. Egypt is gifted with a strategically beneficial location, which facilitates product export to global markets, such as Asia, Europe and Africa. Growth among these small and medium-sized businesses could create tens of thousands of new jobs.

The Egyptian ministry of petroleum and mineral resources considers the petrochemical industry a priority and hopes to garner $20 billion worth of investments from it.

The petrochemical industry plays an important role in the Egyptian economy and is one of the most dynamic parts of the oil and gas sector. Recognising the importance of the industry, the Egyptian government has developed and is implementing a master plan to accelerate its growth.

According to the United Nations Industrial Development Organisation (UNIDO), domestic demand for petrochemical products is increasing in Egypt. This demand will continue to increase at a brisk pace for the foreseeable future due to economic and population growth.

Egypt’s petroleum sector includes eight large petrochemicals projects with investments worth almost $7 billion and a total capacity of about 4.5 million tons per year, according to a 2016 report by Plastics News Europe.

In August 2016, Egypt’s downstream sector set a new milestone with the inauguration of the petrochemical complex of the Egyptian Ethylene & Derivatives Company (Ethydco). The complex has the capacity to produce 480,000 tons of ethylene annually. Other projects are currently in the works.

Thus, Egypt’s gas reserves and strategic location close to western European and Mediterranean markets make it an attractive place in which to invest in new petrochemical facilities.

Based on the above, Egypt will still have free liquefaction capacity in its LNG plants to accommodate Cypriot gas from its Aphrodite field and probably from other fields as well. As for Egypt gas production, it would be better used by its petrochemical industry.

Source: Cyprusmail

The state-owned Cyprus Cooperative Bank announced a net loss of €63.3m in the first nine months of this year, compared to a profit of €53.9m in the same period of 2016.

The deterioration in the second largest Cypriot lender’s profitability resulted from an increase in provisions to €149.5m in the first nine months of 2017 from €44.7m a year before, the lender said in an emailed statement on Wednesday. Net interest income fell to €188.5m from €213.9m while total operational expenses fell to €122.8m from €132.8m respectively.

The bank, which in 2014 and 2015 received almost €1.7bn in taxpayers’ money in the form of capital injection, reported a drop in non-performing loans which declined to €6.7bn from €7.2bn in December last year, or by more than €0.5bn to 58.8 per cent of total loans from 60 per cent respectively, it said. On January 1, its agreement with Spain’s non-performing loans specialist Altamira is entering into force.

The bank, which is in the process of carrying out a capital increase as part of its listing on the Cyprus Stock Exchange, also said that its core equity tier 1 ratio was 15.2 per cent at the end of September, compared to 15.4 per cent in December. Its cost-to-income ratio improved to 49.9 per cent from 50.5 per cent at the end of last year.

Total gross loans fell in September to €11.1bn from €12bn nine months before, while customer deposits fell to below €12bn from €12.6bn respectively, the Co-op said.

“The third quarter was a historic milestone for us as well as Cyprus because the merger of the cooperative credit sector was completed successfully,” Nicholas Hadjiyiannis, chief executive officer of the bank, was cited as saying in reference of the Cooperative Central Bank’s merger with 18 cooperative credit institutions it administered.

Hadjiyiannis said that the bank’s agreement with Altamira to set up a unit to manage non-performing loans and with Citi Group which will coordinate the bank’s efforts to attract investors from abroad as part of its planned capital increase, “will give answers to the big challenges we are facing”.

“We are establishing a bank which will address the continuously increasing customer demands and will at the same time engage in dealing with the non-performing loans legacy,” he said. “This transformation is not easy and surely takes time. With our actions, we are creating the suitable preconditions to achieve this”.

Another legacy the lender has to deal with is related to wrongdoings of its previous managers who are the subject of several police probes

One of them, concerning five loans extended to Erotocritos Chlorakiotis, who had served as director general of the Cooperative Central Bank and head of a public body tasked with the administration of the cooperative banks, and two other managers at the Strovolos cooperative bank, and members of their family, is nearing its end, a police source said.

“The case is in the process of being sent to the Law Office for further instructions,” a police source said.

On Wednesday, a report in Politis said that the police recommended that Chlorakiotis, the secretary of the Strovolos co-op Demetrakis Stavrou and financial director Andreas Michaelides, should be criminally charged for receiving loans worth €40m to themselves and family members or companies they owned which were never repaid.

Source:Cyprusmail

It's common knowledge that, when you are planning to sell your home, it's worth making the effort to get your house looking neat, tidy and attractive. Even if this means spending a bit of money on redecorating touch-ups, it's worth it financially in the long run as it can dramatically increase the final sale price of your property.

Victoria Gimson, design director and founder of Decorum Interior Design, has shared her top tips for what we should focus on the most when preparing our home for sale. In her professional opinion, there is one color alone that can add thousands of dollars to its value.

That color is ivory.

Speaking to Mail Online, Gimson explained that ivory is timeless, classic and versatile. She believes that ivory walls have the power to make a home look more expensive, while at the same time provide a clean canvas for potential buyers.

Redecorating with this color can also speed up the sale of a house, she claims, as buyers see the property as well-maintained. They can also move in quicker because they have a neutral space and don't have to worry about immediate painting to cover the previous owner's personal tastes.

"Ivory acts as a blank canvas to furniture, artwork and accessories and automatically creates a feeling of space so buyers will feel as though they are getting more for their money," Gimson explains.

But, while the off-white shade is clean and simple, she does recommend adding a few pops of color with the existing furniture and accessories to make the property look characterful and homely, too.

From: Country Living 

European Banking Authority (EBA) expects that the increase in coverage ratios in Cyprus may lead to a higher reduction in Non Performing Loans (NPLs) in the following quarters, something that was also noticed in the banks of other European countries. 

In its Risk Assessment Report for November, EBA says that an analysis of the short term historic time series shows that a sudden increase in coverage ratios at bank level is usually followed by a higher reduction in NPLs in the following quarters. 

“For example, this was noticed in banks in Croatia, Romania and Slovenia. If this trend continues a similar pattern may unfold for Cyprus in the following quarters”, says the report. 

At the same time EBA points out that some countries that were more severely affected by the sovereign debt crisis still have high encumbrance levels, but markedly declining compared with last year (from 22% to 6% in Cyprus, from 47% to 41% in Greece). 

However, it adds that due to the relatively low volume of assets in these countries, the decrease had only a marginal effect on the EU aggregate encumbrance ratio. 

According to EBA, the average coverage ratio in the EU has increased by 1.1 pp since June 2016 to 45%, while in the first half of 2017 the rise has been marginal (+0.2 pp). The upward trend of the ratio has been once again driven by a more pronounced reduction in the denominator (total NPLs) than the reduction of the numerator. 

Nonetheless, coverage ratios still differ across EU countries with values ranging between 26% and 68%. 

Profitability 

According to EBA, EU bank profitability has continued to improve. As of June 2017, the average return on equity (RoE) reached 7 %, 130 bps higher than in June 2016 and the highest level since 2014. Despite the increase, the current level of RoE still remains below the cost of equity, pointing to a risk that this could be an unsustainable business model in the long term. 

In some countries, profitability is still lagging behind due to two main factors. In countries such as Greece, Croatia, Cyprus and Portugal, banks are less profitable, mainly because of their high impairments; impairments are also dragging down profits in Spain and Italy. 

In Germany and France, as well as Austria, operating expenses significantly affect banks’ ability to generate net income efficiently, in order to thrive in the future. 

Other countries (Bulgaria, Czech Republic, Hungary and Romania) are far more profitable than the average; their profitability has been driven by net interest income, low impairments and, for most of them, low cost income ratio.

Source: Stockwatch