The World Economic Forum (WEF) said that Cyprus’s competitiveness rating rose to 4.30 units this year from 4.04 units the previous year, which allowed the island to climb 19 places on the Global Competitive Index.

Cyprus was placed on the same ranking with Botswana and Jordan, slightly behind Oman and South Africa and Hungary and ahead of Colombia, Georgia and Romania, the WEF said in a statement on its website on Thursday. The island was the fourth least competitive EU economy beating only, in addition to Romania, Croatia and Greece. Turkey was ranked 53.

Switzerland was again the most competitive country in the world this year out of 137 countries with 5.86 points followed by the US with 5.85 and Singapore with 5.71, the WEF said. The worst performers in competitiveness were Yemen with 2.74, Mozambique with 2.89 and Chad with 2.99. The EU’s most competitive economies were the Netherlands, Germany, Sweden and the UK.

The WEF which rated each economy based on criteria bundled together into 12 separate pillars, placed Cyprus on rank 25 of the goods and market efficiency pillar, comparably its highest ranking, rank 30 in infrastructure, 32 in technological readiness and 39 in health and primary education, same as in the case of labour market efficiency. It was also ranked 46th in higher education and training, 51st in institutions, 55th and 53rd in business sophistication and innovation respectively. The island was among the worst performers with respect to the market size, ranking at 109, financial market development, 108, and macroeconomic environment, for which it was ranked 97.

Details about the components of the above pillars showed that Cyprus lagged behind in efficiency of corporate boards, ranked 116, the WEF said. In addition, four years after the 2013 fiscal and banking crisis, Cyprus was ranked 127th in terms of soundness of banks, still plagued by non-performing loans roughly half of their portfolio, and 126 the in terms of government debt, which last year stood at 107.8 per cent of economic output.

As a result, the island was ranked 123rd with respect to access to loans, and 120th when it comes to getting financing from the local equity market, the WEF said. Also, Cyprus’s capacity for innovation was the only the world’s 110th best.

Τhe most problematic factors for doing business in Cyprus were identified as being access to financing with 19.5 points, government bureaucracy 19.4, lack of innovation capacity 11.1, inadequate infrastructure 10.9, restrictive labour regulations 10.2 and corruption 7.7, the WEF said.

Source: CyprusMail

The European Banking Authority (EBA) has published yesterday its revised guidelines on internal governance. 

According to a statement, these guidelines aim at further harmonizing institutions' internal governance arrangements, processes and mechanisms across the EU, in line with the new requirements in this area introduced in the Capital Requirements Directive (CRD IV) and also taking into account the proportionality principle. Effective internal governance is fundamental if individual institutions and the banking system as a whole are to operate well. 

Weaknesses in corporate governance in a number of institutions have contributed to excessive and imprudent risk-taking in the banking sector, which has led to the failure of individual institutions and systemic problems in Member States and globally. In order to address the potentially detrimental effects of poorly designed corporate governance arrangements on the sound management of risk, and to take into account the new requirements introduced in the CRD in this area, the EBA has updated its Guidelines on internal governance, originally published on 27 September 2011. 

The guidelines put more emphasis on the duties and responsibilities of the management body in its supervisory function in risk oversight, including the role of their committees. They aim at improving the status of the risk management function, enhancing the information flow between the risk management function and the management body and ensuring effective monitoring of risk governance by supervisors. The ‘know-your –structure' and complex structures sections, especially following the ‘Panama events', have been strengthened to ensure that the management body is aware of the risks that can be triggered by complex and opaque structures and to improve transparency. In addition, the framework for business conduct has been further developed and more emphasis is given to the establishment of a risk culture, a code of conduct and the management of conflicts of interest. 

Legal basis and next steps 

Article 74 (1) of Directive 2013/36/EU requires that institutions must have robust governance arrangements, which include a clear organisational structure with well- defined, transparent and consistent lines of responsibility, effective processes to identify, manage, monitor and report the risks they are or might be exposed to, adequate internal control mechanisms, including sound administration and accounting procedures, and remuneration policies and practices that are consistent with and promote sound and effective risk management. Paragraph (3) of that Article mandates the EBA to issue Guidelines on those arrangements, processes and mechanisms. 

The EBA Guidelines will apply as of 30 June 2018 to competent authorities across the EU, as well as to institutions on an individual and consolidated basis. The previous EBA Guidelines on internal governance (GL44) will be repealed on the same date. 

The European Banking Authority (EBA) and the European Securities and Markets Authority (ESMA) have published also their joint guidelines to assess the suitability of members of management bodies and key function holders. These guidelines aim to harmonise and improve suitability assessments within EU financial sectors, and to ensure sound governance arrangements in financial institutions in line with the Capital Requirements Directive (CRD IV) and the Markets in Financial Instruments Directive (MiFID II). The Guidelines highlight the importance for institutions to consider whether candidates have the knowledge, qualification and skills necessary to safeguard proper and prudent management of the institution. The Guidelines also foster more diverse management bodies and, therefore, contribute to improved risk oversight and resilience of institutions.

Source:Stockwatch

Located on Limassol’s famed seafront road and right next to the Old Port, The Gallery will be an iconic building with a uniquely permeable design linking the seafront with the town centre via an illuminated overpass that artfully connects the promenade with scenic St. Andrews Street.

Renowned British architect Tom Wright, the mind behind the Burj Al Arab, one of Dubai’s most distinguishable structures, undertook the design of The Gallery with three main goals in mind: quality, functionality, and neighborhood enhancement.

A large inner square will offer a public realm experience, with a variety of restaurants, cafés, and other venues that will be open to the community. Its three pillars of functionality include homes, businesses, and dining areas, all cleverly infused with cultural elements, thanks in part to the expansion of the square to incorporate the Cultural Center of St. Andrews Street. A rooftop bar and restaurant will be the highlight, offering breathtaking views of the Limassol coastline.

The Gallery, with its ultramodern and contemporary design, is an aesthetically pleasing and highly functional project. A true jewel in the crown of the Limassol skyline, it will contribute significantly to the surrounding area’s overall development.

Source :CyprusBeat

UN Secretary-General Antonio Guterres reiterated to the President of Cyprus, Nicos Anastasiades, the United Nations’ commitment to Cyprus, including the availability of his good offices for the sides to resume the talks as soon as the sides demonstrate their readiness to re-engage. 

According to a Spokesperson for the UN Secretary-General, Guterres met on Friday with President Anastasiades and welcomed Cyprus’ commitment to the United Nations and the Government’s support to the current efforts to reform the Organisation. 

It is added, in the readout, that the Secretary-General and the President of the Republic of Cyprus exchanged views on the current status of the Cyprus talks, as well as its future. 

Cyprus has been divided since 1974 when Turkey invaded and occupied its northern third. The latest round of UN-peace talks commenced at the Swiss resort of Crans-Montana on June 28, but in the early hours of July 7, it was announced that the Conference on Cyprus ended without an agreement. Talks held under the auspices of the UN aim at reunifying Cyprus under a federal roof.

Source: Stockwatch

DEFA has received the green light to proceed with the retention of consultants to finalise plans for LNG imports.

It is aiming to be ready early 2018, perhaps after the presidential elections, to go out for tenders. The plan is to award two contracts by next year, one for gas supply and another for construction of the required infrastructure. LNG imports will be through a floating storage and regasification unit (FSRU) to be based at Vasilikos. The estimated investment is €340million.

This is the eighth such attempt in 12 years, since Golar proposed to import LNG and construct and operate floating electricity power plant (FPGP) on a barge off the coast of Cyprus in 2005. Past failures have undermined Cyprus’ credibility.

The urgency to proceed with this project is dictated by the threat of EU carbon emission penalties, if Cyprus continues burning heavy fuel oil (HFO) and diesel for power generation after 2020.

What is being proposed

The project will involve a jetty at Vasilikos, addition of a breakwater, support facilities to accept and shelter an FSRU and pipelines to link this to EAC’s power plant.

The feasibility study, performed on behalf of DEFA, states that the plan is to convert an LNG ship into an FSRU. Further, it states that a life extension programme should be implemented to ensure that its structural integrity and carrier functionality will last for the duration of the project.

The plan is that the FSRU will start operations in January 2020 and will continue until the end of 2039.

This qualifies as a project of common interest, under PCI 7.3.2 Cyprus – Gas2EU, which provides for ‘Removing internal bottlenecks in Cyprus to end isolation and to allow for the transmission of gas from the Eastern Mediterranean region.’

A grant application will be submitted as part of the upcoming call for funding for the 2017‘Connecting Europe Facility-Energy’programme. It is hoped that EU support may reach 75%, the maximum possible for this project, but this is not guaranteed.

The use of FSRUs for LNG import is now widespread and successful. But in most new projects FSRUs are being leased to minimize costs and allow future flexibility, in cases conditions change, such as high LNG prices.

Given the current status of the global LNG market, with a persistent glut of LNG supply, such a project should attract considerable interest.

Timing

DEFA’s plan is to be able to import LNG by the end of 2019 so that electricity production in Cyprus can switch to gas-fired power generation early 2020.

The plan is to invite tenders early next year, presumably after the presidential elections. Timing may be dictated by the result of the elections. If the current government is returned, there should not be a need for a transition period or change.

A new government, though, may need time to settle-in, establish its own energy strategy and review the proposed LNG import scheme before it proceeds. If it decides to alter the proposals then there would be inevitable delays.

What is the urgency

Most important is that, after 2020, Cyprus will incur serious carbon emission penalties, to be imposed by the European Commission, if it continues burning HFO and diesel for power generation. This would, of course, be passed to EAC and its customers, and may create a backlash.

Another is that, by 2018, EU member states must make climate change commitments in support of new, more ambitious, EU targets of at least 40% cuts in greenhouse gas emissions (from 1990 levels), at least 27% share for renewable energy and at least 27% improvement in energy efficiency, to be implemented in 2020 and to be achieved by 2030. These targets have already been agreed to by EU member states.

Cyprus is nowhere near these targets and will not be able to achieve them without switching to gas and liberalising renewables for power generation. The latter cannot progress seriously without the former.

Despite being aware of this for a long time now, unfortunately Cyprus’ response has again been left late, with very little time to achieve the switch from HFO to gas, and no margin for errors or delays.

An expensive scheme

In theory, there may be other potential benefits in importing LNG for power generation. Global LNG prices are low, and will probably stay low for the longer term, and importing LNG may also offer cost advantages and enable other potential uses.

However, what is being proposed is a rather rigid, inflexible and likely to be an expensive, scheme. Given the small quantities of gas that will be needed by Cyprus during the 20-year duration of the project, 0.7-1.0 bcm/yr, such a scheme is likely to be quite expensive in terms of cost per mmBTU.

Egypt, with about 12 bcm/yr LNG imports, opted for leased FSRUs. The first one started operations in 2015. It also opted to buy its LNG by placing periodically short-term supply tenders in the open market. In a buyers’ market this is a sensible approach.

This flexibility is paying-off. Now that Egypt is about to become self-sufficient in gas, it has reduced its LNG imports by 30% and plans to phase them out by 2019. It also plans to terminate one FSRU lease by next year and the other by 2019.

Most other countries that are now entering the LNG market are opting for similar schemes, offering them flexibility to benefit from low LNG prices while these last and potential switch to other fuels, including renewables.

The scheme that appears to be proposed by Cyprus will commit it to fixed costs for at least 10-years.

According to the plan the potential investor will be safeguarded for the first 10 years of the project, through guaranteed income derived from a fixed annual charge regardless of the quantities of LNG delivered and re-gasified.

Such a scheme and guarantees are bound to add cost to the project, which inevitably will be passed to the Cypriot consumers of electricity.

Nothing has yet been disclosed about the likely unit cost (per mmBTU) of such gas imports and the likely impact on the cost of electricity. Ordinarily, the expectation would be that it will lead to a significant reduction. But would this be the case?

Risks and implications

Given the past history of failed attempts to import gas for power generation, the risks to encounter problems and delays can only be high. This latest attempt has been left very late and if the forthcoming presidential elections bring a change of government, the risk is that it may be derailed or at least delayed yet again.

Its 20-year duration is, in effect, an admission that Cyprus does not expect to benefit from its own gas, should discoveries be made that allow commercial exploitation.

Adopting a scheme similar to Egypt could have given Cyprus the flexibility to respond to such developments or to changes in the global LNG market and potential penetration of renewables.

This is a contract of immense public interest. It requires transparency and disclosure of information to demonstrate what Cypriots will be paying for electricity between 2020 and 2039, in relation to the cost of delivered gas, how these prices compare without this contract, and clearly demonstrate its benefits.

Source: incyprus

The IMF has started consultations with the government, focusing on the reduction of excessive private and public debt and the management of non-performing loans.

This year’s consultations will conclude on October 4, 2017.

IMF Resident Representative Vincenzo Guzzo said that “this is a regular visit to member countries, during which staff engage with government and central bank officials in discussions about risks to domestic and global stability”.

He said staff will review the recent developments, the medium-term growth prospects and the risks surrounding the economic outlook.

Moreover, they will hold discussions with the country authorities on financial and fiscal policies as well as on structural reforms.

The focus of the mission will be on approaches to reducing excessive private and public debt as well as managing non-performing loans, which are critical priorities for Cyprus, Guzzo said.

During part of their mission, IMF staff will collaborate with European institutions on post-bailout surveillance.

Source: incyprus

We finally reached a point when we’re giving florals a second chance. We know they kind of look like grandma’s furniture but we’re starting to see past that and to rediscover their beauty and charm. It’s a great thing since a floral pattern can fit in almost anywhere. The trick is knowing how to use them to create the desired look and ambiance. A look inspired by nature can take many different forms and floral patterns can be a big part of it.

Florals on walls and wallpapers

Back in the 18th century when chintz was very popular, wallpaper started being the new way to decorate the walls. At that time wallpaper was expensive, being made of leather and silk. Today things are different. You can find wallpaper everywhere and it comes in all imaginable colors and prints. Floral patterns are just one of the options.

Large prints can serve as focal points so don’t overwhelm the space with them

For cohesiveness, the colors found on the wallpaper should also be the ones repeated throughout the room

For a modern twist, give your wallpaper some depth by also decorating the walls with 3D flowers

Use a black backdrop to give the floral pattern a dramatic look

Choose an oversized pattern to highlight an accent wall or to add color to a certain space

Instead of a repetitive wallpaper pattern you could opt for a floral or nature-inspired mural

A busy wallpaper pattern is best used with a simple, perhaps even monochromatic decor

A floral wallpaper pattern, used in the right setting, can give a space an exotic look

Not all floral patterns have to be colorful. The classic black and white combo can be successfully adapted

A wallpapered wall is in a way just an oversized painting and it almost always becomes a focal point for the space

Floral patterns on carpets and rugs

If you feel like covering your walls with flowers would be a bit too much, there are other ways of introducing a floral pattern into a room’s decor. For instance, you could pick a carpet or an area rug with a floral pattern that matches your style. It can be something cheerful and colorful or it can be something more abstract and toned down.

Consider a floral rug for spaces such as your home office or the bedroom

Floral prints definitely have a feminine charm and you can base your room decor on that

Florals on furniture

Yes, floral patterns on furniture can definitely give that grandma’s house look but don’t just to conclusions yet. Sometimes that look can actually be comforting and you can definitely give it a chic spin. Still, if you want something more suitable for today, there are plenty of fresh new prints and patterns to choose from. Florals have really evolved over the years. It’s probably why they never really go out of style.

This is very artistic and refreshing interpretation of the traditional floral pattern

When it comes to floral patterns on furniture, the sofa is usually the first thing that comes to mind

That’s actually a chair that takes this whole idea to a new leve

That’s a quirky and original way of customizing a kitchen island with a floral pattern

Source: Homedit

The EP Committee on Petitions (PETI) is conducting a fact-finding mission in Larnaca between Wednesday and Friday following concerns raised over the creation of an industrial port in the town.

According to a statement from the European Parliament’s office in Cyprus, the purpose of the mission is to provide a follow-up to a series of petitions by local residents concerning environmental and health concerns connected to the creation of an industrial port in Larnaca and consequences of its operation to the broader area.

On Wednesday the delegation was due to meet with Larnaca Mayor Andreas Vyras and then with the citizens who submitted the petitions.

On the second day of their visit, Thursday, the members of the delegation will visit Larnaca port area and then will hold meetings with representatives of the Ministries of Energy, Interior, Transportation and Agriculture, Representatives of the Office of the Commissioner for the Environment, as well as the General Auditor.

Members of the delegation will also pay a visit to the House of Representatives where they will have a meeting with the President and members of the Committee on Environment and with members of the Parliamentary Transport Committee.

On the same day they will give a press conference at the EU House in Nicosia.

On Friday, the delegation will visit Aradippou Municipality and will then have meetings with Mayor Evangelos Evangelides,  the Ombudsman Maria Stylianou-Lottides  and a new get together with citizens who have submitted the petitions.

The European Parliament`s delegation is led by MEP Pál Csáky (EPP) and comprises MEPs Miltiadis Kyrkos (S & D), Angela Vallina (GUE-NGL) and Igor Šoltes (Greens), also participate to it. The delegation will also be accompanied by Cypriot MEPs Dimitris Papadakis (S & D) and Takis Hadjigeorgiou (GUE-NGL).

Source: incyprus

The Cypriot economy will grow by 3.5% in 2017, followed by a 3.2% growth in the country’s economic output, Hellenic Bank said in its economic review issued on Tuesday.

“Growth is becoming more vigorous and broad-based, contributing to employment growth and the reduction of unemployment, though still remaining high,” the bank said, adding that public finances have been consolidated to a large extent to secure the sustainability of public debt.

The bank notes that significant progress has been made to restructure and restore confidence in the Cypriot banking system, adding however that the level of non-performing loans (NPLs) is declining but remains very high, which has led to the increase of provision for loan impairments in order to ensure that collateral valuations are reliable and underpin appropriate levels of provisioning.

“While decisive steps were taken and swift progress has been achieved throughout the banking sector, the high share of NPLs still exists,” the bank said, pointing out that creating the conditions for a functional secondary market for NPLs will help to accelerate deleveraging and move NPLs off banks’ balance sheets.

Hellenic Bank points out that accelerating structural reforms would contribute to the revitalization of productive investments which have recently picked up but are still impeded by certain structural weaknesses (for instance, time delays with construction permits and enforcement of contracts).

“The cost of the reforms may have negative effects on the economy’s short-term prospects, but it is the only path to sustainable growth,” the review said, adding that improving the business environment and making it more conducive to growth would support both domestic and foreign investment.

Source: incyprus

The number of foreign property buyers rose 34 per cent in August to 75 compared with the respective month of 2016, the Department of Lands and Surveys said.

The number of non-Cypriots who acquired real property in Cyprus, incentivised by government schemes offering investors a Cypriot passport or a visa depending on the value of the investment, rose in the first eight months of the year an annual 4.2 per cent to 618, the department said.

According to reports in Britain’s The Guardian on Sunday, Cyprus extended more than 400 passports to investors as part of the government’s citizenship-by-investment scheme which allows investors to get a Cypriot passport by investing €2m in Cyprus or previously €2.5m.

According to a source with knowledge of the situation, since the inception of the scheme in the months following the 2013 banking and fiscal crisis, the scheme triggered almost €5bn in investment in the economy, including €0.5bn in government bonds which are no longer an eligible option in the latest version of the scheme updated a year ago, €0.5m in deposits, also no longer eligible, and €0.7bn in company acquisitions, while the bulk of the remaining amount went into real estate. The number of persons who benefited from this scheme and a similar scheme introduced by the government under former President Demetris Christofias exceeds 1,200.

The report said that beneficiaries of the scheme, who can liquidate their investment at a later stage, excluding a residence worth at least €500,000, include Russian and Ukrainian oligarchs implicated with corruption.

The overall number of properties that changed owners in August rose 27 per cent to 572 and in January to August 20 per cent to 4,921.

Source: CyprusMail