Cyprus President Nicos Anastasiades has invited businesspeople in Lebanon to explore ways to invest in Cyprus and take advantage of the wealth of opportunities available in all sectors of the economy. 

Speaking at the Cyprus-Lebanon Business Forum, in Beirut, organized by the two countries` Commerce and Industry Chambers, Anastasiades stressed that the business community of Lebanon can rest assured that Cyprus will remain a reliable partner and will retain its position as a significant international hub for Lebanese and Cypriot business and investment. 

"I am confident that all of you –as the most important components of our efforts for further advancing our economic partnership- during the numerous meetings to be held today and taking into account your entrepreneurial inventiveness and resourcefulness, will identify a number of new joint businesses initiatives, as well as new areas for future cooperation," he noted. 

Furthermore he assured that the Government stands ready to offer all the help and assistance deemed necessary and will facilitate every business and investment initiative involving the Lebanese administration. 

Anastasiades said that the Cyprus-Lebanon partnership is greatly valued by the Government and the people of Cyprus and is one that we are committed to continue upgrading and enriching, so as to foster even stronger links between our Governments and peoples. 

"It is for this exact reason that today I am accompanied by the Minister of Foreign Affairs, and the Minister of Energy, Commerce, Industry and Tourism, a strong business delegation, and members of the influential Maronite and Armenian communities, with the aim to establish contacts and channels which will enable us to achieve a substantial and strategic upgrading of our economic and investment partnership," he noted. 

Anastasiades said that during the various meetings he held with the political and religious leadership of Lebanon, "we reaffirmed our reciprocal political engagement to qualitatively enhance our relationship, through exploring new areas of beneficial cooperation, as well as deepening and enhancing our existing ones." 

He expressed satisfaction and gratitude for the vote of confidence, trust and faith which the Lebanese people have been demonstrating towards Cyprus and its financial and economic system and assured that "Cyprus will remain a reliable partner to all of you, especially since we are now emerging stronger than ever from an unprecedented crisis, and our journey along the road to recovery has been faster than anyone could predict." 

The deep recession and the severe financial crisis are fortunately behind us, he said according to a press release issued by the Presidency. “Cyprus is now one of the fastest growing economies of the EU, currently with growth rate just short of 3% of the GDP. Our banking sector has undergone an ambitious restructuring, and now stands on a much healthier footing.” 

He emphasized the strong commitment of the Government to continue working so that Cyprus remains firmly on a path of sustainable growth, noting that "we are committed to maintain a stable and competitive tax regime. We shall continue to invest in our human capital, supporting higher education and research. And we shall continue to stand by the local and foreign business community, always striving to create a business friendly economic environment." 

He also noted that the ratification of the Delimitation Agreement of the Exclusive Economic Zone signed with Lebanon in 2007, will constitute an important development in creating further regional synergies in the exploration and exploitation of Eastern Mediterranean’s significant natural resources and the driving force for an enhanced partnership between our two countries. 

Furthermore, he said that "the unique combination of EU membership, the Anglo-Saxon legal framework, the beneficial tax regime and the highly-skilled workforce, all contribute to Cyprus’ establishment as an attractive investment destination, offering significant opportunities and easy access not only to European markets but also to those of North Africa, the Near and Middle East, the Gulf region and Asia." 

Anastasiades expressed confidence "that the Cyprus-Lebanon Business and Professional Association, our respective Chambers of Commerce and Industry and our relevant professional associations and bodies, will continue taking advantage of Cyprus’ competitive edge in the financial services sector, including the comprehensive legal framework between the two countries which covers areas of cooperation such as Double Taxation, Protection of Investments, Tourism, Health and Scientific Cooperation."

Sourse:StockWatch

The Cyprus Golden Visa Program, which enables non-EU citizens to purchase Cypriot passports and residency permits by investing money in property and other sectors, has raised €4 billion.

THE GOLDEN Visa Program that gives foreigners residency permit in exchange of investment in real estate and other sectors has fetched €4 billion in revenue to Cyprus in the past one year.

In fact, the revenue earned from the program now accounts for 25% of the Cyprus gross domestic product. The program has outperformed a similar program in Greece by a huge margin. Most of the foreigners buying real estate in Cyprus are Russians, real estate experts said.

The Golden Visa Program is being credited with saving the Cyprus real estate market amid fears that a banking crisis could lead to its collapse.

According to local media reports, compared to Cyprus, the program brought nearly 2.8 billion euros in direct investment to Greece last year, a sum that accounts for just 1.5% of the country’s GDP.

A foreign national has to spend at least €2 million on real estate or €2.5 million on Cypriot government bonds or a company to get a passport.

Some 2,000 passports have been given to foreign nationals from non-European countries, said Cyprus Finance Minister Harris Georgiades. Around half of these are believed to have gone to Russian nationals, Bloomberg reported, citing estimates by PricewaterhouseCoopers. The rising interest of Russians in Cyprus real estate is being attributed to good diplomatic relationship between the two countries. The Cyprus government has also cut red-tape to make the process hassle free for foreigners.

A similar Golden Visa program in Greece, which has been running since mid-2014, offers five-year residence permits to foreign nationals who spend more than €250,000 on real estate purchases.

Greek authorities have issued 1,573 residence permits to foreign investors in Greek real estate. Most of the visas went to Chinese nationals (664), followed by Russians (348), Egyptians (77), Lebanese (73) and Ukrainians (67).

Source: Cyprus Property News

THE CYPRUS Central Bank reports that property prices recorded a small quarterly increase of 0.3 percent in the fourth quarter of 2016 in the latest edition of its Residential Property Price Index (RPPI).

This is the second consecutive quarterly rise which, although small, points to a recovery in the island’s real estate sector said the Central Bank in its report.

Over the fourth quarter of 2016, apartment prices rose 1.3% and house prices fell 0.1%, while compared to the fourth quarter of 2015, both house prices and apartment prices fell by 1.9%.

The RPPI recorded quarterly increases in Nicosia (0.5%), Limassol (0.5%) and Famagusta (0.2%) and losses in Paphos (-1.1%) and Larnaca (-0.7%).

Compared to the fourth quarter of 2016, the RPPI reports that home prices fell in all districts; in Famagusta (-5.6%), in Nicosia (-1.1%) and in Larnaca and Paphos (-1.5%).

Apartment prices

On a quarterly basis, apartment prices rose 2.0% in Limassol, 1.9% in Larnaca, 0.8% in Nicosia and 0.1% in Famagusta.

Although apartment prices in Paphos fell by 2.4% over the quarter, the Central Bank reports that the fall would have been smaller if debt-to-asset swaps had been taken out of the equation. (The Bank notes that debt-to-asset swaps will be excluded from future analyses in order to comply with the Eurostat methodology).

On an annual basis, apartment prices in Larnaca, Paphos, Limassol and Nicosia rose by 2.8 percent, 2.2%, 1.6% respectively, while falling in Famagusta by 6.4%.

House prices

On a quarterly basis, house prices in Famagusta and Nicosia rose by 0.5% and 0.4% respectively and remained stable in Limassol.Meanwhile quarterly falls of 2.1% and 0.7% were recorded in Larnaca and Paphos respectively.

However, on an annual basis house prices fell in all districts; Famagusta (-4.6%), Larnaca (-3.5%), Nicosia (-1.6%), Paphos (-1.5%) and Limassol (-1.2%)

Source: Cyprus Property News

Russian and Arab investors are buying and developing land in Cyprus with Limassol being their first option according to Marinos Kynegirou, the Chairman of the Cyprus Real Estate Agents Association. 

INVESTORS from Russia and the Arab countries are emerging as land developers in the Cypriot real estate sector, Chairman of the Cyprus Real Estate Agents Association Marinos Kynegirou has told the Cyprus News Agency (CNA).

“For the first time in years we have several buyers whose purpose is the construction of apartments, offices and more. They buy, build and sell” Kynegirou explained.

As the Government grants the Cypriot citizenship to non–Cypriot entrepreneurs and investors upon specific criteria and terms, many start doing business in Cyprus, either by building hotels which they operate themselves or by buying plots to build apartments and sell them.

“In most cases, they buy a commercial plot to build a hotel. There is also another market that is not necessarily associated with commercial plots, but rather plots in good locations, which are bought by foreigners to build apartments to sell them” said Kynegirou.

“There are investors from Arab countries and Russia buying plots, building blocks of flats to sell to local buyers and customers coming from their own country. This did not happen in the past” he noted.

According to Kynegirou the foreign investors look for commercial plots in all the big cities of Cyprus, with Limassol being their first option.

Source: Cyprus Property News

President Nicos Anastasiades arrived in Lebanon on Sunday for a three-day official visit.

Anastasiades is to hold official talks on Monday with Lebanon’s President Michel Aoun. Among the issues to be discussed are the bilateral relations of the two countries, regional matters, EU-Lebanon relations and the latest developments on the Cyprus problem.

During his stay in Beirut, Anastasiades will also meet with the Patriarch of Maronites Bechara Butros Rai, the Grand Mufti of Lebanon Sheikh Abdel-Latif Derian, the Patriarch of Antioch and All the East John X, and the Patriarch of Armenians, Aram.

He will also meet with Prime Minister Saad Hariri and House Speaker Nabih Berri.

On Wednesday, Anastasiades is to address a business forum organised by the Chambers of Commerce of Cyprus and Lebanon.

The president, who will be accompanied by the ministers of foreign affairs and energy  and the government spokesman, is to return to Cyprus on Wednesday evening.

Sourse: Cyprus Mail

Discussions between the Cyprus Organisation for Storage and Management of Oil Stocks (KODAP) and the European Investment Bank (EIB) for the financing of a fuel storage terminal are progressing smoothly, KODAP President Panagiotis Malekos has told Cyprus News Agency (CNA).

Malekos said EIB officials visited Cyprus for a main evaluation mission in early 2017, adding the process is expected to conclude in the coming months with the final loan approval.

The state-owned fuel storage terminal’s cost is expected to exceed €40 million and construction works are expected to begin at the end of 2017 or early 2018. This will be Cyprus’ second storage terminal following the operation of a private-owned terminal operated by VTTV, a subsidiary of VTTI, in Vasilikos.

Malekos said the terminal will include six or seven fuel tanks with a total capacity of 200.000 cubic metres. The terminal will hold the bulk of KODAP’s own stocks. Under EU rules, all member-states should hold fuel reserves amounting to 90 days of inland consumption. So far KODAP has a part of its fuel reserves in the VTTV terminal, as well as in fuel tanks owned by the Electricity Authority of Cyprus and in Greece.

According to KODAP budget, in 2016 the organisation paid €7.3 million to maintain the necessary fuel stocks.

The operation of the terminal is expected to generate a benefit of €70 million in net present value, Malekos added.

The project will be financed by the European Fund of Strategic Investments marking the first infrastructure project to be financed to receive EFSI financing. The Fund will supply 75% of the project, amounting to €30 million, while the remaining amount will be covered by a loan with domestic banks and cash reserves, KODAP President said.

“There is big interest by local banks to finance the remaining amount while cash reserves will be utilised for the project. The project’s financing is totally covered,” Malekos concluded.

Sourse: Cyprus Mail

Prime Minister Theresa May was fighting to hold on to her job on Friday as British voters dealt her a punishing blow, denying her the stronger mandate she had sought to conduct Brexit talks and instead weakening her party’s grip on power.

With no clear winner emerging from Thursday’s parliamentary election, a wounded May signalled she would fight on, despite losing her majority in the House of Commons. Her Labour rival Jeremy Corbyn said she should step down.

With 643 out of 650 seats declared, the Conservatives had won 313 seats and were therefore no longer able to reach the 326-mark they would need to command a parliamentary majority. Labour had won 260 seats.

With talks of unprecedented complexity on Britain’s departure from the European Union due to start in just 10 days’ time, it was unclear who would form the next government and what the fundamental direction of Brexit would be.

“At this time, more than anything else this country needs a period of stability,” a grim-faced May said after winning her own parliamentary seat of Maidenhead, near London.

“If … the Conservative Party has won the most seats and probably the most votes then it will be incumbent on us to ensure that we have that period of stability and that is exactly what we will do.”

After winning his own seat in north London, Corbyn said May’s attempt to win a bigger mandate had backfired.

“The mandate she’s got is lost Conservative seats, lost votes, lost support and lost confidence,” he said.

“I would have thought that’s enough to go, actually, and make way for a government that will be truly representative of all of the people of this country.”

From the EU’s perspective, the upset in London meant a possible delay in the start of the talks and an increased risk that negotiations would fail.

“We need a government that can act,” EU Budget Commissioner Guenther Oettinger told German broadcaster Deutschlandfunk. “With a weak negotiating partner, there’s a danger that the negotiations will turn out badly for both sides.”

Conservative member of parliament Anna Soubry was the first in the party to disavow May in public, calling on the prime minister to “consider her position”.

“I’m afraid we ran a pretty dreadful campaign,” Soubry said.

May had unexpectedly called the snap election seven weeks ago, even though no vote was due until 2020. At that point, polls predicted she would massively increase the slim majority she had inherited from predecessor David Cameron.

Instead, she risks an ignominious exit after just 11 months at Number 10 Downing Street, which would be the shortest tenure of any prime minister for almost a century.

 “MAY IS TOAST”

“Whatever happens, Theresa May is toast,” said Nigel Farage, former leader of the anti-EU party UKIP.

Sterling fell by more than two cents against the U.S. dollar, hitting an eight-week low of $1.2690, but by 0609 GMT it had recovered to $1.2721.

“A hung parliament is the worst outcome from a markets perspective as it creates another layer of uncertainty ahead of the Brexit negotiations and chips away at what is already a short timeline to secure a deal for Britain,” said Craig Erlam, an analyst with brokerage Oanda in London.

May had spent the campaign denouncing Corbyn as the weak leader of a spendthrift party that would crash Britain’s economy and flounder in Brexit talks, while she would provide “strong and stable leadership” to clinch a good deal for Britain.

But her campaign unravelled after a major policy u-turn on care for the elderly, while Corbyn’s old-school socialist platform and more impassioned campaigning style won wider support than anyone had foreseen.

In the late stages of the campaign, Britain was hit by two Islamist militant attacks in less than two weeks that killed 30 people in Manchester and London, temporarily shifting the focus onto security issues.

That did not help May, who in her previous role as interior minister for six years had overseen cuts in the number of police officers. She sought to deflect pressure on Corbyn, arguing that he had a weak record on security matters, but that did not stop questions about her own ministerial decisions.

With the smaller parties more closely aligned with Labour than with the Conservatives, the prospect of Corbyn becoming prime minister no longer seems fanciful.

That would make the course of Brexit even harder to predict. During his three decades on Labour’s leftist fringe, Corbyn consistently opposed European integration and denounced the EU as a corporate, capitalist body.

As party leader, Corbyn unenthusiastically campaigned for Britain to remain in the bloc, but has said that Labour would deliver Brexit if in power, albeit with very different priorities from those stated by May.

“What tonight is about is the rejection of Theresa May’s version of extreme Brexit,” said Keir Starmer, Labour’s policy chief on Brexit, saying his party wanted to retain the benefits of the European single market and customs union.

POTENTIAL ALLIANCES

On a nerve-racking night for the Conservatives, interior minister Amber Rudd held on to her seat by a whisker, while several junior ministers were swept away. In one of many striking moments, the party lost the seat of Canterbury for the first time in a century.

The Conservatives could potentially turn for support to Northern Ireland’s Democratic Unionist Party (DUP), a natural ally, projected to win 10 seats.

But Labour had potential allies too, not least the Scottish National Party (SNP) who suffered major setbacks but still won a majority of Scottish seats.

The pro-EU, centre-left Liberal Democrats were having a mixed night. Their former leader, Nick Clegg, who was deputy prime minister from 2010 to 2015, lost his seat. But former business minister Vince Cable won his back, and party leader Tim Farron held on.

In domestic policy, Labour proposes raising taxes for the richest 5 percent of Britons, scrapping university tuition fees, investing 250 billion pounds ($315 billion) in infrastructure plans and re-nationalising the railways and postal service.

Analysis suggested that Labour had benefited from a strong turnout among young voters. UKIP saw a collapse in its support, shedding votes evenly to the two major parties instead of overwhelmingly to the Conservatives, as pundits had expected.

“UKIP voters wanted Brexit but they also want change,” Farage said.

“They are fundamentally anti-establishment in their attitudes and the vicar’s daughter (May) is very pro-establishment. And I think she came across in the campaign as not only as wooden and robotic but actually pretty insincere.”

In Scotland, the pro-independence SNP were in retreat despite winning most seats. Having won all but three of Scotland’s 59 seats in the British parliament in 2015, their share of the vote fell sharply and they lost seats to the Conservatives, Labour and the Liberal Democrats.

The campaign had played out differently in Scotland than elsewhere, the main faultline being the SNP’s drive for a second referendum on independence from Britain, having lost a previous plebiscite in 2014.

SNP leader and First Minister Nicola Sturgeon said it had been a disappointing night for her party, while Scottish Conservative leader Ruth Davidson said Sturgeon should take the prospect of a new independence referendum off the table.

Sourse: Reuters