3rd annive rsa ry
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ISSUE 37 april 14 - may 13, 2014 PRICE €4.95
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women who
run the
business
she’ s
the boss
+ MARINOS CLEANTHOUS, ANDREAS PAPADOPOULOS, ANDREAS athinodorou B2B MATCHMAKING A new department at the CCCI starts work
INTERVIEWS Dr. Mike Balm Michael Izza Dennis Malamatinas
EU ELECTIONS The European Parliament’s role in our lives
Plus:
MONEY / BUSINESS ECONOMY TAX & LEGAL LIFESTYLE / OPINION
C
M
Y
CM
MY
CY
CMY
K
ALEXANDER THE GREAT BEACH HOTEL - PAFOS
ELIAS BEACH HOTEL - LIMASSOL
OLYMPIC LAGOON RESORT - AGIA NAPA
OLYMPIC BAY - AGIA NAPA
Issue 37 April 14- May 13, 2014
8 EDITORIAL 10 UP FRONT 16 FIVE MINUTES WITH…
20
THE OLD CONCEPT THAT “A WOMAN’S PLACE IS IN THE HOME” IS STILL BROADLY HELD, AND NOT ONLY IN CYPRUS WHERE, FOR EXAMPLE, WOMEN REPRESENT JUST 7.7% OF THE BOARD MEMBERS OF THE LARGEST PUBLICLY LISTED COMPANIES. THIS PROPORTION IS ONE OF THE LOWEST IN THE EU AND SIGNIFICANTLY BELOW THE EU AVERAGE (15.8%). BUT THINGS ARE CHANGING. WE PRESENT THE PERSONAL VIEWS OF 21 SUCCESSFUL BUSINESSWOMEN IN CYPRUS WHO EXPLAIN HOW THEY REACHED THEIR PRESENT POSITION AND WHAT ADVICE THEY GIVE TO YOUNG WOMEN STARTING THEIR CAREERS.
+ OPINION WAS THE CYPRUS BAIL-IN FAIR? By Stavros Zenios
SHE’ S THE
32
CYPRUS’ TWELVE STEP RECOVERY PROGRAMME By Petros Florides 45
BOSS WOMEN WHO RUN THE BUSINESS
50
34
38
46
SPECIAL
FEATURES 34 | HIGH PERFORMANCE CULTURE
50 | ALL ABOUT PEOPLE
What differentiates an exceptional company from a middle-of-the-road one, according to Saxo Bank Chairman Dennis Malamatinas.
Dr. Mike Balm, Managing Director of Emergo Wealth on the key to successful management and more.
38 | THE ABC OF BUSINESS
54 | YOU’VE GOT TO FIGHT FOR YOUR RIGHTS
How Junior Achievement Cyprus has taken entrepreneurial education into schools.
Marinos Cleanthous, IP Attorney and Director of IP Cyprus, on the importance of protecting intellectual property rights.
42 | TAXING JOB FOR TAXING TIMES Interview with Michael Izza, Chief Executive of ICAEW.
70| B2B MATCHMAKING A new CCCI Department Boosts Business Networking.
46 | THE NAME SAYS IT ALL Interview with Andreas Athinodorou, CEO of the Aspen Trust Group.
54
72 | NO MAN IS AN ISLAND Esimit Europa: committed to connecting countries
SUPPLEMENT 57 | INTERNATIONAL BANKS IN CYPRUS
78 80 82 84 86
{money} {business} {economy} {tax&legal} {lifestyle}
6 Gold THE INTERNATIONAL INVESTMENT, FINANCE & PROFESSIONAL SERVICES MAGAZINE OF CYPRUS
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EDITORIAL
Running the Show
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John Vickers, Chief Editor john@imhbusiness.com ISSUE 35 FEBRUARY 14 - MARCH 13, 2014 PRICE €4.95
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BANKING
How Spain restructured its system
BITCOIN
The Future of the Digital Currency
INTERVIEWS
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Peter Greenberg Matthew Kidd Alexis Tsielepis
The Future oF The AudiT Profession in Cyprus
8 Gold the international investment, finance & professional services magazine of cyprus
the international investment, finance & professional services magazine of cyprus
womEN wHo
f women ruled the world, would it be a happier place? There is a growing number of people who believe that it would be and, indeed, some argue that things have already changed since women began playing a greater role in politics and business around the world. In Cyprus, despite the less than impressive statistics regarding the percentage of women in company boardrooms and in senior political roles, things appear to be changing. Chrystalla Georghadji, recently appointed as Governor of the Central Bank of Cyprus, is just one example of a woman who has excelled in her career (she had been Auditor-General of the Republic since 1998). There are others like her in both the public and private sectors and, in this month’s cover story (page 20) we present the views of some of those who have risen to the top in private companies about why they have succeeded and why they believe that we need more women in the top jobs. There can be little doubt that the House of Representatives would be a much more sensible place if half of our 56 MPs were women, given the way that the male- dominated body has been behaving lately, particularly in relation to the country’s obligations towards the Troika. It goes without saying that we would never have found ourselves in this mess in the first place had women been running things and, faced with the most serious situation that Cyprus has faced since 1974, they would surely have buckled down to work rather than resorting to the populist soundbite tricks at which many of the present Members have become specialists over the past 12 months. The need to pass legislation that is unpopular with a relatively small number of voters (privatisation) or with a much larger section of the population (protection of one’s primary residence against foreclosure) is clearly too much for some of them who appear not to understand their role or the issues they have been entrusted to deal with. Fortunately there are plenty of people around with genuine vision and proven ability and we spoke to several of them this month, including the Chairman of Saxo Bank, Dennis Malamatinas (page 34), Andreas Athinodorou, Co-founder of the Aspen Trust Group (page 46), Michael Izza, CEO of the Institute of Chartered Accountants of England and Wales (page 42), Dr. Mike Balm, Managing Director of Emergo Wealth (page 50), Andreas Papadopoulos, Manager Group Strategy, Hellenic Bank (page 38), Marinos Cleanthous, IP Attorney and Director of IP Cyprus (page 54) and Igor Simčič, founder of the Esimit Europa project (page 72). You are reading yet another packed issue of Gold which has always been a platform for expert views and opinions on issues related to the economy, investment, business and finance in Cyprus and elsewhere. If you check the cover of this month’s magazine you’ll see that we have reached issue 37, meaning that Gold is now three years old. A lot has happened since April 2011, including events close to home that we could never have imagined at the time when writing about the Cyprus economy and its thriving professional services sector. Fortunately, in spite of everything that happened during Cyprus’ annus horribilis, things have not worsened to the degree that many were predicting this time 12 months ago and, hopefully, those in charge of our finances and policies will have the courage to stand up and be counted when it comes to doing the right thing for the country and its future. In addition to celebrating the magazine’s third birthday, we are also delighted that our online portal Gold News and the daily Gold News Newsletter are already in their fourth month and gaining new readers every week. Please check then out for yourself if you haven’t yet done so. Thank you once again for your continuing valuable support and encouragement.
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3rd aNN IVE rSa ry ISSU E
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she’ s
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+ marINoS ClEaNTHoUS, aNdrEaS papadopoUloS, aNdrEaS aTHINodoroU plUS: EU ElECTIoNS b2b maTCHmaKING INTErVIEwS moNEy / bUSINESS The European a new department dr. mike balm parliament’s role ECoNomy michael Izza at the CCCI TaX & lEGal dennis malamatinas in our lives starts work lIFESTylE / opINIoN
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up front
Emirates Global Ambassador Cristiano Ronaldo signing an Emirates plane
Cristiano
E
mirates Airline recently announced that Cristiano Ronaldo, Portuguese captain and winner of the FIFA Ballon d’Or 2013, is its newest Global Ambassador. At a press conference in Madrid, the airline also premiered its campaign video featuring the football superstar alongside Brazilian legend and fellow Global Ambassador for Emirates, Pelé. The announcement came a little over two months before the world’s most-watched sporting event kicks off in Pelé’s home country of Brazil. Twice named
Ronaldo and Pelé
join forces with Emirates
FIFA Player of the Year, Ronaldo, who plays for Emiratessponsored Real Madrid, will lead his national team to South America to compete in his third tournament, his second as Captain. In January, the airline announced three times World Cup winner Pelé as its first Global Ambassador since the 2006 competition in Germany, when Franz Beckenbauer was brought on board. Continuing with the tradition of only working with the very best on the field, Cristiano Ronaldo was the ideal choice to stand alongside Pelé. Boutros Boutros, Emirates
Divisional Senior Vice President of Corporate Communications and Brand said: “Cristiano Ronaldo is an icon for this generation of football fans and is widely regarded as one of the greatest footballers on the pitch today. He has broken records and earned awards throughout his career. He is massively talented but he doesn’t rest on his laurels. Instead, he works hard to continue pushing himself to new heights. This ethos, plus his ability to inspire fans across the world is why we are delighted to be working with him.”
Emergo Wealth’s
Strategic Move
E
mergo Wealth has announced that it has agreed to acquire the business of the boutique financial advisory firm The Parthenon Partners. Under the terms of the agreement, Dr George Mountis, founder and Managing Director of The Parthenon Partners, will join the executive team of Emergo Wealth as Director of Business Development. Emergo Wealth Ltd. is a financial services Company that has applied for a Cyprus Investment Firm licence from the Cyprus Exchange & Securities Commission. The Company is associated with the international investment Group of Emergo, which has been operating in Cyprus with tremendous success since 1990.
Dr Mike Balm, the Managing Director of Emergo Wealth said “We are excited to have George Mountis join the Emergo Wealth team. His expertise in the banking and financial services sector will enhance our ability to grow, while continuing to focus on uncompromising quality of service for our clients. Dr Mountis specialises in investment banking, corporate finance and debt restructuring advisory. Prior to joining Emergo Wealth, he started and run successfully a couple of companies in the financial consulting sector in Cyprus. George also worked in London as
10 Gold the international investment, finance & professional services magazine of cyprus
The Investment Strategy Director of Emergo Wealth, Dr Constantinos Neophytou and Dr George Mountis, after the signing of the agreement.
an investment analyst for CB Richard Ellis and for HSBC in the M&A UK team. Dr Mountis said “We have considered and evaluated carefully this strategic move and we are certain that, given the excellent synergies created, there will be great benefit and added value for all our clients.” Dr Mountis is a visiting fellow at several universities is published extensively in finance and business journals and is a regular contributor of articles in the local press.
Top Two Floors of
The Oval Sold
L
Following the successful launch of The Oval on March 18, property developer Cybarco has revealed that the top two floors of executive offices have already been sold. With unobstructed views of the sea in Limassol, the uniquely designed Oval is described as being a world-class commercial building, with state-of-the-art facilities and services, spanning a reception, 24-hour security, controlled access, property management, and more. The Oval is the creation of Cybarco, one of Cyprus’ leading luxury property developers, and a part of the Lanitis Group. An additional major project in the pipeline courtesy of Cybarco is the Limassol Marina, the country’s first residential Marina project.