GOLD Magazine February Issue

Page 1

ISSUE 71 FEBRUARY 19, 2017

T H E

B U S I N E S S

M A G A Z I N E

O F

C Y P R U S

| COVER STORY |

STILL STIL STI ST S TILL TI TTIL ILL IIL LLLL G GOI GO GOING OING OIN OI O ING IIN NG N G

WEE H W HEAR HE HEA EAR AR RS SO OM MUCH MUC MU UCH CH C H AB A ABOUT BOUT BO B OUT UT ST STAR S STA START-UPS TTAR ART-UP AR RTT-UP -UPS UPS PS P S TTH THES THESE HES H ES EESE SE D DAYS DA DAY AYS AY YS SA AND AN AND, ND D, IIN INDEE INDE IND INDEED, NDEE N DEED, DEED DE ED,, EV ED EVER EEVERY VERY VER RY S SUC SU SUCUCUC U CCESSFUL COMPANY BEGINS SOMEWHERE REMEMBERING CESS CES C CE ESS ESSFU ESSF SSFUL SFU FULL C COMP COM OMPA OM O MPANY MPA PA ANY NY BEGI NY B BE BEG EGINS EGIN GINS IN NS SS SOME SOM SO OMEW MEWH WHE WHER WH HERE ER REE BU BUT BUTT IIT’S IT’ T’S W WORTH WORT WOR WO OR RTTH R REME REM EMEM EM MEM MEMB ME M EEM MBER MB BERIN BER B ER RIN ING NG N G TTHA THAT TH HAT H ATT A SUCC SUC SU S UCCES UCC UC U CC CESS CE SSFU SS S FULL A FFU AND ND N DW WEL WELL WE LL-KN LLL L-KN -KNO KNOW KNO K NOW OWN OW O WN W NN NAM NA AMES A AM MES ME EES S DA DATI D ATING A TTING TI IN NG GB BAC BA AC ACK CK C KM MORE MO ORE OR O RE TTH RE THA HAN H HA AN N 1100 10 00 YEA 00 YYEAR YEARS YEEA EARS ARS RS R S SUCCESSFUL WELL-KNOWN NAMES DATING BACK THAN WERE WER WE W RE ON ONCE ONC NCE CEE ‘S STAR STA TART RTTT-UP -UPS UPS’ U PS’ S’,’, EEVEN S EVEEN N IIFF TTH THAT THA HAT ATT P A PART PA RTICU RTIC TICUL ICUL ICULA ULAR AR TE TERM ERM RM MD DI ID N NOT NO OTT EX EXIST EXIS XIST ISTTT.. ‘START-UPS’, PARTICULAR DID EXIST.

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e’ve been looking into the history of some of the best-known and most enduring companies, those which are still flourishing in a totally different environment form the one in which they were founded many decades ago. Many of the oldest firms in Cyprus – those that continue to operate to this day – were founded long before the Department of the Registrar of Companies came into existence, starting out as ‘brand names’. In fact, the first overseas company to be registered (in 1923) was the Cyprus Mines Corporation, while the registration of the first limited liability company (Cyprus Popular Bank Ltd) took place in 1924. The first registered partnership in Cyprus was CHM Theocharides & Co (1929) and the first registered business name was D.A. Angeloudes (also 1929). As you will see on the following pages, at least nine companies that are still in existence came into being in the 19th century, with ETKO leading the way, having been founded in 1844. Indeed, three companies were flourishing even before the arrival of the British in 1878 and all operated well before Cyprus gained its independence in 1960. Our list includes firms that began operating as ‘recently’ as our arbitrary cut-off year of 1932 and they include banks, law firms, wineries, importers and distributors of various consumer goods as well as representatives of many other sectors Several of them are family businesses in which successive generations have taken over and developed the company for a new era (the Lanitis Group, the Tseriotis Group and Chr. P. Mitsides & Co LLC all have 4th-generation family members involved in their current operations) and, naturally, all the companies have evolved and expanded, some changing their name in the process. In business, as in life, it seems that some companies are like fine wines: they get better with age. Here are some of the best in Cyprus.

STRONG! CYPRUS’ CY YPRUS’

OLDEST OL LDEST

COMPANIES CO MPANIES

COVER

STORY

“Whenever you see a successful business, someone once made a courageous decision.” Peter F. Drucker

18 | 67,// *2,1* 67521*

By Artemis Constantinidou & Voula Loizou

&<3586¶ 2/'(67 &203$1,(6 It’s worth remembering that successful and well-known names dating back more than 100 years were once ‘startups’, even if that particular term did not exist. We take a look at some of the best-known and most enduring companies in Cyprus, those which HYL Z[PSS ÅV\YPZOPUN PU H [V[HSS` KPMMLYLU[ environment from the one in which they were founded many decades ago.

28 | GOLD | The Business Magazine of Cyprus

www.goldnews.com.cy | GOLD | 29

CONTENTS 6 | EDITORIAL 8 | BUSINESS BRIEFING Economic & Business Highlights of the past month.

12 | MY WAY Demetra Kalogerou’s management style.

14 | FIVE MINUTES WITH…

SPECIAL PROMOTIONAL FEATURES 33 | CAR +

Evi Pantelidou

16| THEY SAID WHAT? A selection of the more outrageous Z[H[LTLU[Z THKL I` W\ISPJ ÄN\YLZ PU Cyprus and abroad over the past month.

FEATURES 30 | REFORM MUST CONTINUE

14 pages of the latest models and related auto services.

Interview with Finance Minister Harris Georgiades.

48 | 2ND WEALTH MANAGEMENT FORUM Report and photos from the “Global Markets Outlook 2017” conference.

77 | Tax Guide 2016

Six leading firms present their tax advisory services.

52| CREATING A BETTER JUSTICE SYSTEM Lawyer Christos Galanos on what is needed if the JV\U[Y`»Z SLNHS Z`Z[LT PZ [V M\UJ[PVU LMÄJPLU[S`

55 | ECONOMIC PREDICTIONS

FOR 2017 PwC’s predictions for the global economic themes that could prevail in 2017.

30

14

56 | PLAYING FOR KEEPS Katerina Spyrou on her passion for blackball.

58 | IN BUSINESS AWARDS 2016 Photos from the 9th annual award ceremony.

44 64 | CIFA AGM Photos from the Annual General Meeting of the Cyprus Investment Funds Association.

62 | STAYING COMPETITIVE Inte Interview with Alexandros Tsirides.

100

106

66 | THE ART OF ECONOMIC

DIPLOMACY Interview with Frances-Galatia Lanitou Williams, newly appointed Head of Economic Diplomacy at the Ministry of Foreign Affairs.

69 | KEY SUPPLY CHAIN RISKS IDENTIFIED Extracts from the latest EY study.

70 | RELEVANT, GLOBAL,

PROFESSIONAL, MODERN AND CARING Simon Culhane, Chief Executive of the Chartered Institute for Securities & Investment (CISI), on the Institute’s 25th anniversary, its aims and ambitions and its growing links with Cyprus. 4 | GOLD | The Business Magazine of Cyprus

73 | CIM SUMMIT: TEN YEARS OF SUCCESS th

Yangos Hadjiyannis looks ahead to the 10 CIM Summit.

74 | INSIGHT, INITIATIVE, INTEGRITY

95 | BUSINESS CLASS Alexis Tsielepis

96 | TIME OFF Come Fly With Me.

ICAEW President Hilary Lindsay on maintaining values in the accounting profession.

100 | LUNCH WITH GOLD Eric Montanios

90 | BOOKSHELF

104 | WHAT’S ON GOLD’s guide to the best cultural events of the coming month.

Six of the latest business titles.

92 | IN GOOD COMPANY How PrimeTel’s people-oriented culture creates a ‘feeling of belonging’ among its employees.

106 | A DAY IN THE LIFE Cleopatra Kitti

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| EDITORIAL |

Oldies But Goodies

ISSUE 71 FEBRUARY 19, 2017 PRICE â‚Ź2.00

STILL GOING

STRONG! 5 291295 000577

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Some of Cyprus’ most successful companies are over 85 years old

INTERVIEWS

ECONOMY

ICAEW

PLUS

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Harris Georgiades on his 2017 UHIRUP DJHQGD

Maintaining values in the accounting profession

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PUBLISHED BY IMH ISSN 1986 - 3543

MANAGING DIRECTOR

George Michail

GENERAL MANAGER

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mid all the talk about start-ups these days, it’s worth remembering that successful and well-known names dating back more than 100 years were once ‘start-ups’ themselves, even if that particular term did not exist. In this issue’s cover story, we take a look at some of the best-known and most enduring companies in Cyprus, which are still flourishing in a totally different environment form the one in which they were founded many decades ago. One only has to look at the old black-and-white postcards of Cyprus produced by Mangoian Bros (still going strong) to realize just how different things were at the start of the 20th century, let alone in the 1800s when several of the featured companies began their long and successful lives. Many of the oldest firms in Cyprus, which continue to operate to this day, were founded long before the Department of the Registrar of Companies came into existence, while several of them are family businesses which successive generations have taken over and developed for a new era. It’s a fascinating glimpse into the island’s past and one that underlines the importance of continuity and adaptability in today’s changing world. The need to ensure that we do not stay in the past is also noted by Finance Minister Harris Georgiades (page 30) who stresses that the country must remain firmly on the path of reform if it is to survive and thrive. This theme is also taken up with regard to the accountancy profession by ICAEW President Hilary Lindsay (page 74) and the legal system by lawyer Christos Galanos (page 52), as well as to the way in which the diplomatic corps promotes Cyprus, as described by Frances-Galatia Lanitou Williams, the newly appointed Head of Economic Diplomacy at the Ministry of Foreign Affairs (page 66). In last month’s editorial, written ahead of the continuing negotiations and conference on Cyprus in Geneva, I suggested that “By the time you read these words, we should have a better idea about whether this year could be the most important one in the 57-year existence of the Republic of Cyprus.� I should probably have known better than to speak too soon. The conference did not progress as hoped, although this has fortunately not derailed the reunification process altogether. The truth, though, is that we are still no closer to knowing what might happen in 2017. Things have not been helped by an increasingly irresponsible House of Representatives, which inexplicably passed a motion for John Vickers, schools to celebrate the 1950 referendum result in favour of Enosis Chief Editor (union with Greece)! Unlike the companies whose longevity we celebrate this month, some things need to stay in the past. john@imhbusiness.com

6 | GOLD | The Business Magazine of Cyprus

Daphne Roditou Tang MEDIA MANAGER

Antonis Antoniou EDITOR-IN-CHIEF

John Vickers JOURNALISTS

Artemis Constantinidou, Voula Loizou CONTRIBUTORS TO THIS ISSUE

Marios Demetriades ART DIRECTION

Anna Theodosiou SENIOR DESIGNER

Alexia Petrou ASSISTANT DESIGNER

Stephanie Andreou, George Yiamiadakis PHOTOGRAPHY

Emma Louise Charalambous, Jo Michaelides, Christos Tsekouras MARKETING EXECUTIVE

Kevi Chishios SALES MANAGER

Neofytos Constantinou SALES EXECUTIVE

Stavros Epifaniou OPERATIONS MANAGER

Voulla Nicolaou SUBSCRIPTIONS

Myria Neophytou PRINTERS

Cassoulides Masterprinters CONTACT 5 Aigaleo St., Strovolos 2057, Nicosia, Cyprus Mailing address: P.O.Box 21185, 1503, Nicosia, Cyprus Tel: +357 22505555, Fax: +357 22679820 e-mail: gold@imhbusiness.com subscriptions: goldsubscriptions@imhbusiness.com www.imhbusiness.com

#INVESTSEEME info@eurofast.eu | www.eurofast.eu

Your Regional Business Advisory Organisation

Invest in South East Europe and Middle East

WHY EGYPT?

c

A LARGE, TRAINED, COMPETITIVELY PRICED LABOR FORCE

At about 28 million, Egypt’s labor pool is the largest in the region.

d

LARGE CONSUMER MARKET

e

PREFERENTIAL ACCESS TO KEY GLOBAL MARKETS

f

PROXIMITY TO GLOBAL MARKETS

Most populated country in Africa and the Middle East. 50% of Egyptian are between the age 15-44.

Access to large key markets through various multilateral and bilateral trade agreements with the USA, European, Middle Eastern and African countries.

Key global markets in Europe, the Middle East, Africa and the Indian Subcontinent are all readily accessible from Egypt.

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Cyprus: Cypress Centre 5 Chytron str., Floor 4, P.O. Box 24707 1302 Lefkosia Tel.: +357 22 699 222, Fax.: +357 22 699 004 Egypt: 17th Soliman El-Halaby St., Oraby, Al Azbakeyah Tel.: +202 24155 492, Fax.: +202 24151303

BUSINESS BRIEFING AID

AWARDS BANK OF CYPRUS

Cyprus to Receive €7.3m from EU Solidarity Fund The European Commission has proposed granting Cyprus €7.3m from the EU’s solidarity M\UK [V HSSL]PH[L [OL ÄUHUJPHS I\YKLU VM [OL KHTHNL JH\ZLK I` H KYV\NO[ [OH[ SLK [V MVYLZ[ ÄYLZ HUK ^H[LY ZOVY[HNLZ SHZ[ Z\TTLY *`WY\Z OHK HZRLK MVY HZZPZ[HUJL MVSSV^PUN H ÄYL PU [OL :VSLHZ YLNPVU [OH[ YLZ\S[LK PU [OL KLH[O VM [^V ÄYLÄNO[LYZ HUK [OL KLZ[Y\J[PVU VM square kilometres of pine forest. The Commissioner for Regional Policy Corina Cretu said. ¸;VKH` ^L HYL TV]PUN MYVT ^VYKZ [V HJ[PVU ^P[O ÄUHUJPHS HZZPZ[HUJL [V OLSW HMMLJ[LK JVTmunities, revitalise economic activity and support reconstruction efforts.” ;OL ÄUHUJPHS HZZPZ[HUJL WHJRHNL T\Z[ IL HWWYV]LK I` [OL ,\YVWLHU 7HYSPHTLU[ HUK *V\UJPS 0U 5V]LTILY *`WY\Z YLJLP]LK H ÄYZ[ KPZI\YZLTLU[ VM HPK ^VY[O Á

BUSINES S

IN THE NEWS

MARIOS SKANDALIS NAMED 40% of Executives BANKER OF in Cyprus Expect THE YEAR M&A Activity Marios Skandalis, Director of

A

ccording to EY’s 15th Global Capital Confidence Barometer (CCB), a survey of more than 1,700 executives in 45 countries including Cyprus, more than half (57%) of companies are expecting to actively pursue Mergers and Acquisitions in the next 12 months – the second highest percentage recorded in the Barometer’s seven year history. According to Cyprus’ Barometer results, 40% of executives in Cyprus believe their company will pursue M&A transactions in the short term. While only 17% of local executives believe their growth will come from M&A deals, 62% believe organic growth will bolster earnings. According to Stavros Pantzaris, EY Cyprus Managing Partner, “There is strong reason to believe that the M&A outlook in Cyprus will perform better than expected, driven by regulation changes, increasing foreign investment and assets disposals from over leveraged companies.” 8 | GOLD | The Business Magazine of Cyprus

the Group Compliance Division of the Bank of Cyprus Group, was named Banker of the Year – Cyprus by the internationally-acclaimed Acquisition International magazine earlier this month. “Winning the 2016 Banker of the Year – Cyprus Award is a real honour for me and for the institution I represent, Skandalis said in a statement, adding that, “at the same time it constitutes yet another independent recognition of the colSLJ[P]L LɈVY[ VM HSS of my colleagues at the new Bank of Cyprus for transforming the culture of the largest corporation of our country.”

Bank of Cyprus has been named as Best Bank for Private Banking in Cyprus by the international magazine Euromoney for the second consecutive year. In a statement, the Bank notes that the H^HYK JVUÄYTZ P[Z Z\JJLZZM\S Z[YH[LN` VM VMMLYPUN bespoke solutions and integrated products and services in the area of wealth management. It is ZPNUPÄJHU[ [OH[ [OL H^HYK PZ [OL YLZ\S[ VM H Z\Y]L` of customers who are asked to evaluate the banking, investment and wealth management services offered to them.

CDBBANK cdbbank (formerly the Cyprus Development Bank) has been honoured as Best Corporate Bank Cyprus 2016 by Capital Finance International magazine. Acting CEO George Spyrides UV[LK [OH[ ¸;OPZ PU[LYUH[PVUHS HJJVSHKL JVUÄYTZ the high level of services offered by the Bank to its local and international clients”. He said [OH[ [OL H^HYK YLÅLJ[Z [OL JVU[PU\V\Z LMMVY[Z VM the Bank’s management and personnel to offer specialised and innovative services which fully JV]LY [OL T\S[P MHJL[LK ÄUHUJPHS KLWVZP[ HUK investment needs of the business community and individual clients.

STELIOS BICOMMUNAL AWARDS easyJet founder Sir Stelios Haji-Ioannou, recently announced that the Stelios Bicommunal Awards will be organised by the Stelios Philanthropic Foundation for the ninth consecutive year. The objective of the awards is to strengthen socio-economic ties between the two communities in Cyprus and to encourage cooperation between Greek Cypriots and Turkish Cypriots. This year, Haji-Ioannou will be offering €10,000 to each of 75 bicommunal teams. Since 2009, some €2.75 million has been awarded with the aim of promoting a lasting peace on the island.

EY EY’s Transaction Advisory Services (TAS) practice has been honoured as Financial Adviser of the Year in Central and Eastern Europe by Mergermarket, an independent mergers and acquisitions intelligence and data provider. The Mergermarket M&A Awards are the most coveted accolades in the deal industry across Europe. EY previously won the award in 2014. EY’s TAS practice was also named Accountancy Firm of the Year in Europe for the sixth time in seven years, having won in 2010, 2012, 2013, 2014 and 2015.

EXPATS

REAL ESTATE

Lanitis Seafront Project

he €150 million Lanitis Seafront Project, comprising three high-rise buildings blocks, the tallest of which will be 37 storeys, has been given the go-ahead. The project includes lux\Y` YLZPKLUJLZ VMÄJLZ ZOVWZ H ZWH HUK N`T HUK [OYLL Z^PTTPUN pools. One third of the project’s 9,000sq.m. of ‘green areas’ will be accessible to the public. It also includes 1,500 parking spaces, of which 900 will be open to the public.

T

Aristo Developers in Pakistan

Cyprus More Popular Among Men Than Women

risto Developers started the year by attending the largest Real Estate event in Pakistan – the Zameen Property Expo in Karachi – showcasing its property portfolio to a plethora of PU[LYUH[PVUHS PU]LZ[VYZ ;OL ÄYT WYLZLU[LK P[Z ^PKL YHUNL VM PZSHUKwide developments, highlighting Cyprus’ competitive advantages as a property destination, favourable incentives and unique investment programmes. Visitors and potential buyers expressed a keen interest in the government’s Citizenship through Investment scheme.

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C

yprus ranks much better for expatriate men than women, according to the 2016 InterNations Expat Insider survey. While the island comes second out of 57 countries among men (Taiwan tops the list), it is ranked 49th by women and marks the biggest difference between men and women in the survey. It seems men are also happier with their social lives, with 35% completely content with their socializing and leisure activities in Cyprus. while only 14% of women are similarly enthusiastic in this regard. Men and women expatriates in Cyprus also don’t agree at all on the issue of friendliness of local residents towards foreigners. Whereas 58% of male expats are completely happy with this aspect, only 27% of women are of the same opinion. Men even find it easier to make new friends, with 39% completely satisfied in this regard compared to only 20% of women.

EDUCATIO N

University of Cyprus Rises in World Rankings

O

ver the past 18 months, the University of Cyprus has risen 134 places in the Webometrics rankings of the Top 1,000 universities in the world. It is now in 696th position, up from 830 in 2015 and is the only academic institution in Cyprus to be on the list. An announcement by the university noted that it has a better ranking than Aston University, the University of Massachusetts Boston and Manchester Metropolitan University. Among Greek-language universities, University of Cyprus is ranked seventh, above institutions such as the Athens University of Economics and the University of Macedonia. The Webometrics Ranking of World Universities is an initiative of the Cybermetrics Lab, a research group belonging to the Consejo Superior de Investigaciones Científicas (CSIC), the largest public research body in Spain.

Limassol Del Mar Website

PTHZZVS +LS 4HY YLJLU[S` SH\UJOLK P[Z VMÄJPHS ^LIZP[L ^P[O images and details of the project in the heart of the town’s coastal area. Limassol Del Mar, a world-class seafront development with unobstructed sea views from all apartments, consists of luxury residences with in-house services, concierge, exceptional facilities and a unique high-end shopping and dining plaza. Sales for Phase 1 of the project have already surpassed 50%. For more information: www.limassoldelmar.com

L

DP WORLD TAKES OVER LIMASSOL PORT TERMINAL

D

P World has started managing and operating the multi-purpose general cargo terminal in Limassol. The terminal has been renamed as the DP World Limassol and the management team has triggered an action plan to turn the business into a sustainable asset for the Cypriot economy. The terminal’s activities include break-bulk, general cargo, ro-ro, oil & gas, and cruise ship services. In April 2016, DP World and its local partner, G.A.P. Vassilopoulos Group, were awarded a 25-year concession to operate the multi-purpose terminal. The consortium has entered into a concession agreement with the Government of Cyprus.

SHIPPING

Charles Meaby, General Manager, DP World Limassol, said: “We are now open for business and the terminal is functioning well. The team at DP World Limassol is working very hard to ensure this period of change goes as smoothly as possible for our customers. We are all dedicated to adding value and giving a better service than ever before. We take pride in our approach and will be talking and listening to our customers to ensure they understand the progressive and incremental changes we are undertaking to make the terminal safer and more user friendly.”

€2,312,500,000

THE ESTIMATED REVENUE FROM TOURISM DURING THE FIRST 11 MONTHS OF 2016, BASED ON A PASSENGER SURVEY AND ISSUED BY STATISTICAL SERVICE OF CYPRUS (CYSTAT). THIS IS AN INCREASE OF 12.3% ON THE CORRESPONDING FIGURE FOR 2015. www.goldnews.com.cy | GOLD | 9

BUSINESS BRIEFING

DEFENCE

CAR

STATISTICS

REGISTRATIONS

UP 42%

IN JANUARY

SIR MICHAEL FALLON

I

n what is believed to be the ÄYZ[ L]LY VMÄJPHS ]PZP[ [V *`WY\Z by a British Secretary of State for Defence, Sir Michael Fallon met with President Nicos Anastasiades and his Cypriot counterpart, Christoforos Fokaides, earlier this month. “I’m here at an important juncture for Cyprus’ communities as negotiations continue towards a solution to the long-standing Cyprus issue. As a guarantor power, the UK will do whatever necessary to secure a settlement,” he said, adding that the UK’s offer to cede nearly half of the territory of the Sovereign Base Areas to a reunited Cyprus remains on the table. “I hope this will make an important contribution towards an eventual deal,” he added. Fallon thanked Cyprus for its “pivotHS YVSL¹ PU [OL ÄNO[ HNHPUZ[ 0:0: UV[PUN [OH[ British aircraft taking off from Cyprus have conducted more than 1,200 strikes in Iraq and Syria over the past two years.

Election recount ormer Limassol

F

Mayor Andreas POLITICS Christou and AKEL have finally requested a recount of the votes cast in last December’s election, which Christou lost by a mere nine votes (13,911 compared to Nicos Nicolaides’ 13,920). Nicolaides has already been sworn in as Mayor and immediately after the election Andreas Christou had said that he was not interested in a recount. The argument of those asking for a recount is that there was evidence pointing to a number of ballots for Christou being erroneously marked as invalid.

10 | GOLD | The Business Magazine of Cyprus

The number of saloon car registrations rose in January by 42% to 2,900, mainly due to increased registrations of second-hand vehicles, according to Cystat. The number of used saloons registered in January rose by 69% to 1,638 compared to the same month in 2016. The number of new car registrations rose by 17% to 1,262.

CREDIT CARD USE UP 7% IN JANUARY

he value of credit card transactions by Cypriots increased by 7% to €212.2m in January compared to last year, according to payment processing company JCC. The value of transactions by holders of Cypriot cards in the Turkish held areas of the island and in Turkey last month was €710,101 and €173,716 respectively, JCC said. Holders of Turkish cards spent a total of €1.6m for purchases in the government controlled areas during the same month.

WOMEN

WISTA Cyprus Elects New Board

t its 4th Annual General Meeting last month, WISTA Cyprus, the local branch of the Women’s International Shipping & Trading Association, elected a new Board of Directors as follows:

A

PRESIDENT: DESPINA PANAYIOTOU THEODOSIOU, Managing Director, Tototheo Group. VICE-PRESIDENT: ANNA VOURGOS, Director, Aphentrica Marine Insurance Brokers Ltd. SECRETARY GENERAL: YVONNE TSANOS, General Manager and Projects Manager, ÖL Shipping Group. TREASURER: TASOULA TSAKANIAS, Financial Controller, Maestro Shipmanagement Ltd. MEMBERS: HELEN JOANNOU CHRYSOSTOMOU, Managing Partner, Maritime Executive Recruiters Consultancy; KOULA LOUCA, Divisional Manager, EMCO; ANNA PITTALIS, Commercial Manager, Intergaz Chartering Ltd. YOUNG BOARD AFFILIATE: GINA PANAYIOTOU, Legal Manager, Intership Navigation Co. Ltd.

T

MONEY

INVES TMEN T

New CIPA Campaign

T

he Cyprus Investment Promotion Agency (CIPA) is launching a major three-month advertising campaign in key markets around the world on two international media platforms. It will include a series of videos promoting Cyprus as an investment destinatoin, which will be screened by Bloomberg TV and CNN in Europe, the USA and Asia. The campaign will also include online promotion on Bloomberg.com, plus advertorials and segments on Cyprus in specialised Bloomberg bulletins and newsletters. An event dedicated to investment opportunities in Cyprus will be organised at Bloomberg’s London headquarters in the spring.

MY WAY

Demetra Kalogerou

Chairwoman Cyprus Securities & Exchange Commission (CySEC)

SHE CITES HARD WORK AND DEDICATION AS BEING AMONG THE QUALITIES THAT HAVE BROUGHT HER PROFESSIONAL SUCCESS. PERSISTENT AND ASSERTIVE, SHE DESCRIBES HER MANAGEMENT STYLE AS ‘PARTICIPATORY’, WHICH ENTAILS ENABLING AND ENCOURAGING MEMBERS OF HER TEAM TO MAKE A SIGNIFICANT CONTRIBUTION TO ANY PROJECT. SPENDING CREATIVE TIME WITH HER DAUGHTERS HELPS HER MAINTAIN A HEALTHY WORK-LIFE BALANCE.

“I

am not discouraged by failure, I am persistent, and assertive, yet adaptive. I like to see people assuming initiatives and responsibilities, and being prepared to contribute their own ideas and solutions to a project.”

“I

am a hands-on personality and that makes my management style highly participatory. I like to exchange views and ideas with all those involved in a project, so they can have an active part in the decision-making process. This also helps me identify an individual’s strengths, which are not always apparent, and compliment these skills and capabilities with additional training and the overall simplification of current processes.”

“P

ossibly the worst mistake a manager or leader can make is to be non-communicative with his/her team. It is easy to believe that you have to know it all and do it all instead of looking to your team for solutions and innovative ideas.”

“I “I

am inspired by various individuals I meet who exhibit professionalism and leadership in their field.”

try my best to keep a healthy balance between life at work and at home with the support of my family. I try to spend creative time with my daughters on various activities they like which can broaden their horizons. When possible, I also plan family excursions and outings.”

“D

espite my tight schedule most days, I try to go once a week to the gym and I go jogging on Sundays, something that pleases me and relaxes me.”

12 | GOLD | The Business Magazine of Cyprus

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he most important moment of my career so far was definitely my appointment to the position of Chairwoman of the Cyprus Securities and Exchange Commission in 2011 and my reappointment in 2016. It was the ultimate recognition of all my hard work to promote, develop and improve the stock market infrastructure and the Cypriot securities market in general.”

µƧ

ard work, k, excellent knowlwledge and dedicacaa tion to my goals als have helped me most through-out my career. I’m also a positive and optimistic person and I don’t accept defeat easily.”

Demetra Kalogerou is Chairwoman of the Cyprus Securities and Exchange Commission (CySEC), the public independent supervisory authority responsible for the overall supervision of the securities market in Cyprus. She is also a member of the ÁZI QIQFIV 4YFPMG 3ZIVWMKLX Committee that supervises EYHMXSVW ERH EYHMX ÁVQW She has more than 15 years’ experience in XLI ÁRERGMEP WIGXSV

FIVE

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hen was Hellenic Tzilalis (Cyprus) established and what are its main operations? Hellenic Tzilalis was established in 2001 to provide environmental technological services, including cleaning and waste management. It is an established expert waste management services company and contract cleaning provider, fully geared in terms of tools, equipment and professional expertise which ensure total quality control management. In addition, the company offers waste management consultancy services, including the design and building of waste management facilities. It has been the cleaning and waste services provider for Cyprus’ two international airports since 2006, and provides additional baggage trolley and porter services. The Group has a number of subsidiaries. What services do they offer? The HTZMinas Recycling Corporation is engaged in the collection and transportation of domestic household waste and recyclables. It utilizes a large fleet of waste collection vehicles and waste collection equipment. We also work in partnership with other industry leaders in three other companies. Enerco Energy Recovery is engaged in the trade and production of alternative fuels and materials from the waste stream. Ecobalance Recycling is engaged in the sorting of waste from packaging materials as well as in the trading of recyclable materials, H & H Ecotech supplies waste management equipment and other machinery and provides onsite maintenance services to mobile equipment, and Safe Sac provides baggage wrapping and weighing services at Cyprus’ International Airports

14 | GOLD | The Business Magazine of Cyprus

EVI PANTELIDOU

Hellenic Tzilalis (Cyprus) recently received the 2016 IN Business Award in the Services category. What does such an award mean to the Group? It is a reward for our efforts to become established as a market leader and it assures our customers that they are getting services of the highest standard. We thank our cus-

General Manager, Hellenic Tzilalis (Cyprus) Ltd tomers and business associates for proving us worthy of this recognition and we can assure them of our firm commitment to service excellence. How do you see the future of environmental technology in Cyprus and in what ways can the Government assist in this area sector? Environmental technologies prioritise the mitigation of environmental impact and contribute towards sustainable development. Cyprus should focus on flexible and cost-effective innovation when faced with environmental issues such as climate change,

nature and biodiversity, air quality and pollution, energy and waste. It should be noted in particular that the production of waste in Cyprus is above the European norm, the volume of waste deposited in landfills remains very high and recycling rates are still low. As a small island and a tourist destination, Cy Cyprus should have the reduction of wa waste generation rates and their manag agement as a priority. Steps to reduce the volumes of waste in landfills include the expansion of programmes for doortoto-door collection of waste, extended p producer responsibility (EPR) systems ccovering more waste streams, government cooperation with the local authorities to introduce ‘Pay as you Throw’ systems, the introduction o high landfill gate fees, and incenof ti for the private sector to invest in tives th the waste industry. Our Group provid vides integrated solutions in the waste ma management sector in Cyprus. Our ser services range from the collection of wa waste, transportation to waste management facilities and waste management treatment. Through the Group’s waste management facilities, i.e. Ecobalance Recycling’s sorting facility and Enerco Energy Recovery’s factory for the production of alternative fuel and raw material from the waste stream, we are contributing to meeting the national goals for waste re-use and energy savings. Furthermore, through a new venture, our company intends to provide solutions in the facility management sector, which, apart from maintenance services, will provide consultancy services in the areas of energy management, health and safety management, quality assurance, environmental compliance, sustainability and CSR, and more.

Fortinet Security Fabric Forum GCC Computers and Fortinet are organising the Fortinet Security Fabric Forum. on Wednesday, 15 March 2017 from 08:15 to 11:30 at the Hilton Park Hotel, Nicosia.

Don’t miss this opportunity to hear presentations by renowned Information Technology professionals from Cyprus and abroad on the Fortinet Security Fabric, which is designed to provide scalability, security, high awareness and actionable threat intelligence.

Key Sessions

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i 'PSUJOFU 4USBUFHZ 4FDVSJUZ GPS B /FX 8PSME i 5BQQJOH *OUP UIF 'PSUJOFU 4FDVSJUZ 'BCSJD i 6TJOH UIF 'PSUJOFU 4FDVSJUZ 'BCSJD UP 4FHNFOU ZPVS /FUXPSL i $BTF 4UVEJFT

i 'JOE PVU NPSF BCPVU UIF DBQBCJMJUJFT of the Fortinet Security Fabric i -JTUFO BT FYQFSUT FYQMBJO UIF QSJODJQMFT CFIJOE UIF 'PSUJOFU 4FDVSJUZ 'BCSJD i 'JOE PVU XIZ UIF 'PSUJOFU 4FDVSJUZ 'BCSJD JT FTTFOUJBM GPS ZPVS CVTJOFTT i )BWF BMM ZPVS RVFTUJPOT BCPVU UIF 'PSUJOFU 4FDVSJUZ 'BCSJD BOTXFSFE i /FUXPSL XJUI PUIFS JOEVTUSZ QSPGFTTJPOBMT

Wednesday, 15 March 2017 | 08:15-11:30 | Hilton Park Hotel | Nicosia Admission to the forum is by invitation only. For further information contact: IMH, Tel.+357 22505555, Fax. + 357 22679820, E-mail: events@imh.com.cy, website: www.imhbusiness.com

QUOTES OF THE MONTH

They Said What? A selection of the more outrageous statements made by public ÁKYVIW MR ']TVYW ERH EFVSEH SZIV XLI TEWX QSRXL

ARCHBISHOP CHRYSOSTOMOS II

“YOU SHOULD GIVE SERIOUS CONSIDERATION TO MY OPINION BECAUSE THE CANDIDATE THAT I WILL SUPPORT WILL BE THE ONE WHO IS ELECTED. DON’T BELIEVE IN YOUR OWN ABILITIES.” Archbishop Chrysostomos II explains his own special interpretation of democracy to President Anastasiades.

“DESPITE THE DIFFERENCES THAT EXIST AND/OR THE NEGATIVE THINGS THAT ARE SAID, I FEEL NO BITTERNESS TOWARDS THEM. ON THE CONTRARY, AS THEY THEMSELVES WILL CONFIRM, MY FEELINGS ARE OF THE MOST FRIENDLY KIND.” President Nicos Anastasiades shows that the Christian principle of “Love thine enemy” OHZ JSLHYS` PUÅ\LUJLK OPZ ]PL^ of the rejectionist party leaders. Perhaps he and the Archbishop should try a job swap.

PRESIDENT ANASTASIADES

16 | GOLD | The Business Magazine of Cyprus

“I DENY HAVING APPROVED THE MAP PRESENTED TO THE NATIONAL COUNCIL. IN FACT, I STRONGLY STRESSED AT THE MEETING THAT I CANNOT ACCEPT THE HANDING OF GREEK LAND TO TURKEY.” Eleni Theocharous MEP explains why she left the Geneva talks. What she doesn’t explain is why she bothered to go in [OL ÄYZ[ WSHJL

ELENI THEOCHAROUS

“EVERY TIME THE TWO SIDES MEET TO DISCUSS THE CYPRUS PROBLEM, SOME PEOPLE PUT THE BLAME ON ME.” Greek Foreign Minister Nicos Kotzias insists that all he is trying to do is reach agreement with Turkey and reunite the island. Since nothing could be more obvious, why does everyone keep picking on him?

NICOS KOTZIAS

“ANTI-RUSSIA INSINUATIONS ARE A SMOKESCREEN FOR THE REAL PROBLEMS THAT NEED TO BE TACKLED AS PART OF THE CYPRIOT MARIA ZAKHAROVA SETTLEMENT. WE ARE SURPRISED BY THE ANTIRUSSIA COMMENTS IN THE CYPRUS MEDIA FOLLOWING THE CYPRUS SETTLEMENT TALKS.” Why should Russian foreign ministry spokesperson Maria Zakharova be surprised that people in Cyprus don’t believe President Putin would support any development that pleases the EU, strengthens the NATO alliance and reduces the level of Kremlin-worship on the island?

“WITH THIS LAW, THOSE ELECTED TO PUBLIC OFFICE CAN BE HELD ACCOUNTABLE THROUGHOUT THEIR TERM. VOTERS THUS RECLAIM POWER AND HAVE A REAL OPPORTUNITY TO EVALUATE ELECTED OFFICIALS. IN THIS WAY, THE PRINCIPLE OF DEMOCRACY BECOMES MEANINGFUL.” George Lillikas believes that we should be able to get rid of any politician who changes his PLQG DERXW DQ\WKLQJ +H GLGQ·W used to think so….

GEORGE LILLIKAS

“DECISIONS ARE TAKEN DEMOCRATICALLY AND NO-ONE WILL IMPOSE HIS VIEWS BY THROWING ROCKS OR THROUGH ANY TYPE OF VIOLENT BEHAVIOUR.” Education Minister Costas Kadis, forgetting that the ones throwing rocks (not to mention ÅHYLZ IV[[SLZ HUK¯VYHUNLZ during a violent protest outside the House of Representatives were the school pupils to whom w he has stupidly given a say in the country’s education policy.

COSTAS KADIS

| COVER STORY |

STILL GOING

STRONG! CYPRUS’

OLDEST

COMPANIES

“Whenever you see a successful business, someone once made a courageous decision.” Peter F. Drucker

By Artemis Constantinidou & Voula Loizou 18 | GOLD | The Business Magazine of Cyprus

W HEAR WE HEA HE AR RS SO OM MUCH MUC MU CH HA AB ABO ABOUT BOUT UTT ST STAR STA START-UPS TTAR RT-UP T-UPS UPS PS S TTH THES THESE ESEE D DAYS DAY AYS A YYS SA AND AN AND, ND D, IIN INDE IND INDEED, NDEE N DEED, DEED DEE ED,, EV EEVER EVERY VERY V ERY RYY S R SUC SU SUCUC U C-C CESSFUL COMPANY BEGINS SOMEWHERE WORTH REMEMBERING CESS CES CE C EESS SSFU SSF S SFU S FFUL ULL C U CO OMP OM O MP MPA M PA ANY A NY B NY BEGI BEG BE EG EGI GIINS GINS GIN NS N SS SOME SOM SO OME O MEWH MEW M EW WHER WH HERE HER EERE ER REE B BUT BU UTT IIT’S U IT’ IT T’S ’S W WOR WO ORT O OR RTTH RTH HR REM REME RE EMEM MEMB M EM MBER BERIN B ERIN RING R ING NG N G TTH THAT THA HA ATT SUCCESSFUL WELL-KNOWN NAMES DATING BACK THAN SUCC SUC SU UCCES UCCE CESS SSFU FULL A AND ND D WEL WELL WE W LL-KN L-KNO KNOW K OWN WN NA NAM AMES MES ES SD DATI DA DAT ATING A ING NG GB BAC BA ACK CK K MO MORE MOR MORE REE TTH THA HAN HA AN A N 1100 00 0 0 YYEA YEARS YE YEAR EAR EARS EA RS R S WERE ‘START-UPS’, PARTICULAR DID EXIST. WER WE W RE ON ONCE ONC NCEE ‘S STAR STA TTAR ART RTTT-UP -UPS UPS’ U PS’ S’,, EEVEN S EVEEN N IIFF TTH THAT THA HAT ATT P A PART PA RTICU RTIC TICUL ICUL ICULA ULAR AR TE TERM ERM RM MD DI ID N NOT NO OTT EX EXIST EXIS XIST ISTTT..

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e’ve been looking into the history of some of the best-known and most enduring companies, those which are still flourishing in a totally different environment form the one in which they were founded many decades ago. Many of the oldest firms in Cyprus – those that continue to operate to this day – were founded long before the Department of the Registrar of Companies came into existence, starting out as ‘brand names’. In fact, the first overseas company to be registered (in 1923) was the Cyprus Mines Corporation, while the registration of the first limited liability company (Cyprus Popular Bank Ltd) took place in 1924. The first registered partnership in Cyprus was CHM Theocharides & Co (1929) and the first registered business name was D.A. Angeloudes (also 1929). As you will see on the following pages, at least nine companies that are still in existence came into being in the 19th century, with ETKO leading the way, having been founded in 1844. Indeed, three companies were flourishing even before the arrival of the British in 1878 and all operated well before Cyprus gained its independence in 1960. Our list includes firms that began operating as ‘recently’ as our arbitrary cut-off year of 1932 and they include banks, law firms, wineries, importers and distributors of various consumer goods as well as representatives of many other sectors Several of them are family businesses in which successive generations have taken over and developed the company for a new era (the Lanitis Group, the Tseriotis Group and Chr. P. Mitsides & Co LLC all have 4th-generation family members involved in their current operations) and, naturally, all the companies have evolved and expanded, some changing their name in the process. In business, as in life, it seems that some companies are like fine wines: they get better with age. Here are some of the best in Cyprus. www.goldnews.com.cy | GOLD | 19

| COVER STORY |

CYPRUS’

OLDEST

COMPANIES Established 1844

(7.2 /7' Established 1856

ETKO Ltd, the oldest wine producer on the island, is today a public company and a highly organised modern winery, exporting to the UK, Germany, Sweden, Norway, Russia, Australia, USA, Japan, Canada, Taiwan and elsewhere. ETKO is the producer of the bestselling EMVA Cream Liqueur wine, the most popular of its kind in the UK.In 1992, the company established Olympus Wineries at Omodhos in the Limassol district and in 1999 it purchased a Greek winery in the Pelaponnese. Olympus Hellas produces the Mantinia White Dry and Nemea Red Dry wines.

$ / 0$1729$1, 6216 /7' A.L. Mantovani & Sons Ltd has remained a family-run business since its establishment as a shipping agency. The company expanded into Travel & Tourism as an extension of its services to the shipping companies it represented. In the 1930s it began organising shore excursions for passengers on visiting cruise ships. Today, Mantovani Navigation Ltd is a member of the Cyprus Shipping Association as an agency representing the interests of established shipping lines and undertaking port operations for commercial liners (container and car carriers). The company also undertakes port operations for cruise ships and offers services such as chandlering, bunkering and more. The Travel Agency department was initially set up before the arrival of air travel to the island, in order to handle passenger liner bookings to Italy. With the arrival of commercial airlines, the company developed its travel agency operations and became one of the first IATA accredited agencies on the island. Today A.L. Mantovani & Sons Ltd is a destination services company that organises customised itineraries, tours, events and activities for a variety of corporate and leisure groups, while also acting as shore excursion agents for cruise ships.

20 | GOLD 20 GOLD GOL OL LD | The LD Th he B Business Bu Busin usin iness iness sss Magazine Ma agazi agazin zine inee of o Cypru Cy C Cypr Cyprus yprrus rus

Established 1896

Established 1856

+$'-,.<5,$.26 6216 /7' More than 160 years after it was founded, Hadjikyriakos & Sons Ltd remains one of the largest electrical appliances and consumer electronics companies in Cyprus. A private family business, established with the purpose of serving the market and its ever-changing needs, it is a distributor, retailer and wholesaler of consumer electronics and domestic appliances. The company operates 15 retail stores nationwide, complemented by an exclusive network of over 50 dealers. Among the brands represented and marketed by Hadjikyriakos & Sons Ltd are Zanussi, Hitachi, Rowenta, Kenwood, Sony, Toshiba and Villeroy & Boch.

6 - 6 6(5$3+,0 /7' Established over 120 years ago, S.J. Seraphim Ltd became a privately owned limited company in 1974. It specializes in the exclusive import and direct distribution of branded stationery, school, office and paper items, as well as a variety of other consumer goods for the local market. Over 12 decades of operations, the company has grown into one of the most credible and prestigious in Cyprus.

Established 1897

',&.5$1 28=281,$1 &2 /7'

Established 1896

/$1,7 7,6 * *5283 2) & &203$1,( (6 The original company, N.P.Lanitis Ltd, was established in 1896. It formed the backbone of the Lanitis Group of Companies, which is now one of the largest business groups in Cyprus and currently under the leadership of the fourth generation of the Lanitis family. The Group has played a pioneering and innovative role in all the industries that it has operated in over the past 120 years. Today, N.P.Lanitis Ltd is a private equity investment company, which, through autonomous subsidiaries and/ or associate companies, offers a wide range of products and services in sectors such as energy, commodities, trading, restaurants and entertainment. The Lanitis Group has its headquarters on the premises of its holding company, the Limassol-based Lanitis E.C HoldLQJV /WG ZKLFK KDV D GLYHUVLĂ€HG SRUWfolio of investments through its various subsidiaries and associate companies. The company was established in 1952 under the name Lanitis N & E Estates Ltd. The companies of the Lanitis Group are active in construction, property development, tourism and travel, hotels, transport, leisure and entertainment, restaurants, golf, marina, energy, trading and agriculture.

Antonis Papas Group Marketing & Communications Manager LANITIS E.C. HOLDINGS LTD or a company to have long and enduring success throughout the years, it has always been imperative to be proactive, progressive and pioneering. This means that there is always a possibility of facing risks, uncertainties and D ÂśQHZ VWDWXV¡ *URZLQJ EXVLQHVVHV means a range of challenges, whose QDWXUH DQG GHJUHH RI GLIĂ€FXOW\ GHSHQG on the economic environment in each VSHFLĂ€F WLPH SHULRG 7KH NH\ WR VXFcessfully coping with these challenges is to be ready and able to adjust to the needs and changes of each era. A FRPSDQ\¡V ORQJ KLVWRU\ FDQ EH D FRPpetitive advantage, in both a practical and a more abstract way. Practical, because this history is proof of business skills, commitment and accumulated experience; and abstract, because all of these help establish a good reputation in the business world. This, in turn, facilitates broader cooperation with prospective investors and clients, as the successful course of a FRPSDQ\ JXDUDQWHHV FRQĂ€GHQFH DQG trust. Moreover, the longer the history of a company, the longer and broader is the pool of its network of associates and partners.The main factor behind WKH /DQLWLV *URXS¡V HQGXULQJ VXFFHVV LV GHĂ€QLWHO\ LWV ´DQWKURSRFHQWULFÂľ FKDUacter and culture. In other words, its IRFXV DQG HPSKDVLV RQ LWV PDLQ ´DVVHWÂľ LWV SHUVRQQHO $GGLWLRQDOO\ LW KDV been all about the strong commitment of the owners to hand down the values of the Group – reliability, integrity, quality and making social contribution – from generation to generation.EvagRUDV /DQLWLV XVHG WR VD\ ´, VWURQJO\ EHOLHYH WKDW DSDUW IURP EHLQJ SURĂ€WDble, a company must also contribute WR VRFLHW\ Âľ 'HVSLWH JURZLQJ VLJQLĂ€cantly in size and stature throughout four generations, the Group has always remained true to this principle DQG ZLOO FRQWLQXH WR GR VR Âľ

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Aged 25, Dickran Ouzounian arrived in Cyprus from Anatolia in 1896, first building water pumps before founding a small factory the following year for the construction of metal beds. In 1907, he became the Cyprus representative of Raleigh bicycles. In 1951, Dickran Ouzounian & Co became a limited company,importing motorcycle brands such as AJS, Matchless & Norton. After reading about a small new Japanese car company, Ouzounian imported the first 20 cars by Toyota to Cyprus. Dickran Ouzounian & Co. Ltd. has remained the official distributor of Toyota in Cyprus since 1965, operating through an exclusive, high quality sales and after-sales network throughout the island.

Established 1898

)5$1&28', 67(3+$128 Francoudi & Stephanou was established in Famagusta by Agisilaos Francoudi. By the turn of the century, the company became WKH ÀUVW WR LQLWLDWH FRQWDLQHUL]DWLRQ LQ &\SUXV and continued to build its position in the shipping agency/container handling business. By the 1930s, Francoudi & StephaQRX KDG GLYHUVLÀHG LQWR DOFRKRO WUDGH DQG distribution imports. The trend towards GLYHUVLÀFDWLRQ DQG H[SDQVLRQ DFFHOHUDWHG in the1960s with the construction of its own hotels and the acquisition of Aeolos, a pioneer in the Cyprus tourism business sector, and then again in the mid-1990s with a venture into telecommunications (through F&S Telecom) and Financial Services (through F&S Financial Services). Today, Francoudi 6WHSKDQRX LV D GLYHUVLÀHG à H[LEOH DQG competitive Group of Companies with over 1,500 full time employees in Cyprus and abroad and involved in a broad spectrum of activities in the areas of insurance, travel & tourism, hotels, telecommunications, ICT and Trade.

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| COVER STORY |

CYPRUS’

OLDEST

Michalis Persianis

COMPANIES

Director Corporate Affairs BANK OF CYPRUS

75<)21 *5283 The Group started its involvement in the import and distribution of consumer products, including foodstuffs in Nicosia almost 120 years ago and has continued to be one of the island’s leading trading groups. In the early 1980s, the company began exporting throughout the Middle East and has since expanded to the markets of Africa and Asia. Some years ago, four separate companies were formed: Tryfon Distributors Ltd imports and distributes foodstuffs in the Cyprus Market (McVities, Weetabix, Tilda Rice, Kallo and many other brands); L. Tryfon Ltd specializes in land development and leasing of shops and offices; Kyriakos Markides (Katoikies) Ltd specializes in land development for luxury flats and deluxe offices; and S. M. Tryfon Ltd manufactures and exports foodstuffs and supplies of premixes and formulations to manufacture the Group’s own products and a variety of related products in other countries. Over the last decade, thee Group has expanded into manufacturing in a variety of joint ventures with partners with the necessary expertise in each field in other countries.

22 | GOLD 22 GOLD GOL OL LD | The Th he Bu Business B Busin sin iness iness sss Magazine Ma Mag agazi agazin zine inee of o Cypr Cy C Cyprus ypru rus rus

he Nicosia Savings Bank was founded on 1 January 1899, on the initiative of a lawyer, Ioannis Economides and a doctor, Antonios Theodotou. This was a time when the productive capacity of &\SUXV UHPDLQHG VWLà HG DV WKH country, less than a decade out of Ottoman rule and now a British Colony, remained at subsistence levels, with few organized markets, a nascent industrial sector and little regulation or organisation on a macroeconomic level. The state of the economy was the most important problem. Financial intermediation was virtually unknown (limited to loan sharking) as were the concepts of investment and, indeed, of savings. One of WKH ÀUVW RUGHUV RI EXVLQHVV ZDV therefore, to instil the notions of savings and investment in the minds of the urban class of Cyprus. The original shareholders-depositors were owners of what we would today recognize as micro and small businesses, as well as many women industrial workers. These individuals deposited their weekly savings, taking shares in return. As the urban classes started realizing that the newly set-up cooperative institutions were a viable alternative to individual moneylenders, they started to turn to organized institutions for borrowing. By 1909, this was driving a rapid growth of urban micro-industry and elevated the income levels of Cypriots considerably. This was the birth RI ÀQDQFLDO LQWHUPHGLDWLRQ DQG credit transformation in Cyprus, UHSODFLQJ WKH ÀQDQFLDO V\VWHP WKDW had existed until then and which was based almost entirely on the remnants of a quasi-feudal system that supported unscrupulous loan sharks. As in 1899, we have recently faced social, societal and political change, as well as structural shifts in the economy. As then, the existing social, political and economic system has been shown to be in need of reform. And, as then, we have been asked to support that reform, in the shape of a host of new regulatory changes and monetary policy decisions that have further

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Established 1899

Established 1899

%$1. 2) &<3586 In 1899, the Nicosia Savings Bank began operations and, in 1912, was renamed Bank of Cyprus and recognised as a public company. In 1943, it merged with banking institutions in other towns and began operating throughout the country. The ancient Cypriot coin bearing the LQVFULSWLRQ ´.RLQRQ .\SULRQÂľ ´FRPPRQ WR DOO &\SULRWVÂľ ZDV DGRSWHG DV WKH %DQN¡V emblem. Today, Bank of Cyprus is still headquartered in Nicosia, and is the FRXQWU\¡V OHDGLQJ EDQNLQJ DQG Ă€QDQFLDO services group, providing a wide range of Ă€QDQFLDO SURGXFWV DQG VHUYLFHV LQFOXGLQJ UHWDLO DQG FRPPHUFLDO EDQNLQJ Ă€QDQFH factoring, investment banking, brokerage, fund management, private banking, life and general insurance. Earlier this year, it was listed on the London Stock Exchange (LSE).

LQMXUHG FRQĂ€GHQFH LQ WKH EDQNLQJ system internationally. The progress made since 2013 is neither haphazard nor accidental and we are now called to maintain the steady path of deliberate progress without any detours or ORVV RI SDFH 7KH EDQN¡V KLVWRU\ has created a sort of DNA in the organisation. It has created a feeling of responsibility in relation to the country. This was perhaps VWLĂ HG E\ D VHQVH RI JUDQGHXU IRU some years but, inevitably, it has UHWXUQHG WR WKH FRUH RI WKH EDQN¡V self-understanding. Speaking at the AGM of the bank in 1960, the year when Cyprus gained its independence, the then CEO, George Garanis, FRPPHQWHG ´7KLV VL]HDEOH RUganisation, precisely because of the primary role that it plays in the economic life of the country, also shoulders a grave responsiELOLW\ EHIRUH LWÂľ 7KLV IHHOLQJ LV VWLOO there, as the bank is again deFLGHGO\ ´&\SULRWÂľ SHUKDSV PRUH than ever, operating exclusively in Cyprus as the largest MFI. Our prospects are directly linked to the prospects of Cyprus and our targets are set in terms of GDP growth, not credit growth. This is an outcome of the fact that the bank was here during the darkest hours, both nationally and economically. And it still is here. Throughout our history, during every crisis, it was the ordinary folk that drove recovery, as long as larger organisations, political leadership and the state itself allowed them by providing support rather than hindrance. We saw this in every episode, from the debt holiday of 1914 to the steady recovery that started at the end of 2014. At the same time, Cypriot perseverance was always the key, as long as it was coupled with expertise from beyond our shores. The sense of responsibility, when coupled with collective passion, cannot fail to succeed. This is where we stand now, three years after the crisis. The big secret, in each one of the long list of disasters, has been to channel all that decidHGO\ ´&\SULRWÂľ SDVVLRQ LQWR GHOLEerate, methodical and calculated action that tackles the problem with a steady pace. This is what we have done since 2014 and it is exactly what the rest of &\SUXV KDV GRQH DV ZHOO Âľ

Established 1903

&+5<66$),1,6 32/<9,28 //& &KU\VVDĂ€QLV 3RO\YLRX //& ZDV HVWDEOLVKHG E\ 1 * &KU\VVDĂ€QLV :LWK D WUDFN record spanning over a century, it is one of WKH ROGHVW DQG PRVW SUHVWLJLRXV ODZ Ă€UPV LQ &\SUXV 7KH Ă€UP¡V PDLQ EDVH LV LQ 1LFRsia but, over the years, it has established D QHWZRUN RI DIĂ€OLDWHV LQ /LPDVVRO /DUQaca and Paphos as well as an extensive and dynamic network of corresponding ODZ Ă€UPV DEURDG LQFOXGLQJ VRPH RI WKH ZRUOG¡V OHDGLQJ QDPHV 7RGD\ WKH Ă€UP HPSOR\V KLJKO\ TXDOLĂ€HG ODZ\HUV ZLWK YDULous specialisations including banking law, insurance law, competition law, mergers and acquisitions, business law, employment law, aviation law, media law, arbitraWLRQ ODZ WD[DWLRQ DQG PRUH &KU\VVDĂ€QLV and Polyviou LLC serves banks and Ă€QDQFLDO LQVWLWXWLRQV LQYHVWPHQW DQG LQVXUance companies, hedge funds, airlines and petroleum companies, among others. It also represents the US government and the British Council in Cyprus on a regular basis and it is the exclusive contributor WR WKH ,QWHUQDWLRQDO /DZ 2IĂ€FH &RPSDQ\ Commercial Newsletter for Cyprus.

Established 1908

3$8// 3 3(75 52876,26 $1' 62 21 /7 7' Paul Petroutsios and Son Ltd is a privately owned family business and one of the largest and most respected companies in the imported foodstuffs sector. For more than 100 years, the company has offered first quality products to consumers, representing over 30 well-known international brands. Throughout its many years of operation, Paul Petroutsios and Son Ltd has been a pioneer in innovating marketing techniques and has set the standard in the industry for innovation in sales promotion.

Established 1908

1$7,21$/ %$1. 2) *5((&( &<3586

The bank started as Bank of Athens, originally opening a branch in Limassol before expanding to Nicosia and Famagusta and, eventually, throughout the Island. The Bank played a VLJQLÀFDQW ÀQDQFLDO FXOWXUDO DQG QDWLRQDO UROH during the British colonial era, as well as after Cypriot independence in 1960, reinforcing even more the already existing links between Greece and Cyprus. In 1953, Bank of Athens merged with the National Bank. By 1972, National Bank of Greece was the second largest bank in Cyprus, playing a very important role in the growth of the economy and supporting the activities of many major businesses. Shares of National Bank of Greece are listed on the Athens Stock Exchange and, since 1999, have also been listed on the New York Stock Exchange.

www.goldnews.com.cy ww www.g ww.gold ww ww.go goldn go oldnew ld dn dnew news ws.co ws.co s.ccom.cy om.cy om.cy .cy cy | GOL GOLD GO G OL LD D | 23 23

| COVER STORY |

CYPRUS’

OLDEST

COMPANIES Established 1920

3(/$*+,$6 &+5,672'28/28 95$&+$6 //& The original Law Firm was founded by John G. Pelaghias in Limassol in 1920. In 1950, his son George J. Pelaghias WUDQVIHUUHG WKH Ă€UP¡V SUDFWLFH WR 1LFRVLD ZKHUH LW KDV EHHQ based ever since. In 1984 Alexandra Pelaghias-Christodoulou joined her father in the practice and became a partner LQ WKH Ă€UP ZKLFK JUHZ IXUWKHU ZKHQ LQ 3HWURV ) 9UDchas joined and it was renamed Pelaghias, Christodoulou, Vrachas & Co. Twenty years later, it became Pelaghias, &KULVWRGRXORX 9UDFKDV //& 7RGD\ WKH Ă€UP¡V DFWLYLWLHV UHYROYH PDLQO\ DURXQG WKH Ă€HOGV RI FRUSRUDWH DQG FRPPHUFLDO law, international tax planning and business investment, VKLS DQG VKLSSLQJ Ă€QDQFH DV ZHOO DV JHQHUDO OLWLJDWLRQ

Established 1916

76(5,27,6 *5283 The origins of the Tseriotis Group, one of the largest corporate entities in Cyprus, consisting of operational and holding companies in Cyprus and Greece, date back 100 years, while the current Board of Directors consists of third and fourth generation family members. P.M. Tseriotis was founded in Nicosia by Panayiots M. Tseriotis as a Commission Agency for various European manufacturers, including Lever Brothers and BASF. In 1947 P.M. Tseriotis was incorporated as a limited liability company and began an aggressive growth strategy, establishing branches in all major cities and concluding new distribution agreements. The company moved away from the commission business to wholesaling, holding stocks of products and selling through its own sales force. The Group is still strengthening and expanding its activities, which now include the sale and after-sales services of motor vehicles, sales and distribution of branded Fast Moving Consumer Goods, logistics (3PL) services, manufacturing of home and personal care products, ICT services and sales, and insurance services.

24 | GOL 24 G GOLD OL OLD LD | The LD Th he B Business Bu Busin usin iness iness sss Magazine Ma agazi agazin zine inee of o Cypru Cy C Cypr Cyprus yprrus rus

Alexandra PelaghiasChristodoulou Partner PELAGHIAS CHRISTODOULOU VRACHAS LLC Q ZKHQ RXU Ă€UP ZDV established, Cyprus was a British Colony. Lawyers ZHUH IHZ DW WKH WLPH ² RXU Ă€UP comprised one lawyer and one clerk – and they all had to deal with numerous clients. Everything (pleadings etc.) was handwritten and WKHUH ZHUH QRQH RI WRGD\¡V ÂśPRGHUQ PHWKRGV¡ RI GRLQJ WKH ZRUN 1RZ the legal sector is fast-changing and demanding. There are more lawyers and competition between ODZ Ă€UPV KDV LQFUHDVHG GXH WR globalisation and our membership of the European Union, since all EU lawyers can compete with us. Another recent challenge has been the economic recession. Our presence DV D ODZ Ă€UP IRU DOPRVW \HDUV GHĂ€QLWHO\ HQKDQFHV RXU LPDJH HYidencing our prominence and how well-established and experienced RXU ODZ Ă€UP LV %XW WKLV RQ LWV RZQ LV not enough. Keeping ahead of the PDUNHW LV D GLIĂ€FXOW WDVN LQ WRGD\¡V competitive environment. The main factors behind the comSDQ\¡V HQGXULQJ VXFFHVV DUH WKH personal service it has always provided to clients, the experience passed down through generations, determination and love for our work DQG SURIHVVLRQ Âľ

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Established 1922

0,&+$(/,'(6 0,&+$(/,'(6 Andreas G. Michaelides started his practice as a lawyer in Famagusta 95 years ago, gradually acquiring a sigQLÀFDQW QXPEHU RI FOLHQWV including businessmen and shipping companies operating from what was at the time the largest port in Cyprus. He continued to practise on his own until 1955, when his son George A. Michaelides TXDOLÀHG DV D %DUULVWHU at Law. In March 1955, father and son formed the partnership Michaelides & Michaelides. Following Cypriot independence in 1960, the business of the ÀUP JUHZ WR LQFOXGH FRPmercial litigation, banking, company formation, registration of ships under the &\SUXV à DJ DGPLQLVWUDtion of estates and more. Links were established ZLWK D QXPEHU RI ÀUPV of solicitors in the UK. Today, through its extensive international network RI DVVRFLDWHV WKH ÀUP provides advice and legal solutions on international legal matters.

Established 1923

&+5 3 3 0 0,76,' '(6 &2 ///& 7KH RULJLQDO ÀUP ZDV HVWDEOLVKHG LQ by Christos P. Mitsides (1900-1972) of Bellapais, Kyrenia. It is now in the hands of the fourth generation of lawyers in the IDPLO\ 7KH RIÀFH ZDV UHORFDWHG LQ WR LWV SUHVHQW ORFDWLRQ LQ 1LFRVLD 7KH ÀUP has a long tradition in the legal world of Cyprus and, over time, it has expanded from offering litigation services and legal advice to providing corporate services, DGPLQLVWUDWLRQ VHUYLFHV WD[ DGYLFH ÀQDQcial advice, estate planning, real estate DGYLFH ÀGXFLDU\ VHUYLFHV DQG PDQ\ more legal services. It has made and FRQWLQXHV WR PDNH VLJQLÀFDQW FRQWULEXtions in creating legal precedents, espeFLDOO\ LQ WKH ÀHOGV RI FRUSRUDWH DQG FRPmercial law in Cyprus. The outstanding DFKLHYHPHQWV RI WKH ÀUP FXOPLQDWHG LQ its winning an internationally prestigious Corporate INTL Global Award in 2012. 7KH ÀUP DOVR KDV D ORQJ WUDGLWLRQ LQ international business and its clientele includes several foreign and multinational companies operating in Cyprus, as well as Cypriot companies with activities DEURDG ZKLFK WKH ÀUP DVVLVWV LQ WKH PRVW important jurisdictions.

Established 1924

0$1*2,$1 %526 Brothers Haig and Levon Mangoian established the company more than 90 years ago. They worked as studio photographers specialising in portraits and outside work producing postcards (many of which are still in great demand from collectors today).After the Second World War, more emphasis was given to importing and selling and the studio was gradually run down, although the outside photographic work continued. The brothers also maintained the largest Black and White photolab on the island, at its peak employing four lab technicians and printing everything from snapshots to murals. Mangoian Bros Ltd was established in 1958 and today it is run E\ +DLJD]¡V VRQ $YR 0DQJRLDQ ,W VSHFLDOizes in modern photography equipment for TV, studio, professional and photographic enthusiasts.

Established 1924

&267$6 ,1',$126 &2 The law firm was founded by the late Antonis C. Indianos, M.A. (Oxon), Barrister-at-Law, in Limassol as A. C. Indianos – Advocate. The Criminal Lawyer par excellence on the island, Antonis C. Indianos moved his office to Nicosia in 1942, when the firm’s business began expanding to encompass commercial, insurance and corporate activities. Costas A. Indianos joined the firm in 1965 after studying in Oxford and following the death in 1968 of the founder, the firm’s name was changed to Costas Indianos & Co, Advocates & Legal Consultants. Costas Indianos was a practising lawyer with wide experience and specialization in shipping & maritime, commercial, business and corporate law. Over the years, the firm has acquired a local and international client base comprising businessmen, corporations, ship-owners and ship owning companies, commercial banks, embassies, municipalities, consulting firms, real estate investors and others. Costas Indianos & Co maintains a wide network of long-term business cooperations with firms across the EU, Russia and further afield. Its main areas of practice are corporate & business Law, taxation & tax planning, shipping law, immigration law, as well as other areas including debt collection, real estate, litigation, inheritance law, family law and intellectual property. It also offers legal services in Cyprus Investment Funds, Cyprus IP Box, Cyprus International Trusts, and Cyprus FX Investment Firms. www.goldnews.com.cy w www.g w ww w.gold goldn go oldnew ld dn new news ws.co ws s.ccom.cy co om.cy .cy cy | GOL GOLD GO G OL LD D | 25 25

| COVER STORY |

CYPRUS’

OLDEST

COMPANIES

Established 1925

86% %$1. 3/& 86% %DQN¡V URRWV VWUHWFK EDFN to 1925 when the Yialousa Savings Bank was established in the Karpas peninsula. It was the 10th company to be registered in Cyprus and, after a 16-year suspension of its operations due to the Turkish invasion, was reactivated in 1990. In 1996, 8QLYHUVDO /LIH DFTXLUHG D VLJQLĂ€cant stake in the Bank, changing the name to Universal Savings Bank Limited and marking the starting of a new era to become D IXOO\ Ă HGJHG %DQN ,Q WKH Bank obtained the full banking licence from the Central Bank of Cyprus allowing it to offer a full range of banking products and services. The three-year period 2006-2009 was marked by sigQLĂ€FDQW QHZ GHYHORSPHQWV FRQcerning the ownership structure of the Bank. In February 2009, a new dynamic corporate identity was created under the name USB Bank PLC, responding to the continuous challenges in the Ă€QDQFLDO VHFWRU DQG WR VWD\ ZLWKLQ the framework of its strategic SODQ IRU LQQRYDWLYH DQG HIĂ€FLHQW redevelopment and growth. In September 2010, BLC Bank SAL, a member of the international FRANSABANK Group, acquired 9,9% of the share capital of USB Bank PLC. Gradually BLC Bank SAL increased its shareholding which currently amounts to 99.25%. USB Bank has since pursued a responsible expansion strategy with the support of BLC Bank -FRANSABANK Group, which maintains presence in 11 countries. Today, the Bank offers a wide range RI Ă€QDQFLDO SURGXFWV DQG VHUvices for Retail, Corporate and International clients through its Branch network all over Cyprus, the Corporate Division Units in all major cities and the two specialized International Business Units in Nicosia and Limassol as ZHOO DV D 5HSUHVHQWDWLYH 2IĂ€FH in Moscow.

Established 1927

&<3586 7 75$',1 1* &25325$7,21 3 3/& & &7&

Established 1927

.(2 3 3/& KEO is a public limited company listed on the Cyprus Stock Exchange. It is a member of the Hellenic Mining Group whose varied interests in mining, cement production, consumer goods and banking make it one of the largest industrial groups in Cyprus. KEO markets a wide variety of alcoholic and non-alcoholic products locally and in over thirty countries worldwide. Production of KEO Beer started in 1951 and the state-of-the-art brewery is currently capable of producing over 30,000 hectolitres of beer monthly. In addition to its winery in Limassol, KEO also operates three wineries in the Troodos mountains. The continuous development and progress achieved by KEO is the result of a long-term growth strategy, carefully planned to meet the demands of a constantly changing environment. The organisation’s technological investment spectrum is wide, with a major addition being a state-of-the-art Saint Nicholas mineral water plant near Kakopetria. KEO PLC now operates six trading divisions: Beer, Wines, Spirits, Water, Juices & Soft drinks and Canned Food. Its portfolio comprises of both locally produced and imported brands.

26 | GOL 26 GOLD G OL OLD LD | The LD Th he B Business Bu Busin usin iness iness sss Magazine Ma Magaz Mag agazi agazin zinee o zine of Cyprus Cyypru C Cypr Cypru rus rus

Ninety years old this year and a public company listed on the Cyprus Stock Exchange, with N.K. Shacolas (Holdings) Ltd as its major shareholder, CTC is regarded as the biggest commercial organisation in Cyprus. It owns and controls a number of companies, each specializing in a VSHFLĂ€F LQGXVWU\ WKUHH RI ZKLFK DUH DOVR OLVWHG RQ WKH &\SUXV 6WRFN ([FKDQJH &7&¡V GLYHUVH operations have been an important factor in the FRPSDQ\¡V JURZWK DQG WRGD\ DUH VSUHDG RYHU Ă€YH PDLQ EXVLQHVV VHFWRUV 'LVWULEXWLRQ /RJLVtics of branded Fast Moving Consumer Goods, luxury cosmetics and fragrances and home appliances; Retail of fashion, DIY goods and home appliances; Automotive & Engineering, offering saloon and commercial vehicles, heavy machinery, professional tools and lighting; Property development and management of major projects, including retail outlets, shopping malls and golf courses; and Infrastructure Projects, such as the 25-year BOT contract (until 2031) with the Cyprus government for the international airports at Larnaca and Paphos.

Established 1928

030 * *5283 3 The Group’s origins lie in the firm P.Chr.Michaelides, which was established almost 90 years ago to trade in medicines. Today it remains a family-owned business and is one of the largest and most successful trading, distribution and retailing organisations in Cyprus, specializing in the local marketing of a diversified portfolio of global brands and pursuing new opportunities.

Established 1928

0$9526 The company started with one store in Nicosia and built its name and reputation by introducing toys and sports items. Since 1960, it has represented Mattel, which manufactures well known toys such as Barbie, Fisher Price, Hot Wheels and Uno. Mavros also imports Mares diving equipment and Wilson tennis products. It currently has a main branch in Nicosia and two franchise stores in Larnaca and Limassol.

Established 1929

27+21 *+$/$126 *5283 7KH FRPSDQ\·V PDLQ RSHUDWLRQV KDYH always been the importation and distribution of alcoholic drinks and the supply of beverages and tobacco products to embassies, diplomatic missions and troops. Among the many well-known brands in its portfolio are Glenmorangie, Bombay Sapphire, Grey Goose, Bacardi, Remy Martin, Metaxa, Plomari, Martini, Cointreau, Antinori, Mateus, and Tsantali.

Established 1929

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Established 1929

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C.A. Papaellinas was founded as a pharmaceutical agency by Christakis Papaellinas. A quarter of a century later, in 1954, his son Andreas Papaellinas joined the company and, over the years, turned a small family-run company into a dynamic organisation with a substantial volume of business and a key player in a growing but competitive environment. After 1974, two strong partnerships were formed – Demetriades & Papaellinas and Kapakiotis & Papaellinas – representing the two pharmaceutical giants Novartis and GlaxoSmithKline (GSK) respectively. In 1997, Christos Papaellinas, son of Andreas Papaellinas, became Executive Director of the company and that the same year, it expanded into retailing with the creation of the Beauty Line chain of cosmetics and fragrances. Today, C.A.Papaellinas is one of the biggest, most dynamic organisations on the island, leading in all areas of its distribution and retailing of cosmetics and fragrances, retailing of health foods and natural remedies, and distribution of pharmaceuticals, consumer and healthcare brands.

One of the oldest family companies in Cyprus, Geo. Pavlides & Araouzos Ltd engages in the importation and distribution of motor vehicles. Since 1929, it has been the sole importer and distributor of General Motors in Cyprus with the Opel and Chevrolet brands. In 2011, it obtained the representation of Citroen and in 2012, it added Mazda and Subaru to its portfolio. The company is also active in shipping, travel and tourism, through its subsidiary company, Hull Blyth Araouzos Ltd and in medical publications, through WKH DIÀOLDWHG FRPSDQ\ * & C. Artworks Publications Ltd, which specializes in the publication of medical magazines. In 2013, Geo. Pavlides & Araouzos started GPA Insurance Agencies Ltd, providing high quality insurance services and solutions, in particular to customers of the Group.

www.goldnews.com.cy | GOLD | 27

| COVER STORY | Established 1930

CYPRUS’

3,5,//26 %$.(5<

OLDEST

COMPANIES

In 1930, the Pirillos family was making bread at home and selling it to its neighbours and the villagers of Kiti, in the Larnaca district. By the 1970s, company employees were travelling around Larnaca selling their products. As demand grew, a larger bakery was opened, followed by a shop at Kiti. The business continued to expand to cake making and other confectionery products. Pirillos Bakery now has stores at Kiti, Meneou, Kamares, Aradippou and Agii Anargyri as well as two in Larnaca and Oroklini. It is a limited company owned by two shareholders, and in addition to bread and confectionery, it also sells ready-cooked food.

Established 1930

25,1 126

Founded as a textile importer, the company has been through numerous transformations during its long history, with particular diversification and growth over the past 30 years. The main areas on which Orinos focuses today are paints, graphic arts equipment, consumables and specialised Industrial products and it represents some of the top global brands in these segments. It is an acknowledged trading force with a country-wide presence, and a leading player in the fields in which it operates.

Established 1932

&+$5 3,/$.287$6 *5283 From the beginnings of the company 85 years ago, its founder Charalambos Pilakoutas had a vision to develop and expand car-related activities. He began by establishing a garage and showroom for imported Hillman and Humber saloons and Commer heavy trucks. Twenty years on, in 1952, Charalambos Pilakoutas Ltd became the exclusive agent of Perkins Diesel Engines and was appointed the agent of Trojan vans DQG 1XIĂ€HOG 7UDFWRUV LQ &\SUXV 7KH ODQGPDUN \HDU ZDV when the company became the exclusive agent for Cyprus of %0: :LWK %0: DV LWV QHZ Ă DJVKLS WKH FRPSDQ\ HPEDUNHG RQ DQ HUD RI UHRUJDQLVDWLRQ DQG H[SDQVLRQ )XUWKHU GLYHUVLĂ€cation followed as the it added more major names to its list of business relationships, including the agencies of Rolls Royce Diesel Engines, Bedford Trucks, Muddy Fox Mountain Bicycles, Borg-Warner Marine Transmissions, F.G. Wilson Gen Sets, Kubota Engines, Hurth Marine Transmissions and others in the diesel engine business. In 1995, Char. Pilakoutas Ltd. was appointed general agent of the Rover Group, MINI joined the family in 2001, followed by Jaguar in 2004, Nissan in 2006 and Rolls Royce in 2007.

Established 1932

0,76,'(6 *5283 The company was founded by brothers Chrysostomos and &RVWDV 0LWVLGHV ZKR RSHUDWHG D WUDGLWLRQDO VWRQH Ă RXU PLOO in Nicosia. In the 85 years that followed, the small family EXVLQHVV Ă RXULVKHG DQG JUHZ LQWR WKH ODUJHVW DQG PRVW H[SHULHQFHG Ă RXU DQG SDVWD SURGXFHU RQ WKH LVODQG 7RGD\ Mitsides dominates the Cyprus market, enjoying an impressive 95% brand awareness and commanding equally imSUHVVLYH VKDUHV RI DURXQG LQ WKH ORFDO SDVWD DQG Ă RXU markets. Apart from its main line of business, the company is also active in grain trading, the sale of pasta sauces, processed tomato products, frozen foods and other foodstuffs, and the sale of raw materials for the baking and confectionHU\ LQGXVWULHV :LWK RIĂ€FHV DQG SURGXFWLRQ XQLWV LQ 1LFRVLD 'KDOL DQG $UDGLSSRX DQG UHJLRQDO RIĂ€FHV DQG GLVWULEXWLRQ centres in all the main towns of Cyprus, Mitsides employs around 160 people. Recently, the company has expanded its operations abroad, through the purchase of a Serbian FRPSDQ\ LQYROYHG LQ WKH JUDLQV Ă RXU DQG SDVWD LQGXVWULHV

28 2 8|G GOL GO GOLD OLD | Th OL The T he Business he Bussin Bu siness iness esss Magazine Magaz Ma M a aga gaz ga g az azin ine o of C Cyypru Cyprus Cypr yprus russ

Charalambos Pilakoutas Managing Director PILAKOUTAS GROUP ne of the main challenges that every company has to face is that of building a reputation, based on a relationship of trust with clients and other stakeholders. Three generations of the Pilakoutas family have created a dominant position for the Group in the automobile and industrial machinery sector. Over the years, we have added prominent brands to the Pilakoutas Group and today we are proud that the PilakouWDV *URXS¡V H[SHULHQFH DQG expertise has created a brand of its own. This we owe to our clients. There has always been RQH FKDOOHQJH WKDW KDV GHĂ€QHG RXU FRXUVH EHLQJ DEOH WR DGDSW and evolve continuously. This dynamism has served us well GXULQJ ERWK JRRG DQG GLIĂ€FXOW times. Our history is a main asset. We have to deliver on the basis of our history, while at the same time creating opportunities for the future. Our corporate history, with such strong links to society, enhances our competitive advantage and, at the same time, creates expectations which have to be met. The main factors behind RXU FRPSDQ\¡V HQGXULQJ VXFcess are leadership skills, the ability to take the right business decisions at the right time, encouraging effective teamwork DQG Ă€QDOO\ LQVSLULQJ RXU SHRSOH WR DFKLHYH FRPPRQ JRDOV Âľ

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Opinion

BROADENING THE HORIZONS OF THE CYPRUS SHIPPING INDUSTRY THE LIFTING OF TURKEY’S RESTRICTIVE MEASURES WILL CREATE MASSIVE GROWTH PROSPECTS FOR CYPRUS SHIPPING

I

By Marios Demetriades

n recent years, Cyprus new shipping strategy will broaden has witnessed a crisis off the horizons of the industry and unprecedented financiall create opportunities for expansion difficulties but during into new markets. At the same time, w have to make sure that the high those extremely tough we or times, the shipping sector standards of quality and safety that managed to maintain its competicharacterize our maritime industry are tiveness and prospects and contrib-maintained and safeguarded. uted immensely to our efforts to The geopolitical situation in our y. achieve a speedy economic recovery. region is changing fast and Cyprus is ng The important role that the shipping at the centre of developments. New sector plays in the Cyprus economyy political balances of power are emergis well acknowledged. In an effort to ing, which are very closely related to develop a holistic strategic develop-the discovery of energy reserves in our ment plan for the Cyprus shipping area. The discovery of hydrocarbons industry, a study was completed has created new challenges for our in 2015. The study proposed measures to shipping industry. Cyprus has the potential to Info: Marios Demetriades is Minister strengthen Cyprus’ merchant fleet and shipbecome the Energy Centre of the region. Offof Transport. Communications & Works. ping cluster. shore exploration and the production of gas and The outcome and recommendations of the oil, as well as their transportation ashore, require study have been taken into consideration and three working the operation of specialised ships and equipment and the supgroups, composed of experts from both the public and the ply of specialised support services. These new and exciting deprivate sector, were set up in order to process, develop and velopments are very promising, expanding the horizons of our implement all the proposed measures. The working groups shipping industry and creating the relevant synergies. have been working intensively over the last one and a half At the same time, we hope that the ongoing negotiations will years and some of their suggestions and measures have allead to a viable and functional solution to the Cyprus Problem. ready been implemented successfully. One of the measures An important parameter of such a solution will be the lifting of that we consider to be of the highest importance is the Turkey’s restrictive measures on Cyprus shipping. Such a deproposal for the establishment of an Under-Secretariat for velopment will create massive growth prospects for the Cyprus Shipping. It is our belief that such an Under-Secretariat will Registry as well as for the Cyprus shipping industry in general. create a new era for our shipping industry. The sustainable growth of Cyprus shipping is also one of the In addition, over the past year, we have intensified our efpriorities of this Government and the Ministry of Transport. forts to grow the Cyprus registry. Communications & Works will We participated in international do its utmost to enhance the comTHE PROGRESSIVE exhibitions like Posidonia 2016 petitiveness of our flag and of our and Maritime Middle East and, maritime cluster. IMPLEMENTATION OF furthermore, as part of our efforts CYPRUS’ NEW SHIPPING This text was part of the Ministo strengthen and promote the STRATEGY WILL ter’s address to the members of the Cyprus Flag, roadshows took BROADEN THE HORIZONS Cyprus Marine Club at Epsilon, place in Europe and the Far East. Limassol Marina on 26 January, OF THE INDUSTRY I am confident that the progres2016. sive implementation of Cyprus’ www.goldnews.com.cy | GOLD | 29

| INTERVIEW |

$6 7+( $1$67$6,$'(6 $'0,1,675$7,21 (17(56 ,76 ),1$/ <($5 ),1$1&( 0,1,67(5 +$55,6 *(25*,$'(6 67,// +$6 +,6 6,*+76 ),50/< ),;(' 21 ,03/(0(17,1* .(< 32/,&< ,668(6 ,1&/8',1* 38%/,& 6(&725 5()250 35,9$7,6$7,21 $1' (1685,1* 7+$7 7+( *22' :25. &$55,(' 287 6,1&( 7+( &5,6,6 &217,18(6 +( 7(//6 *2/' 7+$7 +( $/:$<6 :$6 $1' 5(0$,16 $ Âľ32/,7,&$/ $1,0$/Âś %87 +$6 <(7 72 '(&,'( 21 :+,&+ 2) +,6 6(9(5$/ 237,216 +( :,// &+226( 7:(/9( 0217+6 )520 12: BY JOHN VICKERS | PHOTO BY JO MICHAELIDES

L ast year you completed the task of exiting the Troika’s Economic Adjustment Programme but you have repeatedly stated that there is much more to be done to put the economy in order. What’s on your agenda for this administration’s your final year? Harris Georgiades: The ultimate objective of our economic policy from Day One was to simultaneously exit the recession and complete the programme, so as to be able to turn the page and continue on a path of recovery and growth. The plan for 2017 – the last year of this administration – is to ensure that the foundations of the recovery are solidified so that it continues in the medium and long term. It’s important to note that the strong performance of the real economy, which is currently growing at 3% of GDP, is not being artificially boosted by deficit spending or excessive lending on behalf of the banks. This is real growth and it is a result of the sense of stability and confidence

which has been restored, of the stabilisation of the banking sector, of new foreign and local investment across sectors, of the strong performance of some key industries including tourism and services, and of fiscal policy in the form of tax breaks and incentives. Achieving a recovery and then maintaining it is not something that comes about with words. It takes actions such as those I have described. Gold: AKEL recently announced its intention to table legislation abolishing the Privatisation Unit. Do you think it is likely to succeed? If so, will you simply give up on privatisation or try to do it by some other means? H.G.: We’ve already faced numerous obstacles regarding privatisation and licensing to the private sector and, while I wouldn’t say that it is the single most important element of our economic policy, it is a very valuable tool which has been employed by all modern economies and we should do the same. I am very confident about the deal with Limassol Port, which will add a new dimension to the country’s economic model and we plan to complete a similar process for Larnaca Port by the end of the year. We have already licensed the Cyprus Airways brand and we’re about to seal the deal for the creation of the integrated casino resort. These are positive examples which have already been implemented or are going through. We want to add more to this list – which may not be huge but it is nonetheless important – including the Troodos Government Estate, which could become a driver for the economic regeneration of

that part of the island, and the Government Lottery. We find it very odd that this should be a function of the civil service – of this Ministry actually – and we think it can work better and deliver increased revenues if offered to the private sector. And finally, we shall insist that Cyta cannot remain the only telecoms group in Europe which is a state-owned organisation. We shall make another attempt to change its status, taking into consideration some of the objections that were raised previously. The investor will have to take a minority stake but we think that this could still work and it may be more agreeable to the House of Representatives. Given the importance of a strong banking sector to the economy, how do you view the banks’ progress as regards their large portfolio of Non-Performing Loans? H.G.: I’ve been saying for a while that I see the glass half-full and I think there is plenty of confirmation that the healing process in

CANNOT REMAIN THE ONLY TELECOMS GROUP IN EUROPE WHICH IS A STATE-OWNED ORGANISATION www.goldnews.com.cy | GOLD | 31

| INTERVIEW |

THERE IS PLENTY OF CONFIRMATION THAT THE

IN THE BANKING SECTOR IS CONTINUING the banking sector is continuing. We’ve seen Bank of Cyprus fully repay the Emergency Liquidity Assistance (ELA) – something which many people thought would never happen, believing that it would remain a permanent burden on the bank and the financial sector – and we have seen it list on the LSE. Hellenic Bank has set up an NPL management platform with a private asset management company, new foreign investors are involved in Piraeus Bank, and the Coop sector, which is now a centralised and much more efficient financial institution, is also seeking opportunities that will enable it to further progress with NPL management. Obviously challenges remain and the regulatory and supervisory framework is demanding so there can be no relaxation of the effort. Gold: Would you be in favour of the establishment of a single ‘bad bank’ or do you think that each bank needs to deal with its own problems? H.G.: I think either option could work but each bank has its own approach and this is perfectly acceptable. What I would say is that I believe all instruments should be examined, explored and, where appropriate, utilised. Gold: You recently reached agreement with the civil service union (PASYDY) on continuing the salary freeze. How do you feel about this? H.G.: The truth is that we are still disappointed that the proposed broader public administration reform failed to get through Parliament. What we have agreed with PASYDY and with the two main unions (SEK and PEO) is not the same thing and the need to implement structural reform in various areas of the public administration remains. However, I would say that the agreed framework is quite good under the circumstances. It gives something to the civil service – the possibility of promotions, in32 | GOLD | The Business Magazine of Cyprus

crements to be offered, some improvements to overtime pay – but we have secured some very important issues, including an indefinite extension of the freeze on new hirings, no pay rises for the next couple of years at least, and an acceptance of the mechanism which links any increase in the public sector payroll with the performance of the economy. I repeat that we still want to see public administration reform but this deal is good, at least for the next couple of years. Gold: How do you view the past four years? Are there things that, with hindsight, you wish you had done differently? H.G.: I was never nervous, anxious or insecure about the task at hand three or four years ago but I must admit that I become a bit nervous now when I look back. When one is in the middle of a crisis situation, there isn’t really time to feel anxiety or uncertainty. In this particular case, it was an emergency situation and we acted appropriately. Now, looking back, I have a clearer view of the dangers we faced and how close we came to unimaginably bad circumstances and much more severe hardship for our people. It was a very grave situation and, viewed from today’s standpoint, this is even clearer. Fortunately we were given a second chance and while we have not reached the end, we have definitely come a long way. If I have one regret, it is is that we were unable to move even faster than we did. However, I have seen that from the time one decides to embark on any kind of new policy, it takes a long time and it’s a gruelling effort. I wish we could have introduced more reforms but we all need to realise that, over the past four years, more reforms have been implemented by this government than by the last three or four administrations put together. Gold: Has this time and experience given you a taste for greater involvement in politics or has it had the opposite effect? H.G.: Many previous ministers, including

Ministers of Finance, have been very careful to emphasise that they are not politicians. I, by contrast, admit that I am a political animal but this is not synonymous with always being on the political front line. I don’t know what I’ll be doing in a year’s time – assuming that I will complete the year, which is something that only the President can decide. Staying in politics is an option, seeking private sector opportunities is another, writing a book is yet another option. I will decide later. Gold: If there is still no resolution of the Cyprus Problem this time next year and the presidential elections go ahead, would you be willing to serve another term as Minister of Finance if Nicos Anastasiades were to offer you the job again? H.G.: There are lots of ‘ifs’ here and I haven’t really thought about it but my answer is ‘probably not’. I’m working on the assumption that I will not continue in this post. My intention is to move on but, at this moment, I don’t know precisely what I’ll be doing. Gold: How would you like to be remembered for your work during the period 2013-2018? H.G.: I wouldn’t object if I am not remembered at all! The essence is not about what other people may say or think about what I have done. Part of the job description is to do what you believe is right and appropriate, irrespective of what the public perception is. From my own point of view, when President Anastasiades and his team took over, my sole ambition was to help the country exit what was a very grave situation and, on this basis, I will eventually evaluate my efforts. As I said before, having been given a second chance, we should all take care to use it wisely and carefully.

SPECIAL promotional feature

A.I. MOTOKINISI GROUP 34 CHAR. PILAKOUTAS GROUP 36 CHR. KAPODISTRIAS & SONS LTD 40

GENERAL INSURANCE OF CYPRUS 42 HELLENIC BANK 44 MICHAELS AUTOMOTIVE LTD 46

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CAR+ SPECIAL promotional feature

The sports car among luxury saloons

Porsche Center Cyprus A.I. Motokinisi Group Nicosia: 15, Megaron Street, 2032, Strovolos Tel: (+357) 77771911 Fax: (+357) 22662663 Limassol: 58-60, Ayiou Athanasiou Avenue, 4102, Ayios Athanasios Area Tel: (+357) 25828911 Fax: (+357) 25828910 Email: info@porsche.com.cy

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The Panamera was developed for sports car drivers who appreciate four doors and four seats. And for saloon drivers who prefer sporty handling. Opposites, which the Panamera reconciles in superior style. It is a sports car and luxury saloon in one – Gran Turismo rethought and realigned. The second generation Panamera is the performance icon of the luxury class. To accomplish this, Porsche has systematically improved the Panamera concept with a fourdoor car that has been redesigned and restyled down to the last detail. Its engines and transmissions have been re-engineered, its chassis perfected, and its display and control concept reinterpreted for the future with multi-touch gesture control. The new Panamera once again extends the boundaries between an ambitious sports car and a comfortable cruising car with technical highlights such as rear axle steering, electromechanical roll stabilisation and a three-chamber air suspension. Visually, the unique concept of the Gran Turismo is reflected in a new expressive design: unmistakably a Panamera, unmistakably a sports car – with long, dynamic proportions, pronounced shoulders, athletic flanks and a very dynamic roof line that is 20mm lower at the rear. The typical Porsche interior has been reinterpreted in a future-oriented way for the new Panamera. Black panel surfaces and interactive displays combine the clear visuality and intuitive user interfaces of smartphones and tablets with the practical requirements for controlling the car. Classic hard keys and conventional instruments have been reduced significantly. In their place, touch-sensitive panels and individually configurable displays dominate in the new

Porsche Advanced Cockpit – with great benefits for the driver and the front and rear passengers. A Porsche has always impressed with more than just power; its efficiency is equally important. To make the new Panamera even more efficient, all of the second generation engines have been redesigned. The engines were made more powerful while improving their fuel economy and reducing emissions. Three new twin-turbo direct injection engines are being introduced at the market launch: in the Panamera Turbo, the Panamera 4S and the Panamera 4S Diesel. All models – and for the first time the diesel – are equipped with a permanent, fully variable all-wheel drive system (Porsche Traction Management / PTM) and a new eight-speed Porsche dual-clutch transmission (PDK). A four-litre V8 petrol engine which delivers 550 hp powers the Panamera Turbo, and a V6 petrol engine with a displacement of 2.9 litres and output of 440 hp drives the Panamera 4S. In the Panamera 4S Diesel, a four-litre V8 with 422 hp and a maximum torque of 850 Nm generates powerful thrust. The basic model in the Panamera range is the 3-litre version which delivers 330 hp on a starting price from €94.000. Recently added is an Executive version with longer wheelbase. Just like the overall concept of the new Panamera, which recently enabled a new lap record of 7 minutes 38 seconds for a four-door car on the legendary Nürburgring-Nordschleife circuit, the chassis also combines the ride comfort of a luxury saloon and the performance of a genuine sports car.

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CAR+ SPECIAL promotional feature

The All new BMW 5 Series Sedan

The new BMW 5 Series Sedan has all the tools it needs to continue the remarkable success recorded by its predecessors; around 7.9 million BMW 5 Series cars were sold across its first six generations. Rigorous application of the BMW EfficientLightweight lightweight design concept, with increased use of aluminium and high-strength steels, reduces the weight of the 5 Series Sedan by up to 100 kilograms from that of its predecessor. The newly designed chassis, a low centre of gravity, BMW’s hallmark even weight distribution and a lightweight body offering exceptional torsional stiffness combine a wonderfully dynamic driving experience with the long-distance comfort for which the BMW 5 Series is renowned. Various chassis options such as Integral Active Steering, which can now be teamed with xDrive intelligent all-wheel drive, add further talents to a dynamics-focused overall package designed to ensure the BMW 5 Series once again stands at the top of its class. The drag coefficient of the new, 4,935 millimetre-long BMW 5 Series Sedan (Cd = 0.22 at its most efficient) sets the benchmark in its class. A wealth of assistance systems are on hand in the new BMW 5 Series to offer the driver unbeatable support – not only at critical moments but also in less demanding situations at the wheel, such as traffic jams, slow-moving traffic and monotonous stretches of motorway. To this end, it is fitted as standard with a stereo camera, which teams up with optional radar and ultrasound sensors to monitor the area around the car. New features in the BMW 5 Series alongside the evasion aid and Crossing traffic warning are the Lane Change Assistant and Lane keeping assistant with active side collision protection. The latter keeps an eye on the lane markings and the area around the car, and actively helps the driver to avoid looming collisions by applying corrective steering inputs. The BMW 5 Series also takes another step towards automated driving with extended functions for the optional Active Cruise Control (ACC) system and Steering and lane control assistant. These include adoption of speed restrictions, which drivers can select as part of the Speed Limit Assist option. Drivers can confirm adoption of a speed restriction and make an adjustment of +/– 15 km/h / 9 mph in the system settings. From rest to 210 km/h (130 mph) the car assists the driver with distance-keeping, accelerating, braking and lane control. With even greater user-friendliness as its goal, the new BMW 5 Series is equipped with the latest-generation iDrive system. In top specification, it displays navigation, telephone and entertainment features, plus vehicle functions, on a high-resolution 10.25-inch screen. The latest-generation full-colour BMW Head-Up Display has a projection surface that is 70 per cent larger than before and displays traffic signs, telephone listings, radio stations, music tracks, navigation instructions and warnings from the assistance systems. Maximising the levels of on-board comfort are extended storage options, greater legroom for rear-seat passengers and comfort seats with massage function, not to mention innovative seat operation using touch sensors and four-zone climate control complete with ionisation and discreet air fragrancing. All the engines in the 5 Series Sedan line-up belong to the newly developed, modular BMW EfficientDynamics family of power units. BMW TwinPower Turbo technology imbues all the members of the family with outstanding performance combined with exceptional efficiency. Two diesel engines and two petrol variants will be available from launch, working in tandem with either rear-wheel drive or BMW xDrive intelligent all-wheel drive. The new 5 series is already in Char. Pilakoutas Ltd showrooms.

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The All-New Jaguar F-PACE The all-new Jaguar F-PACE is a performance crossover designed and engineered to offer the agility, responsiveness and refinement that all Jaguars are renowned for, together with unrivalled dynamics and everyday versatility. Developed using Jaguar’s Lightweight Aluminium Architecture, the all-new F-PACE combines purity of line, surface and proportion with F-TYPE-inspired features such as the powerful rear haunches, fender vents and distinctive tail light graphics. The bold front grille and the muscular bonnet hint at the performance potential of engines like the 380PS 3.0-litre supercharged V6. Elements such as slender full-LED headlights, forged 22-inch forged alloy wheels and short front overhang carry the design vision of the C-X17 concept through to production. The all-new F-PACE seats five occupants in absolute comfort. The interior is a perfect blend of premium materials and finishes, exquisite detailing, luxuries such as heated, electrically-reclining rear seats, and cutting-edge technologies including the InControl Touch Pro infotainment system and 12.3-inch HD virtual instrument cluster. Lightweight Aluminium Architecture gave the design and engineering teams the ideal starting point. It was created from the outset as a modular structure, so the wheels can be positioned exactly where they are needed to deliver the proportions, dynamics, and practicality essential for a performance crossover. The wheelbase and track dimensions of F-PACE are not shared with any other Jaguar. At 4,731mm long and with a 2,874mm wheelbase, the all-new F-PACE offers the sleek profile and short front overhang characteristic of Jaguar design together with an exceptionally spacious interior. Rear kneeroom is class-leading and the luggage compartment volume is an astonishing 650-litres. The light, stiff body structure comprises 80 per cent aluminium, and is the only aluminium-intensive monocoque in the segment. Additional weight savings come from the composite tailgate and magnesium for parts such as the cross-car beam. The result is that the rear-wheel drive 180PS 2.0-litre diesel manual transmission model weighs as little as 1,665kg and achieves CO2 emissions of just 129g/km. With the 380PS 3.0-litre supercharged V6 petrol engine from the F-TYPE under its sculpted aluminium bonnet, the all-new F-PACE can accelerate from 0-100 in just 5.5 seconds before reaching an electronically-limited top speed of 155mph. Using state-of-the-art computational fluid dynamics simulations and applying lessons learnt from the XE and all-new XF, the all-new F-PACE has a drag coefficient of only 0.34 Cd, helping to reduce fuel consumption and improve refinement. The vehicle is also engineered for exceptionally low lift and excellent lift balance front-to-rear, resulting in better steering feel and stability at higher speeds. The all-new F-PACE’s torque on-demand All-Wheel Drive (AWD) system is Jaguar’s most sophisticated yet, and has extremely high torque capacity. It features the advanced, in-house control system first developed for F-TYPE AWD: Intelligent Driveline Dynamics (IDD). IDD preserves rear-wheel drive agility and handling character but can seamlessly transfer up to 50 per cent torque to the front wheels to exploit the performance benefits of extra traction, on all surfaces and in all weathers. The all-new F-PACE has been engineered to satisfy the most stringent safety standards worldwide and provides exceptional levels of occupant and pedestrian protection. The standard of active safety is just as high, thanks to a suite of advanced driver assistance systems. www.goldnews.com.cy | GOLD | 37

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CAR+ SPECIAL promotional feature

Mini Countryman: Driving fun for every occasion

The tradition-steeped British brand continues its advance into the premium compact segment. The new MINI Countryman is the biggest and most versatile model in the brand’s 57-year history. The MINI Countryman likewise offered additional ways of enjoying the brand’s hallmark driving fun when it was launched in 2010. It was the first MINI with four doors, a large tailgate, five seats and optional all-wheel drive and a total of more than 540 000 were sold worldwide. Having been completely newly developed, it now reflects considerable advancements in the areas of space, functionality, athletic flair and premium characteristics. The new MINI Countryman achieves its unique standing among direct competitors due to its powerfully expressive design, efficiently shaped bodywork and in particular its unmatched driving agility. The latest version of the all-wheel drive system ALL4 ensures driving fun beyond paved roads, too. What is more, the new MINI Countryman is the first model of the brand to be available with a plug-in hybrid drive. In the form of the MINI Cooper S E Countryman ALL4 it has a range of up to 40 kilometres running on electrical power alone. The new MINI Countryman is some 20 centimetres longer than its predecessor and approximately 3 centimetres wider. Its wheelbase has been extended by 7.5 centimetres. This growth results in significantly increased space on five fully-fledged seats as well as a definite increase in storage volume and luggage transport versatility. The raised seating position ensures an excellent view and hallmark driving fun. The rear seats can be shifted longitudinally by up to 13 centimetres. The folding rear backrest offers a 40 : 20 : 40 split. It also provides a variable tilt angle so as to be able to either increase seating comfort or gain additional storage space at the rear. The luggage compartment volume is 450 litres and can be extended as required to a total of 1,309 litres. This constitutes a maximum increase of 220 litres as compared to the predecessor model. The new MINI Countryman features design elements that are typical of the brand, including the clear three-way structure of the side view – broken down into roof, glass section and main corpus – as well as the short overhangs, large wheel arches and downward increase in width. The striking profile of the headlamp units deviates from the circular shape that is otherwise typical of the brand. Their distinctive, slightly asymmetrically rounded contour goes together with the radiator grille to produce an unmistakable front view. In the interior of the new MINI Countryman, a clear increase in space, refined premium ambience and a modern display and operating concept reflect the progress achieved through the change of generation. Both driver and front passenger benefit from extended head and shoulder space, while the adjustment range of the seats has also been enlarged. The extensive storage facilities likewise contribute to the car’s optimised functionality. The new edition of the MINI Countryman lines up for the start featuring entirely newly developed engine technology. For the market launch there are two petrol and two diesel engines of the latest generation available to choose from, each with MINI TwinPower Turbo Technology:

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All-new Nissan Micra: the revolution has begun There is only one word to describe the all-new Nissan Micra – revolutionary. Now in its fifth generation, this new model is a massive progression from the one it is replacing, and from the trio of highly successful superminis which date back to the Micra’s debut in Europe in 1983. The new Micra is longer, wider and lower than ever before. The car has been repositioned at the very heart of the ultra-competitive European B-hatchback segment. Conceived, designed and engineered with those customers’ requirements at the top of the agenda, Nissan has a clear ambition for the new Micra; it should re-establish itself inside the top 10 sellers in the segment, and compete head-to-head with the best and most popular in the class. Benchmarked against key rivals, Nissan believes the all-new Micra meets and exceeds its targets. Key to its appeal is the car’s athletic and expressive exterior design, which moves the Micra name plate in a daring new direction. The contemporary look and premium feel continues inside, with a high-quality cabin that boasts two-tone soft-touch materials as standard across the range. Thanks to outstanding packaging, the five-door-only body shell boasts best-in-class ergonomics for front seat occupants, with no compromise to rear passenger space. The boot is big enough to easily cater for customers’ needs. The all-new Nissan Micra is also a technology leader, with a number of ‘in-control’ features – the sort usually associated with more expensive models – now available for the first time. Not only are they new to the Micra, they’re new to the segment. These include Intelligent Lane Intervention, a safety system which gently corrects the Micra back on to the right path should it be required. Nissan’s acclaimed Intelligent Around View Monitor camera system – as seen on the Qashqai and Juke crossovers – is also available on the Micra for the first time. These and other technologies are a clear demonstration of Nissan Intelligent Mobility, the brand’s vision for a zero emissions and zero fatalities future. For music fans, a highlight of the new Micra will be the BOSE Personal audio system. Unique to the B-hatchback segment, advanced speakers built into the driver’s head rest put the driver at the heart of the listening experience. The all-new Nissan Micra is also a fantastic car to drive, with a dynamic performance that is the perfect balance between agility, excitement and the secure feeling that comes with confident and predictable handling. The car is available with three downsized engines – two petrol and one diesel – all linked to a five-speed manual gearbox. Nissan’s familiar five grades of Visia, Visia+, Acenta, N-Connecta and Tekna all feature a high level of standard specification. Customers’ desires to express their own personalities and design tastes through the new Micra will be another part of its appeal. The car will be available with a wide range of personalisation options, modifying the exterior and interior with premium components in a variety of stylish and contemporary colours. Nissan’s brand promise – Innovation that Excites – is evident in every part of the new Micra, and nowhere is that more obvious than with Nissan Intelligent Get&Go. It’s a shared vehicle leasing scheme that is running as a pilot in Paris during 2017 and, if successful, will be extended to other countries. It’s also clear evidence of how the customer is at the centre of this latest chapter in the Micra success story. Intelligent Get&Go provides increased access to the new Micra through its innovative digital partnering of consumers. This allows them to benefit from great value leasing rates which are fully aligned to their motoring requirements.

Char. Pilakoutas Ltd Address: 14, Meteora St., Strovolos Industrial Area, 2032 Nicosia, Cyprus Postal Address: P.O.Box 21168, Postal Code 1503, Nicosia, Cyprus Tel: (+357) 22586100 Fax: (+357) 22487722 e-mail: info@pilakoutasgroup.com.cy Website: www.pilakoutasgroup.com.cy

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CAR+ SPECIAL promotional feature

The Leading Automotive Parts Company in Cyprus

CHR. KAPODISTRIAS & SONS LTD +HDGTDUWHUV· DGGUHVV 54 Kantaras Street, Kaimakli, 1037 Nicosia, Cyprus 3RVWDO DGGUHVV P. O. Box 21728, 1512 Nicosia, Cyprus 7HO +357-22 34 86 00 (Sales) 7HO +357-22 43 61 01 (Administration) )D[ +357-22 34 86 89 (PDLO info@chrkapodistrias.com :HEVLWH www.chrkapodistrias.com

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Chr. Kapodistrias & Sons Ltd is the largest automotive parts company in Cyprus. Better known in the market as Kapodistrias Automotive Parts, the company offers the largest range of premium-quality car parts in the market, such as filters, brakes, belts, spark plugs, and parts for vehicle service, as well as parts for steering & suspension and the cooling system, tyres, batteries, lubricants, garage equipment, diagnostic devices, mechanics’ tools and much more. The range of parts covers all European and Asian cars, both passenger and commercial. The company deals only in new parts, supplying genuine parts, original-equipment manufacturer (OEM) quality parts, as well as excellent quality aftermarket parts. Founded in 1969 by the late Christophoros Kapodistrias, Chr. Kapodistrias & Sons Ltd is today the market leader with 7 stores in Cyprus. The company’s headquarters are located in Nicosia, at the same premises as its central store. Other outlets are located in Strovolos, Larnaca, Limassol, Paphos, Paralimni and Alambra. The company continues to grow steadily and today employs more than 215 people. The joint CEOs are Constantinos Kapodistrias and Marios Kapodistrias. In May 2011, Kapodistrias became a member and shareholder of the European Group TEMOT International a leading, strategic organisation and future-oriented partner for the automo-

tive aftermarket industry. TEMOT International shareholders are made up of the leading automotive aftermarket companies in Europe and the world, as the group is now expanding globally. In June 2011, the company opened a Training & Technical Centre in Nicosia, which deals with Robert Bosch technology, as well as diagnostic and technical equipment for garages. Kapodistrias is the main partner of Robert Bosch in Cyprus in the automotive sector, organizing many seminars and trainings which take place at the state-of-the-art Bosch Training Centre. In 2012, the company opened a tyre division and, with its main brands Hankook and Sailun as well as other brands, Kapodistrias very rapidly became one of the biggest players in the local tyre business. In 2014, a Lubricants division was also opened, dealing with the distribution of Castrol lubricants in the Cyprus aftermarket. In 2015, the company decided to enter the tool business with the German brand KS Tools, operating a separate division distributing mechanics’ tools to Cypriot garages. As a result, a new Tools & Lubricants Centre was recently inaugurated in Nicosia to house both the Tools and Lubricant divisions. This really impressive and innovative facility brings together the experience and expertise of KS Tools Germany as well as BP – producers of the world renowned Castrol lubricants – and functions as a showroom and distribution centre for the companies’ products. This is only the 5th such facility worldwide for KS Tools and an innovative initiative for the promotion of Castrol products in Cyprus. Kapodistrias organises the biennial Autofix Show, an in-house exhibition of automotive parts, tyres, tools and garage equipment, which is attended by thousands of visitors.

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CAR+ SPECIAL promotional feature

A New Page In Insurance

Aristos Stylianou, Executive Chairman, General Insurance of Cyprus

$GGUHVV 2-4, Themistocles Dervis Street, 1511 Nicosia 7HO 8000.87.87 )D[ (+357) 22123706 H PDLO general@gic.bankofcyprus.com :HEVLWH www.gic.com.cy

General Insurance of Cyprus has played a key role in the development of the insurance industry for 66 years. Since its establishment in 1951, it has provided quick and efficient claims settlement, new products, and up-to-date delivery channels, through advanced technology. With a prudent and serious corporate and management culture, it is distinguished by the professionalism of its experienced and qualified staff. By offering insurance packages that meet the basic insurance needs of policyholders at low cost, the Company makes full use of the Branch Network of Bank of Cyprus for the benefit of its customers. One of the most important goals of General Insurance of Cyprus is to provide products, services and a level of service that meet the modern needs and demands of their customers. For this reason, General Insurance of Cyprus studies and assesses societal and consumer trends and needs and builds these changes in consumer behaviour into its planning. One such trend is the focus of today’s consumer on seeking additional value on every purchase. Moreover, it has become clear that the consumer is no longer focused on specific service providers but is, instead, placing emphasis on maximising the value of the transaction/agreement. One important current trend enabling consumers and broadening their options is the use of the Internet, which, in addition to its function as an information medium and a way to purchase goods and services, is also a primary source of communication, interaction and social activity. Any organisation that wishes to progress and evolve must concern itself with these changes and General Insurance of Cyprus wants to be at the forefront of developments. This is why General Insurance of Cyprus has recently launched a website for the sale of vehicle insurance on the market. Through www.gic.com.cy the user can complete a proposal, find out the cost of the insurance and complete the purchase of the policy with a charge to a bank card via JCC. The insurance plans available through www.gic.com.cy are aimed at customers who are accustomed to Internet shopping, and who are looking for basic, simple products at a lower cost. It follows that online products are not recommended for those customers who need a personal service and personal contact and who would prefer to be served at a branch. At present, two new vehicle insurance plans are offered online, providing basic cover with limited benefits at a lower cost: • Third Party Web covers liability to third parties, off-road driving, and offers Motor Assistance free of charge, providing 24-hour roadside assistance in the case of an accident or damage to the vehicle. It also offers optional cover for a trailer. • Comprehensive Web offers all covers included on «Third Party Web», windscreen cover (up to a maximum of € 250) and covers any other loss or damage to the vehicle, including damage caused by fire or theft. Essentially, with this move, General Insurance of Cyprus has turned a new page in insurance. The innovative online platform at www.gic.com.cy ensures the continuous development of General Insurance of Cyprus operations and the modernisation of its customer service. This new way of buying insurance products for motor vehicles signals a new era in the selection and purchase of insurance products since www.gic.com.cy will be constantly enriched with new insurance plans.

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CAR+ SPECIAL promotional feature

New Ford Kuga

The new Ford Kuga offers cutting-edge features to help drivers stay connected, comfortable, safe and stylish on the road. The new Ford Kuga delivers an even more technologically advanced, refined and affordable sports utility vehicle (SUV), making driving simpler, safer and more enjoyable for growing numbers of SUV customers in Europe. The new Kuga also features Ford’s Perpendicular Parking technology that helps drivers park handsfree in spaces alongside other cars; an enhanced version of the Active City Stop collision avoidance system; and Ford’s Adaptive Front Lighting System for optimised visibility in low light. Further advanced technologies include Hands-Free Liftgate and Ford Intelligent All Wheel Drive (AWD). Seamlessly connected with SYNC 3: The new Ford Kuga enables drivers to control audio and navigation functions plus connected smartphones using simple, more conversational voice commands, with Ford’s new SYNC 3 connectivity system. Kuga drivers can operate SYNC 3’s 8-inch touchscreen in the same way that they use their smartphones. A new interface features larger, easier to operate buttons and enables pinch and swipe gestures for the first time. iPhone users can activate Apple CarPlay, the smarter, safer way to use your iPhone in the car allowing drivers to make phone calls, access music, send and receive messages, get directions optimised for traffic conditions, and more while they stay focused on the road. Android™ users can activate Android Auto™. Android Auto makes apps and services that drivers already know and love, accessible in safer and seamless ways including Google Search, Google Maps and Google Play. Software can be updated overthe-air via Wi-Fi. Stylish Kuga: The new Kuga features Ford’s latest design language for a bold and sporty look that is shared with the EcoSport compact SUV and new Edge large SUV. A large upper trapezoidal grille and a smaller lower grille are flanked by sleek new headlamps incorporating LED daytime running lights and complemented by stylish fog lamps. The New Kuga also offers Hands-Free Liftgate that can be opened or closed using a kicking motion beneath the rear bumper. The technology helps parents to easily access the boot when returning to their vehicle with shopping, pushchairs or toddlers.

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Powerful and fuel-efficient engines: The new Kuga features Ford’s latest TDCi diesel and EcoBoost petrol engines for optimised performance alongside low CO2 emissions for reduced running costs. Diesel powertrains include: • 120 PS 1.5-litre TDCi diesel engine with six-speed manual gearbox offering 4.4 l/100 km and 115 g/km CO2. • 120 PS 1.5-litre TDCi 6-speed PowerShift FWD offering 4.8 l/100 km and 124 g/km CO2 • 150 PS 2.0-litre TDCi 6-speed manual FWD offering 4.7 l/100 km and 122 g/km CO2, 6-speed manual AWD offering 5.2 l/100 km and 135 g/km CO2, or 6-speed PowerShift AWD offering 5.2 l/100 km and 134 g/km CO2 • 180 PS 2.0-litre TDCi 6-speed manual AWD offering 5.2 l/100 km and 135 g/km CO2, or 6-speed PowerShift AWD offering 5.2 l/100 km and 134 g/km CO2 Ford’s turbocharged EcoBoost petrol engines feature advanced technologies including high-pressure direct fuel injection and Twin-independent Variable Cam Timing. Kuga EcoBoost powertrain options include: • 120 PS and 150 PS 1.5-litre EcoBoost 6-speed manual FWD offering 6.3 l/100 km (44.8 mpg) and 145 g/km CO2 • 182 PS 1.5-litre EcoBoost 6-speed automatic AWD offering 7.5 l/100 km and 173 g/km CO2 Ford fuel-saving technologies offered across the range include AutoStart-Stop and Smart Regenerative Charging that selectively engages the alternator and charges the battery when the vehicle is coasting and braking to recapture energy that would otherwise be lost. Enhanced visibility and safety: The latest Ford technologies and sophisticated body engineering help drivers see more clearly and enhance safety on the road for new Kuga occupants and other road users. New Kuga also offers advanced Ford technologies, including: • Ford Intelligent All Wheel Drive, which adjusts the amount of torque sent to each wheel, optimising handling and traction especially in slippery conditions • Curve Control, which mitigates against loss of control should a driver enter a bend with too much speed • Torque Vectoring Control, which enhances the driving experience by Headquarters Address: applying a small amount of braking 1, Markou Drakou Street, to inside wheels to assist traction and 2409 Engomi, Nicosia Postal Address: 1, Markstability when cornering ou Drakou Street, P.O.Box The new Ford Kuga follows the 24525, 1300 Nicosia introduction of the larger Edge SUV Tel: (+357) 22860000 Fax: (+357) 22354182 and updated compact EcoSport e-mail: info@fordcyprus.com SUV last year. Website: fordcyprus.com

από €18.900

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K UGA

www.goldnews.com.cy | GOLD | 47

| CONFERENCE |

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ollowing introductory remarks by Louis Pochanis, Director, International Banking, Wealth & Markets Division, Bank of Cyprus and John Hourican, CEO, Bank of Cyprus, Yiannis Tirkides, Economic Research Manager, Bank of Cyprus, spoke on The Cyprus Economy After the Memorandum The presentation noted that the recovery, which gained momentum in 2016, was broad-based with almost

all sectors contributing positively. The main drivers were tourism and professional services. Tirkides, noted, though most services sectors remained resilient while industry and construction showed strong growth. Nonetheless, he said, Cyprus remains a chronic laggard in the eurozone regarding productivity but he concluded that economic growth will remain positive but moderate in the medium term. Unemployment will fall further, while in the area of public finances, a near balanced budget and primary surpluses will reduce the ratio of public debt to GDP. Next to speak was Eleni Sifakis, Senior Vice President, PIMCO, who noted that following the election of Donald Trump in the US, the UK’s ‘Brexit’ vote, Italy’s “No� to reforms and China’s currency woes, the world

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economy and markets have embarked on a journey into the unknown. Regarding the Eurozone, she suggested that low growth is susceptible to political risks as monetary policy reaches its limits. In terms of investment, she said that PIMCO remains focused on portfolio liquidity and sees value in banks and select financial companies, housing-related credits, and taxable municipals (primarily Build-America Bonds, or “BABs�). -RKQ %RWKDP ,QYHVFR 3DWULFN /DURVH 6SLSH /WG

3HWHU 9LQFHQW )UDQNOLQ 7HPSOHWRQ $QQD %DODID .ULVWLQD 'RURV %ORRPEHUJ www.goldnews.com.cy | GOLD | 49

| CONFERENCE |

&RIIHH EUHDN

John Botham, Product Director, Invesco looked at the prospects for Global Equities in 2017 and noted various challenges, including the possibility of rising bond yields destabilising the equity markets and a stronger US dollar further destabilising emerging markets and commodity prices. He compared the present situation with 1982 when Ronald Reagan was elected US President but noted that the backdrop then was a lot more favourable for Reagan. In summary, Botham noted that Trump’s election is likely to accelerate the shift towards a more active fiscal policy, bond yields and inflation are likely to rise modestly on the back of a pick-up in inflation and rising labour costs. Equities overall look fair value, he said, though he described them as “the best house in a bad neighbourhood.� Opportunities and Threats in Fixed Income Markets was the title of the address by Sean Boland, Partner and Portfolio Manager, Cheyne Capital, who looked at three key players – US President Donald Trump, ECB Chairman Mario Draghi and Federal Reserve Chairwoman Janet Yellen – and concluded that 2017 is likely to be a volatile year. His recommendations to fixed income investors were (a) Be wary of consensus trades that have run their course, (b) Seek out and isolate risk premium, (c) Get rewarded for taking mark-to-market risk and (d) Use derivatives to enhance returns. Peter Vincent, Head of Investment Solutions – EMEA, Franklin Templeton, presented a review of 2016’s performance and a look at what investors may expect in 2017 from Liquid Alternatives. Recommending a multi-strategy approach, he predicted an improved alpha outlook for Long Short Equity managers and noted that the global economic 50 | GOLD | The Th Business B i Magazine M i off C Cyprus rus

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environment would be providing opportunities for Macro managers while Relative Value managers should remain defensive. Igor Levin, FX Application Specialist, Bloomberg explored trends and opportunities in FX Markets, noting half a dozen global events that could have an influence on the markets: Donald Trump’s economic policies, the triggering of Article 50 by the UK parliament to launch Brexit negotiations, elections in the Netherlands, France and Germany, the next OPEC Summit, the possibility of further interest rate hikes by the Federal Reserve and a possible end to the ECB’s Quantitative Easing policy. Finally, Georgios Lampros, Manager Asset Management and Investment Strategy, International Banking, Wealth & Markets Division, Bank of Cyprus, presented the investment themes of the BOC Investment Strategy Team for the year ahead. These are based on the major trends and investment ideas that are expected to materialise in 2017, particularly in the areas of Equities, Fixed Income and Foreign Exchange.

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www.goldnews.com.cy | GOLD | 51 1

| LAW |

Creating

A BETTER JUSTICE SYSTEM

FOLLOWING HIS LEGAL STUDIES IN LONDON, CHRISTOS GALANOS IS CURRENTLY PURSUING A LEGAL CAREER AS AN ASSOCIATE AT ONE OF THE BIGGEST LAW FIRMS IN CYPRUS, MICHAEL KYPRIANOU & CO. LLC. A MEMBER OF THE FIRM’S LITIGATION TEAM, GALANOS TELLS GOLD ABOUT HIS INTEREST IN SHAREHOLDER DISPUTE CASES, THE GROWING NUMBER OF NEW CYPRIOT LAW GRADUATES AND THE IMPROVEMENTS NEEDED IF THE COUNTRY’S LEGAL SYSTEM IS TO FUNCTION EFFICIENTLY.

t

BY ARTEMIS CONSTANTINIDOU | PHOTO BY CHRISTOS TSEKOURAS

ell us about your work at Michael Kyprianou & Co LLC. Christos Galanos: I qualified as a lawyer in Cyprus in 2012 and I have since been a member of the firm’s litigation team, specializing in commercial and crossborder litigation. As a lawyer at Michael Kyprianou & Co LLC, I have been exposed to high-profile and challenging cases. The cross-border nature of many of these cases means that not only do I have the privilege of working alongside some of the country’s most renowned litigators but also of working alongside Queen’s Counsel, reputable English law firms and inspiring lawyers from many jurisdictions. Gold: What is the aspect of your work that you most enjoy? C.G.: A client’s case is, in one sense,

The increasing influx of new Cypriot law graduates is, in my opinion, the result of inadequate career counselling a problem that needs to be solved as quickly and as efficiently as possible. The first steps in tackling the problem are to brainstorm possible solutions, to conduct research on the merits and viability of the solutions being considered and to

then decide on a clear strategy. It is this problem-solving aspect of my work that I most enjoy. Gold: Can you tell us about memorable cases you have worked on? C.G.: I consider the shareholder disputes that I have worked on to be extremely interesting. Some of these cases involved a simple falling-out between the shareholders of a group of companies. Litigation in such cases is intended to safeguard our client’s rights under the relevant shareholders’ or other agreement. Other shareholder disputes involve defending clients from what are often referred to as “raider attacks” – a term that refers to the concerted efforts of a particular shareholder to buy out the company at an undervalue by attacking it or the other shareholders. This is usually done by filing various lawsuits against the company or the shareholders, complaints to tax authorities and to the police and through other litigious or non-litigious actions. These cases are, by nature, complex, multifaceted and usu-

www.goldnews.com.cy | GOLD | 53

| LAW |

ally multijurisdictional. Not only do they require a deep understanding of all the issues and careful planning but they also demand constant and close coordination between all the law firms handling them across the various jurisdictions. Gold: The number of Cypriot law graduates has been increasing in recent years. How do you view this trend and will it affect the local legal sector in a positive or a negative way? C.G.: The increasing influx of new Cypriot law graduates is, in my opinion, the result of inadequate career counselling. The local legal sector may be growing too but it is questionable whether it will be able to absorb all new law graduates. The trend may be unfortunate for current and future law graduates but, strictly speaking, it should lead to an improvement in the quality of the local legal sector. The fact that supply outstrips demand creates a more competitive environment that sifts out the best. Gold: What, in your view, are the main problems currently facing the legal system? C.G.: The delay in the trial of cases is the most evident problem. The large backlog of cases means that clients are left in an uncertain position for an unnecessarily long period of time. This in and of itself is a form of injustice. At the same time I am very proud of our legal system. We are privileged to have inherited a common law system which has time after time proved to be a “living law�, able to adapt and to always grant justice in a world that is constantly changing. Gold: To what extent do you consider the establishment of the Administrative Court to have helped speed up certain processes in the justice system? C.G.: I believe it is too soon to answer this question as the Administrative Court

54 | GOLD | The Business Magazine of Cyprus

The active promotion of alternative dispute resolution mechanisms will lead to fewer cases ending up in Court has only been sitting for about a year now. It will take a few years for us to fully appreciate the extent of the Administrative Court’s contribution. Gold: What are the main changes that could be made, either by the government or the Supreme Court, for the legal system to operate more efficiently? C.G.: The most intuitive response to your question is to appoint more judges. This, however, will not be enough if we do not also improve the procedures and the institutions of the legal system. One step in this direction is the creation of a commercial court and I am glad to see that this is already being planned. Further measures that could be taken are, for example, the creation of a clear framework for filing class actions. This would avoid mass filings for cases that involve a sizeable portion of the population. Another example would be to require a party to obtain the court’s leave before filing an appeal on an intermedi-

ary judgment. This would avoid judgments being appealed without reasonable grounds, something which often delays the first instance proceedings while also unnecessarily increasing the Supreme Court’s case load. Furthermore the court registrar’s archives and filing system should, in my opinion, be digitized. The legal system’s delays are not just delays in the trial of actions but also delays in the court registrar’s administrative functions. The possibility of filing, serving and searching claims and related documents digitally will save great time and resources. Finally, the active promotion of alternative dispute resolution mechanisms, such as mediation or arbitration, is also extremely important as a more frequent recourse to such mechanisms will lead to fewer cases ending up in Court. Gold: How do you view recent developments in the Cyprus issue and what do you see as the potential benefits of a solution? C.G.: I am neither optimistic nor pessimistic about the likelihood of a solution. The international scene is a fast-changing one and positive circumstances can quickly be reversed. I have learned not to get my hopes up too easily. Regarding the potential benefits of a solution, the first thing to note is that a viable and lasting solution will be priceless. Economic factors are only secondary to the mending of old wounds and planting the seeds for a nation of peace and stability. But moving past this primary premise, I do believe that a solution will not just mend the deep wounds of the past but will also open up new horizons for our country. The island’s local market will be enlarged, more opportunities will be available for trading with neighbouring countries and the stability that will ensue will also lead to a substantial increase in investments. 7KDQNV WR &DIIq 1HUR (QJRPL ZKHUH WKH SKRWRJUDSK ZDV WDNHQ

| ECONOMICS |

ECONOMIC PREDICTIONS FOR 2017 PWC’S ECONOMISTS MAKE THEIR PREDICTIONS FOR THE GLOBAL ECONOMIC THEMES THAT COULD PREVAIL IN 2017.

GLOBALISATION TAKES A BACK SEAT World trade is expected to grow more slowly than global output for the third consecutive year. The resurgence of economic nationalism in some parts of the world means that World Trade Organisation rules will be put to the test. The world’s biggest bilateral trade route (US-China) is likely to come under pressure. In the absence of the Trans-Pacific Partnership and the Transatlantic Trade and Investment Partnership being agreed upon, this trend could continue into the longer run.

US MONETARY POLICY MOVES BACK TOWARDS NORMALITY The Federal Reserve will continue to tighten monetary policy. Indeed, it is possible that the Fed could tighten faster than currently suggested depending on the pace, size and implementation of the new administration’s fiscal plans. On the flipside, economies which rely on the dollar for financing are expected to come under pressure.

contribute around 70% to G7 growth in our main scenario, despite making up half of G7 GDP in absolute terms. 2. Core Eurozone Employment To Hit an All-Time High The ‘peripheral’ economies are expected to grow faster than the ‘core’ for the fourth consecutive year. Irish GDP growth is expected to be the leader of the peripheral pack, expanding by more than 3% per annum, while France and the Netherlands will lead the core, growing at a rate of 1.5%. On the jobs front, employment in the core is expected to hit an all-time high of around 97 million. But this will be outperformed by the periphery, which will create around 100,000 more jobs than the core.

DETAILED PREDICTIONS FROM PWC’S GLOBAL TEAM OF ECONOMISTS:

3. Indonesia Set to Become the World’s 16th Trillion Dollar Economy Asia will remain the fastest growing region of the world but the spotlight will shift away from China to India and Indonesia. It is thought that Indonesia is on course to join the elite ‘trillion dollar’ economy club this year. In comparison, Chinese growth is projected to remain at around the 6% mark. India’s contribution to world GDP growth could reach almost 17% this year. China’s growth may be slowing, but if it manages to grow at 6.5% per year, it will add an economy the size of Turkey to global output. It is thought that Brazil and Russia will start growing again on an annual basis by 0.5% and 1% respectively, aided by a rise – albeit small – in commodity prices.

1. The US To Drive Growth in the G7 In PwC’s main scenario, the US is expected to grow by around 2% – the fastest in the G7 – on the back of strong job creation and household consumption. It could surprise on the upside if the new administration lowers taxes and pursues plans to boost spending on infrastructure. The organisation’s analysis suggests the US will

4. Population Growth Pressure on the Gulf (GCC) Countries In 2017, Saudi Arabia is projected to add two ‘Icelands’ to its working age population. The other GCC countries are also expected to see strong growth of around 2% in their labour force. The challenge facing the GCC economies is to create em-

POLITICS DRIVES UNCERTAINTY The eurozone may hold half a dozen elections. Germany, France, the Netherlands and potentially Italy and Greece (equivalent to more than 70% of eurozone GDP) are expected to run general elections and could experience disruption to their normal political cycle. Spain is likely to hold a referendum on the future of Catalonia.

ployment opportunities while reforming public finances

SOME OF THE KEY MACROECONOMIC RISKS THAT BUSINESSES SHOULD CONSIDER AND PLAN FOR IN THE NEXT 12 MONTHS: Onshoring the Greenback Reveals Cracks Tighter US monetary policy could encourage a gradual repatriation of US dollars. PwC’s risk matrix shows that Malaysia, Turkey and Chile are especially exposed to this risk as their foreign currency debt levels stand at 71%, 64% and 55% of their GDP. Banks with exposure in those economies could face some pressure if not well-capitalised. On the flipside, for some commodity-reliant economies like Brazil and Russia, a higher oil (and other commodity) price outlook coupled with a flexible exchange rate regime could help to soften the impact of capital flowing back to the US. Higher Private Sector Debt Burden for China China’s non-financial sector debt stands at more than 250% of GDP. If non-financial debt grows at the same average rate as it has since 2010, China could add over $650 billion to its total debt pile by the end of 2017. China’s relatively closed capital account means that its risk rating is medium, reducing its exposure to foreign currencies. But China’s non-financial debt accumulation has accelerated since 2008, nearing the high debt-to-GDP ratios seen in the eurozone’s crisis countries. Last year, China’s creditto-GDP gap (the difference between the credit-to-GDP ratio and long-run trends, indicating unsustainable accumulation) surpassed levels which indicate a risk of crisis within the next three years. This risk will be heightened if property prices fall sharply, undermining the foundations of the debt pile.

www.goldnews.com.cy | GOLD | 55

| BLACKBALL |

PLAYING FOR KEEPS Following its recent recognition by the Cyprus Sports Organisation

'73 XLI ']TVYW &PEGOFEPP *IHIVEXMSR MW EX PEWX SJĂ GMEPP] SR XLI Cyprus sports map. Katerina Spyrou, President of the Federation, talks to GOLD about the enormous efforts she has made to introduce the game to Cyprus, her passion for playing and teaching blackball at her Academy in Larnaca and how she is viewed as a rare female player in a male-dominated sport. By Artemis Constantinidou | Photo by Christos Tsekouras

56 | GOLD | The Business Magazine of Cyprus

Y

ou’ve probably heard of snooker, billiards and pool but have you any idea about blackball? Probably not but if Katerina Spyrou has anything to do with it, the game’s reputation and popularity is going to soar this year, especially since the Cyprus Sports Organisation’s recent decision to recognize the Cyprus Blackball Federation. This is a major step forward and one that Spyrou has been working tirelessly towards since 2009 when, with the support of a few friends who owned a snooker club, she decided to set up a Larnaca league from scratch. “As a young, married mother of two, it was no easy task for me to be walking into pubs and clubs and signing them up for the league,” she recalls. But she worked hard and eventually formed an Association which, in turn, led to a number of talented local players taking part in international events. So what is blackball? Despite its name, there is actually only one black. “It’s played on a 7ft table with 15 balls – 7 reds, 7 yellows and the black,” Katerina says, explaining that the aim of both players is to pot all their coloured balls and the black to win. “The magic of the game comes from being able to take the cue ball to wherever you need it so as to make each ball easy to pot. If you miss one, then your opponent comes to the table and tries to do the same thing.” A variation on 8-ball pool, blackball is developing fast as a team event all over the world and Katerina Spyrou is hopeful that members of the Cyprus Blackball Federation will soon be representing their country in international competitions. Some have already taken part in the European Blackball Championships, the Blackball Nations Cup and the World Blackball Championships, where, she says, they did well. She herself made the Top 8 in the European Championships and the Top 16 in the world women’s event. In the European men’s category, Chris Dowton made the Top 32. Although the sport is relatively unknown, Spyrou is delighted by the fact that 116 players from all over the island will be taking part in the Cyprus Blackball Championships, while there are currently two blackball leagues and three more in development. “It’s taken a lot of travelling, searching and phone calls to achieve this,” she says with a broad smile. Her love of the game and tremendous determination led her to set up a Blackball Academy in Larnaca to teach the game to anyone interested in learning. Such is her desire to popularise it that there are no fees and, she says, “Since blackball is a game that people of any age can play, I have students from 10 years to 49 at present. More and more players are now showing interest in the sport.” Over the years, Katerina Spyrou has unavoidably spent a fair amount of her own money on what has clearly been a real labour of

love. “Attendance fees from the Cyprus championships have never covered more than minimal expenses,” she says, and expresses her gratitude for the sponsorship that the association had from the Progressive Insurance Company to help with its first foreign trip. And finally, after a long and difficult journey, her dream of seeing the Cyprus Blackball Federation recognised by the island’s top sports body has come true and this, among other things, will mean some official funding. “I have been President of either a league or the Association for almost seven years and now we are finally a Federation,” she says, and she can’t hide the pleasure she feels. “Of course, it involves a lot of hard work,” she admits, “but I see my job as promoting the sport and keeping it alive in every way possible – by helping to organise competitions to keep the players on their toes, by keeping the clubs working and teaching people how to play the game, and by contacting the pool players who were involved years ago and bringing them back to the sport.” She describes Charis Theocharides as “the original father of the game in Cyprus” and notes that, after disappearing for nearly a decade, he is thrilled to see his vision finally become real. “As a proper, officially recognised federation, we can develop the sport across the island. I want to see adult teams in all towns and the creation of a Cyprus league,” she enthuses. “Now we’ll be able to offer one of our handicapped players the opportunity to play abroad in the wheelchair division, we can create a ladies category, an under 15s category, an under 18s category and I hope that, with the help of the CSO, we can bring major events to Cyprus, including the European and World Championships, the IPA tour and more.” Like most billiard-style games, blackball remains a male-dominated sport, which makes Katerina Syprou’s devotion and dedication to it all the more impressive. However, she insists that her presence in the sport over the last 15 years and her notable progress has earned her an excellent reputation as a ‘player’ and not simply as a ‘female player’. “I’m well-known in the world of blackball, pool and snooker in Cyprus,” she states with pride. “I’m regarded as a player to be reckoned with and I have fought really hard to gain this reputation. I am currently ranked 5th in Cyprus in the adult category and have been for the last two years.” That may be so but Spyrou recognises that many men in the game are not entirely happy about playing against a woman, let alone having one in a position of authority. “Let’s face it, trying to deal with different situations with a sweet smile doesn’t always get results or respect!” she acknowledges, adding that she does her best “to be firm and to keep things very professional.” Male chauvinism apart, no-one can deny her achievement in creating and obtaining official recognition for the Cyprus Blackball Federation. “I have always said that, in Cyprus, the sport of blackball was like an orphaned baby,” she tells GOLD. “I adopted it, gave it a home, and I have been raising it and teaching it to walk. With the decision of the Cyprus Sports Organisation to recognize it, I don’t have to hold it anymore. At last it will be independent!”

MORE AND MORE PLAYERS ARE NOW SHOWING INTEREST IN THE SPORT

www.goldnews.com.cy | GOLD | 57

| AWARDS |

9TH YEAR

PRESENTS

MEDIA SPONSOR

SILVER SPONSOR

GOLD SPONSORS

POWERED BY

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58 | GOLD | The Business Magazine of Cyprus

7+( :,11(56 | AWARDS |

Christos Christodoulou, Trust International Insurance Company

(l-r) Andreas Andreou, CySEC, Christodoulos Angasitiniotis, Vitatrace Nutrition, Philias Pilides, CCCI

Petros Petrou, Lidl Cyprus

Dieter Rohdenburg, Intership Navigation

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Kodros Pilakoutas, Char. Pilakoutas Group

(l-r) Daphne Roditou Tang, IMH, Angelos Gregoriades, CIFA, Antonis Antoniou, IMH

Yiannos Valanides, LOEL

Nick Papagregoriou, Nielsen Nick Papagregoriou, Nielsen

(l-r) Panayiotis Hadjipanteli & Demetris Vakis, ICPAC

60 | GOLD | The Business Magazine of Cyprus

George Andreou, Andreou Brothers

(l-r) Theodoros Kringou, Infocredit Group, Demetra Kalogerou, CySEC, Nicos Ioannou, Infocredit Group

Demetris Fessas, Embassy of Israel & Finance Minister Harris Georgiades

Christoforos Hadjikyprianou, European University Cyprus

President Nicos Anastasiades

Marina Alexandrou, European University Cyprus Christiana Aristotelous & Andreas Kimitris, presenters

Nicos Papakyriacou, Deloitte

Vassilis Petrides, Laiko Cosmos Trading Constantina Neophytou, Alpha TV Cyprus

Yiannis Misirlis, Imperio Properties & Theo Parperis, PwC Cyprus

Loucas Marangos, TFI Markets

Evgenios Evgeniou, PwC Cyprus

Daphne Prodromou & Laura Michaelidou, Bank of Cyprus

Health Minister George Pamboridis Panicos Nicolaou, Bank of Cyprus, George Papaioannou & Varnavas Irinarchos, Logicom

Stavros & Gerasimos Caramondanis, Caramondani Group of Companies

Stalo Ioannidou, Baker Tilly &Eleftheria Voskaridou, Limassol del Mar Emmy Hadjimanoli, Marlen Michael & Philip van Dalsen, MTN www.goldnews.com.cy | GOLD | 61

| LEGAL |

THE GENERAL PHILOSOPHY AND OPERATING PRINCIPLES THAT GUIDE A COMPANY‘S INTERNAL CONDUCT ARE OF THE UTMOST IMPORTANCE FOR THE SUCCESS AND PROGRESS OF ITS BUSINESS

STAYING COMPETITIVE BY ARTEMIS CONSTANTINIDOU

62 | GOLD | The Business Magazine of Cyprus

C

ostas Tsirides & Co LLC was established in 1970. How would you describe the firm’s journey of almost half a century? Alexandros Tsirides: Those first years of our existence were of tremendous importance. There were plenty of well-established law offices in Cyprus at the time and, of course, we had to compete with them. We knew that a very difficult journey lay ahead and that we would have to make great efforts if we were to achieve our goals. It was of the essence for us that the firm’s foundations were laid in the most proper manner. This meant that each case had to be well prepared and presented to the court so as to earn us the respect of the court and our colleagues, as well as of the client. Gradually, business increased and we had to employ more lawyers. So, the small law office that started nearly fifty years ago with one lawyer and a secretary has now grown into a firm employing 40 people, of whom 12 are highly qualified lawyers and two are legal consultants, as well as paralegals, accountants and client managers. We have always insisted that our colleagues provide three things: (1) honesty to the court and to the client, (2) hard work and (3) good service to every client requesting our assistance. Gold: How has your work changed over the last five decades? A.T.: The firm was established as a general practice and has remained so over the years, with each member specializing in a different area of the law. Over the last 25 years, we have expanded the Corporate department dealing with company formation and administration and we have successfully strengthened our litigation team by recruiting experience litigation lawyers. Gold: What do you identify as the firm’s core values and what role have they played in its success? A.T.: In my opinion, the general philosophy and operating principles that guide a company’s internal conduct are of the utmost importance for the success and progress of its business. In our case, our excellent long-term relationships with our clients, partners and employees have created a strong sense of trust and security for the people who work with us and this has enabled us to cooperate with the same clients and partners for several decades. Additionally, we are always trying to find the ways to improve our business and differentiate our firm from

the competition so we are always making efforts aimed at further progress and greater efficiency.

leading law firms in Cyprus dealing with Real Estate and Property Law and offering a wide range of related services.

Gold: What services does the firm offer? A.T.: Our firm has been heavily involved in international business and has a strong dedicated department dealing exclusively with company formation and administration. This department consists of lawyers, paralegals, accountants and client managers. We have succeeded in attracting and maintaining a strong client portfolio that includes major industrial and financial groups from Central Europe, Russia, Ukraine, other CIS countries and the Middle East. The firm also specializes in takeovers, mergers and acquisitions and acts as a legal consultant in transactions where Cyprus Law is involved. We also have extensive experience in IPOs and listings of Cyprus companies on stock exchanges around the world. Other areas in which the firm specialises are shareholder agreements, partnership agreements, partnership formation and dissolution, agency and distributorship agreements and joint venture agreements. Our cooperation with international law firms in handling the Cyprus aspect of international litigation is testament to our strength in the litigation field and has significantly improved our market position. We believe that our expertise in this area, and the positive results we achieve for our clients, give us an advantage in the international litigation field. This is demonstrated by the cooperation we have established with international law firms and large international corporate clients as well as High Net Worth Individuals.

Gold: You noted that the firm employs a significant number of experts and specialist lawyers. How important is this fact to your clients? A.T.: It’s very important. Our experts and specialists give the firm the opportunity to provide clients with in-depth and substantial professional assistance in almost every area of Cyprus Law. The structure of our operations is such that every issue is dealt with by a lawyer specializing in that particular field. In this way, we ensure that every client receives the best possible legal advice or other service from the firm.

Gold: What’s your position regarding arbitration? A.T.: Costas Tsirides & Co LLC is in a position to provide its clients with services in the field of arbitration law as required. Members of the firm have substantial experience of acting both as counsels and as arbitrators in arbitral proceedings regarding commercial disputes. We have broad experience in a variety of commercial areas and cases involving disputes ranging from breach of contract to fraud and breach of fiduciary duty. The firm advises clients on all aspects of arbitration law and proceedings, from drafting the necessary arbitration agreements to referring disputes to arbitration, hearing the matter in dispute and dealing with the enforcement of arbitral awards, both local and foreign. Members of the firm have been appointed as members of the chartered Institute of Arbitrators. We are also one of the

Gold: What do you see as the firm’s greatest success in 2016 and what are your goals for 2017? A.T.: Our team considers that success lies in the proper completion of our work and the achievement of the desired results, for ourselves and for the people who trust us. We are now ready to move into our new offices, in order to provide to our partners, employees and clients a fully equipped and modern working environment. The main reason for this move, apart from the fact that our team has become bigger, is to show in practice that our wish to provide the best possible services is not merely a phrase on our website but a daily and continuous concern. One of our primary targets throughout the years – and it remains for 2017 as well – has been to create and maintain long-term relationships with our clients based on trust, to respond fully to their future professional and personal needs and to offer them advice and services tailored to their specific circumstances. Gold: What, in your opinion, are the main challenges facing the legal sector in Cyprus at this time? A.T.: One of the biggest challenges that a lawyer has to deal with nowadays is competition, due to the rapid increase in the number of lawyers that has been seen in recent years. Today’s more competitive market has forced many lawyers to settle for less-than-ideal employment or even change careers altogether. On the other hand, competition encourages innovation as companies are forced to evolve and adopt new practices. The legal profession is constantly changing, so a good lawyer has to be aware of the latest changes and amendments to laws and regulations and keep up with court decisions so that the firm’s advice and actions always conform to current law. Being able to deal with all the challenges is what makes a good law firm like ours stand out from the rest. www.goldnews.com.cy | GOLD | 63

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he Annual General Meeting of the Cyprus Investment Funds Association (CIFA) took place on 12 December at the Filoxenia Conference Centre in Nicosia. Finance Minister Harris .LVYNPHKLZ NH]L HU VMÄJPHS ^LSJVTL HKKYLZZ ^OPSL V[OLY ZWLHRLYZ PUJS\KLK Constantinos Petrides, UnderSecretary to the President, and CIFA President Angelos Gregoriades. The RL`UV[L HKKYLZZ ^HZ NP]LU I` MVYTLY <2 4PUPZ[LY VM :[H[L 1LYLT` )YV^UL ^OV KLSP]LYLK H WYLZLU[H[PVU LU[P[SLK Brexit: The City of London Perspective. ;OL (.4 ^HZ H[[LUKLK I` TVYL [OHU 300 members and non-members, PUJS\KPUN NV]LYUTLU[ VMÄJPHSZ *,6Z General Managers/Managing Directors, Chairmen and Members of company and association Boards from various sectors of the economy. 6YNHUPZLY!

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Cyprus Investment Funds Association (CIFA) Commission

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C I M O N O C E 66 | GOLD | The Business Magazine of Cyprus

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OVER THE YEARS, ECONOMIC DIPLOMACY HAS BECOME A MAJOR THEME OF THE EXTERNAL RELATIONS OF ALMOST EVERY COUNTRY IN THE WORLD. GOVERNMENT MINISTRIES, INVESTMENT PROMOTION AGENCIES AND CHAMBERS OF COMMERCE, BACKED BY EMBASSIES, CONSULATES AND TRADE MISSIONS ABROAD, ALL FOCUS ON ATTRACTING FOREIGN BUSINESS AND INVESTMENT AS WELL AS TOURISTS. IN OCTOBER, FRANCES-GALATIA LANITOU WILLIAMS, A DIPLOMAT OF OVER 25 YEARS STANDING, WAS MADE HEAD OF ECONOMIC DIPLOMACY, A NEW UNIT BEING SET UP WITHIN THE MINISTRY OF FOREIGN AFFAIRS IN NICOSIA. SHE TELLS GOLD ABOUT THE CHALLENGES AND THE PHILOSOPHY BEHIND HER NEW POSITION. BY JOHN VICKERS

W hen we meet at her office in the Ministry of Foreign Affairs, I begin our conversation by noting that if the global financial crisis has taught us one thing, it is that national economies are connected in ways that we had perhaps not suspected and, following the Cyprus crisis of 2013, everyone is agreed that foreign investment is key to the country’s economic recovery. So while the creation of an Economic Diplomacy Unit is to be applauded, hasn’t it come many years too late?

“Economic Diplomacy has always been part of the mandate of the Ministry of Foreign Affairs,” Frances-Galatia Lanitou Williams explains, recalling that when she joined in the 1990s, what was then the Economic Division operated to promote the country’s commercial and financial relations as part of its foreign policy. “When Cyprus joined the European Union in 2004, a reorganisation took place based on the European model and we had to create new divisions and new departments. Sometime later, from 2010-2013, I was Head of Development Cooperation, Humanitarian Assistance and International Financial Institutions, which also dealt with economic relations, but recently it was decided for various reasons that a new dedicated Unit was required.” Lanitou-Williams notes that one of the reasons behind the decision was, indeed, the global (and later Cypriot) financial crisis, while another was a recognition that everyone – Government, relevant agencies, the private sector, etc.

AS THE WORLD PROGRESSES AND BUSINESS MODELS CHANGE, CYPRUS’ DIPLOMACY MODEL HAS TO CHANGE TOO – needs to join forces to promote Cyprus’ economic interests abroad. “This is also part of the reform process that’s

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F O T R A E H T been taking place across government,” she says, noting that a UK-based consultancy specialising in civil service reform has made certain recommendations after studying the Ministry of Foreign Affairs and that “this process is part of taking those recommendations on board and changing the structure of the Ministry accordingly.. I suggest that there may be a danger that “too many cooks spoil the broth,” given the fact that Cypriot ambassadors have traditionally promoted economic ties with their host countries, while organisations such as the Cyprus Chamber of Commerce & Industry (CCCI) and agencies like the Cyprus Investment Promotion Agency (CIPA) are involved in similar endeavours. With the creation of yet another specialist unit, isn’t there a risk of overlapping responsibilities? Lanitou Williams thinks not. “The role of Economic Diplomacy in the context of the Ministry of Foreign Affairs is to be an enabler, a facilitator,” she insists. “We have always cooperated closely with the other ministries, agencies, actors and stakeholders. “Now we see that there is a need for greater coordination and, as the world progresses and business models change, Cyprus’ diplomacy model has to change too. In reality, we’re simply moving with the times. Today’s global interconnectedness and greater competition require a renewed approach.” Although it is still early days, the new Head of Economic Diplomacy has a clear idea of what she hopes to achieve. “We obviously want to model what we do on best practices,” she says, “which is why we’ve been talking to the IMF office here, for example, and we’re in the process of hiring an expert to help us establish the new unit and develop a strategy within the Ministry.” She sees her main task as working with Cyprus’ diplomatic missions abroad. “This is my number one priority,” she

THE ART OF

DIPLOMA

68 | GOLD | The Business Magazine of Cyprus

stresses. “We want to familiarise our diplomats with the changing context of economic and business diplomacy, so we are already keeping them informed, sending out a lot of information which we get from agencies like CIPA, the CCCI, the OEB and our own sources. We are all reinforcing one another in a coordinated manner.” Although Lanitou Williams has yet to draw up a list of specific results that she hopes to achieve in her new role (“We are listening to everyone right now – the Government, the agencies, the private sector – and asking them what they consider important”), she already has in mind the need to encourage more major companies to set up their headquarters in Cyprus and the advantages that would accrue were a major international bank to establish itself here. “Once we have received input and feedback from everyone involved, we intend to draw up a strategy and we will then propose to our diplomats that they focus on the specific issues and, through our missions and embassies, back up the work of agencies such as CIPA.” The new Head of Economic Diplomacy is confident that the Ministry is “more in tune with the times these days”, something that she describes as “important for any country’s survival.” She believes that there is still much to be done if we are to shed the ‘small Cyprus’ mentality and become more proactive. “Let’s not forget that there is also a ‘small Luxembourg’ and a ‘tiny Malta’ and they have no complex about their size,” she says, laughing. “So anything they can do, we can do too!” It has often been suggested that Cyprus ought to embark on a serious advertising campaign to let the world know that it is an attractive investment destination and a thriving international business centre, in the same way that it has traditionally promoted itself as a

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THERE IS STILL MUCH TO BE DONE IF WE ARE TO SHED THE ‘SMALL CYPRUS’ MENTALITY AND BECOME MORE PROACTIVE tourist destination. Does Lanitou Williams agree? As a diplomat she naturally gives a diplomatic answer: “I can’t speak on behalf of the Government but it is very clear to everyone that it wishes to give priority to attracting investment and business and promoting Cyprus as a business centre. One only has to consider the decision to appoint a new Under-Secretary for Development to see that a clear message is being given: attention needs to be paid to all sectors of the economy and not just to tourism.” Finally, the Head of Economic Diplomacy is keen to note that, if there is one thing that can help the country’s economy, it is a solution to the Cyprus Problem. “That is our main aim,” she says. “We hope to make Economic Diplomacy our first priority and there is no doubt that achieving a viable solution will give a tremendous boost to the economy of the whole island. If that happens, the sky’s the limit.”

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| CISI |

SIMON CULHANE, CHIEF EXECUTIVE OF THE CHARTERED INSTITUTE FOR SECURITIES & INVESTMENT (CISI), ON THE INSTITUTE’S 25TH ANNIVERSARY, ITS AIMS AND AMBITIONS AND ITS GROWING LINKS

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70 | GOLD | The Business Magazine of Cyprus

AL, M ERN OD

his year marks the 25th anniversary of the CISI. What was the Institute’s original purpose, according to the founders? Since our formation in 1992, born out of the London Stock Exchange, our purpose has been to help our members attain and then maintain their professionalism. Our mission statement captures our original aim: “To set standards of professional

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excellence and integrity for the securities and investment industry, providing qualifications and promoting the highest level of competence for our members, individuals and firms”. How has it changed over the years? One of the main and most exciting changes has been the growth in appetite for our qualifications and membership globally. From Moscow to the Middle East and to Manila, regulators are realising that they need skilled people and that they would also like to use the CISI examinations, like the almost 40,000 people who took them last year. We also now cover the fast-growing financial planning sector, as we are the UK licensing authority for the globally recognised mark of excellence for financial planners, the CFP designation. Professional excellence and integrity is a core part of the Institute and, 25 years on, this remains our key focus. We

THERE IS NO DENYING THAT BREXIT HAS AFFECTED THE INDUSTRY’S CONFIDENCE IN THE

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www.goldnews.com.cy | GOLD | 71

| CISI |

Do you envisage Brexit negatively affecting the CISI’s work and status? Regardless of what occurs post-Brexit, our work will continue as we are a global body. We operate in many different countries. In 2016, 15,000 of our 40,000 exams were taken internationally and that number will only grow. As the EU – which still includes the UK – prepares to adopt MiFID II, we are receiving several enquiries from EU regulators who want to know if our exams are ESMA compliant for advisors and information givers. Our International Introduction to Securities examination is fully ESMA compliant and around 5,000 individuals entered for it last year. In some of the Gulf states, this qualification is the threshold competence requirement to operate in the market.

72 | GOLD | The Business Magazine of Cyprus

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What was your reaction – and that of your members – to the result of last June’s referendum on leaving the European Union? Following the referendum, we conducted a poll on our website to gauge our members’ confidence in the UK’s economic prospects. Of over 600 respondents, we found that 48% were less optimistic about the outlook for the UK than they had been in the previous ten months. There is no denying that Brexit has affected the industry’s confidence in the UK economy, generating concerns in particular on the issues of pass porting and the drop in sterling.

More generally, are you confident that the City of London will remain a major global financial centre when the UK is no longer an EU member state? We are very confident that the City of

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sionalism. Our aim is for the Institute to be the premier body amongst wealth managers, financial planners and capital markets professionals, and for our qualifications to be recognised as the global benchmark. Today, over 40 jurisdictions recognise CISI qualifications and our goal is to increase this to 60. Our internationally recognised exams are globally portable and major banks and financial organisations worldwide use our qualifications to benchmark the knowledge of their staff.

I R IN T E G

London will remain a global financial centre, in or out of the EU. The UK is in a unique position as its competitive advantage comes from being able to operate within various timezones with other global financial markets. This will not change and it’s now up to our Government to steer us through and negotiate a suitable deal, one that benefits everyone. What are the key components of professional excellence, to which your members should be striving? We believe professional excellence to be a blend of three elements: knowledge, skills and behaviour. A professional is someone who has a combination of knowledge and skills, and acts with integrity. Our members, by being a part of the Institute, have already shown they are committed to striving for professional excellence. Now it is up to them to maintain this commitment by demonstrating Continuing Professional Development (CPD). We have great technology to deliver learning, such as our Professional Refresher suite, where members can keep up to date on over 90 topics, ranging from anti-money laundering to Dodd-Frank to MiFID, all delivered to your device, regardless of whether it is a smartphone, tablet or desktop. We also continue to record leading speakers at our seminars for downloading and viewing a few days later on CISI TV. The best part is that all of this CPD is automatically recorded on your CPD log, which makes it easy for our members to have tangible evidence of continued

learning. We are still the only professional body that requires its members to take and pass an integrity test before being accepted for membership. We encourage those who are working, or looking to work in the financial services industry, to join us and see how we can help them progress in their career. Why have you chosen this year to hold your first gala dinner in Cyprus? The CISI’s presence in the Cyprus region is growing. That is mainly due to the efforts of our Cyprus Branch, which was started in 2009 by Charles Charalambous, past president and Petros Florides, the current president. They saw how bringing CISI qualifications to Cyprus would quickly allow Cypriots to reach international benchmark standards in finance. We’re here to celebrate our first gala dinner in Cyprus because of their efforts – not only have they founded a branch, they have developed it into a thriving organisation. Last year we had over 1,000 exams taken in Cyprus by almost 500 active members, some of whom will be attending the dinner. We have an excellent relationship with the regulator, the Cyprus Securities and Exchange Commission (CySEC), whose Chairwoman, Demetra Kalogerou, will deliver a welcome address at the dinner. Our work with CySEC is key to our success in the region and we look forward to working with the Commission more closely in the future. We also have two strong Accredited Training Partners (ATP) in the European Institute of Management and Finance (EIMF) and Cyprus International Institute of Management (CIIM), which offer classroom support for our exams. In 2016, our activity in Cyprus included visits to firms, a speaker slot at the iFX Expo, a regulatory update CPD event, and delivery of our Integrity at Work session at our Partner University, European University Cyprus. We have a very deep tradition of CISI membership amongst islands including Malta, Jersey, Guernsey and the Isle of Man. So we are delighted to see and welcome this growth in interest in CISI professionalism in Cyprus.

| CONFERENCE |

CIM SUMMIT: TEN YEARS OF SUCCESS

Saturday, 8 April 2017, 8.30a m, Bank of Cyprus Headquarters (Ayia Paraskevi), Nic Admission is free osia registration is esse but DQG LV VXEMHFW WR FR ntial QÀUP by the Organisers DWLRQ Online registration. : https://www.imhbus cim-summit-2017#iness.com/ register

Yangos Hadjiyannis, Deputy Director of the Cyprus Institute of 0DUNHWLQJ &,0 ORRNV DKHDG WR WKH WK &,0 6XPPLW DQG UHÁHFWV RQ how this highly successful annual event began. | By John Vickers

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wo signs of a successful event are having more people wanting to attend than the venue can hold and having more sponsors every time it is organised. The annual Cyprus Institute of Marketing (CIM) Summit is one such event, which, as the Institute’s Deputy Director, Yangos Hadjiyannis, recalls, began its existence as a one-off ‘reunion’ of three acclaimed speakers. “In 2008, as part of our 30th anniversary celebrations, we decided to bring back three of our associates, who had addressed seminars and workshops in the ‘80s and ‘90s,” he says. “Many of them had gone on to become world-acclaimed authors, marketing gurus, etc. and so it was quite an achievement to have three of them – Stanley Paliwoda, Michael Baker and Malcolm McDonald – all very big names in the industry, together in the same conference room.” It was actually the first time that those particular people had appeared at the same event (“They all recognised that we had given them opportunities and exposure when they were still in the early stage of their careers,” Hadjiyannis remembers with pride), which turned out to be a huge success. The CIM Board did not need much persuading to repeat it and, ten years on, the annual event has gained a loyal and enthusiastic

WE WANT TO BRING LOCAL L EXECUTIVES INTO CONTACT WITH INSPIRING SPEAKERS audience that attends it without fail. Industry support and sponsorship has been growing every year. “Even during the country’s most difficult times, we never thought twice about organising the event,” Hadjiyannis says, adding that this year there is a record number of sponsors and the CIM has reached the stage where it has to be very strict about attendance because there is always more interest than there are available places. Perhaps unusually, the annual CIM Summit always takes place on a Saturday morning. “There is logic behind this,” insists Hadjiyannis. “We want to ensure that people are committed to the event. The fact that they are willing to spend their Saturday morning listening to our speakers is proof of this commitment and a huge success for us. They not only come from all over Cyprus but from abroad, too, so it is gradually becoming a regional event.” Speakers at the many of the previous nine Summits have come almost exclusively from leading UK universities but, says Yangos Hadjiyannis, the Institute has recently involved more consultants and industry people (“So that there is a better balance between academia and industry.”) and, this year, for the first time,

two of the speakers will be from the US: Anastasia Leng, Founder & CEO of Picasso Labs, and Riley Newman, Former Head of Analytics at Airbnb. Each year’s summit has a different theme – this year’s is “Entrepreneurship and Innovation”, which is one of the reasons why Hadjiyannis has invited the two American speakers. “If we are talking about entrepreneurship and innovation, there is no better place for this than the US, especially Silicon Valley, California,” he says. “We want to give Cypriot executives an idea about what’s coming next and if we want to see where things might be going in Cyprus in the next 10 years, first we look at the US and then at Europe.” The line-up is completed by Jochen Menges, Lecturer in Organisational Behaviour at Judge Business School, University of Cambridge, and Dr. Nancy Puccinelli, Associate Fellow at Oxford University’s Green Templeton College. “We want to bring local executives into contact with inspiring speakers who can change the way they think about and see things,” says Hadjiyannis.”If we can achieve this, it means we have carried out our role successfully. And I think I can say ‘so far, so good’.” www.goldnews.com.cy | GOLD | 73

| ACCOUNTANCY |

I

NSIGHT

NITIATIVE NTEGRITY Maintaining values in the accounting profession

74 | GOLD | The Business Magazine of Cyprus

THE INSTITUTE OF CHARTERED ACCOUNTANTS IN ENGLAND & WALES (ICAEW) IS THE PROFESSIONAL BODY THAT SUPPORTS A GLOBAL NETWORK OF OVER 145,000 MEMBERS, WHO, IN TURN, HELP PRIVATE AND PUBLIC ORGANISATIONS OF ALL SIZES AND IN ALL SECTORS SUCCEED, WHILE COLLABORATING WITH GOVERNMENTS, REGULATORS AND BUSINESS LEADERS AROUND THE WORLD. ICAEW PRESIDENT HILARY LINDSAY WAS IN CYPRUS EARLIER THIS MONTH TO ATTEND A GRADUATION CEREMONY FOR SOME 150 STUDENTS WHO ARE DUE TO JOIN THE INSTITUTE. SHE SPOKE EXCLUSIVELY TO GOLD ABOUT THE OBJECTIVES OF HER 12-MONTH PRESIDENCY.

W

hen Hilary Lindsay qualified as a Chartered Accountant in the 1970s, fewer than 2% of her colleagues were women. That figure is now around 30% and last year she became the second female President of ICAEW. Things have clearly changed over the past 40 years so does Lindsay feel that she is something of a pioneer in her male-dominated profession or does she think that there ought to have been plenty of other women in the post before her? “I certainly think that there should have been plenty of others before me,” she tells me during her recent visit to Cyprus. “I actually tried to deny the fact of being only the second woman President to myself,” she goes on, “but then I saw that it was something that everyone noticed! So I’m actually embracing it and using it to emphasise that 30% of our membership and over 40% of our students are women. If they can see somebody like them in a position of ultimate influence in the Institute, that can’t be a bad thing.” Hilary Lindsay decided to try accountancy after graduating with a degree in Statistics. “I was good with figures and I liked people and I didn’t fancy teaching at that point,” she recalls, “so I decided

BY JOHN VICKERS

As an

Institute we’ve done a lot of work around what we see as the

future of audit

to become a Chartered Accountant without really knowing what it entailed and it proved to be a very good choice. Interestingly, towards the end of my career, I have ended up doing a lot of teaching for the Open University so it seems that we can’t run away from some things! They are destined to happen!” She tells the story of how a male colleague once asked her what it was like to be a female accountant. “I told him I couldn’t answer that! All I could tell him what was what it was like to be a Chartered Accountant, which he already knew.” Despite that original 2% representation, Lindsay says that accountancy firms tended to have quite

a good gender mix, though at different levels, and so she never felt that she was the only woman in an organisation. “If I went on courses or to Continuous Professional Development (CPD) events, I was often the only woman there but I have to say that I have never felt any gender-based discrimination at any stage of my career.” In her first address as President last year, she said that the profession needed to respond to the growing trends in the sector, including an increase in compliance work being taken on by technology. How have the members of the Institute responded to such messages? “They’ve been responding with understanding and enthusiasm,” Lindsay states firmly. “All our members want to add value for their clients or the businesses that they work for, so if they are able to do more higher-level work because technology is taking away some of the routine tasks, they can make a big difference, making sure, for example, that they are helping clients develop their business or look at new ways of thinking about their business.” The issue of the future of audit is one that has been under discussion for a long time. Should auditors be required to go further than simply checking the numbers? “As an Institute we’ve done a lot of work around what we see as the future of audit – we have a project with this title – and we’re trying hard to work out what extra skills we can bring to the audit,” she explains. “It’s no longer about just looking at all the things that we need to

www.goldnews.com.cy | GOLD | 75

| ACCOUNTANCY |

check but about making sure we are asking the right questions about a business, looking at how it should be approaching the future and providing useful advice.” Hilary Lindsay is already halfway through her one-year presidential term. I ask her if there are things that were on her agenda seven months ago that she has already achieved. It’s still a work in progress, she says, but she is delighted that the Institute has drawn up its strategy for the next several years. “My main role as President is to make sure we’re implementing the strategy,” she says, adding that she is especially happy with the discussions that she has had in the UK and around the world on topics such as flexible working. “People have traditionally thought of flexible working as something that women, in particular, appreciate because it helps them balance career and family better,” she notes, “but I’m trying to promote flexible working for everybody as a positive choice. If you are at work and wishing you were somewhere else, you’re not going to be giving your best, so it’s a question of helping everybody do their job in the best way possible.”

We have a very viable

model for the training of

future

chartered accountants

in Cyprus 76 | GOLD | The Business Magazine of Cyprus

Another thing that she is very pleased about is the fact that she has been able to highlight how many ICAEW members work in academia. “As well as being the second woman to be President of the Institute, I am also the first academic to be appointed to the post. We’re looking at what more we can do to support those academics and so far I’m pleased with what we’ve done.” One of the main issues for ICAEW concerns what it is doing outside the UK and this is where Cyprus takes on a significant role. “We’ve been here for 20 years and we’ve got over 2,000 members as well as 700800 students,” Lindsay enthuses, “so what’s really exciting for us is that we’re developing really influential groups of members in other parts of the world. I came here for the graduation ceremony, celebrating the success of about 150 students in Cyprus who have passed their exams and have the potential to become or already are ICAEW members. That’s exciting! We have people in Cyprus that are global prizewinners so there is a really successful training environment here. We have a very viable model for the training of future chartered accountants in Cyprus.” In Cyprus, it appears that the profession is still attracting plenty of young people. Is that the case in the UK? “Yes, absolutely,” Lindsay affirms. “And as ICAEW we are making sure that we understand what sorts of careers those new members would like to have and what particular points about the profession most appeal to them. The UN sustainable development goals, for example, absolutely resonate with them because they can see that they can make a difference not only to a particular society but to the whole planet. We see our members as the people that can help measure and work towards these challenging goals.” Last year, when the ICAEW Council

ā

of our membership and over

of our students are women was drawing up its strategy, it tried to envision what things will be like in 25 years’ time. “We decided that, although technology will have completely transformed how we do our jobs, ethics will still matter and people will still matter,” Lindsay says. “We will still need people with those skills who can understand, interpret and add value and insight to a given situation. We have identified three brand values that we’re very much pushing: providing insight, showing initiative and having integrity.” The ICAEW President describes the Institute’s younger members as “very ambitious, wanting variety in what they do, and with very high ethical standards” and so it is critical that the profession feels relevant to them. “It needs to resonate with their values and ethics and their desire to achieve. Anyone starting out now belongs to a profession that gives them a home in which their values can flourish and be supported. It’s a fantastic starting point for any career.”

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78 | GOLD | The Business Magazine of Cyprus

• A single senior management team with clear vision and direction coordinates the operation of our offices in all our countries of operation. Twenty directors and more than 300 people offer services of the highest standards to more than 6,000 businesses operating both nationally and internationally across all industries. • The firm was founded in Cyprus in 1996 and gradually grew beyond the island’s geographical boundaries to include under its umbrella Baker Tilly firms in Bulgaria (Sofia), Romania (Bucharest), Moldova (Chisinau) and Greece (Athens, Thessaloniki).

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80 | GOLD | The Business Magazine of Cyprus

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www.goldnews.com.cy | GOLD | 81

Eurofast

A one stop shop for investors in Europe and the Middle East Eurofast with fully fledged offices in the region is a trusted business advisor working with global brands

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urofast is uniquely positioned as one stop shop for investors looking to enter South East Europe and Middle East. With over 28 years of history and 21 fully fledged offices in the region, working with many global brands and leading institutions, operating in the manufacturing, retail, airlines and Professional services sector, Eurofast is your trusted business advisor! #INVESTSEEME

WHY INVEST IN SEEME? Panos Diallinas – Regional Director The Balkans present an attraction for many entrepreneurs from around the world. Competitive advantages such as the low cost of labour, cheaper raw materials, the significant potential for rapid growth, prospects for privatization of state enterprises, the low level of domestic competition and favourable tax incentives have in recent years helped the region to attract investor interest. Albania – Drilona Likaj – Senior Tax Accountant › =i\\ kiX[\ Xi\X › Cfn\jk d`e`dld nX^\j `e <lifg\ E:drilona.likaj@eurofast.eu Bosnia and Herzegovina - Dajana Topic-Regional Executive › >ifn`e^ \Zfefdp gc\k_fiX of tax privileges › Cfn Zfjk f] Ylj`e\jj E: dajana.topic@eurofast.eu Bulgaria- Petar Varbanov, Head of Legal, Tax & Compliance › Dfjk Zfdg\k`k`m\ jXcXip c\m\cj `e <lifg\ › Cfn\jk fg\iXk`feXc Zfjkj Xe[ most favorable tax regime in Europe E: petar.varbanov@eurofast.eu Croatia - David Jakovljevic - Tax & Legal Advisor 82 | GOLD | The Business Magazine of Cyprus

RegionalMeeting Meeting ofofEurofast Advisors Regional Eurofast Advisors

› Dfjk >ff^c\[ kfli`jk [\jk`eXk`fe in the World › ' ZfigfiXk\ kXo iXk\ ]fi ^i\\e]`\c[ investments E: david.jakovljevic@eurofast.eu FYR MACEDONIA - Elena Kostovska - County CountyExecutive Executive › IXeb\[ )e[ `e k_\ nfic[ ]fi \Xj\ of starting a business › JkiXk\^`Z ^\f^iXg_`Z cfZXk`fe and competitive skilled workforce E: elena.kostovska@eurofast.eu Georgia – Irina Lopatina –Country Executive › Cfn kXo\j Xe[ Zfiilgk`fe free environment › )) d`Zif$Zc`dXk\j Xccfn`e^ ]fi cfe^\i harvesting seasons and a wide range of growing conditions E: irina.lopatina@eurofast.eu Greece – Anastasia Sagianni -Head of Transfer Pricing › <oZ\gk`feXc _ldXe ZXg`kXc

$ :fdg\k`k`m\ n\cc \[lZXk\[ jkX]] › >\fjkiXk\^`Z gfj`k`fe E: anastasia.sagianni@eurofast.eu Montenegro - Ivan Petrovic - County CountryExecutive executive › J`dgc\ jkXik lg d`e`dXc ZXg`kXc ó(# up to one week) › Gifm`[\j eXk`feXc ki\Xkd\ek to all worldwide investors E: ivan.petrovic@eurofast.eu Serbia - Aleksandra Rafailovic - Senior Accountant › Fgk`dXc ^\f^iXg_`Z cfZXk`fe › ?`^_cp hlXc`]`\[ dlck`c`e^lXc cXYfi force E: aleksandra.rafailovic@eurofast.eu Ukraine – Anna Pushkaryova Senior Associate › CXe[ Yfi[\ij n`k_ j\m\e fk_\i European countries and access to the Black Sea › -' f] cXe[j Xi\ XiXYc\6 E: anna.pushkaryova@eurofast.eu

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missed – especially when entering new markets. Successful companies consider tax implications before they make business decisions, so they do not pay more than their legal obligation. This makes international tax compliance, consulting and structuring a crucial element in a global strategy. Cyprus is an international financial centre and many foreign investors use Cyprus companies for their international business. We provide compliance, advisory and restructuring support to foreign corporations and individuals. Some of the services we provide are listed below.

TAX SERVICES

• Compliance and advice on Cyprus transactions for companies and individuals • International tax planning • Tax reviews • International corporate structuring • Advice on cross-border transactions • Finance and ownership of real estate worldwide • Expatriate and migrant planning • Trust and estate planning Horwath DSP takes pride in providing a speedy, competent service of the highest quality.

CONTACT INFORMATION

Horwath DSP Limited

Headquarters Address: 8, Stassinos Avenue, 1st Floor, Photiades Business Centre, 1060, Nicosia, Cyprus | Postal Address: P.O.Box 22545, 1522 Nicosia, Cyprus Tel: (+357) 22755656 | Fax: (+357) 22452055 e-mail: yiannisd@crowehorwath.com.cy | Website: www.crowehorwath.com.cy

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SPECIAL promotional feature

TAX

GUIDE 2017

KPMG Global Mobility

I

N TODAY’S BORDERLESS WORLD, BUSINESSES OF EVERY SIZE ARE UNDER ENORMOUS PRESSURE TO EXCEL AND OUTPERFORM EACH OTHER, CONSTANTLY REACHING FOR NEW MARKETS IN THE QUEST TO INCREASE THEIR MARKET SHARE. AS A RESULT, THE ISSUE OF PERSONAL TAXATION IS NOW A HOT TOPIC ON EVERY CORPORATE AGENDA AND EMPLOYEE MOBILITY HAS NOW MORE THAN EVER BEFORE, BEEN AT THE VERY CENTRE OF FORMULATING CORPORATE POLICIES. AMIDST ALL THIS, THE INCREASED COMPLEXITY OF MATTERS ARISING IS PLACING AN ENORMOUS BURDEN ON INTERNATIONAL HUMAN RESOURCE TEAMS AND TAX DEPARTMENTS ALIKE.

86 | GOLD | The Business Magazine of Cyprus

Managing compensation, tax compliance and global mobility is becoming more costly, more complex and more time-consuming. Businesses need to set up international assignment policies and methodologies that help ensure compliance, as well as balance fairness to the international assignee and cost effectiveness to the employer, from both a tax and economic perspective. This is where sound and specialized advice can mitigate mobility problems and, at the same time, optimize the outcome for all parties involved. Our highly trained and experienced professionals provide advisory, compliance and administrative services to help you manage your local and international workforce effectively and efficiently. Whether you are considering expanding or

relocating, a cross-border acquisition or a more streamlined process to manage your existing workforce, KPMG can assist. Our service delivery model is structured around the life cycle of an international assignment which includes: • Pre-assignment services • Real time assignment services • Post-assignment services KPMG in Cyprus can provide assistance with the administration of international assignment programmes so that companies can focus uninterruptedly on the high- level strategic human resource aspects of their programmes. It is important that both the employer and the individual assignee are confident that all aspects of the assignment are being handled by a local team with global knowledge.

THIS IS ACHIEVED BY:

• Actively cooperating and communicating with clients • Carefully monitoring new developments in the local tax legislation • Taking into account the specific needs of each assignee • Keeping an open line with the local authorities on Tax, Social Security and Immigration issues • Using the knowledge and drawing from the experience of our global network of KPMG professional firms.

TAX COMPLIANCE – A SOURCE OF LONG-TERM SAVINGS?

KPMG in Cyprus can assist with the completion and submission of individual Tax returns for expatriates and international assignees. To help provide you with the competitive edge, KPMG in Cyprus can review a company’s current programme to help uncover potential savings and then assist with the implementation of the ideas and methodologies it chooses to adopt.

TAXATION SERVICES FOR INDIVIDUALS

The provision of Tax services offered to individuals, includes: • Registration with the Cyprus Tax Authorities • Assistance with the preparation and submission of personal tax returns • Advice in relation to (i) notices, assessments, statements of accounts issued by the Tax Authorities and, (ii) individual final payments of tax and interim payments on account • Following correspondence with the Tax payer and the Tax Authorities • Request of a Tax Clearance and/or Tax Residency certificate from the Tax Authorities.

GLOBAL MOBILITY SERVICES

Corporate clients can access our services depending on their specific needs (on a fully or partially outsourced basis) to cover the administration of international assignments.

The following services and support are provided by KPMG in Cyprus: • Arrival and departure tax meetings • Registration and deregistration with the Cyprus Tax Authorities • Assistance with the preparation and submission of tax return • Preliminary computation of taxes payable • Personalized Tax advice • Request of a Tax Clearance and/or Tax Residency certificate from the Tax Authorities.

SOCIAL INSURANCE SERVICES

Planning is essential in order to understand the rules of the local Social Insurance system and how these rules can have an impact on the cost of international assignments. Social insurance support by KPMG in Cyprus includes: • Personalized initial assessment of the case at hand • Registration with the Social Insurance Authorities • Monthly computation of contributions • Assistance in applying for a certificate of coverage (A1 certificate) for exemption of contributions under the relevant EU Regulation.

IMMIGRATION SERVICES Managing a global workforce means observing different, complex and fast changing immigration laws worldwide. KPMG in Cyprus can assist international assignees to satisfy local immigration requirements in order to work/live in Cyprus. Our assistance extends to: • Personalized initial assessment of the current circumstances • Comprehensive advice on Cyprus immigration law and regulations

• End-to-end support for assignees in obtaining the necessary status, visas, work and residence permits • Support for accompanying family members in obtaining the necessary visas and permits • Acting as an authorized liaison for individuals applying for a Permanent Residence/Cypriot citizenship.

WHY KPMG IN CYPRUS?

KPMG in Cyprus traces its origins back in 1948, when one of the first accounting firms (Metaxas, Loizides, Syrimis & Co.) on the island was established and currently employs more than 800 professionals, has close relationships with practices in other countries and provides its clients with the whole spectrum of KPMG International services. We have the experience to help you grow and manage your international workforce effectively. We offer a customized approach to assignment management, since each company’s business goals, internal experiences, policies and management approach are different. Our team members are professionals that know which questions to ask and can recognize the challenges that may arise. Drawing on the experience of our people, with our multi disciplinary approach and our global network, we are able to help member firm’s clients to think beyond the present, see beyond borders and achieve long lasting success. For any further information you may contact:

CONTACT INFORMATION

KPMG

George Markides (Board Member, Head of Tax) Tel: (+357) 22209240 e-mail: gmarkides@kpmg.com Costas Markides (Board Member) Tel: (+357) 22209246 e-mail: cmarkides@kpmg.com Michael Halios (Board Member) Tel: (+357) 24200222 e-mail: mhalios@kpmg.com Alexander Sofocleous (Board Member) Tel: (+357) 25869202 e-mail: asofocleous@kpmg.com www.goldnews.com.cy | GOLD | 87

SPECIAL promotional feature

TAX

GUIDE 2017

[

PEK LTD

M

Any profits from a permanent establishment maintained abroad are exempt from taxation in Cyprus. This, in conjunction with the use of Cyprus’ extensive double taxation treaty network, can result in such profits escaping taxation altogether.

NON-RESIDENT COMPANIES

Companies managed and controlled outside Cyprus are considered to be non-resident and will be taxable on their Cyprus source income only. As a result, a company deriving income from sources outside Cyprus will escape taxation in Cyprus altogether.

[

AJOR ADVANTAGES OF CYPRUS AS AN INTERNATIONAL BUSINESS CENTRE

PERMANENT ESTABLISHMENT ABROAD

CORPORATE TAX RATE A uniform corporate tax rate of 12.5% for all companies. This is one of the lowest corporate tax rates in Europe.

A HOLDING COMPANY JURISDICTION

Any dividend income is exempt from tax, irrespective of its source. This exemption does not apply if the non-resident company paying the dividend carries on more than 50% investment activities which give rise to investment income and the overseas tax burden on its income is significantly lower than the Cyprus tax burden (less than 5%)

TRADING IN SECURITIES

Any profit from the disposal of securities, irrespective of whether this profit forms part of a company’s trading activity or is of a capital nature, is exempt from Cyprus tax.

88 | GOLD | The Business Magazine of Cyprus

NO WITHHOLDING TAXES

Dividends paid to non-resident shareholders are not subject to any withholding tax in Cyprus, irrespective of the existence of a double tax treaty with their country of residence. Also, no withholding tax is applied to interest derived from Cyprus or on royalties receiving from sources outside Cyprus.

EXEMPTION OF CAPITAL GAINS TAX

No capital gains tax is payable, except on the disposal of immovable property located in Cyprus, or of shares in a company which owns immovable property in Cyprus. Therefore, Cyprus companies can be used to hold real estate outside Cyprus with no capital gains tax implications in Cyprus on their disposal.

DOUBLE TAXATION TREATIES

What distinguishes Cyprus from most other international business centres is its extensive network of double taxation treaties (currently with 49 countries). Generally, most treaties provide for reduced rates of withholding tax on dividends, interest and royalties paid out of the treaty country, or the avoidance of double taxation in the case where a resident in one of the treaty countries derives income from the other treaty country.

NON-RESIDENTS WORKING IN CYPRUS Non- residents physically present in Cyprus for less than 183 days are taxable in Cyprus only on income derived from sources within an employment exercised in the Republic of Cyprus.

PERSONAL TAX RATES The personal tax rates are progressive and reach a maximum of 35% on income in excess of €60,000.

RELIEF FOR OVERSEAS EMPLOYMENT A Cypriot resident working abroad for an overseas employer is exempt from taxation on the salary attributed to overseas duties if these duties result in spending more than 90 days in any tax year abroad.

RELIEF FOR NONRESIDENTS TAKING UP EMPLOYMENT IN CYPRUS A non-resident taking up employ-

ment and becoming resident in Cyprus will be given a 20% allowance on employment income for the three years following the year of becoming resident in Cyprus. The allowance cannot exceed €8,543 each tax year. Also since 2012, for a non-resident who is employed in Cyprus and acquires income exceeding €100,000 per annum, an allowance of 50% of that income will be given. The exception applies for five years commencing from the first year of employment.

INCOME/PROFITS FROM INTELLECTUAL PROPERTY RIGHTS

80% of the net profits from the exploitation of intellectual property rights as well as the gain on the sale of any intellectual property rights are exempt from taxation (provided that they comply with the provisions/conditions of the relevant Law).

NO DEFENCE TAX ON NON-DOMICILES

Defence tax is payable only by persons who are considered to be tax residents in Cyprus (an individual who spends at least 183 days in Cyprus every tax year). Defence tax is payable on dividends, interest and rental income. Individuals who are not considered to be “domiciled” in Cyprus would be exempt from payment of the defence tax on dividends, interest and rental income, even if they are considered as tax residents of Cyprus. The term “domicile in the Republic” is defined by the Law as an individual who has a Cypriot domicile of origin in accordance with the Wills and Succession Law, except: I. an individual who has obtained and maintained a domicile of choice outside Cyprus in accordance with the provisions of the WSL (i.e. factual concept – an individual permanently lives and intends to live in another country), provided that such an individual has not been resident in Cyprus, as defined in accordance with the provisions of the Income Tax Law,

for any period of at least 20 consecutive years prior to the relevant tax year, or

voyage) and ship managers providing technical and/or crewing services.

II. an individual who has not been resident in Cyprus as defined in accordance with the provisions of the Income Tax Law, for a period of at least 20 consecutive years prior to the entry into force of the provisions of this Law.

Qualifying activity for ship owners and charterers means maritime transport of goods and/or people between Cyprus ports and foreign ports/offshore installations, or between foreign ports or offshore installations and specifically includes towage, dredging and cable laying.

It is provided that an individual who has been a tax resident of Cyprus for at least 17 years out of the last 20 years prior to the tax year, will be considered to be “domiciled in Cyprus” and as such be subject to SDC regardless of the domicile of origin.

CYPRUS SHIPPING TAX LAW - TONNAGE TAX SYSTEM ANALYSIS

Full exemption to ship owners, charterers and ship managers from all profit taxes is granted. The law imposes tonnage tax on the net tonnage of the vessels at the following rates: UNITS OF NET TONNAGE

SHIP OWNERS & CHARTERERS €TT PER 100 UNITS

SHIP MANAGERS € TT PER 400 UNITS

0-1.000 1.001-10.000 10.001-25.000 25.001-40.000 >40.000

36,50 31,03 20,08 12,78 7,30

36,50 31,03 20,08 12,78 7,30

CONDITIONS

The regime covers all qualifying persons performing qualifying activities in relation to qualifying vessels. Qualifying persons are ship owners, charterers (bareboat, demise, time and

Qualifying activity when applied to ship managers means services provided to a ship owner or bareboat charterer on the basis of written agreement in relation to crew and/or technical management. Qualifying vessel is a sea-going vessel that: a) has been certified in line with international principles and legislation of the flag country, and b) is registered in the register of a member country of the International Maritime Organisation (IMO) and International Labour Organisation (ILO)

THE DEFINITION EXCLUDES THE FOLLOWING VESSELS:

• fishing boats, • boats that are primarily used for the athletic and entertaining purposes • boats that have been constructed exclusively for domestic navigation, • ferry and trailer boats that are used in ports, mount of rivers and/or rivers, • fixed offshore constructions that are not used for maritime transport, • non self-propelled floating cranes, • non sea-going trailers, • floating hotels and restaurants, • floating or movable casinos

CONTACT INFORMATION

PEK LTD

Headquarters Address: *LU[YHS *V\Y[ YK ÅVVY Z\P[L demosthenis Severis Avenue, 1080 Nicosia | Postal Address: P.O. Box 28978, 2084 Nicosia Tel: (+357) 22865000 | Fax: (+357) 22865001 | e-mail: info@pek-cy.com Website: www.pek-cy.com

www.goldnews.com.cy | GOLD | 89

BOOK SHELF

BOOKS of the month 1

How technology is changing the world we live and work in

2

American capitalism as practised by the bad guys

1.

2.

The titular revolution will be characterized by new technologies fusing the physical, digital and biological worlds and impacting all disciplines, economies and industries.The founder and executive chairman of the World Economic Forum outlines the key technologies driving this revolution, discusses the major impacts on governments, businesses, civil society and individuals, and offers bold ideas for what can be done to shape a better future for all.

The US has always proved an inviting home for sharp dealers and outright swindlers and, as a result, fraud has been a key feature of American business since its beginnings. Balleisen describes the construction of modern regulatory institutions to protect consumers and investors and examines the more recent era of deregulation, which has brought with it a spate of costly frauds.

THE FOURTH INDUSTRIAL REVOLUTION By Klaus Schwab (Portfolio Penguin, 2017) RRP: £14.99 (£10.49 FROM AMAZON.CO.UK)

FRAUD: AN AMERICAN HISTORY FROM BARNUM TO MADOFF By Edward J. Balleisen (Princeton University Press, 2017) RRP: £27.95 (£27.95 FROM AMAZON.CO.UK)

90 | GOLD | The Business Magazine of Cyprus

3

4

A crisis does not have to mean disaster

How to focus the mind amid the noise RI WRGD\·V workplace

5

The latest title by the ZRUOG·V best-known life and business strategist

3.

4.

5.

Reputations are lost when the perception of an organisation is damaged by its behaviour not meeting stakeholder expectations. The authors explain the hidden factors that cause an otherwise survivable crisis to become a reputational disaster. Using case studies such as BP’s Deepwater Horizon oil spill and Volkswagen’s emissions rigging scandal, the book presents an invaluable new framework for those involved in safeguarding an organisation’s reputation.

Many of us now spend most of our brain power battling distraction and interruption, whether because of the incessant pinging of devices, noisy open-plan offices or the difficulty of deciding what deserves our greatest attention. Newport believes people need the ability to do “deep work”, explaining why this is crucial for anyone who wants to stay ahead in a complex information economy.

Few have navigated the stock market as adeptly and successfully as Tony Robbins and in this, the follow-up to his bestselling Money: Master the Game, he offers readers specific steps they can implement to protect their investments while maximizing their wealth. It’s a detailed ‘playbook’ designed for investors and articulated in the familiar common-sense, practical manner that Robbins fans have come to expect.

RETHINKING REPUTATIONAL RISK By Anthony Fitzsimmons & Derek Atkins (Kogan Page, 2017) RRP: £29.99 (£26.99 FROM AMAZON.CO.UK)

DEEP WORK: RULES FOR FOCUSED SUCCESS IN A DISTRACTED WORLD By Cal Newport (Piatkus, 2016) RRP: £14.99 (£10.49 FROM AMAZON.CO.UK)

UNSHAKEABLE: YOUR GUIDE TO FINANCIAL FREEDOM By Tony Robbins (Simon & Schuster UK, 2017) RRP: £16.99 (£16.99 FROM AMAZON.CO.UK)

HEALTH NEWS www.healthnews.com.cy

New HEALTH portal

Keep up to date on Health-related issues through daily articles, interviews, reports and features With sections on HEALTH, NUTRITION, SEX, FAMILY, CHILDREN and other useful information, HEALTH NEWS contains articles, interviews, features and updated daily news items, all related to the crucial area of health. Our goal is to provide objective information and to promote all health issues, while offering solutions and answers to all issues of concern to visitors to the portal.

HEALTH • NUTRITION • FITNESS • SEX • FAMILY • CHILDREN • PSYCHOLOGY CONTACT INFORMATION Andreas Leontiades. Tel: 22505535, e-mail: andreas@imhbusiness.com Christopher Constantinou. Tel: 22505565, e-mail: christopher@imhbusiness.com IMH, 5, Aigaleo Street, Strovolos, 2057 Nicosia | P.O. Box 21185, 1503 Nicosia Tel: (+357) 22505555 | Fax: (+357) 22679820 | e-mail: events@imhbusiness.com

www.healthnews.com.cy

IN GOOD COMPANY

PART OF THE FAMILY +2: 35,0(7(/¶6 3(23/( 25,(17(' &8/785( &5($7(6 $ µ)((/,1* 2) %(/21*,1*¶ $021* ,76 (03/2<((6 By Voula Loizou | Photos by Christos Tsekouras

21( (/(0(17 7+$7 ',))(5(17,$7(6 35,0(7(/ ,6 75$163$5(1&<

92 | GOLD | The Business Magazine of Cyprus

P

rimeTel plays a leading role in Cyprus’ telecommunications market. Established in 2003, it currently employs a total of 330 people in its Limassol and Nicosia offices and in stores all over Cyprus. The company offers a variety of all-inclusive valuefor-money packages, including fixed and mobile telephony services, wireless Internet access and digital television. The company provides fast and reliable broadband access via ADSL2, VDSL and FTTH and affordable, unlimited mobile plans with superfast mobile Internet speeds through its advanced 4G network. PrimeTel also offers a comprehensive range of communication solutions for every business and every need in both the private and public sectors. Tailored low-cost business packages provide quality solutions for increased productivity, flexibility and competitiveness. Most recently, PrimeTel launched a series of innovative M2M (Machine-toMachine wireless communication services between devices. Moreover, its Fleet and FreezeAlert services promise to reduce operating costs and improve business productivity. So what of the culture within the company? And how does PrimeTel ensure job satisfaction for its employees? Stefania Vlasceanu, Human Resources Manager, explains that the company carefully

www.goldnews.com.cy | GOLD | 93

IN GOOD COMPANY

evaluates the feedback it gets from its people. “They are great believers in the company’s culture and values and many of them have shown loyalty by being here for a very long time,� she says. “Our colleagues feel that they are valued and that the management is fair and genuinely cares about them; they enjoy their work and their environment, and deliver very high standards of professionalism every time.� The culture in the company allows colleagues to treat each other with openness, respect and trust, Vlasceanu adds. “There is a commitment and support from the PrimeTel Management team and this helps everyone stay engaged. In addition to this, one element that differentiates PrimeTel is transparency, which creates even greater trust between the Management and all our colleagues.� As regards employee benefits, PrimeTel offers flexible working hours, which have been found to improve everyone’s daily life, as well as medical insurance and a Provident Fund scheme. Additionally, employees are entitled to a 50% discount on PrimeTel services (fixed telephony, Internet, TV) and these are free after two years of employment. In the company’s Limassol offices, there is a modern cafeteria/restaurant providing low-cost daily lunch. PrimeTel offers a working environment that supports the career growth of its people, providing continuous training and development, and the management pays careful attention to the needs of each and every employee. Indeed, PrimeTel is exceptional regarding its peopleoriented approach. “PrimeTel makes a great effort to give its people a sense of belonging, beyond the friendly workplace environment and their career growth opportunities. The company offers various gifts for Christmas, birthdays, Woman’s Day, Carnival and other occasions, and organizes various internal social events,�

94 | GOLD | The Business Magazine of Cyprus

35,0(7(/ 3(23/( $5( (032:(5(' (1&285$*(' 72 (;35(66 7+(06(/9(6 $1' *,9(1 7+( 23325781,7< 72 7$.( ,1,7,$7,9(6

Vlasceanu explains, adding “PrimeTel people are empowered, encouraged to express themselves, and given the opportunity to take initiatives. The managers are fair and supportive on a personal basis. This creates passion in our people and makes them feel part of the big PrimeTel family.�

How often do you travel, whether for business or pleasure? It’s on a need-to-travel basis. At its peak, it has ILLU Ä]L [PTLZ PU H TVU[O It averages twice a month. h.

BUSINESS CLASS Tell us about yourr Tel best corporate porate travel i experience. What is the most exciting destination you ou have visited for work? h ? And for pleasure? I will have to say New York k MVY ^VYR ,]LU [OL ÄYZ[ [PTL MV L I went there, I knew my way ay around, courtesy of Hollywood! For pleasure, it is H Cuba. I am in love with everything that it is!

It’s a close tie between travelling on a small th Volga in Kostroma, Russia, boat down the with Archbishop Archbis Alexei of Kostroma and learning about abou the Romanov family (it was PU MHJ[ H I\ZPULZZ [YPW HUK Å`PUN WYP]H[LS` PU MHJ[ H I\ZPU Zu back from Zurich to Larnaca with a client following a series s of meetings – you only [Y\S` \UKLYZ[H ` ` N ` [Y\S` \UKLYZ[HUK OHZZSL MYLL Å`PUN VUJL `V\ OH]L ÅV^U WYP]H[LS` OH H]L ÅV^U WYP]H[LS` H]

Alexis Tsielepis For the Director and Head of Taxation at Costas Tsielepis & Co Ltd, New York, London and Cuba are favourite and exciting travel destinations, while for relaxation, the majestic Four Seasons Resort at Sayan in Bali is perfection. What is your favourite international destination and why?

W What is your favourite airline, and why? It has to be Emirates. You just cannot beat their overall package, pac cka age, ge from check-in check k-in to landing.

If you could travel anywhere tomorrow, where would you go? I would go to Cuba and light up a Don Alejandro cigar with Carlos Robaina at his Casa Del Habano on 5ta Avenida y Calle in Miramar, Havana!

What is the most impressive hotel you have ever stayed at and why? The Four Seasons Resort at Sayan in Bali. It is in the mountains, nestled in the green forest, luxurious, quiet and majestic. If you want to get away from it all, this is the place.

London. Having lived and worked in London, I know it like the back of my hand and have a special appreciation of its diversity, grandeur and culture. When I’m there, I normally follow my list of favourite restaurants and shops, catch a theatre production and walk the historic streets, breathing London in! (UK L]LY` [PTL 0 ÄUK ZVTL[OPUN new to excite me!

How does d Cyprus compare com to this lo location? Cyprus is home. 0[ PZ ]LY` KPɈLYLU[ /LYL P[ PZ T` work and my family, my friends and my hobbies, my convenience and my lifestyle. I need to be in Cyprus just as much as I need to travel out of it. It is a type of yin and yang if you can understand that!

www.goldnews.com.cy | GOLD | 95

TIME

OFF

96 | GOLD | The Business Magazine of Cyprus

m e o WITH ME

F C ly

DRONE FLYING IS A RELATIVELY NEW FUN AND ENJOYABLE ACTIVITY, USED FOR PROFESSIONAL AND/OR PERSONAL PURPOSES BY GROWING NUMBERS OF PEOPLE ROUND THE WORLD. CYPRUS IS NO EXCEPTION AND NICOLAS THEOCHARIDES, CEO OF UPM, IS ONE OF MANY PEOPLE ON THE ISLAND WHO HAVE TAKEN UP THIS HOBBY. HERE HE SPEAKS TO GOLD ABOUT HIS NEW-FOUND PASSION FOR FLYING AND FILMING WITH HIS DRONE. By Voula Loizou | Photo by Jo Michaelides

N

icolas Theocharides started flying drones over a year ago when he realised the great potential for

high-definition aerial photography and filming that today’s drones provide. This exciting and new possibility was a key factor in his decision to buy his own drone and begin a new hobby. “We live in a beautiful country with great scenery,” he says. “The combination of sun, sea, mountains with blue, clear or cloudy skies is often breathtaking. So these days, on a day out I always take my drone with me and if I see beautiful scenery I will fly the drone and take some great shots or footage. Everything

WE LIVE IN A BEAUTIFUL COUNTRY WITH GREAT SCENERY. EVERYTHING LOOKS SO MUCH BETTER FROM UP THERE

looks so much better from up there.” Theocharides owns a DJI Phantom 4 drone, which he sometimes flies with friends who share the same passion though, he tells Gold, he mostly he flies it on his own or with his sons. Fortunately, he explains, drones that weigh less than 3 kg do not need a licence if they are used for recreational purposes only. “If you are using a drone as a professional photographer, then you need a licence.” So what can Theocharides do with his drone? “Theoretically, it can fly up to 5 kilometres away from me without any problems and reach a height of up to 500 metres,” he says. “However, the law states that you should

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TIME

OFF IF I GET THE OPPORTUNITY, I WOULD LIKE TO GO ABROAD AND FILM WILDLIFE WITH THE DRONE

not fly a drone more than 500 metres away from you or higher than 90 metres. Moreover, you are not allowed – and the drone itself does not allow you to – fly it near airports, military facilities or near the Green Line in Cyprus,” he adds. Drone flying, Theocharides says, gives him a sense of freedom and ability to appreciate the beauty of the scenery even more. “To say the least, I also feel a sense of fulfilment at the end of each successful flight,” he notes, “especially thanks to the different perspective of that the photography gives me, in terms of both the scenery and personal memories.” He cites as one of his most memorable filming experiences with a drone, the time when he was able to take closeup shots at sunset of the Edro III, an 83-metre, 2,517 ton freighter that ran aground in 2011 in stormy weather in the Sea Caves area of Paphos. Is it an expensive hobby? Yes and no, says Theocharides,

explaining that, “Initially it’s relatively expensive due to the price of the drone. From then on, though, running and upkeep costs are minimal.” Of course, anyone using a

98 | GOLD | The Business Magazine of Cyprus

drone has to remain focused in order to avoid what he calls “the dreaded ‘flyaway’ problem”, which was more common with earlier generation drones and which means

starting again from scratch. Nicolas Theocharides tells GOLD that his new hobby has taught him to pay attention to detail so that each flight is completed safely. It is also constantly evolving as he tries out new, more advanced manoeuvres, having learned from others online or from the local representatives of his particular make of drone. Even though he would definitely recommend drone flying and photography to others, he is aware that, “When it comes to hobbies, what one person loves another may scorn!” So while many people are interested in finding out more about Theocharides’ latest passion, others dismiss it and even mock it. He doesn’t care about this and he is already thinking about his next move. “If I get the opportunity, I would like to go abroad and film wildlife with the drone, in a non-intrusive and non-disturbing manner, of course.”

ENERGY NEWS www.energynews.com.cy

Energy News Portal EnergyNews.com.cy is the online portal for up-to-date energy-related news from Cyprus and the rest of the world. Well-rounded and objective information on all energy-related issues for businesses, professionals and consumers in Cyprus is presented and all organizations, bodies and companies active in the broader energy sector are promoted.

Electricity | Oil | Renewable Energy Sources (photovoltaic, wind, hydro-electric and solar thermal power, biomass and geothermal energy) | Natural Gas | Energy Conservation | Environment | Business | Subsidies/Grant Schemes

ΙΜΗ 5 Aigaleo Str., 2057 Strovolos, P.O.Box 21185, 1503, Nicosia, Cyprus Tel.+357 22505555 Fax. + 357 22679820, E-mail: events@imhbusiness.com Contact details · Andreas Leontiades, tel. 22 505535, email: andreas@imhbusiness.com · Christopher Constantinou, tel. 22 505565, email: christopher@imhbusiness.com

www.energynews.com.cy

Collaboration

Lunc Lunch with ERIC MONTANIOS

TWO MONTHS AGO, THE CHAIRMAN OF THE LAW FIRM OF MONTANIOS & MONTANIOS LLC WAS NAMED BUSINESS LEADER OF THE YEAR IN THE FINANCIAL AND PROFESSIONAL SERVICES SECTOR BY THE CYPRUS CHAMBER OF COMMERCE & INDUSTRY (CCCI) AT ITS 3RD ANNUAL BUSINESS LEADER AWARDS CEREMONY. SINCE THE AWARDS ARE CO-ORGANISED BY IMH, PUBLISHERS OF GOLD, THIS MEANT THAT OUR PATHS WOULD CROSS YET AGAIN, SOMETHING THAT HAS HAPPENED MANY TIMES OVER A PERIOD OF 40 YEARS.

Gold

By John Vickers

MANTICA IORNO RO G IL O T T TU rides St. ras Pallika 13, Evago Nicosia Lykavitos,

T

100 | GOLD | The Business Magazine of Cyprus

here are people we meet, like and consider friends and yet, due to circumstances beyond our control, the times when we actually sit down and spend time together are extremely rare. For me, Eric (Eletherios) Montanios is one of those people. We first met by chance over four decades ago at a house in Limassol (friends of mine, relatives of his) and, ever since then, we would find ourselves together, more often than not at classical music concerts, and more recently at the annual opera production in Paphos. A great love of classical music was instilled in Montanios at an early age when he took piano lessons in Famagusta with teacher George Arvanitakis and later Yiangos

€12.00 RISOTTO SHROOM €10.00 A R WILD MU A I CARBON T €2.50 T E H G A SP R E T A W €2.50 L A MINER K SOFT DRIN €27.00 TOTAL

Michaelides would show him how to follow a symphony score. Today, at the popular Nicosia restaurant Tutto Il Giorno Romantica, we spend some time reminiscing about how the years have flown. Some things, however, never change. Montanios remains the same soft-spoken, modest, quietly intelligent, engaging companion that he always was. If anyone deserves to be described as “a true gentleman,” he is surely the one. We order two simple dishes – risotto for my guest, carbonara for me – and plain water (we both have to get back to work shortly) and I ask him to give me

some family history. When I met Eric Montanios, he and his brother Acis were already successful lawyers, working for the firm that their father had founded in 1951. “In summer my father used to take me to the office and I would watch him in court,” Montanios recalls, “and it seemed natural that I would go on to study law.” He and his brother were unaware at the time of how their father had first worked in a bank before becoming involved in the trade union movement as the first General Secretary of PEO. “It was only later that he decided to go and study law and he was fortunate that, as well as looking after me and my brother, our mother worked as an in-demand seamstress and she agreed with his decision to become a lawyer and look after the family while he was studying. She was a remarkable woman.” Around the time we first met, in 1976, Eric Montanios was a founder member of the Democratic Party (DIKO) and one of the 100 members of the original governing body. In March 1978, President Spyros Kyprianou offered him the post of Minister of Justice. He turned it down. “The well-known Cypriot poet Kyriakos Charalambides, who was a schoolfriend of mine, was so impressed that I had refused the chance to become a government minister that he dedicated a poem to me! The book that contained it (Methistoria) was recently translated into French and he gave me a copy of it a couple of weeks ago.”

The poet was not the only one who was surprised to see someone turning down the opportunity to play a key role in government (as noted earlier, some things never change). Voices of protest were heard because Kyprianou had not appointed anyone from the Famagusta District to his Cabinet and he was obliged to issue a statement that he had made such a gesture but that it had been refused. What was the reason for Montanios’ decision? “At the time, we were in Limassol, having gone there as refugees from Famagusta, and we were still working on re-establishing the law firm. I didn't think I could afford to leave it and so I said no to the President.” Montanios also said no to the Annan Plan in 2004 but today, 13 years on, he disagrees with the stance of the party he helped found. “I believe that we should continue

Of course, we have to insist on certain important things in order to ensure our survival as a unified state but the status quo cannot continue and I really believe that we are at a very crucial and important juncture. After so many years of saying that we need to talk with Turkey, we have finally

Eric Montanios believes that little will be resolved before April and the Turkish referendum on constitutional changes. “Whatever the various parties to a solution may be saying now, we need to wait until they are all around the table. From a Greek Cypriot point of view, I believe that the correct attitude is to look at what is best for the country and I respect AKEL’s stance in this regard. The party has major differences with the Government but it supports the negotiation process. This is what everyone should be doing. There is no ‘Plan B’ so we have to negotiate.” What happens if any agreement fails to meet our minimum requirements for the survival of the state? “We will have no choice but to keep talking until we reach a better agreement,” he says. We cannot leave the negotiating table under any circumstances. All the key

WE SHOULD CONTINUE THE NEGOTIATIONS TO FIND A SETTLEMENT. THERE IS NO OTHER WAY OF SOLVING THE CYPRUS PROBLEM the negotiations to find a settlement,” he says. “There is no other way of solving the Cyprus Problem.

reached the stage where, for the first time, Turkey is finally involved in negotiating aspects that concern us.”

players are in favour of a solution and Turkey knows that it, too, will benefit greatly. If we have to wait

www.goldnews.com.cy | GOLD | 101

| LUNCH WITH GOLD |

until President Erdogan accepts this, so be it. As a recent article in The Economist has noted, everything depends on Erdogan. And we should not react to every word he utters now. The important time will be at the end of the negotiations.” Knowing that Eric Montanios is now a sprightly 75-year-old, I ask if he has any thoughts of retirement. He laughs and points out that, since he appears to be following in his father’s footsteps, it is worth recalling that the latter was going to court until the age of 88! In December 2016, Montanios received the Cyprus Chamber of Commerce & Industry’s Business Leader Award for his outstanding contribution to the Financial and Professional Services sector, which he modestly describes as “a great honour” but I suspect he was even more pleased to receive the 2015 Cyprus Maritime Personality Award from the Department of Merchant Shipping, which, he notes, coincided with the completion of his first 50 years in the law firm. “I saw this award as recognition of my efforts, especially regarding the early days of the Registry of Cyprus Ships,” he tells me. “I became involved in shipping matters quite early in my career and a major problem at the time was that if a ship was to be registered outside Cyprus, it had to be at the port where there was a Cypriot Consulate. That meant London. I proposed that a vessel could be provisionally registered in the Register of Cyprus Ships through a Cypriot Consulate, without the requirement that the vessel be, at that particular time, at the port where the Consulate was seated. This was accepted and almost immediately there was a marked increase in the number of ships registering under the Cyprus flag.” Montanios also submitted pioneering proposals to the Central Bank of Cyprus for the elimination of obstacles preventing the further development

102 | GOLD | The Business Magazine of Cyprus

of the Cyprus flag and, at the same time, he played an important role in convincing foreign ship financing banks (in particular American banks) to trust and accept the security granted by mortgages on ships registered in Cyprus. From 1967-1971, the number of vessels on the Register of Cyprus Ships rose from 45 to 372, of which 70 were registered through Montanios’ law office. The most remarkable aspect of the story, it seems to me, is that it took Cyprus almost 50 years to recognize

following year a similar one for Aircraft Liens and Detention Rights, both of which I update from time to time and I continue to be involved in aircraft leasing issues.” The mention of airlines brings us to his idea that some of the new ones based in Cyprus could help with the problem of specialist tourism during what the low winter season. As we are about to leave, Montanios tells me how, during a recent Caribbean holiday, he made a point of checking

SINCE HE APPEARS TO BE FOLLOWING IN HIS FATHER’S FOOTSTEPS, IT IS WORTH RECALLING THAT THE LATTER WAS GOING TO COURT UNTIL THE AGE OF 88! his contribution to the island’s then fledgling shipping industry. In 1974, Eric Montanios was not only having to deal with the trauma of the Turkish invasion but found himself at the forefront of efforts to reassure Greek ship owners that their fleet was safe under the Cyprus flag and that the only change they would notice was that the port they used would be Limassol instead of Famagusta. Though Montanios & Montanios LLC has gained a solid reputation for its expertise in admiralty and maritime issues, Eric Montanios reveals that he is also especially interested in aviation. In 1981, when Cyprus Airways was negotiating the purchase of its airbus fleet, he represented the consortium of British, French and German banks making loans to the airline for the purchase of 18 aircraft. “That led to a request that I write the Cyprus chapter of Aircraft Finance: Registration, Security and Enforcement and the

all the best beaches on the six islands that he and his wife visited. “What I discovered was that they were all beautiful to look at but the water was nothing like as clear as it is at Protaras,” he says, adding, “We have a great advantage over so many destinations. In addition to crystal-clear waters, the weather even in winter is still perfect for so many types of special interest tourists, from cyclists and sports people to archaeologists and nature lovers. We have a real treasure here and we don’t realise it.” Fortunately, we still have people like the indefatigable Eric Montanios to point such things out to the powers that be. We say our goodbyes, and this time we already know when we shall meet again: in Paphos at the May 1 Concert by the Berlin Philharmonic Orchestra. Some things never change. They just get better.

WHAT’S

ON

THINGS

to do

FESTIVAL

NICOSIA LOOP FESTIVAL 2017 ow in its 6th year, the Loop Festival features electronic music, hip hop, post-rock and beatbox, with emphasis on improvisation. TROMPKTN FEAT KALVARIS (CYPRUS) Prozak Coffee Shop, Nicosia Wednesday, March 1, 9pm FOTIS SIOTAS (GREECE) Prozak Coffee Shop, Nicosia Thursday, March 2, 9pm ELY (UK/CYPRUS) Prozak Coffee Shop, Nicosia Friday, March 3, 9pm EMIDDIO VASQUEZ (CYPRUS), SUGAR FACTORY (GREECE), SPIVAK (CYPRUS), BUNTY (UK) & LARRY GUS (GREECE) Satiriko Theatre Basement, Nicosia Saturday, 4 March,, 9pm

ALKISTIS PROTOPSALTI & STEFANOS KORKOLIS rotopsalti (voice) and Korkolis Pattichion (piano) have Municipal Theatre, Limassol appropriately Monday, called their February 20, latest series 8.30pm of concerts Strovolos Municipal Theatre, Nicosia “Reunion”.

P

Tuesday, February 21, 8.30pm

MELINA ASLANIDOU he popular Greek singer returns to Nicosia for a single live performance of new and old songs. Red Music Stage, Nicosia Wednesday, February 22, 9pm

T

ELENI TSALIGOPOULOU & BOĞAZ Ğ MUSIQU MUSIQUE leni Tsali Tsaligopoulou and her band perform per Red Music tracks from their Stage, Nicosia latest album Saturday, March 11, plus classic 9pm Greek son songs.

E

10 104 10 04 4|G GOL GO GOLD OL O LD | The Business Magazine of Cyprus

SWAN LAKE he 2015 Bolshoi Ballet production starring Svetlana Zakharova (Odette/Odile) amd Denis Rodkin (Prince Siegfried). K Cineplex Nicosia, Larnaca & Paphos Sunday, February 19, 7pm

T

N

GREEK MUSIC

DANCE

OPERA RUSALKA vorak’s opera, live in HD from the Metropolitan Opera, New York, starring Kristine Opolais in the role that helped launch her international career. K Cineplex Nicosia, Larnaca and Paphos Rialto Theatre, Limassol Saturday, February 25, 7.55pm

D

LA TRAVIATA ive in HD from the Metropolitan Opera, New York, the production brings Sonya ck to Yoncheva back the role in which hich she triumphed d in 2015, plus Michael Fabi-ano and Thommas Hampson.

L

K CINEPLEX NICOSIA, LARNACA AND PAPHOS RIALTO THEATRE, LIMASSOL SATURDAY, MARCH 11, 7.55PM

PAPHOS PHOS 2017 7 MEDIAEVAL MANOR HOUSE, KOUKLIA FRIDAY MARCH 3, 9PM UNTIL MONDAY, MARCH 20, 5PM

APHRODITE’S LIBRARY nstallation by the artist Mary Plant, featuring a collection of artists’ books and scrolls celebrating the birth, life and loves of the Goddess of Love.

I

DEPICTING THE INVISIBLE aintings, engravings and sculptures from Europe and Latin America, a, inspired by Christianity, from the collection of Charalambos and Maria Christoforou and Kykkos Monastery. Geroskipou Square, Geroskipou Friday, March 10,10am Until Sunday, March 12, 7pm

P

THEATRE NO MAN’S LAND he acclaimed National Theatre production of Harold Pinter’s play, starring Ian McKellen and Patrick Stewart. The screening will be followed by an exclusive Q&A with the cast and director Sean Mathias.

T

RIALTO THEATRE, LIMASSOL TUESDAY, FEBRUARY 28, 8.30PM

A TALE OF TWO CITIES Exhibition of photos of Paphos and Valletta by the internationally acclaimed Maltese photographer David Pisani. Palia Ilektriki, Paphos Saturday, March 4, 4pm Until Monday, March 20, 7pm CELEBRATING STASS tass Paraskos (1933-2014) was an internationally acclaimed Cypriot artist and founder of the School of Fine Arts at Lemba. This 1960-2014 retrospecMunicipal tive includes works Art Gallery, Paphos from the Tate Friday, Modern collecMarch 17,1 0am tion in London. Until Sunday,

S

April 30, 3pm

THE WORLD OF JOHANNES BRAHMS The Cyprus SymRIALTO phony OrchesTHEATRE, tra performs LIMASSOL Brahms’ DouTHURSDAY, FEBRUARY 23, ble Concerto 8,30PM for violin and PALLAS cello, a waltz THEATRE, NICOSIA for piano FRIDAY, (arranged for FEBRUARY 24, 8.30PM orchestra by Alkis Baltas) and Serenade no. 1 in D major. Soloists: Wolfgang Schroeder (violin) & Benedict Kloeckner (cello) TRIBUTE TO MIKIS THEODORAKIS Not what you might expect, this concert by the Cyprus Symphony Orchestra presents two of the Greek composer’s classical works – Oedipus Tyrannus and Piano Concerto No. 1 – and a suite by Alkis Baltas based on Theodorakis’ melodies. Soloist: Elena Rialto Theatre, Limassol Mouzalas (piano)

Wednesday, W March 8, 8.30pm Ma Apostolos Pavlos High Apost School, Paphos Sc Thursday, March 9, 8.30pm Ma Pallas Theatre, Pa Nicosia: Friday, Frid March 10, 8.30pm

CLASSICAL MUSIC

LIMASSOL CARNIVAL

DUO ATTITUDE Duo Attitude - violinist Nihat Agdac and pianist Emil Duncumb - perform works by Schubert, Brahms, Franck and Szymanowski.

Carnival, the biggest annual event in Limassol, continues to attract young and old to the 10 days of parties, fun and, of course, the two main carnival parades.

THE SHOE FACTORY, NICOSIA THURSDAY, FEBRUARY 23, 8.30PM

CHILDREN’S CARNIVAL PARADE Seafront Road, Limassol Sunday, February 19, 11.30am GRAND CARNIVAL PARADE Archbishop Makarios III Avenue, Limassol Sunday, February 26, 1pm www.goldnews.com.cy ld dnews.com.c m cyy | GOLD GOLD | 1105 05

A DAY IN THE LIFE

Cleopatra Kitti

I’ m an early riser, which means eans I’m up at 6.30am most mornings. I exercise first, which h helps me clear my mind and prioritize my thoughts. Even if I wake up in a hotel room, I’ll do a 20-minute routine of stretching and yoga. I believe a lot in combining a healthy body and a healthy mind. I have a base here in Nicosia, another in Dubai and I spend a lot of time in London, Brussels, Athens, Cairo...basically wherever my work takes me. So I don’t have a regular routine of going to the office but there’s a lot of self-discipline involved in working on your own project or as a freelancer, which is why I impose certain routines on myself. After a shower, I’ll have coffee and a read through the main news websites, check my e-mails and then I’ll usually have meetings in the morning, so that afternoons are taken up with

The founder of the Mediterranean Growth Initiative on self-discipline, her love of reading and music and how, after a 25-year career, she has come to appreciate roots, family and friends.

reading and writing. I try to leave one day a week (usually Friday) to see friends, to read and do things for myself and over the last year I’ve also tried to use the weekends to be with friends, watch TV or go to the movies. I absolutely loved La La Land, which I saw recently. Like so many other young schoolgirls, I dreamed about becoming what used to be called an ‘air hostess’. I thought it was all about travelling around the world and socialising – which is actually a large part of what I do now! At school I was very average academically and I didn’t get good enough grades in my exams to study Law, which was what most of my friends were planning to do. Thanks to my Dad, who encouraged me to build on my strengths, I studied Public Relations in London and later persuaded the management of Hilton Cyprus that they should employ me as an inhouse PR person. I stayed there for four years and I then joined a bank, where I only lasted a year and a half, before forming my own company with a partner. We had that for six years.

I later lived in Turkey, Greece, the Netherlands and eventually Brussels where I got a job with the global communications company APCO Worldwide, and was with them for 13 years. Having experienced the Arab Spring in Tunisia and Egypt while doing voluntary work, and then living through the demise of our economies in Greece and Cyprus, I decided to found the Mediterranean Growth Initiative. So I devote a lot of time to bringing business people together from the various countries of the region. Afternoons are often dedicated to conference calls (working across timezones is another challenge!), responding to e-mails and writing, followed by cooking dinner or going out with friends. I wrap up the evening as I start my day – checking e-mails and the latest news – and I’m usually in bed by 11pm. I read a lot – biographies, history, politics, economics and occasional fiction – often several books at the same time. Recent ones include The Girl from Human Street by Roger Cohen (I highly recommend it), Alive, Alive Oh! by Diana Athill and The Only Game in Town by Mohamed El-Erian. I love music and, as with my reading, my tastes are broad, ranging from classical to Eminem to Haris Alexiou.

I’ve always been a fan of Madonna – both for her music and The last CD I her branding downloaded ability – and I’ve seen her in concert many times. The last album I downloaded was of this I highly year’s New recommend Year Concert this from Vienna. Cyprus has a lot of positive energy and being here is a joy for me. My life and work has I loved seeing been about this at the cinema constant movement over the last 25 years but now, although I am a resident of the UAE and Cyprus, I am beginning to appreciate roots, family and friends as most precious in finding equilibrium. I’m happy and pragmatic. I take failure as a learning and success as a way forward. I feel that I am still evolving and I can’t imagine that I will ever stop. I will wait and see where life takes me next. Here’s to equilibrium!

CYPRUS HAS A LOT OF POSITIVE ENERGY

AND BEING HERE IS A JOY FOR ME 106 | GOLD | The Business Magazine of Cyprus

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Tax System

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ru v m ;v|l;m| uoloঞom ];m1 T +357 22 441133, F +357 22 441134 bm=oŠbm ;v|1 ru vĺou]ĺ1 ĺbm ;v|1 ru vĺou]ĺ1

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Tax Facts & Figures 2017 - Cyprus The tax system in Cyprus January 2017

The guide is available on our website www.pwc.com.cy/tax-facts-figures

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