ISSUE 68 NOVEMBER-DECEMBER

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special feature

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ISSUE 68 NOVEMBER 20, 2016 PRICE €2.00


· Luxurious residences. · World-class yachting facilities. “ 8CTKGV[ QH TGVCKN DQWVKSWGU YCVGTHTQPV Æ‚PG FKPKPI QRVKQPU TGETGCVKQPCN CPF PKIJVNKHG GZRGTKGPEGU · Two iconic towers, over 100 meters tall, in twisting forms. · 190 NWZWT[ CRCTVOGPVU · 29 luxury Beach and Marina Villas. · 600 DGTVJU HQT [CEJVU QH WR VQ 60m in length. · Two stunning beaches.


ISSUE 68 NOVEMBER 20, 2016 PRICE €2.00

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The large-scale projects that are changing the face of Cyprus

5 2 91 29 5 0 00 57 7

INTERVIEWS

Geoff Barnes Samira Cook Gaines Francisco Sottomayor

BREXIT

ICAEW Chief Michael Izza on the shock result

BANKING

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ForexTime (FXTM) is an international online forex broker offering financial services in forex, spot metals and CFDs. ForexTime Limited is regulated by the Cyprus Securities and Exchange Commission (CySEC) under license number 185/12. There is a high level of risk involved with trading leveraged products such as forex and CFDs. You should not risk more than you can afford to lose. It is possible that you may lose more than your initial investment. You should not trade unless you fully understand the true extent of your exposure to the risk of loss. When trading, you must always take into consideration your level of experience. It is the responsibility of the Client to ensure that the Client can accept the Services and/or enter into the Transactions in the country in which the Client is resident. If the risks involved seem unclear to you, please seek independent advice. 34 | GOLD | The Business Magazine of Cyprus @2016 FXTM


Geophysic Universal Time watch Philippe Jordan, Chief Conductor and Music Director in Paris and Vienna

Open a whole new world


NAPA MARINA

nstruction

Begins

COME TO A NEW ERA RN BEACHFRONT LIVING

ISSUE 68 NOVEMBER 20, 2016

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

CONTENTS 6 | (',725,$/ 8 | %86,1(66 %5,(),1*

Economic & Business Highlights of the past month.

A

yia Napa Marina is an exclusive integrated development offering luxurious residences, world-class yachting facilities, a variety of retail boutiques, waterfront fine dining options, recreational and nightlife experiences. Its unique location, crystal clear seas, stunning beaches and incredible views are enticing to boaters, visitors and residents who appreciate a lifestyle of class and elegance. With complete privacy and round-the-clock security for homes and yachts, Ayia Napa Marina is the ideal yachting, social and residential destination, offering everything one needs to relax and enjoy the exciting lifestyle of the Mediterranean. By combining vibrant beachfront living with luxury and quality services, Ayia Napa Marina is poised to mark the dawn of a new era.

14 | 0< :$<

COVER

Eleni Smila’s management style.

STORY

BY COMBINING VIBRANT BEACHFRONT LIVING WITH LUXURY AND QUALITY SERVICES, AYIA NAPA MARINA IS POISED TO MARK THE DAWN OF A NEW ERA

16 | ),9( 0,187(6 :,7+ÂŞ

36 | 7+,1.,1* %,*

7+( 352-(&7¡6 3$571(56 Born of a deep-rooted love for the island of Cyprus and spurred on by an evident gap in the region for a modern luxury marina development, Ayia Napa Marina is the realization of the dream and vision of the project’s partners, the Cyprus-based Caramondani Group and Egyptian investor Naguib Sawiris. Both genuine leaders in their respective fields, and with over 80 years of combined experience between them, the two family-run businesses have joined forces to implement a long-term strategic plan aiming to set a new standard for luxury beachfront marina living. Caramondani Group and Naguib Sawiris share the vision of making Ayia Napa Marina the new premier yachting destination in the Mediterranean. THE PROJECT With the laying of the foundation stone in September 2016, the Ayia Napa Marina development officially started construction The project is designed by SmithGroupJJR, a renowned US-based architectural, engineering and planning firm specialized in waterfront design. The Marina is due to start operations in 2019, while completion of the project is scheduled for 2021. The first apartments and villas will be delivered in 2020. The â‚Ź220 million mixed-use residential and commercial project will boast 190 spacious and deluxe apartments in two iconic, twisting towers, 29 luxury villas, a 600-berth full-service marina and boatyard, and a collection of elegant retail, waterfront dining and premium lifestyle amenities for residents and visitors. 7+( 5(6,'(1&(6 The Marina offers a selection of luxury residences, thoughtfully designed to provide comfortable, spacious modern living with uninterrupted panoramic views of the Mediterranean Sea. Residents are ensured peace of www.goldnews.com.cy | GOLD | 101

Richard Melton

Presenting the large-scale projects that are transforming the skyline and image of Cyprus in Limassol, Ayia Napa and Paphos, plus interviews with the luxury property developers.

18 | 7+(< 6$,' :+$7"

Some of the more remarkable statements made about Cyprus and the Cypriots over the past month.

FEATURES 20 | $<,$ 1$3$ 0$5,1$

Photos and everything you need to know about the project.

26 | )$&,/,7$7,1* ,17(51$7,21$/ 75$'( $1' ,19(670(17 7+( %9, :$< What British Virgin Islands has to offer clients in Cyprus. 28 | 6/2:,1* '2:1 %87 67,//

029,1* )25:$5' Interview with Geoff Barnes, now Chairman of the Regional Council of Baker Tilly in South East Europe.

104 4

96 9

SPECIAL PROMOTIONAL FEATURE 69 | Banking Services to International national and other er clients Eleven banks anks and related companies ies and present their ir services.

31 | &+$1*,1* 7(&+12/2*< &+$1*,1* 1(('6 &+$1*,1* (;3(&7$7,216 Interview with Per Granath, Chief Architect, Networks & Telecommunications at GCC Computers. 32 | 627720$<25 +($'6 $;,$Âś6 /$7(67 9(1785( The investment bank has a new Managing Director and Head of Investment Banking for Iberia.

56

108

114

35 | 1' ,17(51$7,21$/ &203/,$1&( )2580 Photos of the event.

56 | ,172 7+( 81.12:1 Michael Izza on the consequences of Brexit and the growing importance of technology. 58 | *$7(:$< 72 $ '5($0

Gold talks to Samira Cook Gaines, Chief of Economic Empowerment for the US National Community Reinvestment Coalition (NCRC).

62 | /,0$662/ (&2120,& )2580 Photos of this year’s event.

4 | GOLD | The Business Magazine of Cyprus

66 | 12 025(

:('',1* %(// %/8(6 BookYourWeddingDay.com: The story behind it, as told by Maria Evripides.

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Gregg von Holdt, Managing Director of Coast2Coast, on why his company is glad it bought the Cypriot pharmaceutical company, Remedica.

99 | %86,1(66 &/$66 Andreas Neocleous

100 | ,1 *22' &203$1< How ConnectedSky creates a homelike environment for its members of staff. 103 | %22.6+(/)

Six of the latest business titles.

104 | 7,0( 2)) Maria Kyriacou, MP and lawyer on her baking skills.

108 | /81&+ :,7+ *2/' Michael Virardi 112 | :+$7œ6 21 Gold’s guide to the best cultural events of the coming month. 114| $ '$< ,1 7+( /,)( Anna Koukkides-Procopiou


LEGENDS LIVE FOREVER EL PRIMERO

I Chronomaster 1969

www.zenith-watches.com

Tour Auto Edition


| EDITORIAL |

Changing Skylines

ISSUE 68 NOVEMBER 20, 2016 PRICE â‚Ź2.00

00001 >

The large-scale projects that are changing the face of Cyprus

5 2 91295 000577

INTERVIEWS

Geoff Barnes Samira Cook Gaines Francisco Sottomayor

BREXIT

ICAEW Chief Michael Izza on the shock result

BANKING

Probanx Information Systems presents international RWKHU EDQNLQJ VHUYLFHV

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PUBLISHED BY IMH ISSN 1986 - 3543

MANAGING DIRECTOR

C

yprus has never been known for its innovative architecture. Indeed, most of the buildings that anyone might care to visit here tend to be extremely old, (Byzantine churches and mediaeval castles, anyone?) and it’s only in recent years that people have come to recognize and appreciate the few remaining 19th century houses for what they are. Apart from some rare instances of old industrial buildings being transformed into something new, many of the best examples of 20th century architecture have been allowed to deteriorate, only to be replaced by some ugly monstrosity that will, itself, need demolishing within a few decades. How we now cherish the few British colonial homes that are left, and quite rightly so. But there appears to be a change in the air. Less than four years after the construction sector was dealt a seemingly knockout blow by the 2013 financial crisis, the luxury property sector has suddenly bounced back and nowhere more obviously than in Limassol, where developers are competing with one another to build the highest office blocks, the tallest towers and the most impressive apartments and workplaces, all with state-of-the-art technology and security features. If this is not an indication that investor confidence has been restored to the country and that the economy is finally starting to grow again, nothing is. To the surprise of many observers, Limassol Marina was still selling villas and luxury residences throughout the island’s three-year austerity programme and, as it moves towards its final stages, it has already become one of Cyprus’ biggest success stories. Now, work on its Ayia Napa counterpart is about to begin, while other major multi-million euro projects are due to come onstream. Several new buildings have already won international architectural awards while others seem destined to become landmarks and are already enjoying unprecedented interest from potential buyers and investors. Our cover story (page 36) features nine such projects, all of which are going to change the face of Cyprus in one way or another, either because of their record-breaking height or, in the case of the (as yet unnamed) integrated casino resort in Limassol, the fact that it hopes to attract as many as half a million new visitors to the island every year. We look forward to seeing every one of these large-scale projects completed. As always, this issue of Gold is packed with interviews with people as diverse as Geoff Barnes (page 28), Samira Cook Gaines (page 58), Francisco Sottomayor (page 32), Michael Izza (page 56), Greg von Holdt (page 96), and Maria Evripides (page 66), not to mention revealing conversations with John Vickers, Anna Koukkides-Procopiou (page 114), Michael Virardi (page Chief Editor 108) and Maria Kyriacou (page 96) and several others. I think john@imhbusiness.com you’ll enjoy this issue. See you in December. 6 | GOLD | The Business Magazine of Cyprus

George Michail

GENERAL MANAGER

Daphne Roditou Tang MEDIA MANAGER

Elena Leontiou EDITOR-IN-CHIEF

John Vickers JOURNALISTS

Artemis Constantinidou, Voula Loizou CONTRIBUTORS TO THIS ISSUE

Charalambos Michael ART DIRECTION

Anna Theodosiou

SENIOR DESIGNER

Alexia Petrou

ASSISTANT DESIGNER

Stephanie Andreou, George Yiamiadakis PHOTOGRAPHY

Emma Louise Charalambous, Jo Michaelides, Andreas Loucaides, 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



BUSINESS BRIEFING

BANKING

IN THE NEWS

*`WY\Z 9L\UPÄJH[PVU ;HSRZ 7YLZPKLU[ 5PJVZ (UHZ[HZPHKLZ HUK [OL ;\YRPZO *`WYPV[ SLHKLY 4\Z[HMH (RPUJP OLSK Ä]L KH`Z VM [HSRZ PU Mont Pelerin, Switzerland earlier this month. While progress was made in their discussions on territorial adjustments, they returned to Cyprus for a week and will resume in Geneva on November 20. The opening of the intensive negotiations was attended by the UN Secretary-General Ban Ki-moon, who praised the two leaders’ “strong commitment and determination” to resolve all the outstanding issues. “I commend the leaders for their vision, courage and leadership for advancing their talks further than ever before. The prospect of a solution in Cyprus is within their reach,” he said.

EXPANSION

CONNECTEDSKY

ConnectedSky has added another continent to its jurisdictions, with the establishment of ConnectedSky (HK) 3PTP[LK H M\SS` ÅLKNLK Z\IZPKPHY` [OH[ ^PSS IL VɈLYPUN HSS YV\UK JVYWVYH[L banking and legal services to its clients throughout Asia. ConnectedSky (HK) Limited is located on the prestigious Queen’s Road Central in the heart of Hong Kong’s ComTLYJPHS )\ZPULZZ +PZ[YPJ[ OVTL [V all main international companies and ÄUHUJPHS PUZ[P[\[PVUZ

BAKER TILLY

Baker Tilly in South East Europe has opened an additional VɉJL PU .YLLJL 4HYPVZ ( Klitou, CEO of Baker Tilly in South East Europe said that [OL VWLUPUN VM [OL UL^ VɉJL in Thessaloniki shows that Baker Tilly has developed into one of the largest auditing and HJJV\U[PUN ÄYTZ PU ZV\[OLHZ[LYU ,\YVWL ^P[O LPNO[ VɉJLZ in Cyprus, Greece, Romania, Bulgaria and Moldova.

25,375 ;/, 5<4),9 6- 46;69 =,/0*3,: 9,.0:;,9,+ FROM JANUARY-SEPTEMBER 2016. THIS REPRESENTS AN INCREASE OF 31.4% OVER THE FIGURE FOR THE FIRST NINE MONTHS OF 2015. OF THESE, 20,991 WERE 7(::,5.,9 *(9: 6- >/0*/ >,9, 5,> (5+ ;/, 9,4(05+,9 :,*65+ /(5+ 8 | GOLD | The Business Magazine of Cyprus

BANK OF CYPRUS NAMED BEST PRIVATE BANK IN CYPRUS FOR 2017 Bank of Cyprus has been named Best Private Bank in Cyprus for the second time by the internationally renowned magazine Global Finance. In a statement, the Bank noted that [OL H^HYK ¸JVUÄYTZ [OL Z\JJLZZful strategy of the Bank in regard [V VɈLYPUN ILZWVRL ZVS\[PVUZ HUK integrated products and services in the area of wealth management.” Meanwhile, at last month’s Annual .LULYHS 4LL[PUN Ä]L +PYLJ[VYZ (Maksim Goldman, Michael Spanos, Arne Berggren, Michael Heger and Lyn Grobler) were re-elected to the Board.

VGENOPOULOS INVESTIGATIONS TO CONTINUE Andreas Vgenopoulos, the Greek entrepreneur considered responsible for the demise of Laiki Bank, died of heart failure in Athens on November 5. VgeUVWV\SVZ ÄYZ[ THKL OLHKSPULZ PU *`WY\Z PU ^OLU OPZ 4HYÄU 0U]LZ[ment Group (MIG) bought out HSBC’s stake in Laiki which was closed down in 2013. He is accused of market manipulation and bribing former Central Bank of Cyprus Governor Christodoulos Christodoulou with €1 million. Attorney-General Costas Clerides said that investigations into cases implicating Vgenopoupolos will not be halted following his death.


TOURISM

QATAR AIRWAYS STARTS CYPRUSSEYCHELLES ROUTE Qatar Airways is to begin YLN\SHY ÅPNO[Z MYVT 3HYUHJH ]PH +VOH [V :L`JOLSSLZ next month. “Qatar Airways OHZ ZLLU ZPNUPÄJHU[ growth, expanding its worldwide footprint to provide more opportunities for global leisure travellers to premium destinations such as the Seychelles,” commented Group CEO Akbar Al Baker.

COBALT ADDS BIRMINGHAM AND PARIS FLIGHTS

LAKKOTRYPIS: ‘CAUTIOUS OPTIMISM’ FOR 2017

The new local airline *VIHS[ OHZ HKKLK ÅPNO[Z to Birmingham and Paris to its schedule. The airline, which operates from Larnaca, currently serves London, Manchester, Athens, Thessaloniki, Heraklion and Chania. It plans to eventually operate longhaul routes to China, India, South Africa and the USA.

Tourism minister Yiorgos Lakkotrypis has expressed cautious optimism that 2017 will be an even better year in terms of tourist arrivals. “The PZSHUK PZ UV[ VɈLYPUN Q\Z[ ‘sun and sea’ anymore. With this change, along with investment in infrastructure, we have regained our competitiveness,” he said.

SPECTRUM BOUTIQUE RESIDENCES

A

risto Developers, winner of the Best Cyprus Property 20162017 title, and winner of the Best Real Estate Developer 2016 award from the renowned International Finance Magazine (IFM), has announced the latest

addition to its expanding property portfolio. Spectrum Boutique Residences comprises luxurious apartments of two, three and four bedrooms with comfortable and functional living areas, suitable both for residence and affluent investment.

REAL ESTATE

Within walking distance of the beach, and in close proximity to shops, restaurants, cafes and other amenities, Spectrum Boutique Residences is an attractive option in one of the most sought-after tourist areas of Limassol.

PARK RESIDENCES

P

afilia Property Developers has launched its new residential project in Limassol: Park Residences. Pafilia has collaborated with award-winning architects Armeftis & Associates to deliver another property development for

those with a passion for luxury living from around the world. The spacious modern residences consisting of 2 and 3 bedroom apartments and an impressive 3-bedroom penthouse on the 5th floor. Park Residences are proportioned with open-plan living areas

that extend onto large open air terraces enjoying magnificent city views and plenty of natural light. They are located in an affluent family neighbourhood, close to a beautiful park. www.goldnews.com.cy | GOLD | 9


BUSINESS BRIEFING

MILESTONES *`[H [V ZLSS .YLLR Z\IZPKPHY`

4V[VY 6PS HJX\PYLZ 3\RVPS *`WY\Z

The Government has begun the process to sell 100% of the shares of Cyta Hellas, a subsidiary of Cyta, to the highest bidder. Although the company reported revenues of â‚Ź107.8 million in 2015, an increase of 19.16% over the previous year, it still recorded a pre-tax loss of around â‚Ź2.97 million, despite growing its customer base to 325,000. Cyta Hellas was founded in 2007 and, since August 2014, it has provided mobile telephony services in Greece, employing more than 750 people.

.YLLJLZ 4V[VY 6PS *VYPU[O 9LÄULYPLZ :( has announced that its unit Coral SA is to acquire Russia’s Lukoil operations in Cyprus for ₏10 million. Lukoil, which currently operates 31 of 286 petrol stations in Cyprus, has been present in Cyprus for the past 14 years. Lukoil Cyprus Ltd is a subsidiary of the Amsterdam-based Lukoil Europe Holdings B.V. According to Lukoil’s website, the company sells on average 5.5 tonnes of fuel products station per day. The acquisition is subject to regulatory approval.

5/: ZVM[^HYL JVU[YHJ[ H^HYKLK [V 5*9 *`WY\Z The contract for the software for Cyprus’ National Health Service (NHS) has been awarded to NCR Cyprus Ltd. The Health Insurance Organisation (HIO) said in a statement that “Awarding the contract constitutes a decisive step toward promoting the introduction of the NHS...its introduction is the only way out of today’s deadlock facing the health sector in our country.� That said, there will now be a further 45-day delay following objections from the losing tenderer.

ECONOMY

POLITICS

ANASTASIADES CONGRATULATES TRUMP ON ELECTION VICTORY

P

resident Nicos Anastasiades sent a congratulatory message to the President-elected of the USA, Donald Trump, following the announcement of his victory. Anastasiades told Trump, “Under your leadership, the Republic of Cyprus looks forward to deepening its strategic partnership with the United States. I look forward to working with you to practically enhance our already significant bilateral cooperation from the field of energy, to that of commerce and investments, as well as security, including in the area of counter-terrorism.� He also noted that the ongoing negotiations to reunify Cyprus are taking place in an even more intensified format. “As a Permanent Member of the United Nations Security Council, the United States plays a pivotal role is assisting our efforts towards ending Turkey’s military occupation and reunifying Cyprus for the benefit of all Cypriots,� he wrote.

10 | GOLD | The Business Magazine of Cyprus

MOODY’S CHANGES CYPRUS GOVERNMENT BOND RATING OUTLOOK TO POSITIVE Moody`s rating agency changed the outlook on the Cyprus government bond rating to positive from stable earlier this month. Moody`s notes that the key drivers for the outlook change are two: the improvements in economic resilience that have been observed over the past year which, if sustained over the next 12-18 months, would support an upgrade; and Cyprus` consistent ÄZJHS V\[WLYMVYTHUJL HUK favourable outlook which indicate a more rapid reversal in the public debt ratio than previously expected.

FITCH UPGRADES THE ECONOMY TO BBFitch Ratings has upgraded Cyprus’s longterm foreign and local J\YYLUJ` 0ZZ\L +LMH\S[ 9H[PUNZ 0+9Z I` VUL notch to ‘BB-’ from ‘B+’. The issue ratings on Cyprus’s senior unsecured foreign and local-currency bonds have also been upgraded to ‘BB-’ from ‘B+’. The Outlooks on the SVUN [LYT 0+9Z HYL Positive. According to Fitch, Cyprus is continuing to make strong progress in its adjustment following the 2013 banking JYPZPZ 0[ WYVQLJ[Z .+7 growth of 2.9% in 2016 (from 1.9% projected a year earlier).


PROFESSIONAL SERVICES

VISITS

IMF MISSION

A

n International Monetary Fund (IMF) mission began a visit to Cyprus on November 9 “in the context of the technical assistance on the economic and financial aspects of a potential settlement of the Cyprus problem,” as the IMF Resident Representative in Cyprus described it. “The mission has been asked to conduct comprehensive tax diagnostics and work on integrating the tax systems in a post-settlement Cyprus,” he added.

F

rench Minister of Foreign Affairs, Jean-Marc Ayrault, met President Anastasiades and his counterpart Ioannis Kasoulides in Nicosia last month. They discussed the issue of security and guarantees and the role the UN Security Council in the ongoing peace talks, bilateral relations, EU-related issues, security concerns and energy matters. He also met Turkish Cypriot leader Mustafa Akinci and the UN Secretary-General’s special advisor, Espen Barth Eide.

Corporate Registry

DELOITTE ACADEMY LAUNCH

ICS CHAIRMAN

E

sben Poulsson, Chairman of the International Chamber of Shipping (ICS) is held contacts in Cyprus in the framework of a series of visits he is paying to country-members of the Chamber. In Cyprus, Poulsson met House Speaker Demetris Syllouris, Transport Minister Marios Demetriades and other state officials. During his visit, the ICS Chairman addressed an extraordinary meeting of the members of the Cyprus Shipping Chamber in Limassol.

At a special event, held at +LSVP[[L»Z VɉJLZ PU 5PJVZPH *,6 Christis Christoforou announced [OL VɉJPHS SH\UJO VM +LSVP[[L Academy. He told guests that ¸6\Y ]PZPVU MVY +LSVP[[L (JHKLT` is, through its events and keynote speakers, to become a platform which will encourage conversation and knowledge sharing amongst peers, helping executives such as yourselves, stay on top of global market trends and best practices.” To THYR [OL LZ[HISPZOTLU[ VM +LSVP[[L (JHKLT` +LSVP[[L OHK PU]P[LK 4Y Herman Van Rompuy, President Emeritus of European Council as the guest of honour. Van Rompuy discussed his thoughts on Brexit and its likely impact on the European Union and the Banking and Financial Sector.

WXEVX ]SYV FYWMRIWW MR XLI COOPER TION A-

FRENCH FOREIGN MINISTER

THE MARSHALL ISLANDS

SYLLOURIS VISITS IRAN

H

ouse Speaker Demetris Syllouris made a three-day chairman of the Parliament of official visit to Iran this month at the invitation of his Iranian counterpart, Ali Ardeshir Larijani. Syllouris was received by President Hassan Rouhani, the Secretary of the Supreme National Security Council, Ali Shamkhani, former President Ayatollah Akbar Hashemi Rafsanjani, Foreign Minister Mohammad Javad Zarif and the Head of the Strategic Research Center Ali-Akbar Velayati.

STELIOS BICOMMUNAL AWARDS

S

ir Stelios HajiIoannou granted 50 cash prizes of €10,000 to business partnerships comprising Greek Cypriots and Turkish Cypriots last month as part of his endeavours to consolidate the island’s bicommunal relations. The total amount for this year’s awards was greater than ever. Since 2009, Haji-Ioannou has given €2 million to encourage cooperation between members of the Greek- and TurkishCypriot communities. This year, the number of bicommunal teams for the awards was a record 215. More than 1,800 people have joined the ‘Stelios Cyprus Bi-Communal Awards 2016’ group on Facebook, which was created by the Stelios Philanthropic Foundation to promote bicommunal cooperation.

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tel: +30 210 4294 404 piraeus@register-iri.com www.goldnews.com.cy | GOLD | 11

www.register-iri.com


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MY WAY

Eleni Smila

Global Treasury Director, Amdocs Development Ltd

MOTIVATING STAFF, LISTENING TO THEM, COMMUNICATING WELL AND BEING ABLE TO DEAL WITH PROBLEMS WITH TACT AND DIPLOMACY ARE AMONG THE ESSENTIAL MANAGERIAL QUALITIES THAT ELENI SMILA HAS DEVELOPED OVER THE COURSE OF HER CAREER. HER OWN CONTINUOUS LEARNING HAS ALWAYS BEEN A KEY ASPECT OF HER PROFESSIONAL LIFE, WHILE HER FATHER’S STYLE OF LEADING BY EXAMPLE AND MAINTAINING SOLID VALUES IS ONE THAT SHE TRIES TO FOLLOW. SHE RECOGNISES THAT LIFE CANNOT BE ‘ALL WORK AND NO PLAY’ AND MAKES A CONSCIOUS EFFORT TO ENSURE A GOOD BALANCE BETWEEN LIFE AT THE OFFICE AND AT HOME.

“I

am a very hands-on manager but, as a member of the team, I am always open to new ideas coming from other members. I consult with them frequently and encourage and support independent thinking. I recognize the skills of team members and utilize their strengths to the benefit of the team.”

“I

realise the importance of motivating my staff to deliver their best and I am tactful and diplomatic when dealing with potential problems; I believe that a lot more can be achieved through communication than through conflict. I am, nevertheless, very results-driven and I expect every member of my team to pull their weight and help us to achieve our common goals.”

“M

“W

“I

“A

y leadership style has been influenced the most by a company culture, whereby employees are challenged to think innovatively and in creative ways, to express their opinions and experiment with different work methods.”

would say that what has helped me most throughout the course of my career has been my thirst for knowledge and continuous learning. Focusing on my continuous professional development has made me become better at what I do.”

orking for a global organisation has exposed me to vectors that have shaped, defined and broadened my skills and knowledge. This has subsequently allowed me to spearhead our department to Best Practice levels and find ourselves ahead of the curve in certain areas.”

chieving a healthy balance between life at work and at home is not easy and it is something I always need to pay attention to! As the corporate treasurer of a global firm, there are t’s probably true to say that emalways going to be things ployees leave their manager, not the that are either urgent or company and I would say that the biggest/ warrant my attention. most frequent mistake that managers make Having said that, I is that they fail to listen to their employees. am a firm believThey need to communicate better and er in blending provide regular feedback to the people work and home me with whom they are working.” well and I ap-preciate the Eleni Smila always admired my father, who importance has worked for Amdocs, led by example, had an undera large multi-national corporate, of forcing standing and caring nature, was a for eighteen years, rising through myself to the ranks from Accounts Assisdiligent listener and adopted a very ‘switch tant (1998) to Global Treasury practical approach to solving problems. off’.” Director (2010), where she is Above all, he had good, solid values.” responsible for the management of treasury operations, cash like to relax with a glass of wine and a good book management, foreign exchange, or a movie. My favourite pastime is spending treasury infrastructure and bank time with my nephews Andreas and Antonis – whether relationships. She holds a degree watching a movie together or playing a board game.” in Economics from

“I

“I

“I

Technikon Pretoria, South Africa.

14 | GOLD | The Business Magazine of Cyprus



FIVE

MINUTES WITH

W

hen was Jordans Trust Company established in Cyprus and what was behind the decision to set up a branch here? Our company became active in Cyprus in1999. We decided to set up here because we anticipated that the country would become a member of the EU. What differentiates the company from its competitors in Cyprus? We are well-known commentators on international business and tax matters. My colleague, Martin Palmer, is wellknown for his book “International Tax Planning with UK Companies and Partnerships”, which provides a superb guidance for any professional practitioner in the field. Jordans have an excellent reputation for doing things the right way, whether its corporate governance or providing the correct solution – I think we actually practiced ‘substance’ well before it became the key phrase in Cyprus, as management and control has long been a key part when structuring via the UK. What are the key factors that make Cyprus an attractive jurisdiction for foreign companies? Without going over well-trodden ground, such as EU Membership or location etc., I have been impressed by Cyprus’ move to introduce new tax regimes including the Notional Interest Deduction (NID) and Non-Domicile regimes. Both of these are world-class and really allow Cyprus to compete with giants in our industry like Luxembourg and the Netherlands in tax planning and the UK and Malta in residence/domicile matters.

16 | GOLD | The Business Magazine of Cyprus

RICHARD MELTON

Additionally, I am really excited by the potential for Funds in Cyprus and can see this area gaining further momentum in the coming years. Indeed, when I look at other jurisdictions around the world, many which I am very familiar with, I see that Cyprus is probably the best place to be right now and for a professional like myself, one of the most interesting.

Managing Director, Jordans Trust Company (Cyprus) Limited Have you had any indications at this early stage that more UK-based companies will opt to make use of Cyprus following the Brexit vote? I have the good fortune of having worked in various EU states over the past 20 years, benefitting from a UK/ EU passport and freedom of movement. I also try to see things objectively regarding Brexit – although any discussion on the subject can become emotive very

quickly! What you describe as “this early stage” is actually Cyprus’ best opportunity, as this time of uncertainty for the UK and I am sure that there are some businesses, particularly those which look to this part of Europe, or do not need to be anchored to the UK for business purposes, which may consider relocating. However, “this early stage” is only that and within 3-5 five years, the UK will, one way or another, bounce back, per perhaps by introducing an ultra-low corpor porate tax rate. It should s be remembered that London has many advantages, being a place wh where people want to live and ultimately do business, thanks to the rule of law, tthe time-zone, communications, being a knowledge and technology hub and, of course, being a centre of financial services know-how. Not only that, these advantages are emulated in many ccities across the country – just ask one of the many Cypriots who have fond mem memories of studying in Bristol, where Jord Jordans’ head office is based. As long as Cyp Cyprus remains crisis-free, maintains the mo momentum on introducing new regimes in the tax and fund industries, and expands its double taxation treaty network, it will undoubtedly attract some business from the UK. Furthermore, with the UK resident non-domicile (RND) regime becoming ever more complex, Cyprus, with its comparatively simplified rules, may be an ideal – and sunnier! – alternative as a place of personal residence. Cyprus’ post-Brexit success may not be so much to the detriment of the UK itself but possibly to UK overseas territories such as Gibraltar or its dependencies like Jersey, which rely on a similar type of business and require full access to the EU in the financial services sector.


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QUOTES OF THE MONTH

They Said What? Some of the more remarkable statements made about Cyprus and the Cypriots over the past month.

SERGEY LAVROV

“WE INSIST THAT THE UNITED STATES AND UN SPECIAL ADVISER ON CYPRUS ESPEN BARTH EIDE STOP TRYING TO IMPOSE ARTIFICIAL TIMEFRAMES FOR REACHING AGREEMENTS AND IMPOSING SOLUTIONS THAT ARE REJECTED BY ANY OF THE PARTIES TO THE CYPRIOT SETTLEMENT.” Russian Foreign Minister Sergey Lavrov insists that 42 years is not long enough for an agreement to be reached on the Cyprus issue.

“IT IS SURPRISING THAT RUSSIAN SUPPORT, AS STATED IN RECENT DAYS, RATHER THAN BEING MET WITH ENTHUSIASM IN NICOSIA, HAS BEEN THE SUBJECT OF EXPRESSIONS OF SCEPTICISM AND CONCERN.” Greens MP George Perdikis is as surprised as we were that the myth of Russian Z\WWVY[ PZ ÄUHSS` crumbling. About time too! GEORGE PERDIKIS

18 | GOLD | The Business Magazine of Cyprus

“WHAT COULD BE MORE RATIONAL THAN NOT WANTING TO FIT DIFFERENT PEOPLE WITH THE SAME SHOES?” University of Cyprus (UCy) Rector ConstantiUVZ *OYPZ[VÄKLZ YLQLJ[Z the medical unions’ argument against the creation of a university hospital. They say that by letting better paid non-union doctors work alongside their union counterparts, the government would be creating a two-tier system, as if that were a bad thing. CONSTANTINOS CHRISTOFIDES

“SHAME ON THEM. THEY HAVE GONE TOO FAR. LET THEM BE HAPPY WITH THEIR PRIDE PARADES. I AM NOT INTERESTED IN PEOPLE LIKE THAT.” Archbishop Chrysostomos is all for ‘love thy neighbour’, as long as that doesn’t mean ARCHBISHOP ‘love thy gay neighbour’.

CHRYSOSTOMOS

“THE CHURCH AND THE ARCHBISHOP CANNOT BE VEHICLES FOR HATE SPEECH. ON THE CONTRARY, ACCEPTANCE OF DIVERSITY IS WHAT SHOULD CHARACTERIZE A MODERN SOCIETY.” ARISTOS DAMIANOU

AKEL MP Aristos Damianou puts the Archbishop in his place, which is evidently not in the Cyprus of today.

“IT IS LIKE ASKING A MOTHER TO DECIDE WHICH PART OF ONE SIAMESE TWIN SHOULD BE REMOVED SO THAT THE OTHER MAY LIVE.”

Eleni Theocharous MEP uses her great talent for melodrama to explain why her party refuses to express a view about which areas of Cyprus should become part of a future Turkish Cypriot constituent ELENI state in a federal solution. THEOCHAROUS

“THE DEMOCRATIC PARTY WANTED TO GO TO SWITZERLAND TO SUPPORT M THE PRESIDENT AND HELP HIM T COPE WITH ANY PRESSURE BUT UNFORTUNATELY HE REFUSED.”” DIKO Chairman Nicholas Papadopoulos has discovered a new purpose in life: to help Nicos Anastasiades cope with pressure, much of which he is heaping on the President himself. NICHOLAS

PAPADOPOULOS


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| SPECIAL FEATURE |

AYIA NAPA MARINA

Construction

Begins

WELCOME TO A NEW ERA IN MODERN BEACHFRONT LIVING

20 | GOLD | The Business Magazine of Cyprus


A

yia Napa Marina is an exclusive integrated development offering luxurious residences, world-class yachting facilities, a variety of retail boutiques, waterfront fine dining options, recreational and nightlife experiences. Its unique location, crystal clear seas, stunning beaches and incredible views are enticing to boaters, visitors and residents who appreciate a lifestyle of class and elegance. With complete privacy and round-the-clock security for homes and yachts, Ayia Napa Marina is the ideal yachting, social and residential destination, offering everything one needs to relax and enjoy the exciting lifestyle of the Mediterranean. By combining vibrant beachfront living with luxury and quality services, Ayia Napa Marina is poised to mark the dawn of a new era.

BY COMBINING VIBRANT BEACHFRONT LIVING WITH LUXURY AND QUALITY SERVICES, AYIA NAPA MARINA IS POISED TO MARK THE DAWN OF A NEW ERA

7+( 352-(&7·6 3$571(56 Born of a deep-rooted love for the island of Cyprus and spurred on by an evident gap in the region for a modern luxury marina development, Ayia Napa Marina is the realization of the dream and vision of the project’s partners, the Cyprus-based Caramondani Group and Egyptian investor Naguib Sawiris. Both genuine leaders in their respective fields, and with over 80 years of combined experience between them, the two family-run businesses have joined forces to implement a long-term strategic plan aiming to set a new standard for luxury beachfront marina living. Caramondani Group and Naguib Sawiris share the vision of making Ayia Napa Marina the new premier yachting destination in the Mediterranean. THE PROJECT With the laying of the foundation stone in September 2016, the Ayia Napa Marina development officially started construction The project is designed by SmithGroupJJR, a renowned US-based architectural, engineering and planning firm specialized in waterfront design. The Marina is due to start operations in 2019, while completion of the project is scheduled for 2021. The first apartments and villas will be delivered in 2020. The €220 million mixed-use residential and commercial project will boast 190 spacious and deluxe apartments in two iconic, twisting towers, 29 luxury villas, a 600-berth full-service marina and boatyard, and a collection of elegant retail, waterfront dining and premium lifestyle amenities for residents and visitors. 7+( 5(6,'(1&(6 The Marina offers a selection of luxury residences, thoughtfully designed to provide comfortable, spacious modern living with uninterrupted panoramic views of the Mediterranean Sea. Residents are ensured peace of www.goldnews.com.cy | GOLD | 21


| SPECIAL FEATURE |

RISING HIGH ABOVE THE MARINA ARE TWO ICONIC TOWERS, EACH OVER 100 METRES TALL, CLEARLY VISIBLE FROM BOTH LAND AND SEA

mind, thanks to facility management services and round-the-clock security. Rising high above the Marina are two iconic towers, each over 100 metres tall, clearly visible from both land and sea. Both towers have T-shaped plans that twist approximately 1.6 degrees per floor, rotating west to east as they ascend to take full advantage of the breathtaking panoramic views. The East Tower is located in the commercial hub of the Marina, offering a vibrant and bustling environment for residents and guests, whereas the West Tower is tucked away in a tranquil, more residential area of the development. The two towers have a total of 190 luxury apartments, ranging from a mix of 1, 2, 3 or 4-bedroom residences, to full-floor penthouse apartments on the top two levels of each tower that feature 360-degree panoramic views. The apartments are uniquely shaped to ensure that all living spaces, including bedrooms, are oriented toward the water and beaches; while the concept of modern, open-plan designs maximizes daylight and views. The 29 luxury villas are located along privately maintained and secured roads on the marina island and the peninsula. Each plot includes 22 | GOLD | The Business Magazine of Cyprus


significant space for landscaped gardens. Eleven of the villas fan out around a beautiful crescent-shaped man-made beach of fine-grained sand; while the other 18 directly overlook the marina and feature walk-out access to secure docks. All villas are designed with a modern, open-plan concept, with primary spaces oriented towards the sea. Each plot includes a private plunge pool with infinity edge. 7+( %($&+(6 Located on one of the most beautiful stretches of coastline in Cyprus, Ayia Napa Marina is unique amongst the world’s luxury marinas thanks to its beautiful beach and unspoilt natural beauty. The owners of the exclusive beachfront villas will benefit from direct access to the beach, with the crystal clear waters of the Mediterranean right on their doorstep. Ayia Napa Marina offers two beautiful beaches – one located to the east and the other to the west side of the marina – where owners and visitors can enjoy the

crystal clear waters and the fine golden sands of Ayia Napa. 7+( <$&+7,1* )$&,/,7,(6 Raising the benchmark for marina services, Ayia Napa Marina is destined to be the new premier yachting destination in the Mediterranean. Providing the latest in amenities, dock design and infrastructure within a secure environment, the Marina can accommodate 600 yachts. Wet slips can accommodate yachts up to 60 metres in length and up to 80 metres by advance arrangement, while a dry stack storage facility is available for boats up to 10 metres in length. For the dry stack facility, a premium valet service is provided with complete provisioning and pre-launching of boats offering a hassle-free experience. The unique aspect of the Marina is the finger-style berthing for yachts of 30 metres or less while floating docks assure comfortable access in all conditions. The Marina basin has depths of 3.5 to 6.5 metres to accommo-

ALL VILLAS ARE DESIGNED WITH A MODERN, OPEN-PLAN CONCEPT, WITH PRIMARY SPACES ORIENTED TOWARDS THE SEA date the deep drafts of sailing boats and super yachts. The specially engineered wave absorbing breakwater minimizes harbour chop and storm wave agitation, assuring safe and comfortable berthing at all times. Amenities include conveniently located comfort stations with showers and WC, Internet access, a dedicated crew lounge, a yacht club and beach club. The boatyard offers an extensive range of high-level professional marine services such as hauling, launching, and boat maintenance operations.

classy lifestyle, a variety of elegant retail boutiques, waterfront fine dining options and exciting leisure activities can be enjoyed to the fullest. Pyare Village is the commercial centre and hub of the Marina. Set in a semi-circular basin reminiscent of an island harbour, it has a scenic waterfront with a pedestrian promenade. Shops, cafés, restaurants and recreational activities create a bustling harbour-side atmosphere and make it the heart of entertainment for shopping, dining, and leisure.

7+( (;3(5,(1&( Ayia Napa Marina is proud to offer its residents and guests, nightlife, recreational and shopping experiences that are unmatched in the region. For people who appreciate a truly

025( ,1)250$7,21 More information about Ayia Napa Marina, including WYPJLZ ÅVVY WSHUZ ZWLJPÄJ amenities and purchasing information can be found online at MarinaAyiaNapa. com Alternatively, call (+357) 22280280. www.goldnews.com.cy | GOLD | 23


8,) 1%67,%00 -70%2(7 Corporate Registry Experience you can trust. Quality service you expect.

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Business Entities and the Law Regardless of the circumstances surrounding the creation of a business IRXMX] XLI YWYEP KSEP MW XS QE\MQM^I TVS½XEFMPMX] [LMPI QMRMQM^MRK XLI VMWO SJ I\TSWMRK MXW FIRI½GMEP S[RIVW XS TIVWSREP PMEFMPMX] *SV XLMW VIEWSR XLI GSVTSVEXI PE[ SJ E NYVMWHMGXMSR XEOIW SR TEVEQSYRX MQTSVXERGI *MVWX IREGXIH MR XLI 61- %WWSGMEXMSRW 0E[ MW SRI SJ XLI QSWX QSHIVR WIXW SJ WXEXYXIW MR XLI [SVPH 8LI 61- %WWSGMEXMSRW 0E[ GSRXEMRW XLI &YWMRIWW 'SVTSVEXMSRW %GX &'% 6IZMWIH 4EVXRIVWLMT %GX 0MQMXIH 4EVXRIVWLMT

04 %GX ERH 0MQMXIH 0MEFMPMX] 'SQTER] 00' %GX Publicly Traded Companies 2YQIVSYW 61- IRXMXMIW LEZI I\TIVMIRGIH QYGL WYGGIWW XVEHMRK TYFPMGP] SR I\GLERKIW [SVPH[MHI MRGPYHMRK XLSWI MR 2I[ =SVO ERH 0SRHSR 8LIWI publicly traded entities demonstrate the level of success possible in an SJJWLSVI NYVMWHMGXMSR ERH IRLERGI XLI EPVIEH] SYXWXERHMRK VITYXEXMSR SJ XLI RMI Maritime and Corporate Registries. To ensure that an entity can obtain YRHIV[VMXIVW XS TVMGI ERH QEVOIX MXW WXSGO SJJIVMRK E TVEGXMXMSRIV QYWX GLSSWI ER SJJWLSVI NYVMWHMGXMSR XLEX TEWWIW XLI WXVMGX WGVYXMR] SJ QENSV MRZIWXQIRX FEROW ERH I\GLERKIW [SVPH[MHI 7SYRH GSVTSVEXI PIKMWPEXMSR XLI TSPMXMGEP WXEFMPMX] SJ E NYVMWHMGXMSR ER IEW] ERH ¾I\MFPI JSVQEXMSR TSPMG] ERH WYFWXERXMEP I\TIVMIRGI MR EHQMRMWXIVMRK GSVTSVEXI TVSKVEQW EVI XLI OI] GVMXIVME MR XLMW VIWTIGX 8LI 61- 'SVTSVEXI 6IKMWXV] MW VIGSKRM^IH [SVPH[MHI F] PE[ ½VQW GSQTER] JSVQEXMSR WTIGMEPMWXW ERH FYWMRIWW TVSJIWWMSREPW MR QENSV ½RERGMEP GIRXIVW JSV MXW QSHIVR ERH ¾I\MFPI PIKMWPEXMSR IEWI SJ JSVQEXMSR ERH LMKL PIZIP of customer service.

INTERNATIONAL BUSINESS CORPORATION (IBC) GENERAL INFORMATION Type of Entity

IBC

Common or Civil Law

Common

Migration of Domicile Permitted

Yes

8E\ 3R 3JJWLSVI 4VS½XW

2S

Language of Name

Roman Characters, In Any Language

CORPORATE REQUIREMENTS Minimum Number of Shareholders

One

Minimum Number of Directors

One

Secretary Required

Yes

Individuals and/or Corporate Directors

Yes

-RHMZMHYEPW ERH SV 'SVTSVEXI 3J½GIVW

=IW

Registered Agent Provided

Yes

Directors Anywhere in the World

Yes

Meetings Anywhere in the World

Yes

Incorporation in the RMI RMI corporations are governed by the BCA. Entity formation is simple; E GSQTER] QE] FI JSVQIH MR SRI FYWMRIWW HE] 'SVTSVEXI documentation must be submitted in English, but may be accompanied by E GIVXM½IH JSVIMKR PERKYEKI XVERWPEXMSR 8LI 61- MW E ^IVS XE\ NYVMWHMGXMSR XLEX WXEXYXSVMP] I\IQTXW RSR VIWMHIRX HSQIWXMG IRXMXMIW JVSQ XE\EXMSR SR income and assets. 8LIVI EVI QER] YRMUYI EHZERXEKIW JSV XLI MRZIWXSV ZIWWIP ]EGLX S[RIV or international businessperson forming business entities in the RMI. IRI offers a full range of services for forming a company, including both 6IKMWXVEV ERH VIKMWXIVIH EKIRX WIVZMGIW *YVXLIVQSVI XLI 1EVWLEPP -WPERHW Management Company (MIMC), located in the RMI, offers administrative services for all RMI business entities, including the use of an RMI mailing EHHVIWW ERH JE\ RYQFIV JSV VIGIMTX SJ QEMP ERH QEMP JSV[EVHMRK 8LI 1-1' EPWS TVSZMHIW GSRJIVIRGI VSSQ JEGMPMXMIW [LMGL EVI IUYMTTIH [MXL JE\ -RXIVRIX ERH XIPITLSRI WIVZMGIW

FILING REQUIREMENTS Annual Return

No

File Audited Accounts

No

Mandatory Filing of Directors, 3J½GIVW ERH SV 7LEVILSPHIVW

No

building a

GLOBAL PRESENCE

Assistance As a corporate service company, IRI cannot give legal advice. IRI can, however, provide information and guidance on forming business entities; TVITEVMRK EQIRHQIRXW HMWWSPYXMSRW ERH SXLIV ½PMRKW ERH UYIWXMSRW VIKEVHMRK XLI 61- %WWSGMEXMSRW 0E[ Corporate Services -6-´W SJ½GIW EVI JYPP WIVZMGI ERH LEZI XLI EFMPMX] XS MRGSVTSVEXI E company, register a vessel or yacht, including those under construction, record E QSVXKEKI SV ½RERGMRK GLEVXIV ERH WIVZMGI GPMIRXIPI 8LI 61- 'SVTSVEXI 6IKMWXV] MW VIGSKRM^IH [SVPH[MHI F] PE[ ½VQW GSQTER] JSVQEXMSR WTIGMEPMWXW ERH FYWMRIWW TVSJIWWMSREPW MR QENSV ½RERGMEP GIRXIVW JSV MXW QSHIVR ERH ¾I\MFPI PIKMWPEXMSR IEWI SJ JSVQEXMSR ERH LMKL PIZIP SJ GYWXSQIV WIVZMGI

IRI Hellas Ltd. MR EJ½PMEXMSR [MXL XLI 1EVWLEPP -WPERHW 1EVMXMQI 'SVTSVEXI %HQMRMWXVEXSVW

tel: +30 210 4294 404 piraeus@register-iri.com | www.register-iri.com


| CORPORATE SERVICES |

FACILITATING INTERNATIONAL TRADE AND INVESTMENT THE BVI WAY 26 | GOLD | The Business Magazine of Cyprus


T

he British Virgin Islands (BVI) is one of the most popular offshore financial centres, with some of the highest global regulatory standards. It has an enviable reputation as a quality jurisdiction suitable for a wide variety of business activity. Jordans Trust Company (Cyprus) Limited offers a gateway to the BVI with close links between its network of worldwide offices. Kiki Eleftheriadou manages the International desk in Cyprus on behalf of Jordans Trust Company (BVI) Ltd and Jordans Trust Company (Seychelles) Ltd. Working closely with the firm’s offices both jurisdictions, she provides assistance with company administration and ready-made, off-the-shelf companies, and offers bespoke services and documentation as required. Through Jordans Trust Company’s office in Cyprus, professional clients in Cyprus have access to a broad range of BVI and Seychelles corporate and trust services. Eleftheriadou spoke to Gold about the BVI and what it has to offer her clients in Cyprus. Gold: Offshore finance centres have been in the news a lot recently – how is the BVI corporate legislation reacting to this? Kiki Eleftheriadou: As the offshore world has become increasingly regulated in the past 20 years, the BVI has adopted an internationally compliant regime and demonstrated ongoing adherence to international standards. According to the Organisation for Economic Co-operation and Development (OECD) and the Financial Action Task Force (FATF), the BVI has high global regulatory standards. For example, it was one of the first jurisdictions in the world to implement the OECD’s Common Reporting Standard for the automatic exchange of information. Most recently, the BVI has passed further legislation to adopt standards of corporate governance and, in particular, transparency, which meet international requirements. Central filing of the Register of Directors and local custodianship of beneficial ownership information will ensure that the BVI remains in the top league of International Financial Centres, adhering to modern expectations and obligations. Gold: What do you say to those who question the contribution made by BVI and other offshore jurisdictions to the wider global economy? K.E.: The use of BVI companies facilitates international trade and investment by avoiding double or multiple taxation of trading or investment profits, which is a very real threat

The BVI’s corporate and trust services are not designed for tax avoidance to international business and, therefore, to the global economy. Over the last 30 years, the success of the global economy has served to lift millions out of poverty. As such, the BVI’s corporate and trust services are not designed for tax avoidance but to provide a neutral basis for holding, securing and re-investing after-tax income. This, too, has contributed to the success of the global economy. Gold: VISTA Trusts are an important BVI product. What are they exactly? K.E.: VISTA Trusts are low-cost trust vehicles that are designed to hold BVI company shares, particularly to ensure secure and flexible succession to BVI company shares on the death of the founder. The BVI VISTA Trust is a trust for settlors who wish to retain control over the administration, management and devolution of underlying companies. We can provide a corporate trustee, licensed in the BVI, to act as a trustee of a VISTA Trust. This arrangement can be a very useful tool for inheritance and estate planning. It is particularly attractive for family companies and provides safe and confidential succession rights, avoiding the need for probate and the rigid succession rules of certain countries. Aside from family-owned businesses, VISTA Trusts also have much to offer wealthy families wishing to create their own family trustee company (such trustees are commonly referred to as Private Trust Companies or PTCs and often function as trustees of family trusts). VISTA Trusts also have much to offer multinational business, e.g. holding the voting shares of mutual funds and special purpose vehicles (SPVs) in the course of securitisations and other structured financial transactions. Gold: What makes the BVI an advantageous place to form a company? K.E.: Having no local taxation is a big advantage for international joint ventures, providing them with the option to use tax-neutral companies and trusts that avoid double taxation. Because of their popularity, BVI

companies are well established in the fabric of international finance, and recognised and understood by the world’s leading financial institutions. Many world-class international law firms have a base in the BVI which means they are immediately on hand to support local company formation, and the needs of the trust industry. It all adds up to rapid incorporation and trust formation processes. Ranked against other jurisdictions, the BVI offers peace of mind to organisations looking to establish a company, due to the fact it has made great efforts to maintain state-of-the-art corporate and trust legislation, and a strong international reputation. Gold: It’s said that BVI Business Companies are straightforward and can be set up in minimal time. Is that true? K.E.: It is true. They can be set up within 24 hours, once the required customer due diligence has been supplied. It’s also possible to use ready-made off-the-shelf companies. Gold: What types of solutions does the BVI offer and to whom? K.E.: In short, for proportionate professional fees, the BVI offers private investment companies, international holding companies and international joint venture companies, as well as trust services to cater for the private investor and the international corporate group. Gold: If someone is looking for the ideal corporate service provider of BVI Companies in Cyprus, what should they look for? K.E.: All providers offer knowledge and expertise but it’s important to find out who will be delivering the expertise. For example, are the corporate service provider’s directors readily accessible to the client? I’d also recommend that individuals check that the company they’ve chosen has offices in both Cyprus and the BVI. The advantage is that it brings an important blend of local expertise and know-how, together with insight into the local political, legislative and economic situation. It’s always useful to have local knowledge regarding any pending changes that could affect the company. Also, look for breadth of services. Ask the question whether the provider has everything you need under one roof, e.g. legal, or accounting services. It means that you don’t have to shop around for different providers, which could mean delays, extra costs or a lack of coordination and control across a number of parties. Finally, friendliness and a good relationship are important. First impressions are often the best! www.goldnews.com.cy | GOLD | 27


| PROFESSIONAL SERVICES |

28 | GOLD | The Business Magazine of Cyprus


IN OCTOBER, GEOFF BARNES, CEO AND PRESIDENT OF BAKER TILLY INTERNATIONAL FOR 16 YEARS, WAS APPOINTED AS THE NEW CHAIRMAN OF THE REGIONAL COUNCIL OF BAKER TILLY IN SOUTH EAST EUROPE AND PRESIDENT OF THE BOARD OF DIRECTORS OF BAKER TILLY KLITOU AND PARTNERS LTD. HE SPOKE EXCLUSIVELY TO GOLD ABOUT THE START OF A NEW ERA IN AN ALREADY STELLAR CAREER. BY JOHN VICKERS

G

eoff Barnes is one of those people who manages to combine extraordinary business acumen and leadership qualities with an easy-going nature that almost belies his position and multiple achievements. Under his leadership, the Baker Tilly network has grown its combined revenues from $900 million to $3.8 billion and its coverage from 59 countries to more than 140, and yet he remains a somewhat self-effacing individual who, like all great leaders, will stress the importance of teamwork rather than his own crucial role. Another surprise is that this youthful, smartly dressed fellow is coming up to his 72nd birthday. He certainly doesn’t look his age. I begin our conversation by noting that, last year, Barnes received a Lifetime Achievement Award from the International Accounting Bulletin (IAB). Such honours often signal retirement but he has just been appointed to two new posts. Had he been planning for this or had it come as a surprise? “In the end, there are two aspects to this,” he says. “One is what’s good for the business – Baker Tilly International – and the other is what I want to do as an individual. For the last 10 years, I’ve been talked several times into carrying

on working but about 18 months ago, I decided that we needed to look forward and talk about succession, which is a critical issue in most businesses. So we set about doing that and we’ve had a very good transition. I know I’ve got the energy to stay on the Board of Directors for a bit longer and I’m doing some mentoring here and there and the truth is that I’m not ready to stop.” So Barnes is not stopping but, he says, he doesn’t want to continue at his current pace – not surprising, given that he has travelled to 51 countries since January of this year! – and so he decided to make a choice of the many proposals that member firms had submitted to him. One of the two he selected (from more than 30) came from Marios Klitou, CEO of Baker Tilly in South East Europe, p , who asked him to become Chairman of the Regional Council il of the firm and President ident of the Board of Directors of Baker Tilly Klitou litou and Partners Ltd. “Marios spokee to me about itt a year ago when n

he knew that I’d given the Board 12 months’ notice,” he explains. “Why him? Well, I’ve always respected his enormous professionalism, his ambition, his drive and his commitment to the business, and not just in those countries that he’s operating in but in the way he interfaces with our members around the world. I wanted to be associated with people who were interested in what I was talking about from a professional point of view and were committed to the future. Marios Klitou is a true professional and, frankly, I was honoured to be asked and it took me nanoseconds to say yes!” Does this mean that Barnes will be spending more time in Cyprus or will modern technology allow him to work from the UK? Probably the former, he says, and he’s very keen to t do so. “I’m coming back to C Cyprus in December when we’ll be p putting together the projected budgets bu years, so for the next couple of ye I think I’ll become becom quite visitor and a regular visit I must say that it’s a lovely p place to be.”

www.goldnews.com.cy | GOLD | 29


| PROFESSIONAL SERVICES |

I suggest that his appointment will doubtless be seen as a personal vote of confidence not only in Baker Tilly Klitou and Partners Ltd but, by extension, in Cyprus too. He agrees with this interpretation, noting that while “Cyprus has had – and continues to have – certain issues,” he has already seen signs of change. “I am seeing a bit of the Irish attitude coming to Cyprus; the idea that ‘we can get this fixed and we want to move forward’,” he says, adding, “My observation is that firms like Baker Tilly Klitou and Partners and other corporates that have the drive, the energy levels and the desire to succeed can definitely get moving forward in Cyprus.” Regarding his new duties and responsibilities, Barnes sees one of his roles as steering the Cyprus-based firm through a strategy as it transitions from a partnership to a corporate structure. “We’ve got these five countries, all at different levels of progression, in a changing world and a changing global environment, so I can bring to the table my experience of what we’ve done internationally, I can help them interface with our existing membership – specifically Russia and Germany that we want to have closer ties with – and I will be able to give advice on the developments of service lines as well as to help Marios develop his people.” The last time we spoke, Geoff Barnes told Gold that the audit profession

30 | GOLD | The Business Magazine of Cyprus

needed to redefine its role in the global environment and find a way of becoming attractive to talented young people. Is this something he feels he can work on as part of his new role within Baker Tilly in South East Europe? “Most definitely,” he replies without hesitation. “In fact, the accounting profession as a whole has to redefine itself – not just the audit profession – but the challenge is finding young men and women to go into or remain in the audit profession. Many of them are not staying but I believe that, with data analytics and some of the new techniques that are being introduced into audit, we can make it an attractive proposition again. I think part of my job will be to make our business offering interesting to young people in South East Europe and I’m pretty confident we can do that.” Given the importance of the professional services sector to the Cyprus economy, the expansion of Baker Tilly Klitou to Romania, Bulgaria, Moldova and Greece takes on even greater significance. I ask Geoff Barnes if he believes that there is room for further expansion into even more countries. “I think what Marios has developed is pretty unique, frankly,” he says, explaining that Klitou’s modus operandi has been to follow Cypriot and Greek businessmen into and through those countries. On the question of further expansion, he notes that, “Looking after five countries is a handful and before

anybody starts rushing off to other locations, we have to optimise the great opportunities that those five countries present. Over time, I believe there will be other opportunities as this concept of following a business trail continues to operate, but we have enough to be getting on with at the moment and that’s where the energy and focus is going to be.” Under Barnes’ leadership, the Baker Tilly network has grown its combined revenues fourfold and more than doubled its geographical coverage. Can such growth be sustained, not only by Baker Tilly but by the profession generally? “There are something like 210 countries/jurisdictions in the world and in terms of being in the major financial centres, we’ve probably gone as far as we can, regarding the numbers of firms,” Geoff Barnes acknowledges. “But I do believe we can grow revenues,” he goes on. “As we continue to meet the demands of clients around the world and we sharpen the value proposition, they will want more from the accounting profession. We have told our member firms that opportunities are there – our firm in Germany has seen double-digit growth this year and China is up 22%, so I think we can grow the revenues.” Finally, I ask the sprightly 71-yearold Barnes if he is making plans for retirement, if not now, at some point in the future. “Not really!” he laughs. “My take on this is that, provided the work that I’m doing is of interest and benefit to individuals, I’ll continue doing it. I have a responsibility to myself and I still want to enjoy what I’m doing, so I’ve got to ensure that I keep up to date and understand how the profession is developing globally. For as long as I can keep on top of that and I can provide value, I’ll carry on. There is no finite time on this. I look forward to having drinks with you over the next few years!”


| TECHNOLOGY |

y, g o l o Techn Needs, Expectati ons

CHANGING

GCC COMPUTERS HAS BEEN IN THE CYPRUS COMPUTER MARKET SINCE 1987, FOCUSING, AMONG OTHERS, ON THE DELIVERY AND SUPPORT OF COMPLEX IT SOLUTIONS. PER GRANATH, CHIEF ARCHITECT, NETWORKS AND TELECOMMUNICATIONS AT GCC COMPUTERS, SPOKE TO GOLD ABOUT HOW THINGS HAVE CHANGED OVER THE PAST THREE DECADES AND WHAT HE EXPECTS TO SEE DURING THE NEXT ONE.

N

By John Vickers

ext year, GCC Computers will be celebrating its 30th anniversary in Cyprus. How has it changed over these three decades, given the speed at which the technology sector has developed? Per Granath: Technology obviously changes but so does the way our customers approach implementing, operating and utilizing technology. I believe they expect a lot more involvement by their suppliers and local partners, often since they have increasingly fewer internal resources available to manage technology. Gold: You joined in 2011. What do you see as your achievements of the past five years? P.G.: When I joined, I set as a goal for GCC to be recognized as the leading local partner for IP networking technologies and I believe we have achieved that. Gold: How would you summarise the company’s main business in 2016? P.G.: We have become much more diversified over customer segments and across different technologies. Our main customers are still those for whom networks and IT infrastructure are core parts of their own business, but we are now supplying our customers with solutions that require substantially more hightouch involvement on our part. At the same time, we have diversified beyond our traditional telco, finance and public sector customers. Gold: How important is cybersecurity these days? Do companies in Cyprus take the threat seriously enough? P.G.: There’s hardly any company that can afford to lose the data they have stored electronically nowadays. At the same time, for different companies there are different aspects of cybersecurity that are more or less important, such as availability, speed, customer expecta-

tions, etc. Every company needs to spend its resources on what is most important for the business. Gold: GCC recently held a joint conference with one of its partners, Akamai. What do you see as the main benefit to the company from this collaboration? P.G.: Akamai is the clear global market leader when it comes to services such as content delivery, with security and DDOS protection. Due the long history of being market leaders, the scale of their infrastructure is also unmatched, and it will be practically impossible for any of their global competitors to catch up with them. Hence, we believe we will have a long and fruitful partnership with Akamai, introducing their services in the Cypriot market. Gold: When GCC Computers is choosing new business partners, on what criteria does it base the decision to form a partnership? Isn’t there always danger of collaborating with one partner against another if you don’t have exclusive partnerships? First of all, our customers trust that when GCC promotes and sells something, it will “do what it says on the box”. Hence we first of all make sure that the vendors we represent are actually able to deliver. The culture of the vendors we work with is also important. In large international companies, people come and go but GCC remains to protect the interests of our customers and it is important for us to know that we will be able to convince the vendors to treat our customers in the right way. Hence, our objective us always to invest our resources in winning over other vendors. We prefer to work with vendors who are committed to working with us, and not in parallel via many partners. Gold: Where do you see the focus of GCC in 2017? P.G.: We should probably keep doing what we are doing now, because it works quite well. We’ll continue to invest in our people and organisation and to build strong partnerships with both vendors and customers.

www.goldnews.com.cy | GOLD | 31


| INVESTMENT |

AXIA VENTURES GROUP, WHICH IS HEADQUARTERED IN NICOSIA, ANNOUNCED IN SEPTEMBER THAT FRANCISCO SOTTOMAYOR HAD BEEN APPOINTED MANAGING DIRECTOR AND HEAD OF INVESTMENT BANKING FOR IBERIA. SOTTOMAYOR, AN EXPERIENCED PROFESSIONAL WITH 17 YEARS IN INVESTMENT BANKING AND EXPERTISE IN FINANCIAL SOLUTIONS ACROSS M&A, RESTRUCTURING, ASSET MANAGEMENT, EQUITY AND DEBT CAPITAL MARKETS, SPOKE TO GOLD ABOUT HIS NEW ROLE. BY JOHN VICKERS

32 | GOLD | The Business Magazine of Cyprus


SOTTOMAYOR HEADS AXIA’S

LATEST VENTURE

A

fter 15 years in London, how do you feel about moving ‘back home’ to Portugal? Francisco Sottomayor: Professionally there is no big change as I’ve been travelling almost every week for the past 16 years! Personally, it will be a big change as I will be working in an office located in Lisbon on a daily basis, which is something I have not done since a long time ago. I am, however, confident that, with the support of my AXIA colleagues and the level of professionalism I have already witnessed during my onboarding, the change will be positive.

Gold: What was it about AXIA Ventures Group that made you accept the post of Managing Director and Head of Investment Banking for Iberia? F.S.: First of all was the fact that, while being an Investment Bank boutique which is my area of expertise, AXIA is a project that uses a different concept

IN TIMES OF CRISIS, BUSINESS COMES TO YOU BECAUSE YOU HAVE DIFFERENTIATING RESOURCES FROM YOUR COMPETITORS

to approach the business. So, what I intend to do is put my know-how and experience into full use at AXIA so as to ensure outstanding results. Gold: You have worked with many international banks, including major Spanish and Portuguese ones. How do you expect your experience to benefit AXIA’s objectives and strategy? F.S.: When you work for 18 years in a big Investment Banking house, you are used to different dynamics and you acquire versatile experience. Sometimes a potential business comes to you because of the brand name of the bank, or because of the bank’s balance sheet but, in times of crisis, business comes to you because you have differentiating resources from your competitors and the ability to innovate. So what I bring to the business is this capacity to innovate, as in a small boutique firm you cannot replicate the same model of major investment banks. I have worked through very different cycles. www.goldnews.com.cy | GOLD | 33


| INVESTMENT |

First through a boom of innovation – synthetic credit, securitizations, etc – and, in the past five years, innovating to work with the regulatory changes that have transformed the sector. I also expect my leadership skills, accumulated by managing teams in London and Madrid, to benefit AXIA. Gold: How would you evaluate the present state of the Spanish and Portuguese banking sectors? F.S.: Very challenging, in both cases, due to the huge levels of regulation imposed on the sector. But I also think that they are not comparable. The Spanish banks used a different model to tackle the 2011 crisis, as they segregated most of the legacy issues of the sector with the creation of a bad bank and subsequently recapitalized the banks, which allowed the sector to focus on the traditional banking business. In Portugal, the banks were recapitalized via CoCos but without the segregation of legacy assets. Now we are coming to the conclusion that the Spanish model was better. The different models followed were also a consequence of the different origins of the crisis. While in Spain the real estate crash was significant, in Portugal there was no real estate crash; the problem was rather one of no economic growth. Gold: In terms of the current economies of these two countries, are you optimistic that they can attract global investors? F.S.: Spain is at a more advanced stage. By definition it is a bigger economy, with bigger problems that attract investors interested in big transactions, focused on tackling big problems. We saw, for example, Blackstone buying a big portfolio from Caixa Catalunya and other big investors establishing local offices in Spain to be closer to the action. In

34 | GOLD | The Business Magazine of Cyprus

POLITICAL AND CULTURAL DIFFERENCES BETWEEN THE COUNTRIES OF THE EUROZONE LEAD TO ASYMMETRIC AND NONEFFICIENT DECISIONS Portugal, we are still at a very early stage. Although we have already seen some visible activity in real estate and in some financial assets, such as the sale of the insurance arms of BES and CGD and some sales of prime real estate in Lisbon, there are no local offices in Lisbon, with AXIA being a notable exception as a regional Investment Bank with strong ties to international institutional capital and a growing local presence. So, to conclude, yes I am optimistic but I know that the two countries are at different stages. Gold: How can AXIA help such investors once they have identified investment opportunities? F.S.: It is in AXIA’s DNA, as already proven in the company’s’ traditional markets of Cyprus and Greece. We are international when we face investors but we have an outstanding local knowledge in the countries we are based in. We know the key stakeholders, the key decision makers, how to engage in a process, how to execute transactions across sectors and across financial assets. To sum up, we are a local firm with a global reach.

Gold: Given the recent history of the Iberian region, are you confident that AXIA can achieve its aim of establishing itself as the Investment Banking firm of choice there? Where do you see its competitive advantage over others? F.S.: Definitely. That is why the project is so interesting. The added value of AXIA when compared with other investment banks is that, when our institutional local clients talk to AXIA, it is as if they are speaking directly with international investors who can deploy capital if they see an opportunity. And this is a unique platform on which to operate and pursue business in the sector. Gold: Do you believe that London is going to suffer as a financial centre due to the Brexit vote? F.S.: It will not be the same, by definition, as it has been over the last 20 years. But the endgame is still to be seen and it is very much in the hands of both British and European politicians. The financial sector – whether we mean hedge funds, Private Equity funds, insurance companies or subsidiaries of international banks – needs to understand and have more visibility of the conditions that will be applied in the future so that they can take a decision regarding relocating or not. Gold: What is your view of the future of the eurozone as a whole? F.S.: The eurozone is facing big challenges. In the long term, it has a major demographic issue that is related to the sustainability of the pensions system and its potential solution through migratory pressures. Another issue is related to the political and cultural differences between the countries of the eurozone, which leads to asymmetric and non-efficient decisions. Brexit is a prime example of the fragmentation that exists at the EU level.


| CONFERENCE |

presents

T

he 2nd International Compliance Forum, presented by Bank of Cyprus, took place on 14 October 2016, at the Hilton Park Hotel, Nicosia. Speakers from Cyprus and abroad presented the latest international institutional policy trends and challenges, as well as developments in servicing international investors, both High Net Worth Individuals or organizations, specifically relating to compliance. It brought together banks, accounting, tax and legal firms, administration services (fiduciary) firms, insurance firms, international corporations and the various regulators for a discussion and exchange of practical ideas on how to achieve effective compliance with European directives, international and national legislation. 3UHVHQWHG E\

Panel of speakers: Dr David Jenkins-Handy, Quality Assurance and Audit, Bertrand Richard, Spencer Stuart, Marios M. Skandalis, Bank of Cyprus, Nikita Kolomnin, ICSA Boardroom Apps, Dr Barbara Neiger, Neiger Succesful Compliance, Nicos Stavrou, PwC Cyprus

Nikita Kolomnin, ICSA Boardroom Apps & Theodoros Kringos, Infocredit

8QGHU WKH DXVSLFHV RI

Caroline Stavrou, PwC Cyprus

Bank of Cyprus, presenter of the Forum

Nikita Kolomnin, ICSA Boardroom Apps

Nicos Stavrou, PwC Cyprus

(l-r) Phil Ryan, International Compliance Association, Kyriakos Iordanou, ICPAC, Panayiotis Stavrou, CySEC, Stelios Georgakis, Central Bank of Cyprus, Andreas Michaelides, Limassol Bar Association, Theodoros Stavrou, MOKAS

Douglas Sloan, Deutsche Bank, USA, Samantha Sheen, Europe ACAMS, Gregory Dellas, ACAMS Cyprus Chapter

Marios M. Skandalis, Bank of Cyprus, Nicos Ioannou, Infocredit & Christoforos Livadiotis, Piraeus Bank

Marios M. Skandalis, Bank of Cyprus, Forum Chairman

Christodoulos Hadjichristodoulou & Zoe Vassiliou, Periferiaki Nicosia Cooperative Credit Society Ltd

Loukia Pasadorou, Kyriakos Kalogirou & Emily Panayiotou, Hellenic Technical

Polina Nesterenko, Niki Charilaou & Linkia Trust Ltd Irene Procopiou, Bank of Cyprus www.goldnews.com.cy | GOLD | 35


THINK

| COVER STORY |

36 | GOLD | The Business Magazine of Cyprus


ING The large-scale projects that are transforming Cyprus

t’s hard to believe that, less than four years after the ÄUHUJPHS IHURPUN JYPZPZ [OH[ KLHS[ Z\JO H THZZP]L blow to Cyprus and saw P[Z JVUZ[Y\J[PVU ZLJ[VY PU KPZHYYH` ZVTL VM [OL IPNNLZ[ HUK TVZ[ PTWYLZZP]L YLHS LZ[H[L WYVQLJ[Z L]LY developed on the island HYL UV^ H[ ]HYPV\Z Z[HNLZ VM WSHUUPUN >OH[»Z TVYL PU]LZ[VY PU[LYLZ[ SVJHS HUK MVYLPNU OHZ UL]LY ILLU NYLH[LY (S[OV\NO VUL TPNO[ L_WLJ[ 5PJVZPH to have the lion’s share of the new OPNO YPZL I\PSKPUNZ ¶ [OL >OP[L >HSSZ [V^LY I` -YLUJO HYJOP[LJ[ 1LHU 5V\]LS OHZ HSYLHK` YLJLP]LK PU[LYUH[PVUHS H^HYKZ ^OPSL [OL YLTHYRHISL 7YLZPKLU[ )\PSKPUN OHZ ILLU YLUHTLK >HYNHTPUN /8 HUK OHZ ILLU NH[OLYPUN HJJVSHKLZ V]LY [OL WHZ[ `LHY ¶ 3PTHZZVS 7HWOVZ HUK (`PH 5HWH HYL HJ[\HSS` ^OLYL TVZ[ VM UL^ S\_\Y` [V^LYZ HYL ILPUN I\PS[ HZ ^LSS HZ THYPUHZ HUK TVYL NVSM JV\YZLZ ;OL (ZZVJPH[PVU VM 3HYNL 0U]LZ[TLU[ 7YVQLJ[Z ^OVZL TLTILYZ YLWYLZLU[ WYVQLJ[Z ^P[O H [V[HS ]HS\L PU L_JLZZ VM Á IPSSPVU OHZ UV[LK H JVUZPKLYHISL PUJYLHZL PU PU]LZ[TLU[ PU[LYLZ[ V]LY [OL WHZ[ TVU[OZ 4VZ[ VM [OL WYVQLJ[Z HYL HSYLHK` \UKLY JVUZ[Y\J[PVU HUK PU [OL JHZL VM [OL UPUL [OH[ HYL ZOV^JHZLK VU [OL MVSSV^PUN WHNLZ HYL HSYLHK` ZLLPUN L_JLW[PVUHS PU[LYLZ[ MYVT I\`LYZ HUK PU]LZ[VYZ ;OL THQVY *`WYPV[ WYVWLY[` KL]LSVWLYZ HYL JSLHYS` IHJR PU I\ZPULZZ MVSSV^PUN [OL JYPZPZ VM HUK UV^ [OLPY MVJ\Z PZ VU JYLH[PUN I\PSKPUNZ HUK JVTWSL_LZ VM V\[Z[HUKPUN HYJOP[LJ[\YHS HUK HLZ[OL[PJ ]HS\L (U[VUPZ (U[VUPV\ VM .PV]HUP .YV\W ZWLHRZ MVY HSS ^OLU OL ZH`Z [OH[ [OLPY LTWOHZPZ PZ VU ¸[HYNL[PUN OPNO LUK JSPLU[Z ^OV HYL WYLWHYLK [V ZWLUK TVYL MVY IL[[LY X\HSP[` WYVWLY[PLZ ^P[O H \UPX\L KLZPNU HUK NVVK SVJH[PVU *`WY\Z UV^ OHZ [OL VWWVY[\UP[` [V JOHUNL SLHN\L HUK ILJVTL H KLZ[PUH[PVU MVY KLTHUKPUN /PNO 5L[ >VY[O 0UKP]PK\HSZ ¹ (U[VUPV\»Z ]PL^Z HYL LJOVLK I` ,]HUNLSPH ,SPHKV\ VM 7HÄSPH 7YVWLY[` +L]LSVWLYZ HUK ZOL HSZV WYHPZLZ [OL .V]LYUTLU[ ^OPJO ZOL ZH`Z OHZ [HRLU THU` WVZP[P]L steps to ensure that the real estate ZLJ[VY JVU[PU\LZ [V NYV^ HUK ZOL UV[LZ [OL Z\JJLZZ VM P[Z ¸UL^ [H_ PUJLU[P]LZ 7LYTHULU[ 9LZPKLUJ` ZJOLTL HUK *P[PaLUZOPW I` 0U]LZ[TLU[ WYVNYHTTL HSS VM ^OPJO OH]L OLSWLK JYLH[L H OPNO KLTHUK MYVT H NSVIHS H\KPLUJL ¹ :V ^L JHU L_WLJ[ [V ZLL JOHUNPUN ZR`SPULZ HJYVZZ [OL JV\U[Y` PU [OL JVTPUN `LHYZ HUK OVWLM\SS` [OL` ^PSS IYPUN *`WY\Z PU[V [OL Z[ JLU[\Y` ^P[OV\[ SVZPUN [OL \UPX\L JOHYHJ[LY VM [OL PZSHUK»Z WHZ[

I

www.goldnews.com.cy | GOLD | 37


| COVER STORY |

CYBARCO LIMITED

J

ust two years after construction began on The Oval, the largest commercial building in Cyprus, 93% of the luxury offices have been sold, with sales amounting to more than €55 million. The 35 luxury offices of The Oval, located just 100 metres away from Limassol’s seafront and standing sixteen floors high – at 75 metres, it will further enhance Limassol’s image as an international business centre – will be delivered to their owners in May 2017. Construction activities are making rapid progress, with the concrete works of the building structure now completed along with the metal framing on its curved exterior. Placement of the building’s exterior shell is underway along with work on the interior, both estimated to be completed by the end of the year.

38 | GOLD | The Business Magazine of Cyprus


93% OF THE

LUXURY OFFICES HAVE BEEN SOLD The building’s impressive exterior will come complete with an exclusive and highly innovative manned reception lobby, located on the ground floor as well as two underground parking levels with over 200 parking spaces. The Oval will also feature beautifully landscaped gardens, a cafeteria and a gym, elements which are further complemented by a range of services, such as property management, 24-hour security and controlled access to the building and the two underground parking areas. The Oval is yet another iconic creation of Cybarco, a member of Lanitis Group. Established in 1945, Cybarco has earned its reputation as a leading company in the construction and development of luxury property, delivering highquality products, including projects such as Akamas Bay Villas, Sea Gallery Villas and Limassol Marina – the first residential marina project of the island.

www.goldnews.com.cy | GOLD | 39


| COVER STORY |

CYBARCO LIMITED

N

Address: ;LMRYV\ (U[OPH :[YLL[ +HSP 0UK\Z[YPHS AVUL 5PJVZPH *`WY\Z Tel: Fax: e-mail: PUMV'J`IHYJV JVT Website: ^^^ J`IHYJV JVT

ow in its final stages of construction, Limassol Marina is a vibrant marina development in the heart of the city of Limassol. Fully operational since the summer of 2014, it combines elegant residences and a full-service marina with an enticing mix of restaurants and shops, to create a lifestyle uniquely shaped by living on the sea. All the completed luxury apartments at Limassol Marina have now been sold and more than 80% of its delivered villas, with beach-front or berth-side access, are also off the market. Their owners enjoy a range of on-site facilities with preferential rates for residents, including the beach, spa and fitness club, cultural centre and round-the-clock concierge services. Offering uninterrupted views of the marina and private berth ownership adjacent to their garden, the latest phase of exclusive villas on the sea within the development is also selling at a steady pace. Already established

40 | GOLD | The Business Magazine of Cyprus


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What has been the response to both The Oval and Limassol Marina from potential buyers? )V[O ;OL 6]HS HUK 3PTHZZVS 4HYPUH OH]L OHK H `LHY VM YLJVYK IYLHRPUN ZHSLZ ([ ;OL 6]HS J\YYLU[S` \UKLY JVUZ[Y\J[PVU HUK ZJOLK\SLK MVY KLSP]LY` PU 4H` VM HSS [OL S\_\Y` VɉJLZ OH]L ILLU ZVSK ^P[O ZHSLZ HTV\U[PUN [V V]LY Á T ([ 3PTHZZVS 4HYPUH HSS [OL JVTWSL[LK S\_\Y` HWHY[TLU[Z HYL ZVSK V\[ HSVUN ^P[O VM JVTWSL[LK ]PSSHZ How important are the two projects for the company and for Limassol? *`IHYJV OHZ YLTHPULK [Y\L [V P[Z Z[YH[LN` VM JHYLM\SS` JVTIPUPUN LZZLU[PHS LSLTLU[Z ¶ WYP]PSLNLK HUK KLZPYLK SVJH[PVUZ H JHYLM\S KLZPNU HWWYVHJO HUK X\HSP[` PU JVUZ[Y\J[PVU ¶ [V JYLH[L [OL YPNO[ WYVK\J[ H[ [OL YPNO[ WYPJL PU VYKLY [V TLL[ [OL L_WLJ[H[PVUZ VM V\Y WYVZWLJ[P]L JSPLU[Z ;OPZ HSVUN ^P[O H J\Z[VTLY VYPLU[LK HWWYVHJO ZVSPK MV\UKH[PVUZ HUK JVU[PU\HS NYV^[O PZ ^OH[ H[[YHJ[Z J\Z[VTLYZ MYVT HSS HYV\UK [OL NSVIL ^OV JOVVZL UV[ VUS` ;OL 6]HS HUK 3PTHZZVS 4HYPUH HZ WYVQLJ[Z I\[ HSZV *`IHYJV HZ H JVTWHU` [OH[ [OL` JHU W\[ [OLPY [Y\Z[ HUK JVUÄKLUJL PU ^OLU [HRPUN [OL KLJPZPVU [V PU]LZ[ PU JVTTLYJPHS VY YLZPKLU[PHS WYVWLY[` 7YVQLJ[Z SPRL ;OL 6]HS HUK 3PTHZZVS 4HYPUH LUOHUJL [OL PTHNL VM 3PTHZZVS HUK *`WY\Z HZ H ^OVSL ;OL` HYL WHY[ VM *`WY\Z» Z\JJLZZM\S YLJV]LY` Z[VY` VUL [OH[ OHZ L_JLLKLK PU[LYUH[PVUHS L_WLJ[H[PVUZ ^P[O H YL[\YU [V NYV^[O PU HUK VUL VM [OL OPNOLZ[ NYV^[O YH[LZ PU [OL ,< PU >L HYL JVUÄKLU[ [OH[ *`WY\Z PZ THRPUN Z[LHK` WYVNYLZZ PU YLZ[Y\J[\YPUN P[Z LJVUVT` HUK YLNHPUPUN PU]LZ[VY JVUÄKLUJL *V\WSLK ^P[O H SHUKTHYR WYVQLJ[ SPRL ;OL 6]HS HUK H TP_LK \ZL KL]LSVWTLU[ SPRL 3PTHZZVS 4HYPUH [OH[ OHZ OHK H WVZP[P]L PTWHJ[ VU SVJHS I\ZPULZZLZ V\Y [V\YPZT HUK [OL Z\YYV\UKPUN HYLH P[ Z[HUKZ [V YLHZVU [OH[ [OL` OH]L WSH`LK H RL` YVSL PU ZOHWPUN [OL ºUL^» 3PTHZZVS

as one of the most unique projects in Europe, and undoubtedly one of island’s success stories, Limassol Marina has attracted property buyers from over 18 nationalities and is now home to more than 260 yachts of up to 110m. A further cluster of apartments will be underway soon to meet the ongoing demand for a waterfront home at the Mediterranean’s most exciting new destination.

Do you believe the luxury Real Estate ZLJ[VY PZ IHJR VU [YHJR MVSSV^PUN Ä]L KPMÄJ\S[ `LHYZ& 3\_\Y` YLHS LZ[H[L PU *`WY\Z HZ PU HSS [OL NSVIHS THYRL[Z PZ [OL TVZ[ YLZPSPLU[ PU [OL KV^U[\YU ;OL S\_\Y` YLHS LZ[H[L THYRL[ OHZ ILLU [OL SLHZ[ HɈLJ[LK K\YPUN [OL JYPZPZ 3\_\Y` WYVQLJ[Z SPRL 3PTHZZVS 4HYPUH HUK ;OL 6]HS OH]L ILLU ZLSSPUN ^LSS MVY [OL WHZ[ [OYLL `LHYZ HUK IV[O OH]L ZLLU WYPJL PUJYLHZLZ

www.goldnews.com.cy | GOLD | 41


| COVER STORY |

CYFIELD GROUP OF COMPANIES

T

Address: *`Ă„LSK ;V^LY 3PTHZZVS (]LU\L 5PJVZPH *`WY\Z Tel: Fax: e-mail: PUMV'J`Ă„LSKNYV\W JVT Website: ^^^ J`Ă„LSKNYV\W JVT

he Arc-Ship, located on the Limassol coast, is the Cyfield Group’s first high-rise development. Its exceptional architectural design is already creating interest among discerning buyers looking for a residential property, which not only offers upgraded living experience but is also a sound investment. Inspired by the waves of the sea and the curves of a ship’s sails, the Arc-Ship combines a new idea, innovative design, breathtaking views and top quality standards of construction. It is a 17-level tower with 22 apartments, all with a view of the sunrise, the sunset and the sea in between. The project combines luxury living, privacy, high technology and a low carbon footprint. Located directly off Exit 23 on the Limassol-Nicosia motorway, it faces the Limassol seashore. Beaches, restaurants, hotels, shops, supermarkets, cinemas, clubs, churches, schools, and many other amenities make the Arc-Ship the ideal place to live. Its proximity to the city and access to local transport makes it easy to get to at

42 | GOLD | The Business Magazine of Cyprus


THE ARC-SHIP WILL ADD ITS DISTINCTIVE PRESENCE TO THE LIMASSOL COAST What has been the response to both projects from potential buyers? 6\Y JVTWHU` OHZ HS^H`Z ILLU JVTTP[[LK [V [OL ULLKZ VM *`WYPV[ YLZPKLU[Z I` KLZPNUPUN I\PSKPUNZ MVY [OLPY needs and Cypriot buyers have always LU[Y\Z[LK V\Y JVTWHU` ^P[O [OLPY OV\ZPUN ULLKZ HZ [OL` UV[ VUS` VI[HPU ^LSS KLZPNULK X\HSP[` WYVWLY[PLZ I\[ HSZV ÄUHUJPHS ZLJ\YP[` RUV^PUN [OH[ [OL WYVWLY[` [OL` W\YJOHZL ^PSS IL ÄUPZOLK VU [PTL HUK [OL` ^PSS IL PZZ\LK ^P[O H ºJSLHU» [P[SL KLLK 0U 3PTHZZVS ^L OH]L HSYLHK` THKL ZHSLZ [V *`WYPV[Z HUK [V MVYLPNULYZ ^OV HYL SVVRPUN MVY L_JLW[PVUHS WYVWLY[PLZ MYVT H [Y\Z[^VY[O` JVTWHU`

any time of the day or night. Apart from its great design, what makes the project stand out is its state-ofthe-art technology and specifications that include underfloor heating, air conditioning in all rooms, a fresh air circulation system, energy production with photovoltaic panels that provide low consumption and a class “A” energy certificate, safety and security systems, and smart technology features that allow the user to operate everything from their mobile devices. The Arc-Ship is a new lifestyle concept, where residents can enjoy the benefits of a boutique hotel with catering and cleaning services, and the use of the pool and deck on the first floor. The ground floor restaurant is open not only to the public but will provide meals and catering to the residents as part of the building’s special room service. At the rear, a landscaped garden with children’s playground has been specially designed for the use of the owners’ families. A

How important are the two projects for the company and for Limassol? ;OPZ PZ [OL SH[LZ[ [HSSLZ[ HUK TVZ[ HTIP[PV\Z WYVQLJ[ [OH[ V\Y JVTWHU` OHZ [V VɈLY YPNO[ UV^ 0[ JHYYPLZ [OL ]HZ[ L_WLYPLUJL V\Y .YV\W HUK PZ IHJRLK I` [OL L_WLY[PZL VM V\Y JYLH[P]L [LHT HUK TVZ[ PTWVY[HU[S` [OL ÄUHUJPHS YVI\Z[ULZZ VM V\Y .YV\W ;OL (YJ :OPW ^PSS HKK P[Z KPZ[PUJ[P]L WYLZLUJL [V [OL 3PTHZZVS JVHZ[ HUK ^PSS WYV]PKL \WNYHKLK SP]PUN MVY H ZTHSS HUK L_JS\ZP]L U\TILY VM YLZPKLU[Z Do you believe that the luxury Real Estate sector is back on track folSV^PUN Ä]L KPɉJ\S[ `LHYZ& ;OL YLHS LZ[H[L ZLJ[VY OHZ Z[HY[LK [V YLJV]LY ZSV^S` MYVT THU` `LHYZ VM ÄUHUJPHS \UJLY[HPU[` +\YPUN [OPZ [PTL WLVWSL»Z JVUJLW[ VM ¸S\_\Y`¹ OHZ HSZV JOHUNLK 3\_\Y` PZ UV SVUNLY KLÄULK PU [LYTZ VM SHYNL HYLHZ HUK L_WLUZP]L TH[LYPHSZ" P[ PZ H JVTIPUH[PVU VM TVYL PU[HUNPISL VɈLYPUNZ Z\JO HZ NYLH[ ]PL^Z [LJOUVSVN` HUK H SV^ JHYIVU MVV[WYPU[ HZ ^LSS HZ WYV_PTP[` [V [OL ^VYRWSHJL ULHYI` HTLUP[PLZ HUK VM JV\YZL H WYVWLY[` ^P[O H ]HS\L [OH[ ^PSS HWWYLJPH[L PU [OL M\[\YL HUK ^PSS OH]L ZV\UK YLZHSL WYVZWLJ[Z

private garage and storerooms for the use of the tenants have been placed in the basement, with direct and secure access to the apartments. The project is due for completion before the end of 2017. www.goldnews.com.cy | GOLD | 43


| COVER STORY |

D. ZAVOS GROUP/THE LEPTOS GROUP

L D. ZAVOS GROUP Address: .YP]HZ +PNOLUPZ (]LU\L AH]VZ 2YPLS *V\Y[ 3PTHZZVS *`WY\Z Tel: Fax: e-mail: PUMV'aH]VZ JVT Website: ^^^ aH]VZ JVT THE LEPTOS GROUP Address: ;OL 3LW[VZ /V\ZL (WVZ[VSV\ 7H]SV\ (]L 7 6 )V_ 7HWOVZ Cyprus Tel: Fax: e-mail: PUMV'3LW[VZ,Z[H[LZ JVT Website: ^^^ 3LW[VZ,Z[H[LZ JVT

imassol Del Mar is an exclusive development located in the heart of the Limassol coastal area. Boasting superb beach views, this stunning new development comprises luxury residences, shops, bars and restaurants, and state-of-the-art facilities, including a spa, gym and clubhouse, as well as an outdoor and indoor swimming pool. Its high-specs residences, all with unobstructed sea views, enjoy common area facilities and five star services, as well as after-sales and property management support. Signed by developers and architects of the highest esteem globally, Limassol Del Mar is a unique option for residence and investment opportunity. This luxurious project also includes the development of a high-end shopping avenue of European standards, utilising the ground floor of the buildings, which is expected to become the ultimate shopping destination for local and foreign visitors. The project’s premises will also have the privilege to host a renowned restaurant and cafÊ which will become the new hot spot in town.

44 | GOLD | The Business Magazine of Cyprus


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What has been the response to the project from potential buyers? Pantelis Leptos: ;OL YLHS LZ[H[L HUK JVUZ[Y\J[PVU ZLJ[VYZ OH]L RLW[ YLJVYKPUN NYV^[O YH[LZ PU [OPZ J\YYLU[ `LHY HUK [OPZ NYV^[O PUKLLK JVUÄYTZ [OL ZLJ[VY»Z K`UHTPJ HZ ^LSS HZ P[Z WYVZWLJ[Z 0U [OPZ WVZP[P]L LU]PYVUTLU[ [OL YLZWVUZL MYVT WV[LU[PHS I\`LYZ OHZ ILLU OPNO ;OL THYRL[ OHZ LTIYHJLK [OL WYVQLJ[ HUK [OH[»Z WYV]LU I` [OL YLMLYYHS SLHKZ ^L NL[ MYVT [OL I\ZPULZZ JVTT\UP[` :HSLZ VM [OL ÄYZ[ WOHZL OH]L HSYLHK` Z\YWHZZLK ^OPJO YLJVYKZ HU \UWYLJLKLU[LK TVTLU[\T MVY 3PTHZZVS +LS 4HY ;OPZ ZPNUPÄJHU[ WLYJLU[HNL PU WYL ZHSLZ JVUZ[P[\[LZ H THYRL[ YLJVYK [HRPUN PU[V JVUZPKLYH[PVU [OL ZOVY[ WLYPVK VM [PTL ^P[OPU HJJVTWSPZOLK Michalis Zavos: This positive response is not only the result VM [OL YPZPUN KLTHUK MVY YLHS LZ[H[L PU *`WY\Z 0[ PZ K\L THPUS` [V [OL WYVÄSL HUK JOHYHJ[LY VM [OL WYVQLJ[ ^OPJO THRLZ 3PTHZZVS +LS 4HY UV[ VUS` H \UPX\L WSHJL PU ^OPJO [V OH]L H OVTL I\[ HSZV H WV^LYM\S PU]LZ[TLU[ VWWVY[\UP[` HZ ^L HYL Z[PSS VU WYL JVUZ[Y\J[PVU WYPJLZ HUK ]LY` JVTWL[P[P]L ZPUJL V\Y HWHY[TLU[ SH`V\[Z HYL HTVUN [OL IPNNLZ[ PU [OL THYRL[ ;OLYL HYL U\TLYV\Z HK]HU[HNLZ [OH[ KPɈLYLU[PH[L 3PTHZZVS +LS 4HY MYVT V[OLY WYVQLJ[Z Z\JO HZ P[Z ZLSM Z\ɉJPLUJ` P[Z Z[YVUN HM[LY ZHSLZ HUK THUHNLTLU[ ZLY]PJLZ P[Z SVJH[PVU L_JS\ZP]P[` HYJOP[LJ[\YL ]PL^ HWHY[TLU[ ZPaLZ PU[LYPVYZ HUK TVYL

LIMASSOL DEL MAR MEANS ECONOMIC ADVANCEMENT AND FINANCIAL PROSPERITY FOR CYPRUS

How important is the project for the company and for Limassol? Pantelis Leptos: ;OPZ WYVQLJ[ PZ L_[YLTLS` PTWVY[HU[ MVY V\Y JVTWHU` MVY 3PTHZZVS HUK MVY [OL ^OVSL PZSHUK 3PTHZZVS +LS 4HY PZ UV[ Q\Z[ H S\_\YPV\Z KL]LSVWTLU[ [OH[ PZ IV\UK [V ILJVTL VUL VM [OL THPU SHUKTHYRZ VM 3PTHZZVS 0[ PZ HSZV H WYVQLJ[ [OH[ THUPMLZ[Z [OL HYJOP[LJ[\YHS HUK JVUZ[Y\J[PVU L_WLY[PZL VM [OL JVTWHU` HUK P[Z WHY[ULYZ ^OPJO [HRLZ WYPKL PU JVUZPKLYPUN P[ [V IL VUL VM P[Z TVZ[ THQVY HJOPL]LTLU[Z -VY 3PTHZZVS [OPZ WYVQLJ[ [YHUZSH[LZ HZ H KL]LSVWTLU[ VM HYJOP[LJ[\YHS VYPNPUHSP[` HUK TVKLYU KLZPNU ^OPJO KPZWSH`Z H JVZTVWVSP[HU WLYZVUHSP[`" P[ ^PSS IL [OL [V^U»Z YLHS QL^LS Michalis Zavos: 0[»Z PTWVY[HU[ [V UV[L [OH[ [OPZ PU]LZ[TLU[ PZ ILPUN JHYYPLK V\[ ZVSLS` I` *`WYPV[ JVTWHUPLZ HUK M\UKZ ;OPZ UL^ KL]LSVWTLU[ UV[ VUS` HPTZ [V [YHUZMVYT [OL 3PTHZZVS ZLHMYVU[ I\[ THPUS` [V IVVZ[ [OL LJVUVT` [OYV\NO PU]LZ[TLU[ HUK LTWSV`TLU[ =LY` ZVVU ^OLU JVUZ[Y\J[PVU ^VYR JVTTLUJLZ ^L ^PSS LTWSV` O\UKYLKZ VM WLVWSL KPYLJ[S` HUK PUKPYLJ[S` 6[OLY [OHU [OH[ [OL WYVQLJ[ ^PSS IL I\PS[ VU H WSV[ VM ZX\HYL TL[YLZ VM ^OPJO ^PSS IL VWLU ZWHJLZ W\ISPJ WHYRPUN WSHJLZ HUK NYLLU HYLHZ ;OH[ PZ VUL VM [OL IPNNLZ[ HK]HU[HNLZ VM I\PSKPUN OPNO YPZL -VY [OL WLVWSL VM 3PTHZZVS 3PTHZZVS +LS 4HY ^PSS IL H TLL[PUN WSHJL MVY YLSH_H[PVU H[ H YLUV^ULK YLZ[H\YHU[ HUK JHMt ;OYV\NO 3PTHZZVS +LS 4HY [OL [V^U ^PSS VI[HPU P[Z V^U OPNO LUK ZOVWWPUN H]LU\L VM ,\YVWLHU Z[HUKHYKZ ^OPJO PZ L_WLJ[LK [V ILJVTL [OL \S[PTH[L ZOVWWPUN KLZ[PUH[PVU MVY SVJHS HUK MVYLPNU ]PZP[VYZ (KKP[PVUHSS` 3PTHZZVS +LS 4HY TLHUZ LJVUVTPJ HK]HUJLTLU[ HUK ÄUHUJPHS WYVZWLYP[` MVY *`WY\Z UV[ VUS` [OYV\NO QVI VWLUPUNZ I\[ HSZV [OYV\NO MVYLPNU PU]LZ[TLU[Z Do you believe the luxury Real Estate sector is back on [YHJR MVSSV^PUN Ä]L KPɉJ\S[ `LHYZ& Michalis Zavos: @LZ 7YVWLY[` PZ Z[PSS H MH]V\YLK PU]LZ[TLU[ HUK H [Y\L OLKNL HNHPUZ[ PUÃ…H[PVU ;OPZ PZ ^O` TVYL OPNO X\HSP[` ZPNUH[\YL WYVQLJ[Z HYL ILPUN JVUZ[Y\J[LK ;OPZ PUJYLHZLK PU[LYLZ[ PU S\_\Y` YLHS LZ[H[L LZWLJPHSS` PU 3PTHZZVS PU]VS]LZ TVZ[S` MVYLPNU I\`LYZ ZVTL[OPUN [OH[ PU ÄUHUJPHS [LYTZ PZ TVYL PTWVY[HU[ ZPUJL P[ PU]VS]LZ ¸UL^ TVUL`¹ JVTPUN MYVT HIYVHK HUK ILPUN PUQLJ[LK PU [OL *`WYPV[ LJVUVT` www.goldnews.com.cy | GOLD | 45


| COVER STORY |

GIOVANI GROUP

S

Address: 7YV[HYHZ *HWL .YLJV (]LU\L 7HYHSPTUP 7 6 )V_ *`WY\Z Tel: e-mail: ZHSLZ'NPV]HUP JVT J` Website: ^^^ NPV]HUP JVT J`

un City Spa Resort & Residences, a Giovani Group development, is an ambitious â‚Ź50 million project, which will contribute positively to the cosmopolitan resort of Ayia Napa, where it is located adjacent to the Ayia Napa Marina. Sun City expects the relevant planning permission and licence to be issued by December 2016, when there will be an official presentation of the project, which is estimated to be ready by the summer of 2018, approximately 18 months after the start of construction work. Sun City Spa Resort and Residences will feature 200 rooms, a luxury spa and fitness centre, 24-hour room service, an indoor and outdoor pool, water activities and fine dining at well-known international restaurants. It will also include a residential development consisting of 44 luxury apartments and 11 houses on the water. It is estimated that Sun City, which extends over an area of 23,000 square metres, will employ 140 permanent staff, while many others will work during the construction phase. The project is one of the largest private investments in the tourism industry in the Famagusta District

46 | GOLD | The Business Magazine of Cyprus


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What has been the response to the project from potential buyers? )\`LYZ HZ ^LSS HZ [OL NLULYHS W\ISPJ OH]L ILLU ]LY` L_JP[LK ZPUJL [OL KH` ^L HUUV\UJLK [OL WYVQLJ[ :\U *P[` :WH 9LZVY[ HUK 9LZPKLUJLZ PZ [OL ÄYZ[ JVTIPULK KL]LSVWTLU[ PU :V\[O ,HZ[ *`WY\Z ^OPJO JVYYLZWVUKZ [V OPNO Z[HUKHYKZ VM SP]PUN HUK S\_\Y` OV[LS ZLY]PJLZ 0U HKKP[PVU MVY TVZ[ JP[PaLUZOPW PU]LZ[VYZ :\U *P[` PZ WYVIHIS` one of the best options available on the PZSHUK HZ P[ WYV]PKLZ H ZV\UK PU]LZ[TLU[ ^P[O H U\TILY VM ILULÄ[Z How important is the project for the company and for the Famagusta District? :\U *P[` ^HZ [OL YLZ\S[ VM THU` `LHYZ VM OHYK ^VYR HUK [OL \S[PTH[L ]PZPVU VM V\Y MV\UKLY *OYPZ[HRPZ .PV]HUPZ 6UL VM [OL .PV]HUP .YV\W»Z NVHSZ OHZ HS^H`Z ILLU [V LU[LY [OL OVZWP[HSP[` PUK\Z[Y` I\[ [OL THUHNLTLU[»Z HTIP[PVU ^HZ [V KV ZV ^P[O H WYVQLJ[ [OH[ Z[HUKZ HWHY[ MYVT [OL YLZ[ >L Z[YVUNS` ILSPL]L [OH[ :\U *P[` ^PSS ZL[ UL^ Z[HUKHYKZ PU [OL HYLH ( SHYNL U\TILY VM [V\Y VWLYH[VYZ OH]L HSYLHK` L_WYLZZLK H ZPUJLYL PU[LYLZ[ PU ZPNUPUN HNYLLTLU[Z ^P[O [OPZ ÅHNZOPW OV[LS 4VZ[ VM [OLT HYL [Y\S` SVVRPUN MVY^HYK [V HJJVTTVKH[PUN [OLPY N\LZ[Z VU [OLZL NLU\PULS` Ä]L Z[HY WYLTPZLZ 0U HKKP[PVU ^L HSS RUV^ [OH[ [OL -HTHN\Z[H +PZ[YPJ[ SHJRZ X\HSP[` HUK S\_\Y` ZLY]PJLZ -VY THU` `LHYZ [OL MVJ\Z OHZ ILLU VU [OL THZZ [V\YPZT THYRL[ 5V^ H UL^ ^H]L PZ LTLYNPUN HZ THU` I\ZPULZZLZ Z[YP]L [V KPɈLYLU[PH[L I` VɈLYPUN TVYL YLÄULK WYVK\J[Z HUK ZLY]PJLZ HUK [HYNL[PUN [OL \WWLY LUK VM [OL THYRL[ Do you believe the luxury Real Estate ZLJ[VY PZ IHJR VU [YHJR MVSSV^PUN Ä]L KPɉJ\S[ `LHYZ& ;OL 9LHS ,Z[H[L THYRL[ PZ IHJR MVY NVVK ;OL PUK\Z[Y` OHZ ILLU PTWYV]LK HSS [OL ZWLJ\SH[VYZ OH]L ILLU ^PWLK V\[ HUK [OL YLTHPUPUN RL` WSH`LYZ HYL UV^ WVZP[PVUPUN *`WY\Z VU [OL NSVIHS THW VM PU]LZ[TLU[Z ;OL *P[PaLUZOPW HUK 9LZPKLUJL ZJOLTLZ HUK PUJLU[P]LZ VɈLYLK I` [OL .V]LYUTLU[ OH]L [Y\S` HZZPZ[LK [OL WYVWLY[` THYRL[ [V YLIV\UK HUK ZOV^U I\ZPULZZ WLVWSL H UL^ WH[O 6\Y ZJVWL PZ UV^ JVTWSL[LS` KPɈLYLU[ HUK [OL LTWOHZPZ PZ VU [HYNL[PUN OPNO LUK JSPLU[Z ^OV HYL WYLWHYLK [V ZWLUK TVYL MVY IL[[LY X\HSP[` WYVWLY[PLZ ^P[O H \UPX\L KLZPNU HUK NVVK SVJH[PVU 0 ^V\SK ZH` [OH[ ^L HYL H[ H [PWWPUN WVPU[ HZ *`WY\Z UV^ OHZ [OL VWWVY[\UP[` [V JOHUNL SLHN\L HUK ILJVTL H KLZ[PUH[PVU MVY KLTHUKPUN /PNO 5L[ >VY[O 0UKP]PK\HSZ

www.goldnews.com.cy | GOLD | 47


| COVER STORY |

M.M. MAKRONISOS MARINA LTD

T

Address: 2YVUV\ :[ 7LYH *OVYPV 5PZV\ 7 6 )V_ 5PJVZPH *`WY\Z Tel: Fax: e-mail: JHYHPYJV'JHYHTVUKHUP JVT J` Website: ^^^ JHYHTVUKHUP JVT J`

he â‚Ź220 million Ayia Napa Marina development is a mixed-use residential and commercial project, scheduled to be completed in 2021. It will boast 190 spacious and deluxe apartments in two iconic, twisting towers, 29 luxury villas, a 600 berth full-service marina and boatyard and a collection of elegant retail, waterfront dining and premium lifestyle amenities for residents and visitors. Rising high above the marina are two 100-metre towers, visible from both land and sea. The luxury apartments in them range from a mix of 1, 2, 3 or 4-bedroom residences to full-floor penthouse apartments on the top two levels of each tower, featuring 360-degree panoramic views. Additionally, eleven fully-detached 3, 4 and 5-bedroom beach villas will be located at the western end of the peninsula, while twelve villas will be built on a man-made island inside the marina area and six additional villas located on the peninsula directly behind the beach villas. The marina hosts approximately 600 yachts in wet and dry slips. Wet

48 | GOLD | The Business Magazine of Cyprus


:;(=96: *(9(465+(50 *,6 4 4 4(29650:6: 4(905( 3;+

What has been the response to Ayia Napa Marina from potential buyers? >L»]L OHK H NYLH[ YLZWVUZL MYVT I\`LYZ PU *`WY\Z HUK [OL PU[LYUH[PVUHS THYRL[ :HSLZ Z[HY[LK H TVU[O HNV HUK ZV MHY I\`LYZ MYVT *`WY\Z 3LIHUVU HUK ,N`W[ OH]L W\YJOHZLK YLZPKLUJLZ PU VUL VM [OL [^V PJVUPJ [V^LYZ VM [OL WYVQLJ[

slips can accommodate yachts up to 60 metres in length and up to 80 metres by advance arrangement, while a dry stack storage facility is available for boats up to 10m in length. For the dry stack facility, a premium valet service is provided with complete provisioning and pre-launching of boats offering a hassle-free experience. The unique aspect of the marina is the finger style berthing for yachts of 30 metres or less while floating docks assure comfortable access in all conditions. The marina basin has depths of 3.5 to 6.5 metres to accommodate the deep drafts of sailing boats and superyachts. The specially engineered wave absorbing breakwater minimizes harbor chop and storm wave agitation, assuring safe and comfortable berthing at all times. Amenities include conveniently located comfort stations with showers and WC, Internet access, a dedicated crew lounge, a yacht club and beach club. The adjacent boatyard offers an extensive range of high-level professional marine services such as hauling, launching, and boat maintenance operations. Pyare Village is the commercial centre and hub of the marina. Set in a semi-circular basin reminiscent of an island harbour, it has a scenic waterfront with a pedestrian promenade. Shops, cafés, restaurants and recreational activities create a bustling harbour-side atmosphere and make it the

How important is the project for the company and for Ayia Napa? >L JVUZPKLY (`PH 5HWH 4HYPUH VUL VM [OL NYLH[LZ[ WYVQLJ[Z PU *`WY\Z HUK [OL ,HZ[LYU 4LKP[LYYHULHU PU NLULYHS -VY V\Y JVTWHU` [OPZ WYVQLJ[ PZ VM [OL OPNOLZ[ PTWVY[HUJL HZ P[ OHZ ILLU [OL KYLHT HUK ]PZPVU VM T` MH[OLY .LYHZPTVZ *HYHTVUKHUPZ ^OV HZ H Z\JJLZZM\S I\ZPULZZTHU HUK WPVULLY PU OPZ ÄLSK Z[HY[LK OPZ I\ZPULZZ PU -HTHN\Z[H IHJR PU ;OPZ ]PZPVU OHZ ILLU [V M\SÄS [OL L]PKLU[ NHW PU [OL YLNPVU MVY H TVKLYU S\_\Y` THYPUH KL]LSVWTLU[ >L OH]L ^VYRLK LUKSLZZS` MVY THU` `LHYZ [V KLZPNU HUK WYLZLU[ H KL]LSVWTLU[ [OH[ ^PSS UV[ VUS` VɈLY L_JS\ZP]L WYVWLY[PLZ L_JLSSLU[ MHJPSP[PLZ HUK ZLY]PJLZ I\[ TVZ[ PTWVY[HU[S` YLZWLJ[ [OL LU]PYVUTLU[ HUK LUOHUJL [OL UH[\YHS ILH\[` VM [OL HYLH >L HYL ZL[[PUN L_JLW[PVUHS Z[HUKHYKZ [V H[[YHJ[ OPNO X\HSP[` [V\YPZT HUK HSZV JYLH[L HU VWWVY[\UP[` MVY H UL^ ILNPUUPUN MVY [OL ^PKLY HYLH HUK *`WY\Z HZ H ^OVSL >L [Y\Z[ [OH[ V\Y PU]LZ[TLU[ ^PSS YLZ\S[ PU [OL YL]P[HSPZH[PVU VM (`PH 5HWH [YHUZMVYTPUN P[ PU[V [OL QL^LS VM [OL ,HZ[LYU 4LKP[LYYHULHU Do you believe the luxury Real Estate ZLJ[VY PZ IHJR VU [YHJR MVSSV^PUN Ä]L KPɉJ\S[ `LHYZ& @LZ P[ PZ L]PKLU[ [OH[ *`WY\Z PZ YLJV]LYPUN MYVT [OL JYPZPZ [O\Z [OL PU]LZ[VYZ» JVUÄKLUJL PU V\Y LJVUVT` >L Z[YVUNS` believe in the potential of the real estate ZLJ[VY HUK JVUZPKLY WYVQLJ[Z Z\JO (`PH 5HWH 4HYPUH H NYLH[ VWWVY[\UP[` MVY [OL LUOHUJLTLU[ VM *`WY\Z» [V\YPZT WYVK\J[ HUK [OL M\Y[OLY KL]LSVWTLU[ VM V\Y LJVUVT`

heart of entertainment for shopping, dining, and leisure. Its curved and repetitious framework appropriately gives the impression of a ship’s hull. www.goldnews.com.cy | GOLD | 49


| COVER STORY |

MELCO INTERNATIONAL DEVELOPMENT LTD, HARD ROCK INTERNATIONAL AND CYPRUS PHASOURI LTD

I

n October 2016, the Ministry of Energy, Commerce, Industry & Tourism approved the bid by Melco International Development Ltd. (Melco), Hard Rock International and Cyprus Phasouri Ltd. for a Cyprus gaming

licence. Following the evaluation of the consortium’s application, the Government decided that it satisfies the technical requirements of the second phase of the tender process for the granting of a 30-year gaming licence to operate a single integrated casino resort in Cyprus, plus the exclusive rights in the country for 15 years, as well as the right to establish a satellite casino and three slot-machine parlours elsewhere in the country. The licence obliges the consortium to build a luxury 500-room hotel and install 1,000 gaming machines and 100 gaming tables in the casino. The Melco-Hard Rock-Cyprus Phasouri consortium will now apply for a construction permit in the Limassol district. Construction of the casino resort is expected to start in the first quarter of 2017. The project is expected to bring capital investment of over €500 million to the country, whilst other tangible benefits include the creation of thousands of jobs and the enrichment of the country’s tourism product. In a statement, the Consortium has welcomed the decision and said that it looks forward to collaborating with the Government to meet the set targets and establish a world-class integrated casino resort that will be highly beneficial to the economy and tourism of Cyprus. 50 | GOLD | The Business Magazine of Cyprus


www.goldnews.com.cy | GOLD | 51


| COVER STORY |

PAFILIA PROPERTY DEVELOPERS

O

NE, the tallest residential seafront tower in Europe, is situated in the highly sought-after seaside city of Limassol, in an exclusive area on 28th October Street. Recently honoured at the European Property Awards 2016-2017 with a Five Star award for Residential High-Rise Development in Cyprus, ONE enjoys pride of place in one of the most desirable parts of the city, with the gorgeous blue of the Mediterranean Sea on its doorstep, surrounded by the international business district, a lively bar and restaurant scene as well as many boutique shops. With 37 storeys of design intelligence, the pioneering landmark, which is twice the height of any other building in Cyprus, is being realised by a team of internationally renowned experts including Atkins, WKK and HBA. The development offers 83 ultra-luxurious residences, each with uninterrupted sea views. Within the walls of ONE, residents have access to exceptional private amenities, facilities and services. The pool, spa, bar with panoramic views, fitness centre and restaurant, all contribute to the feeling that ONE is a world unto itself. The ultimate iconic address. 52 | GOLD | The Business Magazine of Cyprus


,=(5.,30( ,30(+6< ,?,*<;0=, +09,*;69 7(-030( 7967,9;@ +,=,367,9:

What has been the response to ONE from potential buyers? :PUJL HUUV\UJPUN [OL WYVQLJ[ H[ [OL ILNPUUPUN VM [OPZ `LHY ^L OH]L LUQV`LK H YLTHYRHISL YLZWVUZL MYVT WV[LU[PHS I\`LYZ MYVT HYV\UK [OL ^VYSK HUK 0 HT WYV\K [V ZH` [OH[ 65, PZ UV^ [OL MHZ[LZ[ ZLSSPUN WYVQLJ[ PU *`WY\Z ^P[O V]LY ZVSK ^P[OPU [OL ÄYZ[ TVU[OZ ¶ L_JLLKPUN HSS L_WLJ[H[PVUZ HUK ZLJ\YPUN [OL Z\JJLZZ VM [OL WYVQLJ[

ONE IS NOW THE FASTEST SELLING PROJECT IN CYPRUS

How important is this project for the company and for Limassol? 65, PZ H OPNOS` PTWVY[HU[ HUK L_JP[PUN WYVQLJ[ MVY \Z MVY 3PTHZZVS HUK MVY *`WY\Z PU NLULYHS [Y\S` JOHUNPUN [OL S\_\Y` YLHS LZ[H[L SHUKZJHWL VU [OL PZSHUK ^OPSL YHPZPUN [OL IHY ^OLU P[ JVTLZ [V HYJOP[LJ[\YL HUK KLZPNU PU [OL YLNPVU HZ H ^OVSL 65, ^PSS IL H YLHS ILUJOTHYR MVY 3PTHZZVS ÄYTS` WSHJPUN [OL JP[` VU [OL PU[LYUH[PVUHS THW MVY WYVWLY[` I\`LYZ HUK H[[YHJ[PUN TPSSPVUZ PU MVYLPNU JHWP[HS ^OPSZ[ WVZP[P]LS` JVU[YPI\[PUN [V [OL SVJHS LJVUVT`

www.goldnews.com.cy | GOLD | 53


| COVER STORY |

PAFILIA PROPERTY DEVELOPERS

S

Address: ( 7HĂ„SPH /V\ZL 5PJVKLTV\ 4`SVUH :[YLL[ 7 6 )V_ 7HWOVZ *`WY\Z Tel: Fax: e-mail: PUMV'WHĂ„SPH JVT Website: ^^^ WHĂ„SPH JVT

et in a beautiful rural area amongst rolling hills, an extraordinary new village is coming to life. Minthis Hills, a golf and leisure resort situated in a wine region just outside of Paphos, perfectly combines nature, mesmerising views and a highly sophisticated lifestyle. In collaboration with Atkins, the acclaimed master planners and the celebrated Architecture Firm, Woods Bagot, Pafilia has succeeded in creating a retreat where a community of like-minded individuals gather to enjoy and relax in the open space, taking the meaning of contemporary, comfortable and elegant modern day living to a whole new level. Situated on a protected Natura 2000 site, which spans five million square metres, with a mere 2% building density, the resort offers tranquility with unparalleled mountain and sea views. The resort has exceptional facilities including an 18-hole championship golf course, that encircles a twelfth century monastery, an exquisite clubhouse and restaurant – open

54 | GOLD | The Business Magazine of Cyprus


MINTHIS HILLS IS OUR FLAGSHIP RESIDENTIAL GOLF RESORT ,=(5.,30( ,30(+6< ,?,*<;0=, +09,*;69 7(-030( 7967,9;@ +,=,367,9:

THE REAL ESTATE SECTOR IN CYPRUS IS PERFORMING MUCH BETTER THAN EXPECTED

to the public – nature trails and the first phase of a residential neighbourhood. Upon completion of the second phase, Minthis Hills will also feature a wellness centre, a village square with a range of shops and boutiques, an equestrian centre, a tennis academy and over 500 residences. The bespoke residences, which integrate into the landscape and exude uninhibited elegance, inspired by traditional Mediterranean architecture, are characterised by open spaces, water features and private courtyards. Reflecting the best of Cypriot character and style, they incorporate traditional stone and rich wooden detail. Several design styles are available, each customized to the purchaser’s lifestyle requirements.

What has been the response to Minthis Hills from potential buyers? ;OLYL OHZ ILLU H Z[YVUN HUK LU[O\ZPHZ[PJ YLZWVUZL MYVT I\`LYZ HSS V]LY [OL ^VYSK ;OL ÄYZ[ WOHZL VM S\_\Y` ILZWVRL YLZPKLUJLZ HUK [OL IV\[PX\L ZPUNSL Z[VY` ]PSSHZ VU ;OL 7SH[LH\ OH]L ILLU ZVSK [V V]LY KPɈLYLU[ UH[PVUHSP[PLZ WYV]PUN [OH[ [OL YLZVY[ OHZ H [Y\S` NSVIHS HWWLHS ;OL JVTIPUH[PVU VM PUJYLKPISL [PTLSLZZ HYJOP[LJ[\YL ^P[OPU HU L_[YHVYKPUHY` UH[\YHS ZL[[PUN JHW[\YLZ [OL OLHY[ VM HU`VUL [OH[ ]PZP[Z ;OL ZLJVUK WOHZL VM YLZPKLUJLZ HSVUN ^P[O [OL ]PSSHNL ZX\HYL ^PSS M\Y[OLY LUOHUJL [OL YL[YLH[ HUK WYV]PKL L_JLW[PVUHS SPMLZ[`SL MHJPSP[PLZ ZV ^L LU]PZHNL [OH[ [OL` ^PSS OH]L H ZPTPSHY PM UV[ IL[[LY YLZWVUZL How important is this project for the company and for Paphos? 4PU[OPZ /PSSZ PZ V\Y ÅHNZOPW YLZPKLU[PHS NVSM YLZVY[ HUK PZ \UPX\L UV[ Q\Z[ [V 7HWOVZ I\[ HSZV [V *`WY\Z 0[ PZ WSHJPUN [OL PZSHUK VU [OL ^VYSK THW MVY YLÄULK SP]PUN HUK SLPZ\YL HUK PZ VUL VM [OL TVZ[ L_JS\ZP]L YLZVY[Z PU [OL ,HZ[LYU 4LKP[LYYHULHU VɈLYPUN HU \UTH[JOLK L_WLYPLUJL MVY IV[O ]PZP[VYZ HUK OVTLV^ULYZ Do you believe the luxury Real Estate sector is back on track following ZVTL KPɉJ\S[ `LHYZ& ;OL 9LHS ,Z[H[L ZLJ[VY PU *`WY\Z PZ WLYMVYTPUN T\JO IL[[LY [OHU L_WLJ[LK HUK PZ X\PJRS` V]LYJVTPUN HU` VIZ[HJSLZ IYV\NO[ VU I` [OL IHURPUN HUK ÄZJHS JYPZPZ `LHYZ HNV ;OL .V]LYUTLU[ OHZ [HRLU THU` WVZP[P]L Z[LWZ [V LUZ\YL [OH[ [OL 9LHS ,Z[H[L ZLJ[VY HUK LJVUVT` JVU[PU\LZ [V NYV^ ^P[O UL^ [H_ PUJLU[P]LZ [OL 7LYTHULU[ 9LZPKLUJ` ZJOLTL HUK *P[PaLUZOPW I` 0U]LZ[TLU[ WYVNYHTTL HSS VM ^OPJO OH]L OLSWLK JYLH[L H OPNO KLTHUK MYVT H NSVIHS H\KPLUJL 4VYLV]LY [OL PTWSLTLU[H[PVU VM UL^ PUMYHZ[Y\J[\YL WYVQLJ[Z [OL PUJYLHZL PU [V\YPZT SHYNL PU]LZ[TLU[ M\UKZ PUJLU[P]LZ MVY PU[LYUH[PVUHS JVTWHUPLZ HUK WVZP[P]L KL]LSVWTLU[Z PU [OL LULYN` ZLJ[VY HYL HSS ZPNUZ VM H Z[YVUN HUK WVZP[P]L YLJV]LY` HUK [OH[ [OL PZSHUK OHZ ÄYTS` YLNHPULK PU]LZ[VY JVUÄKLUJL

www.goldnews.com.cy | GOLD | 55


| ACCOUNTING |

“I

t was a funny day…” says Michael Izza, in what could be the first line of a contemporary novel. In fact, he is reminiscing about June 24, 2016, the day after a majority of British voters expressed their desire to leave the European Union. In fact, there was nothing funny about it at all, if the word is understood to mean humorous. But it was certainly odd. “I’d gone home from London on June 23 with a copy of the Evening Standard, the front page headline of which was ‘Remain ahead in Final Poll’ and, like many people, I was fairly sure that the result would be in favour of Britain remaining in the EU, even though it was expected to be close, with the winning side on maybe 53% or 54%,” he tells me. “The next day was my son’s graduation so we had to get up early and my wife woke me up at 5.30 to tell me ‘We’re out!’, at which point I sat bolt upright in bed and I’ve been bolt upright ever since!” He recalls how, at his son’s university later that day, he became aware of a real sense of anger that the vote had been swung by the older generation and that young people would be the ones to suffer in the long term because of it. “Of all the young people I spoke to at the graduation, every single one of them had voted to remain. They were asking, ‘What have you done?’ There was a clear age break as far as how the vote went. And I think we’ve been trying to work out the implications of it ever since.” Precisely how the British exit (“Brexit”) from the EU will materialise and, indeed, when, is still not much clearer, especially following the recent High Court ruling that Parliament, not the Government, will be responsible for taking the UK out of the European Union. But when it happens, how might Brexit affect the accounting profession? “When we balloted our members before the referendum, 80% of them were broadly in favour of staying in the European Union,” he notes. “The result means that the UK will become responsible for setting its own standards again and it has to decide what it will do,” Izza says, adding, “As a professional body, we think the most logical thing to do is to continue to work closely with the EU and to have equivalence in whatever standards are adopted. Don’t forget that many of them originated in the UK anyway.” The ICAEW Head believes that the City of London is going to change, noting that two major banks have already decided to have a substantial presence in Ireland. “What we don’t know is whether any of them are going to move lock, stock and barrel to Paris or Frankfurt or even Nicosia,” he says, adding, “After talking to our members around the country, there is a clearly held view

that, at the moment, business is pretty good. Exporters, in particular, are seeing the benefit of a cheaper pound sterling but those who are importing raw materials are starting to be concerned about rising costs, which may in turn force them to raise their own prices, meaning that inflation will rise too.” I remind Michael Izza that, when we last spoke, he had said that one of the main issues on which he was spending a great deal of time was tax. Little has changed, he replies. “It is still a major issue, especially since the European Commission’s decision that Apple should pay the Irish Government €13 billion in unpaid taxes, which it describes as illegal state aid. Ireland says it doesn’t want the money but, interestingly, a considerable section of the Irish population thinks that it might be quite nice to use it to restore some of the public services that have been cut recently.” Izza adds that the European Commission has a number of other companies in its sights and he expects that we’ll be hearing more about it. However, while tax issues of all kinds are unlikely to go away, it is technology that comes up in every conversation Michael Izza has with businesses these days. This is partly due to the growing automation of various processes that have traditionally been the exclusive domain of accountants and, on this, he says, “I think we’re all going to be needing new skills but when and what they are will depend on where you are in the world and on how far up the value chain you want to be able to operate.” Then there is another technology-related issue – cybersecurity. “We may be creating a brave new world thanks to technology,” he says, “but the incidence of cyber attacks by governments, organised crime, hackers and, the most dangerous of all, disgruntled employees, is going through the roof. Any one of them has the ability to paralyse the way a system works.” ICAEW has invested a great deal of time and considerable resources to ensure that its members are aware of such threats. “It’s difficult to eliminate it completely,” says Izza. “If someone is determined enough they’ll find a way through and anyone who thinks it can’t happen to them is just not seeing things properly. For corporates, the latest thing is ‘ransomware’. I know of at least two businesses in London who have told me it’s happened to them.” What’s more, there is now an additional reason for companies to choose their employees carefully and then to keep them happy. “If you have a disgruntled employee with administrator privileges on your computer systems, nothing is off limits,” he says. “Most files these days are stored in digital format and you can get quite a lot of them on a simple memory stick so if someone decides to steal them, leak them, sell them or whatever, it’s hard to find a 100% way of preventing such a thing. And I think that the security problem is going to become even greater so we all have to be vigilant.”

80%

OF OUR MEMBERS WERE BROADLY IN FAVOUR OF STAYING IN THE EUROPEAN UNION

56 | GOLD | The Business Magazine of Cyprus


THE T HE C CONSEQUENCES ONSEQUENCES O OF FB BREXIT REXIT AND AND THE HE GROWING GROWING IIMPORT MPORTANCE ANCE OF TECHNOLOGY OF ECHNOLOGY A ARE RE IISSUES SSUES O OF FM MAJOR AJOR C CONCERN ONCERN F FOR OR MICHAEL ICHAEL IZZA, ZZA, CEO CEO OF OF THE HE INST NSTITUTE OF OF CHART HARTERED ERED ACCOUNT CCOUNTANT ANTS IN ENGLAND IN NGLAND & WA ALES LES (ICAEW) ICAEW) A AND ND IT ITS 145,000 145,000 MEMB MEMBERS, ERS, AS AS H HE E TOLD OLD GOLD OLD DURING DURING A RECENT RECENT VISIT VISIT TO CYPRUS. YPRUS. By JJohn By ohn oh hn V Vi Vickers icck ker ers

www.goldnews.com.cy | GOLD | 57


| WOMEN’S ENTREPRENEURSHIP |

GATEWAY TO A DREAM By John Vickers

58 | GOLD | The Business Magazine of Cyprus


WOMEN’S ENTREPRENEURSHIP CAN BE A PATHWAY OUT OF POVERTY AND A BRIDGE TO THEIR DREAMS BECAUSE IT MEANS ECONOMIC INDEPENDENCE. BUT WOMEN NEED SUPPORT AND ENCOURAGEMENT IF THEY ARE TO SET UP THEIR OWN BUSINESSES. FORTUNATELY FOR THOSE IN THE US, IF THEY NEED HELP THEY CAN FIND IT THANKS TO ORGANISATIONS SUCH AS THE WASHINGTON DC WOMEN’S BUSINESS CENTER (DC WBC) WHICH SUPPORTS WOMEN ENTREPRENEURS THROUGH TRAINING, INDIVIDUAL CONSULTATION, MENTORING AND BUSINESS GROWTH. IT WAS FOUNDED BY SAMIRA COOK GAINES, WHO WAS IN CYPRUS RECENTLY AND SPOKE TO GOLD.

S

amira Cook Gaines is Chief of Economic Empowerment for the US National Community Reinvestment Coalition (NCRC), where she provides leadership and direction in the areas of wealth creation and asset building for the NCRC’s Hous-

ing Counseling Network, the National Training Academy and two small business development centres serving the Washington DC and New York metropolitan areas. Although she was in Cyprus recently to talk about Entrepreneurial Gender Challenges, she considers herself

lucky in that she didn’t face too many gender challenges of her own when she first went into business. “My original challenges were actually the simple steps of startup, which I didn’t know. They were not extra difficult because I am a woman. And in fact I got into business by chance,” she says, explaining that when she was in her 20s, she was the first of her circle of friends to buy her own home. “Suddenly I was being asked by others to help and advise them so that they could do the same thing. I turned into a property consultant for first-time home buyers, simply on the strength of my own experience. I didn’t plan this. The business found me!” This meant, however, that she was, as she puts it, “building the plane while flying it!” and, at some point, she realised that she needed to take a step back and try to figure out exactly how she should be operating a professional business. Fortunately, she had some excellent mentors (male and female), in addition to the fact that the United States has a small business administration that helps support women’s business centres (one of which she later founded in Washington DC) as well as small business development centres connected to universities. “They all provide free coaching and counselling,” she notes, “and so I was able to get my own ques-

ENTREPRENEURSHIP IS A PATHWAY OUT OF POVERTY BECAUSE IT MEANS ECONOMIC INDEPENDENCE

tions answered, about issues like small business loans, etc.” Presumably, things have changed a lot since Samira Cook Gaines started out? Yes, she says, although on that specific question of small business loans, problems remain, even today: “It’s still very tight in the US right now and loans are not going to many businesses at all. It’s still a struggle to get smaller loans from banks – they usually consider $250,000 as their smallest, so if you need $15,000, where do you go? Back in 2007 about 61% of small business that applied for loans were given them whereas, in 2012, that figure was only 16% and, of those loans, women received the least. Fortunately, other organisations have stepped into that space – micro-loan funds, micro lenders and community development financial institutions – whose mission is to lend to women or to small businesses. They have been a great help.” The Washington DC Women’s Business Center, of which Cook Gaines is the Founding Director, has assisted over 1,000 women in achieving their business goals. It does this in two main ways: through one-onone consultation and through classroom learning. “Thanks to the US government, the first is a completely free service,” she explains, “so it really is just a question of telling someone what your business idea is, what the challenges are and we will walk you through the next steps, from writing a business plan to getting a licence, tax or zoning clearance for certain businesses.” The second (and longer) way is through a 7- or 14-week class, depending on the business and the present stage of

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| WOMEN’S ENTREPRENEURSHIP |

ENTREPRENEURSHIP IS A GLOBAL SOLUTION THAT HELPS NOT JUST WOMEN BUT AN ENTIRE COUNTRY development. “If you are a start-up you can take the 7-week feasibility class which asks you basic questions like ‘Does this thing work?’, ‘Does it make sense?’, ‘Have I researched enough?’ and so on,” she says. “If you are already in business, we have what we call ‘growth conversations’, talking about certification or offering export assistance. And sometimes it’s a case of catching the entrepreneur before they fall. People often come when something bad has already happened, so we try to make sure that we are ever-present and we encourage them to network with others. Entrepreneurship can be a very lonely place.” It sounds as if entrepreneurs in the United States – and women in particular – have more opportunities than their counterparts in Europe and Samira Cook Gaines agrees that this is indeed the case. “America has recognised that small businesses are the backbone of the economy,” she notes, adding that more than 80% of US jobs are with small businesses, not multi-national corporations. “America is definitely leaps and bounds ahead when it comes to resources,” she adds, explaining that “We have over 100 women’s business centres in the US, and that’s in addition to the 500 or so small business development centres. The Government

has a goal of spending 5% of expenditures on women-owned businesses and last year, for the first time, they reached the goal. The mere fact that there is a goal means that we are way ahead of anyone else.” Despite all the government assistance, problems remain and, says Cook Gaines, the main one is getting women-owned businesses to grow. “It’s partly because many women don’t start them with the intention of growing them. Women are actually starting businesses at a faster rate than men these days, especially AfricanAmerican and Latina women. Women are the caregivers of the world and they want to be able to drop their kids off in the morning or pick them up in the afternoon, so they tend to start businesses that enable them to have a family life and to fulfil those obligations. Women are makers and creators by nature, so they may be chefs, caterers, makers of jewellery or clothing, designers, etc. They may start a day care centre or a creche because these are part of their world. Women already dominate and will continue to dominate in these areas. Wherever human interactions are key, women

60 | GOLD | The Business Magazine of Cyprus

will always excel. But it’s a fact that fewer than 2% of women-owned businesses in the States generate more than $1 million in revenue.” Samira Cook Gaines’ women’s empowerment and entrepreneurship work has taken her to several countries as a speaker for the US State Departmen and she admits to being “shocked” that the audiences around the world are so similar. “I’ve spoken to audiences in Israel, Papua New Guinea, Cyprus and Romania, for example, and the same conversations and struggles come up,” she says. “The unifying factor is womanhood – not motherhood, so there is more to it than the problems of raising children while trying to work – and trying to enter industries that have always been dominated by men. Apart from the different accents, it always feels as if I’m talking to women at home!” Everyone knows that women are under-represented in business all over the world. Does Samira Cook Gaines envisage a time when the malefemale ratio will become more representative of the population or is business always going to be a man’s world? “I think it will become more reflective of the true ratio but, because

ENTREPRENEURSHIP CAN BE A VERY LONELY PLACE

of the natural state of women being the caregivers, I don’t think that they will take that leap into entrepreneurship unless there is the right level of support and encouragement,” she tells Gold. “In the United States, we provide that encouragement and we see the benefits. In other countries, I see less support and that’s what concerns me the most and it’s not just support for women but for entrepreneurship in general. I am convinced that entrepreneurship is a global solution that helps not just women but an entire country and it should be encouraged by everyone. Many people believe that to start a business you need an MBA and it’s just not true. Entrepreneurship is a pathway out of poverty because it means economic independence and the more you can direct your own economic safety, the more you can direct your future. Entrepreneurs are problem solvers – sometimes they’re simply solving their own problem of not having enough money in the household! As they say, ‘Necessity is the mother of invention’ and women are answering the call. Even in counties where masses of people are poverty-stricken, the entrepreneurial spirit is there. For them, it’s all about survival. For most of us, it’s a bridge or a gateway to our dreams and one worth aiming for.”


SPECIAL PROMOTIONAL FEATURE

O

n 18 October, the Trident Trust Group hosted an exclusive cocktail reception to celebrate the 20th anniversary of the establishment of its presence in Cyprus. The event was attended by leading finance, legal and accounting professionals, as well as international investors and company CEOs. Mr Petros Livanios, Trident Trust Company (Cyprus) Limited’s Managing Director, addressed the distinguished gathering to express the Group’s appreciation for their many years of support and mutually beneficial cooperation. Since opening in Cyprus Trident Trust has grown to be one of the jurisdiction’s largest corporate and fiduciary administrators, employing 100 professional and support staff who serve a diverse range of clients, both in Cyprus and internationally.

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THE MAIN ECONOMIC CHALLENGES FOR EUROPE

AND THE WORLD IN 2017

T

he 7th Limassol Economic Forum took place at the Four ur Seasons Hotel in Limassol. Now No N ow ow in its 7th year, the Forum is the the biggest conference on European an and nd Global Economics held in the Eastern tern e Mediterranean region. It has become me a major platform of debate on political, cal, economic and business issues in Europe and the world. This year, the he focus was on the main economic challenges facing Europe and the world in 2017. Chaired by Michael Imeson, Contributing Editor of The Banker,, the Forum included addresses and presentations by Former Irish Prime Minister John Bruton, the European Commission Economic HUK -PUHUJPHS (ɈHPYZ /LHK VM Unit Jakob Wegener Friis, the Brussels Editor of The Wall Street Journal, Stephen Fidler, and the Director & Head of Banking, Financial cial Markets and Regulation at Deutsche che Bank Research, Jan Schildbach.

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Harris Georgiades, Minister of Finance, Cyprus

Averof Neophytou, Chairman, Democratic Rally, Cyprus, Nikos Dendias MP, New Democracy, Greece, Pablo Casado Blanco MP, Spain, Michael Imeson, Contributing Editor, The Banker & Forum Chairman

Entrance to the venue (l-r): World Trade Center Holdings (Cyprus) Ltd, Cyta, Deloitte, Andreas Neocleous & Co LLC

Bert Pijls, Hellenic Bank

Michalis Achilleos, Rena Rouvitha Panou, Cyta & Frixos Savvides, World Trade Center Holdings (Cyprus) Ltd

Elias Neocleous, Andreas Neocleous & Co LLC

Jakob Wegener Friis, Economic HUK -PUHUJPHS (ɈHPYZ +. ,\YVWLan Commission

Cocktail reception

Elena Vasiliou, Michalis Papadopoulos, Panayiota Konnari, Cyta

Nicos Kyriakides, Deloitte & Charis Pouangare, Bank of Cyprus

Maria Kyriacou, Andreas Neocleous & Co LLC


| LIMASSOL ECONOMIC FORUM | Nicos Georgiades and Maria Damalou, Cyta

Pablo Casado Blanco MP, Spain

Nicos Asimenos & Xenios Konomis, Bank of Cyprus

Marina Pittalis, Opus Group Holdings Ltd & Spyros Droussiotis, S. Droussiotis Real Estates Ltd Manthos Mavrommatis, Cyprus Chamber Of Commerce and Industry, Pantelis Leptos, Leptos Group, Armonia Estates Ltd, Dr Andrew Michaels, Zuri-Invest AG

Rolf Giesecke, Columbia Shipmanagement Ltd

Panelists (l-r) Stephen Fidler, The Wall Street Journal, Prof. Jon Danielsson, London School of Economics, Jan Schildbach, Deutsche Bank Research, Germany, Paul Lee, Deloitte UK, Michael Imeson, Contributing Editor, The Banker & Forum Chairman.

Michael Imeson, Contributing Editor, The Banker & Forum Chairman

Conference programme

Panicos Papamichael, Deloitte

Andreas Neocleous, Andreas Neocleous & Co LLC, Rena Rouvitha Panou, Cyta

Periclis Marcaris, Limassol Chamber of Commerce and Industry

Dr Evgueni Ivantsov, Chairman, European Risk Management Council Lakis Koutsokoumnis and Markella Karaoli, Deloitte


Frixos Savvides, World Trade Center Cyprus & Phidias Pilides, Cyprus Chamber Of Commerce and Industry

*VɈLL IYLHR John Bruton, Former Irish Prime Minister

Sotiris Nicolaides, Nest Investments Holdings (Cyprus) Ltd, Styliana Pontiki -Drege, World Trade Center Holdings (Cyprus) Ltd

Josef Heckner, HSH Trading & Shipping Ltd

Antonios I. Karpasitis, Metlife Alico Minas Mettas, Ancoria Insurance

*VɈLL IYLHR Phidias Pilides, Cyprus Chamber Of Commerce and Industry

Stelios Colocassides, Demstar Information Group

George Syrichas, Central Bank Of Cyprus

Lia Papaiacovou, OSM Crew Management

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Johnnie Walker, Cocktail Sponsor of the Forum

Elias Neocleous, Andreas Neocleous & Co LLC, Spyros Droussiotis, S. Droussiotis Real Estates Ltd

Nicos Charalambous & George Martides, Deloitte

Michael Larkos, Auditpro Services Ltd Damiani Papatheodotou, Axia Ventures Group Ltd


| ONLINE BUSINESS |

No more

Wedding

Bell Blues

By Artemis Constantinidou / Photo by Emma Louise Charalambous

Thanks to the Hilton Park Hotel, Nicosia, where the photograph was taken.

66 | GOLD | The Business Magazine of Cyprus


HAVING DEDICATED 20 YEARS OF HER LIFE TO THE HOTEL AND TOURISM INDUSTRY, AND MORE SPECIFICALLY, TO THE WEDDING MARKET, MARIA EVRIPIDES, FOUNDER OF BOOKYOURWEDDINGDAY.COM, DECIDED IT WAS THE RIGHT TIME TO LAUNCH THE FIRST INTERNATIONAL ONLINE BOOKING PLATFORM, WHICH ALLOWS INTERESTED PARTIES TO SECURE CONFIRMED OVERSEAS WEDDING DATES AND VENUES INSTANTLY. EVRIPIDES SPOKE TO GOLD ABOUT THE IDEA BEHIND THIS INNOVATIVE PROJECT, WHY SHE CONSIDERS IT TO BE A POWERFUL ALLY FOR THE TOURISM INDUSTRY AND ABOUT THE UNTAPPED POTENTIAL OF THE WEDDING MARKET IN CYPRUS.

W

hat exactly is BookYourWeddingDay. com? Maria Evripides: It is the first and only international online booking system that supports anyone who is planning an overseas wedding. In particular, BookYourWeddingDay.com allows tour operators, travel agents, wedding planners and wedding couples themselves to secure confirmed overseas wedding dates and venues instantly. This instant confirmation is the unique and pioneering feature of the new platform.

the long chain of associates involved in the process – from the UK agent to the local municipality and back – it would usually take at least 6-8 weeks to finalize and confirm the actual date, time and venue. In this day and age of instant communication, such a delay seemed unreasonable to me and the importance and value of finding a solution was obvious. Knowing the market and the tourism industry as I do, as well as the

280,000

London as one of the six finalists in an international challenge for innovative ideas to help the Greek economy. During that challenge, I had the chance to work for a week with a few big names in the international tech industry. The day after I pitched my idea to the media and hundreds of investors, it appeared in the British press – and my telephone started ringing with enquiries from potential investors! At that point I realized that I had to proceed with this project. I felt it was my duty, almost my responsibility, to set it up and make it a reality. It was a tough personal decision to make because I had an amazing position and I loved my job… After that, I examined different proposals from potential investors and chose the one I felt I could cooperate with best, both in terms of professionalism and chemistry. The next crucial step was to build the right team, as I strongly believe in the benefits of close teamwork. Legal advisors were already in place and helped me set up the company. Each of the directors on the Board comes from a different sector, so we complement each other perfectly, combining the expertise of legal advisor, economist, website developer, digital marketer and myself, the Managing Director. Finally, I appointed the operations team in both Cyprus and Greece – the first two countries that BookYourWeddingDay. com covers. I chose established colleagues and qualified unemployed young individuals with vision, who I believe deserved a chance. I am proud that such an innovative project – the only one of its kind in the world at this point – originated and is based in our country, right here in Cyprus.

couples from the UK alone travel every year to get married abroad

Gold: So, what triggered the whole idea? M.E.: I wanted to solve a problem and, at the same time, develop this special tourism market, which I believe has great potential. As Sales Manager of a leading hotel group in Cyprus, I had been promoting the Cyprus wedding market in the United Kingdom for 10 years. I was constantly coming face to face with a huge problem, which affected travel agents and wedding couples themselves, and probably put off many potential couples altogether. The issue was the long waiting time before the date for a wedding ceremony at the desired venue could be confirmed. Due to

needs of all parties involved, I started designing and working on such a solution. I wanted to create a new tool that would support all parties involved – hotels, town halls, tour operators, travel agents, and wedding planners – at a minimum cost. I knew that there must be a way and I was sure that I could find it… I examined the issue from the perspective of everyone involved: the hotelier, the town hall, the tour operator, the travel agent, the wedding planner, the tourism board, and, of course, the actual wedding couple. My understanding of the international tourism industry was my best advisor. Gold: Having decided what you needed to do, how did you go about setting up the company? M.E.: In September 2015, I was in

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| ONLINE BUSINESS |

Gold: Can you describe the platform’s operating process? M.E.: The system synchronizes the calendars of hotels and town halls. The hotels we have listed on the platform upload their available time slots for weddings over a period of two years. Town halls are then notified by the system whenever a hotel uploads time slots, and – again through the system – they can then either approve or reject the slots. Hotels or town halls can edit their available slots at any time. From the users’ side, the platform allows them to browse directories of the most popular hotels and municipal wedding venues in Cyprus and Greece, and check available times for the actual wedding ceremony over a 3-week period. If the chosen venue is fully booked, alternative venues with availability during this period will be automatically proposed. It is important to note that access to this platform is available free of charge to any user. A reasonable fee is charged only when users are ready to book a confirmed date at their preferred venue. Hotels and town halls receive the bookings instantly, and their calendars are automatically updated. The system calls for ID validation in order to minimize the issue of cancellations that town halls and hotels have been known to face previously. Finally, BookYourWeddingDay.com gives the couple the option to share the news – the confirmed date and venue – with friends on social media by choosing one of the many beautiful announcement cards from the system, free of charge. The platform also incorporates a very valuable reporting tool that allows town halls and hotels to access the statistics of their own bookings at any given time. As the pur-

68 | GOLD | The Business Magazine of Cyprus

pose of BookYourWeddingDay.com is to support all parties involved, the system is not designed to offer flight reservations, accommodation reservations or any other wedding services that would compete with those of our associates – the tour

operators, travel agents or wedding planners. It simply makes it easier for them to sell their products and services. Gold: Has the platform received any local or international recognition, considering it is the only international online wedding booking system? M.E.: The platform was a complete ‘product’ even before it was created. It won awards in April 2015 at the “Empowering e-Entrepreneurship” challenge that was held in Nicosia, and in September 2015 at the “Reload Greece Challenge” in London. Gold: Why is Cyprus such a popular wedding destination and what are the prospects for this market? M.E.: Cyprus is the Island of Love, according to Greek mythology, so naturally every bride is tempted to get married on the Island of Aphrodite, the Greek goddess of love! That is over and above the great weather, the sea, the hospi-

tality and the fact that English is so widely spoken – which is extremely convenient for our main market, the UK. Also, in recent years many Cypriot hoteliers have invested heavily in wedding facilities. The combination of these factors has made Cyprus one of the most popular wedding destinations but there is still room for growth, especially if you consider that 280,000 couples from the UK alone travel every year to get married abroad. Each couple is accompanied by an average of 30 guests, who book accommodation for an average of 10 nights. Imagine how easily this special interest tourism market can be developed even further by eliminating the long waiting time, starting with Cyprus and Greece. Other markets with great potential are Russia, Lebanon and Israel. I should point out that the delays we are eliminating exist in all wedding destinations of the world. Gold: What is your vision for BookYourWeddingDay.com? M.E.: It is to establish it as the main booking system for couples wanting to get married overseas. With the support of our partners, we are aiming to increase the number of overnight stays of visitors, thereby giving the economy a serious boost. Although it is still early days, we have already been approached by tourism boards in other countries that are interested in joining forces with us and participating in our platform. With this new development, attracting a strategic investor is a likely scenario for the further strengthening of platform for when we are ready to go global.


SPECIAL PROMOTIONAL FEATURE

PRESENTS

INTERNATIONAL & OTHER BANKING

SERVICES IN CYPRUS

contents PROBANX INFORMATION SYSTEMS BANK OF CYPRUS BYBLOS BANK

cdbbank

EUROBANK CYPRUS HELLENIC BANK KKP LLC NATIONAL BANK OF GREECE PIRAEUS BANK CYPRUS STYLIANOS N. CHRISTOFOROU & CO USB BANK

contents

contents

A special supplement on services provided by local authorized credit institutions to international and Cypriot clients.

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special promotional feature

International & other banking services in Cyprus

BANKING

(and on)

CYPR 70 | GOLD | The Business Magazine of Cyprus


IN

US

F

ive years ago, Cyprus was a very different place. Popular with foreign companies, thanks to a corporate tax rate of only 10% (the lowest in the EU), the banks had such a high number of business deposits and transactions that they were actively encouraged to give out more loans and expand aggressively into other countries. In 2011, the Cypriot banking sector was eight times bigger that the country’s GDP. A year later, as part of the bailout plan for Greece agreed by the Troika and the Greek government, private lenders agreed to a voluntary reduction of the loans Greece owed them, causing losses of 75% to Cypriot Banks, which held large amounts of Greek bonds. Inexplicably, the Cyprus government refused to rescue the banks, which would have cost the equivalent of 25% of GDP. We all know what happened in 2013, with the resolution of Laiki Bank and the recapitalisation of the other main players. As George Karageorgis, Group General Manager, Retail and IBU Divisions, Hellenic Bank, notes, “The banking sector in Cyprus has undergone a complete overhaul in the past three years. It has downsized and is based on much stronger foundations today.” Although the banks are still working to restore credibility and boost investor confidence, they have, indeed, made huge strides over the past three years to ensure that the pre-crisis situation does not reoccur. Today, a total of 33 banks are operating in Cyprus. This number is made up of seven local institutions (Ancoria Bank, Bank of Cyprus, cdbbank, Hellenic Bank, Housing Finance Corporation and RCB Bank), 18 Cooperative Credit Institutions plus the Cooperative Central Bank, four subsidiaries of foreign credit institutions from EU member states (Αlpha Bank Cyprus, Eurobank Cyprus, National Bank of Greece (Cyprus) and Piraeus Bank (Cyprus) and two from non-EU countries (Societe Generale Bank-Cyprus and USB Bank), plus eight branches of foreign credit institutions from EU member states and 15 from non-EU countries, and two representative offices. The main local banks have their own dedicated International Business Units (IBUs) that provide specialised services for international clients. On the following pages, they and other companies present their services to international and other clients.

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special promotional feature

International & other banking services in Cyprus

BANK OF CYPRUS

I

n 1991, Bank of Cyprus set up its first International Business Unit (IBU), a specialised branch for international clients. The Bank rapidly developed into the leading financial institution on the island in this sector and is currently the first choice for international corporations that bank in Cyprus. Bank of Cyprus operates eight International Business Units (IBUs) in Cyprus, located in Nicosia, Limassol, Larnaca and Paphos, and a specialised Shipping Desk in Limassol, all with extended working hours. Our clients have direct access to their accounts and can execute secure transactions 24 hours a day, seven days a week, through our advanced 1bank Internet banking platform. Bank of Cyprus offers a full range of banking and other financial products and services to meet the needs of its wide international client base. Innovative technology, superior service and simple procedures ensure that we keep our clients at the centre of all we do. All IBUs are supported by state-of the-art technology and staffed with highly qualified and experienced personnel specialised in providing efficient and superior service to our international clientele, combined with a personal touch. All our officers are fluent English speakers and all IBUs are also staffed with officers who are fluent in Russian, as well as other European languages. Some IBUs are also staffed with Chinese-speaking officers. In a bid to enhance its presence

abroad and assist its clients who wish to do business in Cyprus, the Bank has established a wide network of Representative Offices in various locations around the world: Moscow and St. Petersburg in Russia, Kiev in Ukraine, and Beijing in China. The Bank’s International Banking performance in 2016 has been exceptional. The Division has seen very healthy growth in customer deposits, customer transactional activity and fee income. Our market shares in deposits and new clients have steadily increased, as we continue enhancing our AML and compliance procedures. Meanwhile we have improved our customer satisfaction levels, restoring them to 2012 pre-bail-in levels, as evidenced by customer satisfaction surveys. What is more, 2017 is forecast to be an equally successful year. The Bank maintains a competitive edge in International Banking in Cyprus. It offers fully automated, paperless banking with a personal touch, aided by a customer-centric model, offering value-for-money, high-quality services. The Bank also prides itself on its differentiation; our highly experienced and qualified staff are allocated according to the segment and size of the customer. Our commitment to the highest quality of service and client satisfaction was reassessed independently in April 2016 when Bank of Cyprus became the first bank to attain ISO 9001:2015 certification for all its IBUs and ILUs around Cyprus. As part of our commitment to provide excellent quality services to our Professional Associates, we offer a

web-based account-opening system, the ‘IBU Gateway’. IBU Gateway is a valuable tool which can help associates save significant time and costs, while raising the service level offered to the customer. The Wealth & Markets Division has been combined with International Banking since May 2016. It is a onestop shop servicing Corporate, Institutional and HNW clients in the area of Wealth Management and Capital Markets. Wealth & Markets incorporates Private Banking, Custody, Institutional Wealth Management, Asset Management, Investment Banking, Global Brokerage and Treasury Sales. The high quality of service offered by Wealth & Markets has been recognised on many occasions with numerous prestigious awards such as the one for Best Private Banking for 2016 by the renowned magazines, Professional Wealth Management & The Banker (by FT) and Euromoney and the one for Best Private Banking 2017 by the acclaimed Global Finance magazine. These awards are a testament to the high quality level of services offered by the Wealth & Markets Division of Bank of Cyprus. They also confirm the Bank’s successful strategy in offering bespoke solutions, integrated products and services in the area of wealth management.

Our Mission Statement:

To be the preferred service provider to international and wealth management clients banking in Cyprus, performing with passion, exceeding clients’ expectations as well as regulatory and ethical standards, creating value for our shareholders and fostering an environment where our people feel proud to belong.

CONTACT INFORMATION: /LHK 6MÄJL! 51 Stasinos Street, Ayia Paraskevi 1599 Nicosia | ;LS! +357 22122100 | -H_! +357 22378111 >LIZPKL! www.bankofcyprus.com

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special promotional feature

International & other banking services in Cyprus

cdbbank GROWING TOGETHER Providing a personal service to our international clients

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ble and prudent organisation, one that uilding on solid founis dedicated to offering comprehensive, dations, specialised advice and services suited to cdbbank the specific needs of its clients. Its track established record to date has been enviable. two ful“We consider that the Bank is able ly-fledged to provide flexible solutions and our IBUs in aim is to be close to our customers, Nicosia and providing professional service and reLimassol sponding quickly to their requests. At this year. Well-equipped in human the same time, our clients have direct resources and technology the IBUs access to, and attention from, more provide personal service and support senior and experienced managerial for international clients while l, Head of Interna e a h tio levels, which ensures that ensuring compliance with na Mic s l they are offered suitable i l the relevant legislation solutions that cater to and regulations. their specific needs,” Mr Michalis Mr Michael stresses. Michael, Head of “Small is beauInternational Busitiful” in the case ness Banking, reof cdbbank, which veals that cdbbank aims to capitalise on has seen healthy the flexibility of being growth in 2016 and a small institution to anticipates an even offer innovative products stronger performance and services that add value to in 2017. “Our transactional its international and domestic clients business has doubled and we have the alike. capacity to cater for more business. We are confident that this growth will continue in 2017,” he adds. “Our objective is to grow steadily with our customers, providing them personal service and Speed and effectiveness are key, with offering them the products and services cdbbank recognising the importance of that meet their needs.” investing in technology as it moves to stay abreast of the latest developments. It has recently introduced – and is conWith a history of more than 50 years, tinuing to enhance – a new e-banking syscdbbank remains true to its founding tem that addresses, in a very user-friendly principles of operating as a small, flexi- manner, not only the needs of individuals

Investing in technology

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but also the requirements of corporate clients with respect to effecting electronic transactions and enquiries specific to their own organisational structure and needs. “Our aim is to enhance our response time to clients through further automation, the introduction of state-of-the-art IT systems and the streamlining of our processes. Our Internet banking platform enables our clients to operate their accounts efficiently and securely from anywhere in the world,” says Mr Michael.

Compliance and knowledge

A lot has happened since the 2013 crisis which brought the economy to the brink of collapse. The Economic Adjustment Programme has not only led to economic recovery but radically reformed the Cypriot banking sector. “The conditions imposed by the EU and the IMF enabled Cyprus to carry out reforms that might otherwise have been postponed. In this new environment and framework, banking institutions have to train all members of staff to fully comply with the relevant regulations. The management has to further engage with customers and improve the quality of service, leading to higher sustainable revenues and profitability,” says Mr Michael. The overriding principle for cdbbank, as it pursues growth, revolves around the word ‘trust’. “Our intention, at cdbbank, has always been to grow with our clients. In international banking this can be done through compliance and knowledge, which enhances and builds a relationship of trust with our customers.”

CONTACT INFORMATION: /LHK 6MÄJL! Alpha House, 50, Archbishop Makarios III Ave.,1065 Nicosia, Cyprus | 7VZ[HS (KKYLZZ! P.O. Box 21415, 1508 Nicosia, Cyprus | ;LS! (+357) 22846500 | -H_! (+357) 22846600 | L THPS! info@cdb.com.cy | >LIZP[L! www.cyprusdevelopmentbank.com

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CYPRUS DEVELOPMENT ENT BANK

53 years of reliable presence

Bank on our experience TΕLEPHONE 8000 79 79 TΕ

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special promotional feature

International & other banking services in Cyprus

EUROBANK CYPRUS Interview with Stephanos Kassianides, General Manager, International Business Banking

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ow would you describe ferentiated itself from the mainstream the bank’s performance banking environment in Cyprus. By in 2016 and what is adopting a client centric model focusyour forecast for 2017? ing on service excellence, the Bank’s In line with previous years the Bank wholesale 4-pillar strategy (Internain 2016 continued its growth with tional Banking, Wealth Management, the bottom line results also being very Corporate & Investment Banking good. The strong repeated performance and Treasury Sales) has quickly is a result of a number of variables. established new service standards in Eurobank Cyprus’s continuous success the industry. throughout the years of operations The competitive advantage of the is reflected by its healthy recurring Bank certainly derives from our comprofitability, strong capital base and mitment to accountability, transparliquidity, low non-performing ency and our aim to exceed ral Manager, Internat e n loans indicator and low e iona every customer’s unique ,G l Bu expectation. We des i operational cost. n sin sia s Despite the fact that strongly believe the economy in that the future Cyprus as well of banking lies as the banking in customized sector still have and integratcertain chaled product lenges ahead, bundles that driven by variaim to fulfil ous internal and the specialexternal factors ized needs of we are optimistic each customer. that the recurring In parallel our strong performance that Information TechnolEurobank demonstrated ogy strategy has adopted since the first year of operations will a parallel model by focusing on continue in 2017 as well. the development of a customized platform to support our differentiated What do you consider to be the strategy. bank’s competitive edge over others The overall goal is to establish long in Cyprus? In what way does it difterm relationships with our cusferentiate itself? tomers, based on professionalism, Since its inception, Eurobank has difdiscreetness and trustworthiness.

How different is the Cyprus banking sector of 2016 from that of three years ago? Do you believe that adequate reforms have been put in place to ensure a healthy and sustainable sector from now on? Considering the consequences felt throughout the economy, Cyprus has made a rapid recovery since the economic and financial crisis of 2013. The Banks took the pain up front as there was no magic button that could provide a quick fix. The banks had to undertake internal changes to address the challenging economic environment, the evolving competitive and regulatory environment and the capital controls that came with the crisis. Ultimately, the crisis gave turn to more prudent and far sighted governance along with structural reforms, which eventually led to the recovery of the economy and the faster than expected return of the trust to the Banking sector. Without doubt, there are still challenges that banks in Cyprus are likely to address in the coming years but the lessons of the past have educated the banks on how to address such issues and safeguard the interests of their clients and other stakeholders. Moreover, there will likely be increased activity around reframing strategic opportunities to identify businesses that we can explore and hopefully prosper in. A fresh example is the recently enacted changes in the promising funds industry.

CONTACT INFORMATION: (KKYLZZ! 41, Archbishop Makarios III Avenue, 1065 Nicosia, Cyprus | ;LS! (+357) 22208000 | -H_! (+357) 22875456 L THPS! info@eurobank.com.cy | >LIZP[L! www.eurobank.com.cy

82 | GOLD | The Business Magazine of Cyprus


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www.goldnews.com.cy | GOLD | 83


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International & other banking services in Cyprus

HELLENIC BANK Interview with George Karageorgis, Group General Manager, Retail and International Banking, Hellenic Bank

H

al Banking atiion

Gro

ge Karageorg Geor is,

ern Int

ow would you describe Bank is undergoing is another comparative the bank’s performance advantage. It is no coincidence that we in 2016 and what is your have recently been awarded the Global forecast for 2017? Finance Best Digital Bank prize for the Hellenic Bank had a marginally profitable third time in a row. Our Mobile Banking first half in 2016. We continue to support App and PayBand are just a few concrete the recovery of the Cypriot economy and, examples that demonstrate our continuous in that respect, we have extended lending efforts to cater for the needs of our of €152 million in the first half of 2016. customers in the modern electronic era. All in all, we are on the right track, given Last but not least, Hellenic Bank is the the challenging economic environment only bank in Cyprus with a dedicated ship both locally and internationally. management centre. We will continue The forecast for 2017 is even stronger. to serve the shipping sector and, in this We have a robust capital position and respect, we are looking into lending to the enjoy excess liquidity. At the same time, shipping sector in a prudent manner and we remain focused on our ‘fix and build’ taking global risks into account. strategy. Tackling Non Performing Exposures decisively and disruptively How different is the Cyprus banking remains a top priority for 2017. sector of 2016 from that of three years Furthermore, we will continue to ago? Do you believe that adequate l Manager, Reta a contribute to sustained growth reforms have been put in place r e il a Ge n nd by providing new lending to ensure a healthy and up to the local economy, sustainable sector from including new sectors, now on? but also abroad. The banking sector in Cyprus has What do you undergone a complete consider to be the overhaul in the past bank’s competitive three years. It has edge over others in downsized and is Cyprus? In what way does based on much stronger it differentiate itself? foundations today. Banks Excess liquidity is our have been recapitalized competitive edge. Hellenic Bank is one of and restructured. They are better the most liquid banks in Europe and this regulated and systemic banks such as allows us to be the fastest-growing financial Hellenic Bank are subject to thorough institution in Cyprus. Our intention is supervision from the Single Supervisory to keep helping the Cypriot economy Mechanism. Compliance standards are on its path to growth. On top of that, much higher today and are constantly we are looking for opportunities to lend being readjusted, and all banks are abroad. One option is through syndicated required to meet those standards. loans. To give you an example, Hellenic Hellenic Bank has gone through major Bank participated in the syndicated loan management restructuring in the past that the EBRD provided to the Hellenic two years. We have invested time and Telecommunication Organization (OTE) resources in corporate governance. a few weeks ago. All in all, our business model has The digital transformation that Hellenic undergone complete overhaul. And we

are not done yet. I said it last year and I will repeat it today: at Hellenic Bank, business is not ‘as usual’ any more. Hellenic Bank was a pioneer in creating the first International Business Centre in Cyprus. After the changes to the banking system, to which you have referred, does International Business still have the same importance for the Bank? For many years, the international sector has been very important for Hellenic Bank. We have maintained our focus on this business since 1990. Through a wide range of services, backed by advanced technology and experienced staff, our International Banking Division provides integrated financial services to corporate, institutional and individual clients around the world. Our customer-centric approach ensures that excellence in service is always coupled with confidentiality and security. When it comes to the often complex world of international banking, we pay particular attention to developments in the regulatory environment that impact our customers and our business partners. This is nowhere more apparent than in the area of customer due diligence and anti-money laundering compliance. We vigorously apply the Know Your Customer (KYC) principles and compliance directives of our regulators, and we are making major investments in systems and training to ensure that our people are well-equipped to protect the assets and the reputation not only of the Bank but of our customers and partners as well. Hellenic Bank will continue to expand its international business selectively and prudently, taking on only those risks that we understand and know how to manage, and being highly selective when it comes to our customer base. In a word, we are ready and open for business – but it has to be the right kind of business.

CONTACT INFORMATION - 0U[LYUH[PVUHS )HURPUN +P]PZPVU! ;LS! (+357) 22500500 (from Abroad) / 8000 9999 (from Cyprus) | >LIZP[L! www.hellenicbank.com 84 | GOLD | The Business Magazine of Cyprus


www.goldnews.com.cy | GOLD | 85


special promotional feature

International & other banking services in Cyprus

KKP LLC

W

ith an industry focus on financial services and more than 30 years of experience, KKP LLC is at the forefront on advising bank and co-operative credit institutions. The firm’s experience includes representation of domestic and international credit institutions in litigation and arbitration proceedings, complying with regulatory requirements of all types, structuring, drafting, negotiating legal documents, responding to regulatory examinations and investigations, establishing and expanding banking and non- banking operations, analyzing and assisting in the development of new products and services. The firm’s banking team is made up of senior and esteemed experts who amongst their other expertise have served as members of the board of directors of credit institutions and regulatory authorities gaining considerable and valuable experience in the banking sector. KKP LLC comprises more than 20 lawyers and more than 50 employees in total operating in multidisciplinary teams which allows the firm to provide the client with individualized and expert advice. KKP is also at the forefront on advising funds on all facets of regulatory compliance and transactions, focusing to achieve the client’s business objectives with minimal regulatory burden and risk. The firm has recently signed a co-operation memorandum with the Univer86 | GOLD | The Business Magazine of Cyprus

KKP IS AT THE FOREFRONT ON ADVISING FUNDS ON ALL FACETS OF REGULATORY COMPLIANCE AND TRANSACTIONS, FOCUSING TO ACHIEVE THE CLIENT'S BUSINESS OBJECTIVES WITH MINIMAL REGULATORY BURDEN AND RISK sity of Cyprus in line with the firm’s strategy for the strengthening of the academic community and the en-

hancement of legal science in Cyprus. Through this memorandum the firm will be offering law students of the


THE MOST IMPORTANT BLOW THE SECTOR HAS SUFFERED WAS THE LOSS OF TRUST THE CREDIT INSTITUTIONS WERE ENJOYING WHICH HAS, TO LARGE EXTENT, NOT BEEN RECOVERED TO THIS DAY university scholarships, prizes as well as internship programs enabling participants to experience a professional environment. How different is the Cyprus banking sector of 2016 from that of three years ago? Do you believe that adequate reforms have been put in place to ensure a healthy and sustainable sector from now on? The banking sector has suffered extensive damage in 2013 due to the collapse of Laiki Bank, the adverse consequences the Bank of Cyprus has suffered and, the recently revealed, widespread problems of the co-operative sector. The most important blow, however, the sector has suffered was the loss of trust the credit institutions were en-

joying which has, to large extent, not been recovered to this day. It would be a lie to suggest that the banking sector today is not in a better place than it was 3 years ago. Nonetheless, the banks still face serious problems, and more particularly the large numbers of NPL (non-performing loans) and the decreased appetite of the business and consumer world for new loans, which constitute the main stream of income for the banks. The undeniably intensified auditing of credit institutions by the Central Bank has greatly increased bureaucracy leading to competitive disadvantage for local banks as opposed to foreign ones. Further, the demonization of the banks from the majority of the Members of Parliament in order to satisfy political

objectives and their failure to contemplate that without a strong banking system the Cyprus economy will continue to underperform, not only reinforces the distrust of the people but has also led to the enactment of numerous legislative measures which have caused a plethora of additional problems. For example, the new legal framework on Foreclosures is complex and has proved to contain various ambiguities whereas the law regarding ÂŤtrapped buyersÂť will most probably be deemed unconstitutional. Furthermore, suggestions such as the abolition of default interest demonstrate the lack of fundamental knowledge regarding the mechanics of the international banking system and most probably create uncertainty, especially, among foreign investors who constitute the overwhelming majority of the shareholders of the Cypriot Banks.

CONTACT INFORMATION: (KKYLZZ! 20 Costis Palamas str., 'Aspelia' Court, 1096 Nicosia, Cyprus P.O. Box 21020, 1500 Nicosia, Cyprus Tel.: (+357) 22664555 | Fax: (+357) 22677485 www.goldnews.com.cy | GOLD | 87


special promotional feature

International & other banking services in Cyprus

National Bank of Greece

T

he National Bank of Greece (NBG) is the oldest-established Bank in Greece, heading the soundest financial group in the country. Established in 1841 as the first commercial Bank in Greece, it has since shown solid development and growth, reaching superior performance and being the driving force of the Greek economy and that of the Balkan area to date. After many consecutive years of success and growth, the Bank has gained international recognition and an excellent reputation. Today it is considered one of the leading financial institutions in the broader South-Eastern European area.

NBG Group Facts:

• It is one of the best-established banks in Balkans. • Its international and local network comprises 70 banking entities and Related Financial Sector’s Subsidiaries.

88 | GOLD | The Business Magazine of Cyprus

• It currently operates 1,800 branches, with 30,000 employees, who are servicing more than 10 million customers. • The Group has a presence and operations in 14 countries. • It has been listed on the Athens Stock Exchange (ASE) since 1880 and on the New York Stock Exchange (NYSE) since 1999. NBG was established in Cyprus in 1910 and was a pioneer in setting up a sound banking industry on the Island. In 1994 the Group established a subsidiary – National Bank of Greece (Cyprus) Ltd. – which is registered as a Cypriot Bank and is supervised and regulated by the Central Bank of Cyprus. NBG (Cyprus) Ltd. offers a complete range of banking, financial, and investment services to Individuals, SMEs, Corporates, Institutionals, Governmental Entities, and International Clients. NBG Cyprus Ltd. enjoys the privileges and advantages of being a member of the NBG Group. Besides the advantage of having the Group’s sound support, the Bank also enjoys the reputation and recognition of NBG internationally and exploits the know-how, experience and support provided by the parent company for any type of compounded or international banking business in Cyprus.

The range of banking, financial and investment services offered, includes, among others, Corporate-Investment Banking, Project Finance, Real Estate Finance, Trade Finance, International Banking Services, Advisory Services for Projects and Investments, as well as Retail and Professional Banking services, such as Consumer Credit, Mortgages, Credit Cards, Professional Loans, Documentary Credits, Working Capital Facilities and an extensive range of services through Internet Banking. Special emphasis has been placed lately on the business development of International Banking, servicing international clients, mostly from countries outside the EU (Russia, Ukraine, Kazakhstan, Arabian Gulf) in various activities upon request, such as Effects Conversions, Money Transfers, Documentary Credits, Investment and Trade Finance Loans, Multicurrency Cash Management, Multicurrency Time Deposits, Derivatives in Currencies, Interest rates, Commodities, etc. In addition to the above banking-financial activities, through local subsidiaries NBG Group operates, two other financial-investment activities in Cyprus: Insurance Packages and Services and also Securities Brokerage-Asset Managemen-Private Banking. NBG Insurance Cyprus Ltd. has


operated successfully for more than a century, covering all types of insurance, having acquired a good reputation and the respect of local society. NBG Securities SA, has recently

established a full branch, staffed with specialists, who can provide brokerage services (from CSE, ASE, LSE, NYSE, etc), as well as offering Asset-Wealth Management and Private Banking services and products

to High Net Worth Individuals, Private Funds, Special Institutions and Provident Funds. It will soon be providing custodian services, mainly to institutional clients (Provident Funds, Private Funds, etc).

CONTACT INFORMATION: /LHK 6MĂ„JL! 15, Archbishop Makarios III Avenue, 1065 Nicosia

| P.O. Box 21191, 1597 Nicosia, Cyprus ;LS! (+357) 22840000 | -H_! (+357) 22840010 | L THPS! info@nbg.com.cy | >LIZP[L! www.nbg.com.cy

www.goldnews.com.cy | GOLD | 89


special promotional feature

International & other banking services in Cyprus

PIRAEUS BANK CYPRUS

H

Symeon Symeo u, H ea

k (Cyprus) Ltd Ban us ae

ow would you describe advantage of being easily accessible, the Bank’s performance flexible, and quick at decisionin 2016 and what is your making. This, together with our people forecast for 2017? and culture of quality, guarantees I think the proper word to use is unparalleled service to international “achieve” as what we have achieved banking clients. With a network of 18 over the last couple of years goes branches and business units all over beyond profitability. Back in 2014 and Cyprus and more than 300 employees, foreseeing the upcoming developments, the Bank offers a full range of banking we went through a major restructuring and investment services, including so to better manage and control the International Banking, Corporate & AML-associated risks but, at the same Retail Banking, Private Banking, Cash time, continue to be committed to Management Solutions, Custody & the International Banking segment. Treasury Services and Trade Finance As a result, we have developed the facilities. knowledge and expertise needed to cope with today’s demanding How different s the Cyprus l Banking Un ationa it at n r regulatory environment e banking sector of 2016 Pir nt dI and preserve the good from that of three name of the Bank. years ago? Do you We have changed believe that adequate our culture and reforms have been practices ahead of put in place to the competition ensure a healthy and and local market sustainable sector norms but in line from now on? with international Over the last three years, practices. In practice, the banking sector has our new culture assisted us changed dramatically and it in properly servicing the sudden is still changing. The island’s second and significant inflow of Greek largest bank came under resolution, customers resulting from the Greek the island’s largest and third largest banking crisis. banks are under foreign ownership and the Coop Credit Societies are under What do you consider to be the state control. When the current global Bank’s competitive edge over others financial crisis started in 2008 we had in Cyprus. In what way does it 19 banks operating in Cyprus, 27 differentiate itself? branches of foreign banks, and 359 coop Quality of service and the quality of institutions. The respective figures today our clientele are what differentiate are 12 banks operating in Cyprus, 23 us. Being a small bank we have the branches of foreign banks and 19 co-

op societies (including the Coperative Central Bank). As we can see, the banking sector is still evolving and going through a period of consolidation, at the end of which we will have fewer but sustainable banks. The International Banking business has proved resilient but it is contributing less than in the ‘good old days’ and this, together with the continuing problem of non-performing loans, will expedite this consolidation. Due to sanctions and deoffshorization, the over-dependence on the very profitable Russian market will ease and banks will need to develop new markets. All these are going through in a much more regulated and stricter environment. When the banking crisis started in 2013, Cyprus was faced with a reputational problem related to AML issues. Since then, new regulations were put in place and together with the new requirements by the correspondent banks the issue of AML has improved. The new Directive from the Central Bank of Cyprus, circulated last April, affects the business model as banks are now relying less on third parties, known as Approved Introducers. On the other hand, the problem of nonperforming loans is still in place as the new legislation is challenged and needs more time to produce the expected results. In brief, new regulation and legislation are not sufficient. The industry needs to adapt to the new requirements and norms, and banks need to change their culture. Piraeus Bank Cyprus invested in this earlier than the competition and is ready to service its international customers with professionalism, efficiency and a clear understanding of their business needs.

CONTACT INFORMATION: (KKYLZZ! 1 Spyros Kyprianos Avenue, 1065 Nicosia, P.O.Box 25700, Nicosia, Cyprus | Tel.: 80011800 >LIZP[L! www.piraeusbank.com.cy

90 | GOLD | The Business Magazine of Cyprus


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When the Swiss Franc invaded Cyprus by Stylianos Christoforou & Co. LLC

S

The sudden appreciation of Swiss Franc towards Euro took by surprise thousands of borrowers who have entered into a Swiss franc mortgage in order to finance the purchase of their properties. Compared to what the Banks have been promising, the change in the exchange rate and the fluctuation of the interest rate increased the cost of borrowing and caught unaware the banks and the borrowers who were earnestly encouraged to enter into a Swiss Franc mortWhilst interest rates and exchange rates gage with the Banks assuring ore specifically the worked in the borrowers’ favour this was a that the Swiss Franc was a very directive emphasised the fact very good idea. However with three curren- stable currency. that borrowing in foreign cies involved (property price in CYP or currencies entails interest and EUR, mortgage in CHF and income in a What has really gone wrong currency risks for borrowers different currency) there were inevitable then? The absolute failure of and if the foreign currency high inherent risks and a potential for the Banks to provide extensive interest rate increase or the something to go terribly wrong. When it information to the borrowers exchange rate strengthened did, thousands of property purchasers of the high risks associated against the Cyprus Pound, the found themselves facing unmanageable with a foreign currency loan. monthly instalments payable financial burdens as they fail to maintain When the Central Bank of by the borrower may be signifiCyprus noticed that a consider- cantly increased. Consequentthe loan repayments. able amount of loans were ly, Banks were requested to granted in foreign currencies provide extensive information (mostly Swiss Francs and of these risks to prospective Japanese Yen) compared to the borrowers. loans granted in the local The Directive also included a currency, it has circulated a strict provision by which the directive to all Banks based in Banks were obliged not only Cyprus as a guidance in order to provide extensive informaStylianos Christoforou & Co. LLC 27 Evagorou Ave, Irene Building Suite 52 to follow a strict procedure tion to prospective borrowers when granting loans in foreign but also to provide them with 1066 Nicosia, Cyprus currencies due to the high risks a declaration which the Phone: +357 22 41 01 41 involved. Fax: +357 22 41 01 31 borrowers had to sign, stating Email: info@snclaw.eu wiss Franc mortgages undoubtedly concern a substantial percentage of purchasers who bought a residential property in Cyprus. In fact back in 2003 - 2008, a considerable amount of property purchasers were offered or encouraged to take out a Swiss Franc mortgage by the Cyprus Banks which portrayed Swiss Franc Loans as being financial products with great benefits. This has happened due to the fact that the Swiss Franc Loans at that time were very popular due to the attractive exchange and interest rate which was as low as 50% in comparison to the respective mortgages in Euro.

M


that they have understood and fully appreciated any risks associated with a foreign currency loan (a specimen of such a declaration was also forwarded along with the Directive to the Banks). This specific Directive, should have specifically included the following: that the Bank has informed the borrowers of the inherent risks associated with a foreign currency loan (interest and currency risk), that the information was necessarily accompanied by separate numerical examples explaining the lending costs to be incurred by the borrowers, numerical examples showing the amount by which the loan instalments will be appreciated by an increase of 1% in interest rate and by an increase of 5% in the exchange rate and despite the risks involved the borrowers have decided to proceed unaffected with a foreign currency loan. Banks were therefore under a strict obligation to provide borrowers with concrete examples and calculations of the charges relating to the changes of the parity and the fluctuation of the interest rate. Bankers were under an absolute obligation to inform the borrowers of the associated risks associated with such mortgages in order to allow the “average reasonable man” without any financial expertise or background to fully understand the terms and conditions of the agreement he was entering into, appreciate his obligations and liabilities towards the agreement and the potential implications from their breach in order to enable him to take an informed decision whether he was in a position to fulfil them. That is to say that Banks must have a transparent approach towards foreign currency loans and provide detailed information to prospective borrowers. Unfortunately, what the bankers used to do back in 2003 -2008 was to promote the Swiss Franc mortgage as the best deal by choosing to refer only on the fact that a Swiss Franc loan was more favourable when compared to others as a result of the low interest rate. They have totally failed to explain how the terms of a foreign currency mortgage are designed to work in the Banks’ favor and in particular how the loan instalments would increase throughout the duration of the mortgage.

Swiss Franc Mortgages Court Cases Whilst a considerable number of lawsuits are waiting to be heard we still do not have a final decision from the Cyprus Courts.

However it should be pointed out that the European Court rules in favour of the borrowers regarding cases related to foreign currency loans. A recent ruling of the European Court of Justice, has justified Hungarian borrowers, who were granted the right to repay their Swiss Franc mortgage at the currency rate of disbursement and not the current rate. Moreover the European Court cases emphasize that European consumers are protected against vague and unclear selling practices in which banking institutions were engaged. Therefore the legislation provides protection to consumers from misleading information and enhances the transparency of banking institutions. Recently, a Cypriot judge in granting an interim order, stressed the fact that the terms and conditions of a Swiss Franc Loan were ambiguous, not clear and were not enabling the borrower to calculate the actual outstanding amounts, the loan installments and the final amount to be paid.

O

ur Firm is currently handling approximately 160 Court cases against various Cypriot Banks, representing borrowers who were misled in entering into a Swiss Franc Loan claiming that the loan agreements are void as a result of the banking practices of the Banks and the failure to meet their obligations under the relevant Law when granting a loan in a foreign currency. Despite the fact that in Cyprus no precedence has been made since none CHF case reached the level of decision yet, the Banks are more than willing today to restructure those loans by discounting at some cases even up to 50%. This is an indication that the Banks are accepting the fact that were largely at fault when granting foreign currency loans without following the relevant prerequisites as set by the Law. Furthermore it is evident that the Banks are accepting at least that the borrowers are at a great extent correct when claiming that they have been misled. Therefore, present times may be the times of borrowers’ revolution after the CHF invasion the last decade. Our firm is able to advise on all aspects of banking and finance and provide you with guidance in successfully succeeding in your claim.

www.snclaw.eu


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International & other banking services in Cyprus

USB BANK

E

stablished in 1925 as one of the first companies registered in Cyprus (the 10th), it evolved in 2009 to USB Bank Plc and, in 2011, became a member of the International BLC Bank-FRANSABANK Group. Contemporary and reliable, USB Bank supports its customers, offering innovative and flexible solutions, tailored to the newly emerged market needs, through efficient products and services. BLC Bank, the mother company, was established in Lebanon in 1950 and has been a member of the International financial Group FRANSABANK, since 2007. In recent years it has exhibited continuous and significant growth, as a result of its clear vision and strategic direction. Its main strategic goal is its geographic expansion and the strengthening of its position in the Eastern Mediterranean. FRANSABANK Group was established in 1924 and is today the fourth largest banking Group in Lebanon with the biggest branch network. It has unified presence in 11 countries (Lebanon, France, Cyprus, Algeria, Syria, Belarus, Cuba, Sudan, UAE, Iraq and the Ivory Coast) and has been able to consolidate its leading position both in Lebanon and in the countries to which it has

expanded, providing leading financial services to its customers and always placing them at the heart of its activities. As a member of an International Group with a strong capital base and liquidity, USB Bank has been focusing on business growth and on strengthening its presence. By exploiting new opportunities of collaboration, its high level of expertise and know-how, an international network of clients and the support of BLC Bank and FRANSABANK, USB Bank is extending the range of its customer products and services. During the difficult time of the economic crisis, it remained close to its clientele, supporting their efforts to overcome the difficulties and financing reliable and sustainable projects and productive activities, supporting economic growth and recovery. USB Bank offers a wide range of banking products and services for SMEs, retail, corporate and international clients through its branch network all over Cyprus, the Corporate Division Units in all major cities and its two specialized International Business Units in Nicosia and Limassol, as well as a Representative Office in Moscow. High-quality service is provided daily in a personal and friendly manner, through skilled professionals

CONTACT INFORMATION: /LHK 6MÄJLZ! 83, Dighenis

CONTEMPORARY AND RELIABLE, WITH A DYNAMIC, PERSONAL AND FRIENDLY APPROACH sharing the values of integrity, transparency and responsibility, aiming to build long-lasting, mutually beneficial relationships with their clients. Daily services are also provided through the Customer Teleservice Centre on 8000 2323, while for easy and fast banking service, clients can access 24-hour service via the new, upgraded ATM network and the Online Banking services – ibank and ibank Mobile. With regard to its International clients, USB Bank acts as a business channel between the Middle East and Europe, facilitating and providing access to International investors through the Group’s network and its long-established relationships. The various sister institutions within the Group work together to generate synergies for the benefit of both local and international clients, satisfying their investment needs and promoting new investment opportunities. The Bank has been engaged in a number of activities in the region, promoting Cyprus and capitalizing on the Group’s wide network to assist investments in areas such as real estate and tourism, helping Cyprus establish itself as a strong international business centre.

Akritas Avenue, 1070 Nicosia | 7VZ[HS (KKYLZZ! P. O. Box 28510, 2080 Nicosia *\Z[VTLY ;LSLZLY]PJL *LU[YL! 8000 2323 / (+357) 22883333 | >LIZP[L! www.usbbank.com.cy

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| MERGERS & ACQUISITIONS |

THE REAL DEAL ASCENDIS HEALTH IS A SOUTH AFRICAN HEALTH AND CARE BRANDS COMPANY OPERATING G IN PLA PLANT, L NT, ANIMAL AND HUMAN HEALTH. ALTH. IT IS CONTROLLED BY THE COAST2COAST A AST2 CO OAST A INVESTMENT COMPANY AND IN N MAY A T THIS HIS YEAR IT ANNOUNCED ED THE E ACQUISITION OF CYPRUS-BASED SED RE REMEDICA EMEDICA A HOLDINGS, A GENERIC RIC PHA PHARMACEUTICAL ARMACEUTICAL MANUFACTURER, URER, FOR €260 MILLION, IN ADDITION N TO A M MAXIMUM AXIMUM E A EARNARNOUT OF €75 MILLIO MILLION ON AFTER 3 YEARS. THE MANAGING NAGING G DIRECTOR OF COAST2COAST, OAST, A GREG G VON HOLDT, SPOKE TO GOLD ABOUT WHY HE IS SO PLEASED WITH ED WIT TH THE OUTCOME OF THE COMPANY’S MPA P NY Y’S BIGGEST-EVER INVESTMENT ENT AN AND ND REVEALED HIS AMBITIOUS S PLA PLANS L NS N FOR ASCENDIS. BY CHARALAMBOS HARALAM MBOS MICHAEL

96 | GOLD | The Business Magazine of Cyprus prus


I n less than a decade, Coast2Coast has made several major investments, including Ascendis Health. How did that come about? Greg von Holdt: We formed Ascendis Health by acquiring over 20 businesses, mostly in South S Africa, merging them and formin forming a functioning healthcare Group, an and then we listed it. It took quite a few years of work to get it into the shape that t it is in now.

Gold: Wh What kind of companies does Coast2Co Coast2Coast invest in and what are the criteria criteri for investing in a particular compa company? G.v.H.: T Through Ascendis Heath we are focused primarily on the healthcare sector but we also invest in food and personal person care through our Bounty Brands bu business while homeware goes throu through our Marlin Homeware platform. W We prefer to stay focused on these three sectors. We will not invest in general op opportunities, regardless of what sector they are in. We like to specialise and ou our knowledge of the pharma industry has h been developing ever since we started out in 2007. This has allowed

Remedica is a world-class facility that gives us the ability to sell new products into European territories us to be more competitive when trying first to acquire and then to operate these businesses. Ascendis is now the second largest business by market cap (just under €68 million) on the Johannesburg Stock Exchange, which is a monster for us, having started it from a single company. Startup businesses and turnarounds are not really our thing. We want to invest in well-established businesses that, ideally, show highly defensive characteristics, so Remedica is a good example of that. It is very difficult to compete against pharmaceutical businesses – the cost of setting up operations and the manufacturing processes is a big commitment and an obvious a barrier to entry. Gold: What made you decide to invest in Remedica? G.v.H.: Two years ago, we decided to expand our business outside South Africa. We felt that we had exhausted many of the opportunities there and so we carried out a global search for jurisdictions that we wanted to put our money into. Remedica came up as a company that was selling its products into the territories that we liked, with a strong footprint in the Middle East and Africa and, in fact, over 100 countries worldwide. We liked the geographical diversification that the customer base offered and we were just fortunate that we had a real meeting of minds with the Pattichis family. They wanted to bring a new shareholder on board, someone who could take the business into a bigger group and leverage what

they had done. The manufacturing capabilities here are outstanding and it’s a world-class facility that gives us the ability to sell new products into European territories, thanks to its EU accreditation. That was exciting. Then the pharma component really ticks all the boxes of why we originally invested in pharma. It’s a high-margin business, really defensive and, from the perspective of being a listed company, we feel that it offers a really safe form of investment. We see a great opportunity to grow in those 100 countries where Remedica is active and to supplement to that with a range of products from our other businesses – we’ve got Farmalider, another pharmaceutical business in Spain, and we want to cross-pollinate the companies with all the potential opportunities – selling each other’s products, going into new territories with them, etc. There are also opportunities for manufacturing since a lot of what we do in Farmalider, for example, is outsourced but we can bring that manufacturing to Remedica, which has excess capacity. Gold: It sounds as if there were lots of things that made sense with this deal. G.v.H.: It is rare to find a business like this in a territory that can serve as a launchpad for the countries that we want to serve. Geographically it is very well suited to service Africa, the Middle East, the Far East and also part of Europe. It obviously has EU certifications which are difficult to

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| MERGERS & ACQUISITIONS |

obtain so we have the benefit of owing a European standard facility. Many customers want to have that European manufacturing quality and we like the fact that we were able to get that from Remedica in Cyprus. Gold: Are you planning any changes regarding the day-to-day operations of Remedica or the company’s management? G.v.H.: What we like to do is invest in high-performing businesses and look at where we can help them grow. So the status quo remains. Charalambos Pattichis continues as CEO, he runs the business and it’s up to him as to what decisions are taken on a day-to-day basis. It’s not our intention to make massive changes to the business operations. As mentioned earlier, one of our initial projects will be to bring more manufacturing to Cyprus, which, hopefully, will be a good thing for the company and the country as it will employ more people. Whatever we do will translate into growing it into a bigger and better business. Gold: What else has Coast2Coast been doing recently? G.v.H.: We are very active at the moment, having opened offices in Australia, Poland, South Africa and London. The London office is more of a global hub for us and we see London as an important place for sourcing capital. Ascendis is a listed company so

Our goal to create a specialist pharma business focused on emerging and developing markets and that’s what Ascendis will be we are now starting to talk to a lot of London- based fund managers. There is a project under way to list Ascendis on the London Stock Exchange. Our goal to create a specialist pharma business focused on emerging and developing markets and that’s what Ascendis will be. We want it to become a multi-billion dollar market cap business, listed on the LSE. That’s what I want to see happen in the next 3-5 years. It would be a good outcome for shareholders. Gold: You obviously have big plans for Remedica and Ascendis. G.v.H.: We are extremely excited. This is actually the single largest investment that Coast2Coast has ever made and we are extremely proud to be able to do it. It was a big step to invest that amount of money into a company that we didn’t know much about and I took comfort from the fact that we had

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found a good partner in the Pattichis family. I have built up a really good relationship with them over the last year and you could not wish for a better partner than Charalambos Pattichis. He is an amazing, ethical and trustworthy man so we are happy that he is in charge of this business Gold: How would you characterise the business environment in Cyprus and your experience so far of doing business here? G.v.H.: I must say that I have had a really pleasant experience with this transaction. We found all the people we worked with to be extremely knowledgeable and competent. In Remedica, for example, the talent there is amazing and these are highly educated scientists that you would not expect to find on such a small island. Cyprus has a relatively small population but it has a large pool of highly talented people and I think that cuts across the board from the tax advisors that we used to the law firms. It’s been a good experience. From a regulatory point of view, it was also smooth process. There were no obstacles put in our way. I am very happy with the outcome of this process and I would certainly not hesitate to make further investments if it makes sense for us to do so.


BUSINESS CLASS How often do you travel, whether for business or pleasure?

What is the most exciting destination you have visited for work? And for pleasure?

It varies. It can be 2-3 times in one month, and then nothing for the next 3 months.

For work it has to be Tehran, Iran. It was a complete surprise in terms of my expectations: a unique city, full of rich culture and thousands of years of history. For pleasure, I have to go with the Maldives. I stayed on an island that I could walk around in 20 minutes! It gave me a “Castaway” experience that cannot be found in many places.

Andreas Neocleous Whether it’s feeling like a castaway on a tiny island in the Maldives or feeling as if he’s at the centre of the world in New York, Andreas Neocleous MTN Business Director, certainly enjoys his travel. What is your favourite international al destination and why? y? I love going to New York. I worked there for a few months and it was the experience of a lifetime. e. ut Things changed a bit after 9/11 but I always love to go back. Whenever I go, it always feels like the centre of the world.

What is the most impressive hotel you have ever stayed at and why? Tough question! I think it’s the JW Marriott Grand Hotel in Bucharest, Romania. I went there in 2005 and I was really impressed by the luxury and elegance, which reminded me of Cold War movies. The casino on the ground ÅVVY ^HZ UV[ IHK LP[OLY

How does Cyprus compare to this llocation? ;OLYL HYL ZV THU` KPɈLYLUJLZ ;OLYL L HYL ZV T would need many pages to that I wo compare the two. However, it’s com important to note that Cyprus has a better climate, less crime and offers a better quality of life. New York compares favorably in pretty much everything else.

If you could travel anywhere tomorrow, where would you go? I would love to go for a road trip in *HSPMVYUPH 0»T ZWLJPÄJHSS` PU[LYLZ[ed in visiting San Francisco and KYP]PUN HSVUN [OL 7HJPÄJ *VHZ[ Highway, I’ve heard it’s an amazmazing experience.

Tell us about your best corporate travel experience.

I absolutely love my Emirates HUK ,[POHK ÅPNO[Z [V 4;5»Z /8 PU Johannesburg, travelling via Dubai or Abu Dhabi respectively. The customer experience in Business Class allows me to take a much-needed rest from my local engagements and clear my mind for my meetings at my destination.

What is your ur favour e favourite airlin airline, irline, and why? It has to be b Emirates, narrowly beating E Etihad simply ILJH\ZL +\IHP HPYWVY[ VɈLYZ ILJH\ZL +\IHP HPYWVY[ much more facilities and shopping than Abu Dhabi.

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IN GOOD COMPANY

THE SKY’S THE LIMIT

+2: &211(&7('6.< &5($7(6 $ +20(/,.( (19,5210(17 )25 ,76 0(0%(56 2) 67$)) By Artemis Constantinidou / Photos by Emma Louise Charalambous

:( 9$/8( 285 &/,(176¶ $&&203/,6+0(176 ,1 7+( 6$0( :$< $6 :( 9$/8( 285 2:1

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F

ounded in 2009 and beginning operations in 2011, ConnectedSky is a global provider of professional services ranging from corporate, legal and tax advisory to risk management and assurance, offering effective solutions to the needs of businesses, corporates and other institutions. Specifically, the company provides all

kinds of legal services through the affiliated law firm C. Samir & Co. LLC, as well as full administration services, and deals with the provision of international Tax Planning, corporate intelligence and debt collection as well as the registration of ships and vessels, immigration and citizenship applications and the incorporation of companies in over 60 jurisdictions. According to Charalambos Samir, Founder and CEO of ConnectedSky, the company pays great attention to detail, which is, undeniably, of utmost importance. “We value our clients’ accomplishments in the same way as we value our own,” he says. “We have a great respect for their aims and ambitions and we will never compromise on things such as safeguarding their interests and promoting what is best for them and their company.

We follow the approach that ‘We Grow When You Grow’, which consequently means that all of our clients receive specialised individual services that have been tailored to their particular needs and we give equal value to each and every individual relationship that we build with our clients, irrespective of size. In order to ensure that each client receives the highest level of service at all times, we only recruit highly qualified staff, which meet the high professional and ethical standards of ConnectedSky,” explains Samir. In light of this entrepreneurial approach and philosophy, the CEO notes, “We never refer to our team as simply ‘employees’. They are all members of staff and we believe that it is crucial to maintain, at all times, an inclusive atmosphere. We also acknowledge everybody’s personal career

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IN GOOD COMPANY

aspirations and insist on a continuous two-way dialogue that is based on trust.” Among the many qualities that characterise the people of ConnectedSky are teamwork and an optimistic spirit. “Our team of experts,” Samir says, “is always ready and enthusiastic about finding tailor-made solutions for our clients and their company. We know how important it is for clients to have a personal professional consultant instead of a distant and impersonal advisor. We also acknowledge that our clients come from various backgrounds and how important it is for them to know that someone is familiar with their company’s line of business. Thus we are proud to say that our people are dedicated and possess the required professional skills to offer continuous assistance to clients from a variety of industry sectors.” ConnectedSky currently employs 16 individuals in its Cyprus office – lawyers, accountants, corporate administrators, banking officers and other professionals – who enjoy numerous benefits, including the renewal of their Cyprus Bar Association licence, group insurance, in-house dining, trainings and seminars and end-of-year bonuses. In addition to these benefits, on Fridays employees leave at 2pm and enjoy a longer weekend which helps improve their work/life balance. As regards employee satisfaction at ConnectedSky, open communication and feedback are encouraged through a consistent open-door policy and general meetings are frequently organised, during which issues can be tackled openly. Thanks to this atmosphere, Charalambos Samir states that members of staff feel at ease to contact the management on pending matters, even during non-working hours. “We invest heavily in creating a sense of belonging in the workplace. Our offices used to be the residence of the ambassador of Portugal, which we converted in 2013,” he reveals. Located in one of the most prime areas of Nicosia and with a total area of 1,500 square metres, the building comprises spacious working spaces, conference rooms, presentation rooms, state-of-the-art technology, a lounge with a fireplace, a kitchen, a reception area, a swimming pool, garden area and large parking spaces.

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,7 ,6 ,03257$17 72 86 7+$7 $// 285 0(0%(56 )((/ $6 &20)257$%/( $7 :25. $6 7+(< :28/' $7 +20(

“Our premises are not just an ideal workplace; they definitely create a ‘home-feeling’ during working hours. This is further enhanced through regular collective lunch and dining moments organised by the management as it is important to us that all our members feel as comfortable at work as they would at home,” the CEO adds. Discussing ConnectedSky’s policies for building its human capital, Samir stresses the significance of valuing ambition and focusing on individuals who share the company’s collegial and global mind-set. “We insist on fostering our members’ goals and aspirations since we acknowledge that there is more to work than deliverables and assignments. And if you are able, as a company, to tailor an inclusive framework that leverages the needs and strengths of all your members of staff, they are incentivized to identify and pursue opportunities autonomously, thus satisfying their own ambitions and those of the company as a whole.” The essence of the company could not be better reflected than through its members of staff. Even though they come from different backgrounds, on both a professional and

personal level, they work together in perfect synchronization through their collective wealth of perspectives which, according to the CEO, is what allows the company to provide its clients unrivalled solutions on a global scale. ConnectedSky fuses a performance-based work ethic through solid and dynamic teamwork, while its members of staff form the foundation on which the company’s success was built. “Each and every individual at the company,” Samir concludes, “is considered to be a valuable part of a collective investment and is thus guided sensibly throughout his or her professional and personal journey. It is their individual growth that we pursue, not just as a company, but rather as a family taking care of its own.”


BOOK SHELF

BOOKS of the month

1.

JO MALONE: MY STORY By Jo Malone (Simon & Schuster UK, 2016) R.R.P. £20.00 (£10.00 FROM AMAZON.CO.UK)

The British businesswoman responsible for creating a globally renowned beauty business tells how, from modest beginnings as a teenager, struggling with dyslexia and leaving school with no qualifications, she became an international brand name and one of the world’s most successful entrepreneurs. Her commitment and down-to-earth approach to life, work and family makes her one of the most likeable and well respected personalities in British retail.

1

2

3

The autobiography of one of the 8.·V EHVW known female entrepreneurs.

A new kind of jobs theory can help companies improve their track record.

How desirability for their brand helps it to thrive.

4

5

$ \HDU·V At last, a worth of comprehensive management guide to one of wisdom, all in WKH FRXQWU\·V one place. most important laws.

2.

3.

4.

How can companies create products that customers will want to buy? Many years ago, Clayton Christensen revolutionized business with his theory of disruptive innovation. Now, he goes further, arguing that some of the world’s most respected companies, including Amazon, Uber and Airbnb use a new approach as customers “hire” their products or services and pay top prices for them.

If companies can create desirability for their brand, customers will not only express their preference and loyalty but they will show a willingness to act as brand champions. Using international case studies including BMW and Burberry, the authors explain how companies can build and maintain brand desire through specific strategies and tools, such as being consistent in delivery, from first communications through to after-sales service and support.

Subtitled The Definitive Management Ideas of the Year from Harvard Business Review, this now annual collection of management wisdom is one of the best business books of the year. With authors from Clayton M. Christensen to Adam Grant and company examples from Intel to Uber, it lets you in on the most current and important management conversations on the global business scene this year.

COMPETING AGAINST LUCK: THE STORY OF INNOVATION AND CUSTOMER CHOICE By Clayton M. Christensen & others (Harper Collins, 2016) R.R.P. £14.66 (£14.61 FROM AMAZON.CO.UK)

BRAND DESIRE By Nicholas Ind and Oriol Iglesias (Bloomsbury Business, 2016) R.R.P. £25.00 (£25.00 FROM AMAZON.CO.UK)

5.

+%5·6 0867 READS 2017 By Harvard Business Review (Harvard Business Review Press, 2016) R.R.P. £19.26 (£16.99 FROM AMAZON.CO.UK)

COMPANY LAW & LAW OF PARTNERSHIP IN THE REPUBLIC OF CYPRUS %\ 3HWHU 3DÀWLV (Christodoulos G. Vassiliades & Co LLC, 2016) R.R.P. €180 FROM CHRISTODOULOS G. VASSILIADES & CO. LLC OFFICES (NICOSIA, LIMASSOL, PAPHOS) & FROM GALAXY BOOKSHOP, NICOSIA.

The Companies Law has played a key role in the development of Cyprus as an international business centre. This book is a textbook for students, a manual for lawyers and a comprehensive guide for anyone involved in the corporate, commercial and financial services sectors.

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TIME

OFF

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g n pei c

OF CAKE!

i a k b a s

e

WHEN SHE’S NOT BUSY AS HEAD OF THE NICOSIA LAW OFFICE OF ANDREAS NEOCLEOUS & CO LLC OR DEALING WITH PIECES OF LEGISLATION AS A MEMBER OF THE HOUSE OF REPRESENTATIVES, MARIA KYRIACOU LIKES TO SPEND TIME IN HER KITCHEN AT HOME, BAKING CAKES. AFTER LONG HOURS AT WORK, HAVING LONG TEXTS TO STUDY AND WRITE, SHE ENJOYS NOTHING MORE THAN BEING ABLE TO FOCUS ALL HER ATTENTION ON CREATING A DELICIOUS CAKE OR SOME TASTY BREAD. HER HOBBY, SHE SAYS, IS “RELAXING AND REWARDING!” By Voula Loizou | Photo by Jo Michaelides

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OFF HER ‘S SECRE ET IN NGREDIENT’ IS S HER DE ESIR RE TO PLLEASE FAMILLY AND FRIE END DS

M

aria Kyriacou has liked baking ever since an American friend invited her and her family for dinner and offered them some bread that had been freshly baked that evening. “After that wonderful treat, baking became a fascinating challenge. I still treasure my friend’s bread recipe for busy working mums,” she says. Of course, baking has its ups and downs and, especially at first, the result was not always the expected one. “Even now, it doesn’t always go to plan,” she says modestly, “but reading the recipe carefully and following all the steps may help!” Now that she is considered an expert by friends and family, she tends to take a basic recipe and then adapt it so that it is more to her taste (e.g. by adding less sugar or butter or adding other flavours). As she has grown more experienced, she has learned the importance of understanding how certain things react together. “Generally, baking is about chemistry and the method of mixing the ingredients is very important,” she says. This knowledge is the result of some early failures, which are

an essential part of becoming successful at anything. She recalls how she once added soda to a cake which turned out to have a bitter taste and failed to rise properly. “Once I discovered that it needed an acidic ingredient and I learnt about the chemical reaction of soda with lemon, vinegar, orange or yogurt, I was able to get the desired result.” Asked to choose between baking and cooking, Maria Kyriacou doesn’t hesitate for one moment. “I like cooking but my favourite is baking! It’s alive and more creative; the result is more festive and it makes a difference on the table!” All good cooks (and bakers) have a signature recipe and this one is no exception. In fact, she’s got plenty of them. “My various bread recipes are very popular amongst my friends and family,” she says. “I remember how, when my son was a child, I used to make bread rolls almost every Sunday and as soon as they were out of the oven they were gone! The same happened at dinner parties, with a variety of bread recipes, such as olive bread, plain bread with aromatic herbs or even light cheese bread.” Easter baking tends to be more challenging as items such as the traditional Greek tsoureki or flaounes require a lot of time and detail. “Perhaps this is why we only make them during the holidays

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when we have more time to spend in the kitchen!” she suggests. Baking success is partly down to the use of good quality, fresh ingredients but Maria Kyriacou has other, perhaps less obvious tips to share, such as ensuring that kitchen windows and doors are closed (“draughts and air blowing through can dry the dough and butter”), while her ‘secret ingredient’ is her desire to please family and friends. She also likes to use gluten-free ingredients where possible and often replaces butter with vegetable oil and yogurt to make a lighter version of a recipe. The best compliment for any cook is, of course, seeing how her family and friends polish off what she cooks for them but it’s also rewarding to hear enthusiastic words. “I remember when, as a young newlywed, I invited my husband’s aunt and uncle for dinner one evening and I made coquille St. Jacques and a steamed fresh fish with a variety of homemade sauces and, of course, home-baked bread. As we were finishing our dinner, the uncle turned to me and said, ‘Now you are ready to invite the French ambassador for dinner!’”

Given her heavy workload, Maria Kyriacou has little time for TV and reading but, whenever she can, she likes to borrow ideas from the more innovative chefs. She was disappointed to discover that Betty Crocker was not a real person but a fictional character but, she says, she still loves and uses Betty Crocker recipes. “When more young women started working in the 1920s and ‘30s, Betty Crocker was invented to teach them to cook. The first cookery programmes were started on the radio and the Betty Crocker books were published. Her recipes are simple, traditional and delicious.” Given the huge success around the world of TV shows such as The Great British Bake Off, would Maria ever consider taking part in a baking competition? “Yes, why not?” she says. “A competition is a journey that I always love to take, since by competing with others, you learn so much from them.” And what about the idea of quitting law and politics to follow a career as a full- time baker? “This is a lovely dream!” she says, adding that, while running a tea-room must be very enjoyable, “for the time being, I am the baker for my family and friends.”

I USED TO MAKE BREA AD ROLLS ALMOST EVERY SUNDAY AND AS SOON AS THEY WERE OUT OF THE OVEN THEY WERE GONE!



MICHAEL VIVARDI

TODAY HE DESCRIBES HIMSELF AS “TRAINER, KEYNOTE SPEAKER AND AUTHOR” BUT 20 YEARS AGO, MICHAEL VIRARDI COULD NOT HAVE IMAGINED THAT HE WOULD BECOME ANY OF THESE. EVERYTHING CHANGED WHEN HIS INITIAL SUCCESS AS A SALESMAN TOOK HIM TO THE UNITED STATES, WHERE HE HAD AN EPIPHANY AFTER ATTENDING AN INSPIRING PRESENTATION BY JEFFREY GITOMER, THE RENOWNED AMERICAN AUTHOR, PROFESSIONAL SPEAKER AND BUSINESS TRAINER… By John Vickers

ARTIMA quare, l Castle S v Mediae a Limassol

$

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SALAD CHICKEN O D A C O + AV CHICKEN CRUSTED ) F WINE (2 GLASS O R IE PERR WATER MINERAL

s we settle into our chairs at Artima, the attractive restaurantt opposite Limassol’s mediaeval castle, I am again once again struckk by the way Michael Virardi seems to be constantly brimming over with optimism and how his bright demeanour and infectious positive attitude to life may sometimes convey the impression that he’s not really aware of all the bad things in the world. He hasn’t changed since we met some years ago but I now know that the initial impression he created back then – and doubtless still gives to some people – is not a true reflection of the man. Talk to

~15.20 ~ ~ ~ ~

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hi about anything in the him news and you will quickly discover that he’s as aware and up-to-date as anyone. The difference lies in how he deals with situations. Unlike most of us, who try to find ways of ensuring that bad circumstances affect us to a minimum, Virardi devotes most of his time to showing everyone else how to make things better for themselves, either profes-

~


sionally or personally. I start our conversation by telling him up front that I have always viewed so-called ‘motivational speakers’ with a certain amount of… “Scepticism!”, he interrupts. Yes, that’s exactly the word I was looking for and he has obviously met others with the same view. “I like to add the word ‘educational’ to ‘motivational’,” he says. “If people are going to be persuaded that they can improve their lives, they need to learn things on which to base their new attitude, things that will encourage them to make the extra effort. I’m not a preacher. I speak from the heart.” In fact, everything that Michael Virardi does today is based on his own experience. He didn’t wake up one day and discover that he had some kind of super-power of persuasion. Indeed, twenty years ago, he had no inkling of what he would be doing professionally when he graduated with a degree in Business Administration and Psychology, followed by a Masters in International Business. He knew that he would be joining the family business, a successful catering equipment supplier, and that is exactly what he did. It was after he had successfully sold eight times the minimum amount that a US company had requested in order to give Virardi Enterprises agency rights and a contract, that he was named as winner of the company’s European Award and invited to spend a week in the United States. The first day of that week proved to be a pivotal moment for the

young salesman. The company had arranged for Jeffrey Gitomer, the undisputed No. 1 sales consultant in the world, to lead an all-day seminar. “The moment he took to the stage, I was mesmerised,” Virardi recalls. “First of all, it was the first time I had ever sat motionless on a chair for 6-7 hours in my life. I can't keep still for more than 10 minutes! And while he was

and asked him straight out, ‘How can I become like you, sir?’ Yes, I know it sounds very naïve but I was so totally inspired by him. He told me that the easy way was to study my chosen topic for two hours a day for 10 years. ‘In five years, you'll be recognised in your country, and in 10 you'll be recognised worldwide.’” Virardi told him that he would start that day and he did. He has never looked back. As well as the hardback editions, he also bought the audio versions

Loyalty is Priceless and The Sales Bible, on cassette and played them in his car as he travelled around the island selling for Virardi Enterprises. And he put Gitomer’s (and later other authors’) ideas and techniques to work in the company. Every Monday he would hold different classes everyone, from the cleaning lady to the Managing Director, and set them exams at the end of the year. “I never considered giving up because I was enjoying it so much,” he says. “What I was teaching them was what I had learned from others because I hadn't worked out my own original ideas. Gitomer turned me into an avid reader. During the first 20 years of my life, I didn't read a single book – my father often complained about that. But then, between the ages of 20 and 35, I read 800.” The next turning point in Virardi’s life came seven years after his fateful meeting with Jeffrey Gitomer. He had been training people in the family business but, no matter how hard he tried, no-one would hire him from outside. But then he

IF YOU DON’T GET THOSE GOOSEBUMPS AND THOSE BUTTERFLIES IN THE STOMACH, IT'S A SIGN THAT YOU’RE LIKELY TO FAIL speaking, I was telling myself, ‘I want to be this guy!’ When he finished, I went up to him

of Gitomer’s books, including the acclaimed Customer Satisfaction is Worthless, Customer

was finally given a chance by a major real estate developer to address the sales team and, as

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| LUNCH WITH GOLD |

the saying goes, the rest is history. Five years on, he was asked to speak abroad for the first time, at the University of Lausanne, Switzerland. Twelve months later he had 10 engagements abroad and last year there were 12. He has been travelling constantly throughout 2016 and already has five confirmed bookings for 2017. He has spoken in 16 European countries - including the UK, Germany, Austria, Switzerland, Spain, Poland, Estonia, Greece and Malta and now has an agent for the Middle East. “I wrote back to Gitomer and told him that his advice had proved to be absolutely right – except that instead of five and 10 years, it took seven and 12. We Cypriots tend to be late for everything!” Our food arrives and later the chef comes out to greet us and to receive genuine compliments for the excellence of the meal. Michael Virardi now runs his own courses for people who want to improve their public speaking skills and I wonder if he ever had a fear of addressing an audience. "You should be asking me if it has ever gone away," he says, “and the answer is ‘never’. You might think that it depends on the audience but I can tell you that I was scared even when I addressed 1,000 kindergarten children in the United States. The trick is to turn the fear into excitement. If you don’t get those goosebumps and those butterflies in the stomach, it's a sign that you’re likely to fail.” It has never happened to Virardi, who says that he dreads the day when he is so relaxed and he doesn’t feel that anxiety. “In the past there were times when I didn't sleep at night because I was so anxious about what I would be doing the next day,” he remembers, noting that these days, he has a precise routine that he follows before any lecture or seminar. “In the morning, I’ll take a cold shower, even if I'm in a country as cold as Estonia or Austria were when I was last there. I rehearse, I have breakfast and then I'm pumped up and ready to go. I'm probably worried the night before but on

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the day I’m fairly confident of doing a good job.” One of the most impressive things about Michael Virardi in action is that he doesn’t consult any notes from start to finish. After a recent presentation in Berlin (see it on http://bit.ly/2elghwz), someone asked him where the autocue was but he actually learns all his lectures off by heart. “It’s all about practice, practice, practice,” he says, explaining that, “There's a difference between seeing someone who speaks to you and someone who reads to you. What you say comes from your mouth but it has to come from the heart if it’s to resonate with your audience. So it’s important to make the effort to show

10?’ After all these years, I am getting better and better, which Is why I have now reached the stage of having some of my lectures videoed and uploaded onto the Internet.” The Internet is changing everything in our lives and, I surmise, Virardi’s work must have been affected too. He agrees that technology has opened up new horizons, enabling him, for example, to do some one-one-one coaching via Skype and meaning that he can compete with others around the world. But, he says, companies like Microsoft, GlaxoSmithKline and Ericsson, all of whom have hired him, invariably want someone to speak to their people in person, on their prem-

THERE'S A DIFFERENCE BETWEEN SEEING SOMEONE WHO SPEAKS TO YOU AND SOMEONE WHO READS TO YOU that you mean what you’re saying.” How does he judge whether he has succeeded with an audience? Beyond the obvious applause and, perhaps, a request to go back and do more, Virardi says that he trusts his intuition and how he feels about his own performance. “I am my strictest critic,” he tells me. “I've given maybe 300 addresses and seminars and I would say that I have been completely happy perhaps three times. But that's me. Fortunately the audience doesn't judge me as harshly as I do myself. I've only been extremely disappointed in myself on two occasions and I’ve learned from my mistakes. Then there is the feedback that I get from the questionnaires that people are asked to fill in at the end of each event. I always ask them, ‘On a scale of 1-10, how would you rate me?’ but knowing that people may want to be polite and give a better rating than they might really mean, I also ask, ‘How can I get to

ises. “They want a physical presence and it's an additional attraction to be able to meet someone, shake their hand, have a chat, exchange information and grow your network. I am also preparing online lectures but nothing can beat seeing and meeting someone. If I hadn’t had that experience with Gitomer, you and I wouldn’t be talking here now.” Michael Virardi is now 44 but, he says, he is still at the beginning of his international career. As we prepare to leave the restaurant, he tells me, “It is very difficult to break onto the international scene – you have to be able to face rejection after rejection, as I did – but once you have taken the first step, it's relatively easy to maintain the momentum. I have come to realise that, in many instances, ‘no’ actually means ‘not yet’. Eventually, opportunities will arise. You just need patience and perseverance. The first seven years are the hardest!”


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Thursday 1 December 2016 | 08:30-15:00 | Hilton Park Hotel | Nicosia For further information & registration contact: IMH, 5 Aigaleo Str., 2057 Strovolos, P.O.Box 21185, 1503, Nicosia, Cyprus Tel.+357 22505555, Fax. + 357 22679820, E-mail: events@imhbusiness.com, website: www.imhbusiness.com 0DLQ VSRQVRU

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WHAT’S

ON

THINGS

to do

GREEK MUSIC

JAZZ MUSIC

DIMITRIS BASIS The popular Greek singer and musician returns to Cyprus for two live performances. Downtown Live, Nicosia Friday, November 25, 10.30pm Ravens, Limassol Saturday, November 26, 10.30pm

ANKE HELFRICH TRIO German jazz pianist and composer Anke Helfrich, who won an Echo Jazz Award 2016 for her current album Dedication, performs with her trio. THE SHOE FACTORY, NICOSIA FRIDAY, DECEMBER 9, 8.30PM

A ANASTASIA Live broadcast from London of L tthe Royal Ballet’s production of Kenneth MacMillan’s ballet, based K oon the true story of Anna Andersson, who claimed to be the Grand Duchess Anastasia. Starring Natalia D Osipova, Marianela Nuñez, FedO eerico Bonelli, Edward Watson and Thiago Soares. T

MARIO FRANGOULIS & GEORGE PERRIS Tenors Frangoulis and Perris perform songs from their latest album, Ark.

STROVOLOS MUNICIPAL THEATRE, NICOSIA MONDAY, NOVEMBER V R 21, 1,, 8.30PM

112 1 11 12 1 2 | GO GOLD GOL OLD OL D |T Th The h Business Bu B usin siiness Magazine off C Cy Cyprus yyp pru pru rus us

DANCE D

Rialto Theatre, Limassol Sunday, 2SZIQFIV Āþ Ą āþTQ

THEATRE DEEP BLUE SEA Video of a rec recent performance from th the National Theatre, Theatre London, of Carrie Crac Cracknell’s critically accla acclaimed new production of Terence Rattigan’s pla play, starring Helen McCro McCrory.

RIALTO THEATRE, LIMASSOL TUESDAY, NOVEMBER 29, 8.30PM


CLASSICAL MUSIC

PIANO & TROMBONE Chinese musicians Xiao Feng and Thomas Tang perform classical and Chinese music for trombone and piano. Technopolis 20, Paphos Wednesday, November 23, 8.00pm THE CYPRUS SYMPHONY ORCHESTRA A series of three themed concerts:

RIALTO THEATRE, LIMASSOL THURSDAY, DECEMBER 1, 8.30PM PALLAS THEATRE, NICOSIA FRIDAY, DECEMBER 2, 8.30PM

ALLEGRO VIVA VIVACE I ACE The Cyprus Symphony Orchestra performs works by Haydn, Mozart, Rousseau and others to mark the UN’s Human Rights Day. Soloist: Elli Aloneftou (mezzo-soprano) Pallas Theatre, Nicosia Sunday, December 11, 8.30pm GUITAR RECITAL The Pharos Arts Foundation presents Antoine Moriniere, winner of the Sevilla International Guitar Competition 2016.

THE SHOE FACTORY, N ICOSIA SUNDAY, DECEMBER 11, 8.30PM

PIANO RECITAL Clare Hammond, winner in the Young Artist category at the 2016 Royal Philharmonic Society’s Music Awards, plays works by Beethoven, Debussy, Boulanger, Dutilleux and Jacquet de la Guerre. The Shoe Factory, Nicosia Wednesday, December 14, 8.30pm

LA FOLIA (MADNESS) The Cyprus Symphony Orchestra performs works by Handel, Vivaldi and Salieri.

GERMAN ROMANTICISM The Cyprus Symphony Orchestra performs works by Mendelssohn (Hebrides Overture and Scottish Symphony) and Weber (Clarinet concerto no. 2 in E flat major). Soloist: Dionysis Grammenos (clarinet)

PALLAS THEATRE, NICOSIA FRIDAY, DECEMBER 9, 8.30PM APOSTOLOS PAVLOS HIGH SCHOOL, PAPHOS SATURDAY, DECEMBER 10, 8.30PM

ART YIANNIS YIANNIS: MOMENTUM 2016 Solo exhibition showcasing the work of sculptor Yiannis Yiannis The Collection Gallery, Nicosia Until Sunday, y December 4

VOCAL L MUSIC AMARCORD VOCAL ENSEMBLE One of the world’s leading acappella vocal ensembles performs a unique programme of sacred and secular early music. The Shoe Factory, Nicosia Wednesday, November 23, 8.30pm COME ON CHRISTMAS 5-piece a cappella vocal group Tête-àTête sings ballads, folk songs, spiritual and religious pieces, plus a selection of Christmas songs. Technopolis 20, Paphos Friday, November 25, 8.00pm ART-SONGS & OPERATIC ARIAS Two of Slovakia’s most celebrated opera singers – bass Stefan Kocan and soprano Bozena Ferancova – in a programme of works by Tchaikovsky, Rachmaninoff, Händel, DvoƤjk, Boito, Puccini, Rossini, Gershwin and more, accompanied on piano by Robert Pechanec.

THE SHOE FACTORY, NICOSIA FRIDAY, DECEMBER 2, 8.30PM

HORST WEIERSTALL: A ALL: FROM SIGN TO ACTION Retrospective of the Cyprus-based German visual artist from 1979 to today.

Loukia & Michael >EQTIPEW %VX Museum, Nicosia Until Saturday, 2SZIQFIV ĀĄ

www.goldnews.com.cy | GOLD | 113


Anna KoukkidesProcopiou

I

’ve always been an early riser so I’m up at 6. To start my day I need not one but two coffees! Once I’ve taken my daughter to school I try to do some exercise before starting work around 9am. I’m a research associate at the University of Nicosia and right now I’m focused on finishing on my PhD on “Leadership & Crisis Management in Foreign Policymaking in Cyprus” but every single day is different. Time is a precious commodity so I try to be very strict with how I spend mine, for example, by planning ahead for the whole week. I spend quite a lot of time away from my office – teaching or lecturing, taking part in working groups or coordinating conferences,

A DAY IN THE LIFE

carrying out adminisca trative tasks and, sometr times, leading various ti corporate projects. co When I was younger was planning to beIw come a doctor but I had co always been inspired by al my history teacher at m school and I changed my sc mind at the last minute m and decided to study an History & Economics at H UCL and then I did my U Masters in International M Relations at the LSE. I R did some teaching and di I was in the corporate sector for many years before choosing to do more consultancy work, which gave me greater flexibility with taking care of my daughter, and then going back into academia. I do a great deal of volunteer work and it is a very important part of my life. It takes up a lot of working hours and I treat it very seriously as I would a regular job. I was one of the founding members of AIPFE back in 2000 and this is now my second term as President. The more I have been involved in gender equality issues, the more passionate I’ve become about trying to change the world, even a little bit, to make it better for my daughter’s generation so that she

The President of AIPFE Cyprus – Women of Europe on her love of reading, the pleasures of volunteer [SVO XLI ÁKLX JSV KIRHIV IUYEPMX] and why she tries to live every day as if it could be her last.

doesn’t have to face as many obstacles as mine did. Progress has been made in the last 15 years and women are now more willing to stand up and make a fuss about inequality. In the afternoon I help my daughter with her homework if she needs it and although there is no such thing as a ‘normal evening’ for me, I like to cook when I get the chance. I’m always reading, mostly non-fiction – history, politics, economics, management – and I keep going back to things I’ve read before. One of my favourites is “Conversations with God” by Neale Donald Walsch. I also like anything by Malcolm Gladwell (“Outliers”, “Blink”) and I enjoy Greek and Cypriot poetry, especially anything by Costas Montis. I listen to music all the time, from Greek music to foreign rock. One of my alltime favourites is “Nothing Like the Sun”, the 1987 album by Sting. I don’t watch TV but I do like seeing movies at the cinema. The last one I enjoyed was a comedy called “Bad Moms” with Mila Kunis. I try to enjoy every day of my life as if it might be the last and I get annoyed with people who complain about their lives but, at the same time, do nothing to improve

them. If you’re going to be stuck in your comfort zone forever, either do One of my allsomething time favourites about it or accept it! My main focus at present is on finishing my PhD. Beyond that, I keep coming I have a back to this clear picture of where I would like to be in 5 and 10 years’ time but it’s not someI enjoyed this thing I’d like at the cinema to share right recently now! I feel that, to a great extent, my path in life so far has been the result of my own conscious decisions and, of course, my mistakes, which I prefer to call lessons! But, as John Lennon wisely said in one of his last songs, “Life is what happens to you while you’re busy making other plans”. Things happen when we least expect them so we can never be sure. I’m open to what the universe has in store for me!”

I GET ANNOYED WITH PEOPLE WHO COMPLAIN

ABOUT THEIR LIFE BUT, AT THE SAME TIME, DO NOTHING TO IMPROVE IT 114 | GOLD | The Business Magazine of Cyprus



www.pwc.com.cy

Capturing the Social Media use in the Cyprus Hotel Industry

The report aims to map the use of social media in the Cyprus hotel industry and to offer insights into how KRWHOV FDQ EHQHÄ&#x;W IURP VRFLDO PHGLD WRROV LQ implementing their business strategies. Find the report at: www.pwc.com.cy/social-media-cyprus-hotels

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