Gold Magazine September 2016-issue 66

Page 1

GOLD ISSUE 66 SEPTEMBER 18 2016 PRICE €2 .00

T H E

B U S I N E S S

M A G A Z I N E

NICOS ANASTASIADES

ALEXANDER SIDOROV

President of the Republic

Deputy CEO, Absolute Investment Group

O F

C Y P R U S

CHRISTODOULOS ANGASTINIOTIS

Chairman, Cyprus Investment Promotion Agency

5 TH

MICHALIS LOUIS

CEO, Eurobank Cyprus (Gold Sponsor)

00001 >

5 291295 000577

ANNA VYSHLOVA

EVGENIOS EVGENIOU

Chief Operating 2IÀFHU 5HQDLVVDQFH Capital Group

CEO, PwC Cyprus (Platinum Sponsor)

CIPA

INTERNATIONAL

INVESTMENT

Celebrating International Investment in Cyprus GOLD

NAGUIB SAWIRIS Chairman, Gemini Real Estate

18

SPECIAL

PAGES OF PHOTOS & COVERAGE OF THIS YEAR’S EVENT

awards ISSUE

VASSILIS PETRIDES,

PIETER OLIVIER Development Manager, Atterbury Cyprus

LOUCAS MARANGOS,

CEO, Laiko Cosmos Trading (Silver Sponsor)

DEEPAK PADMANABHAN

CEO, TFI Markets (Silver Sponsor)

Chairman, Go plc

PRABHAT K. JHA Group Managing Director, MSC Shipmanagement Ltd.

DR. WERNER HOYER JOHN VICKERS

DANA DVORAKOVA

Chief Editor Gold

Commercial Manager, Emma Delta

President & Chairman, European Investment Bank

NOAM WEIMAN President & CEO, Diplomat Group

Photo by Jo Michaelides Venue: Presidential Palace Gardens, Nicosia

THIS PRESTIGIOUS EVENT WOULD NOT HAVE BEEN POSSIBLE WITHOUT THE VALUABLE CONTRIBUTION OF OUR SPONSORS PLATINUM SPONSOR

SILVER SPONSORS

UNDER THE AUSPICES OF H.E. THE PRESIDENT OF THE

GOLD SPONSOR

ORGANISERS

DELIVERED WITH CARE BY G.A.P. AKIS EXPRESS

Global Broker with a Local Touch ForexTime (FXTM) is an award-winning online forex broker committed to providing a superior trading experience for clients around the world • Trade currencies, metals, and CFDs • Extremely competitive trading terms • Attractive partnership programs

• Free & comprehensive forex education • Regular contests and promotions • Security, safety, and transparency

www.forextime.com/eu | info@forextime.com | Tel: +357 25 558777

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

ISSUE 66 SEPTEMBER 18, 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 8 | EDITORIAL 12 | BUSINESS BRIEFING

Economic & Business Highlights of the past month.

16 | MY WAY

COVER

Christos S. Christodoulou’s management style.

STORY

35 | THE 5TH CIPA

20 | FIVE MINUTES WITH…

INTERNATIONAL INVESTMENT AWARDS Photos from the prestigious annual event hosted by Gold, featuring the winners and the N\LZ[Z WS\Z WYVÄSLZ VM [OL nine com companies receiving a an award.

Michalis Economides.

22 | THEY SAID WHAT?

A selection of remarkable statements made about Cyprus and the Cypriots over the past month.

OPINION 96 | WELCOME TO THE

POST-MEMORANDUM ERA By Savia Orphanidou.

FEATURES 24 | FRAGILE YET STRONG

The former Irish Taoiseach John Bruton on the positive aspects of the European Union.

20

28 | GETTING TO GRIPS WITH VAT Alexis Tsielepis on the new Chelco VAT International Academy.

24

SPECIAL PROMOTIONAL FEATURE 69 | The Business of Health & Health Insurance Nine companies present their products and services in detail.

32 | LEADING INNOVATION IN PRACTICE By Dimis Michaelides

58 | PROMOTING FOREIGN INVESTMENT Interview with Nicolas Theocharides, Chairman of CIPA’s Promotion Committee.

58 64 | EFFECTIVE

116

122

CORPORATE COMPLIANCE Marios M. Skandalis explains why regulatory compliance has become so important in recent years.

92 | CONFIRMATION STATEMENT *VUÄYTH[PVU JVT [OL SLHKPUN WYV]PKLY VM VUSPUL H\KP[ JVUÄYTH[PVUZ OHZ VWLULK HU VɉJL PU *`WY\Z

98 | SMALL IS BEAUTIFUL

104 | REINVENTING

TRADITION Andreas Papayiannis on the philosophy behind the creation of the Casale Panayiotis hotel at Kalopanayiotis.

114 | BOOKSHELF Five of the best new business titles. 116 | LUNCH WITH GOLD Stella Kyriakides, MP

The Acting CEO of cdbbank, George Spyrides, on the secret behind its 50 years of success.

108 | IN GOOD COMPANY

102 | MAKING YOUR MONEY WORK HARDER FOR YOU By Ian Woodcock.

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

112 | BUSINESS CLASS

122 | A DAY IN THE LIFE Eleni Kaloyirou

6 | GOLD | The Business Magazine of Cyprus

How Andreas Neocleous & Co LLC wins the talent race Stefan Nolte

| EDITORIAL |

Saying ‘Thank You’

GOLD ISSUE 66 SEPTEMBER 18 2016 PRICE â‚Ź2 .00

T H E

B U S I N E S S

M A G A Z I N E

NICOS ANASTASIADES

ALEXANDER SIDOROV

President of the Republic

Deputy CEO, Absolute Investment Group

O F

C Y P R U S

CHRISTODOULOS ANGASTINIOTIS

Chairman, Cyprus Investment Promotion Agency

5 TH

MICHALIS LOUIS

CEO, Eurobank Cyprus (Gold Sponsor)

EVGENIOS EVGENIOU CEO, PwC Cyprus (Platinum Sponsor)

CIPA

INTERNATIONAL

INVESTMENT

Celebrating International Investment in Cyprus

00001 >

5 291295 000577

ANNA VYSHLOVA Chief Operating 2IĂ€FHU 5HQDLVVDQFH Capital Group

NAGUIB SAWIRIS Chairman, Gemini Real Estate

GOLD

PUBLISHED BY IMH ISSN 1986 - 3543

MANAGING DIRECTOR

“AS WE EXPRESS OUR GRATITUDE, WE MUST NEVER FORGET THAT THE HIGHEST APPRECIATION IS NOT TO UTTER WORDS, BUT TO LIVE BY THEM.�

T

John F. Kennedy

he Cyprus Investment Promotion Agency (CIPA) was established in 2008 with the aim of working to attract foreign investment to Cyprus but it was not until four years later that it joined forces with Gold (founded in 2011) to create the annual International Investment Awards, which have grown in stature to be seen today as being among the most prestigious in the broader Eastern Mediterranean region. The concept was extremely simple: for 40 years, Cyprus had been a beneficiary of foreign companies that have invested in the island, providing jobs, know-how and tax revenues (and, of course, reaping many benefits of their own) and raising the country’s profile. Wasn’t it time we said ‘thank you’? Over the past five years, that is precisely what the Government (represented at the annual ceremony by the President of the Republic himself) has done for 41 companies and four individuals representing the full range of investment sectors, from energy and shipping to education and banking. As individuals, we all have opportunities to feel grateful to others and to experience their gratitude to us. This basic human emotion is no less potent when thanks are expressed by an entire nation, through its head of state, to a company employing a large number of people, both local and foreign. This was evident on September 7 when senior company officials flew to Cyprus from Germany, the Czech Republic, Malta and elsewhere in order to receive a CIPA International Investment Award. When a multi-billionaire like Naguib Sawiris speaks about the honour he feels to be recognized, this is a clear sign that such an award has value. In this issue of Gold, we give extensive photographic coverage to the ceremony, together with a brief profile of the nine award-winning companies. Staying with CIPA, we feature an interview with Nicolas Theocharides, Chairman of the Promotion Committee, who explains the philosophy and methods underlying the agency’s work in attracting foreign investment. Beyond the subject of investment, we also have interviews with the former Irish Taoiseach John Bruton, ahead of his address to next month’s Limassol, Economic Forum (page 24), George Spyrides, Acting CEO of cdbbank (page 98), Alexis Tsielepis, Managing Director of Chelco VAT Ltd (page 28), Marios M. John Vickers, Skandalis, Director, Group Compliance Division, Bank of Cyprus Chief Editor Group (page 64), and Christos Panteli, Regional Manager of Confirmation.com (page 92). Enjoy this special issue of Gold. john@imhbusiness.com 8 | 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

Dimis Michaelides, Savia Orphanidou, Ian Woodcock 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

Irene Georgiou

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

| XXXXX |

Navigating the Waters 152 EY is standing at the forefront of the Global Shipping Industry for many years now, both as auditors and as advisors to a number of large public and private shipping companies. Our approach is based on years of hands on experience of catering to your needs and is designed to support you not just for this moment in time, but rather in the context of a cyclical industry. Our Global network can serve our clients regardless of location by combining local knowledge with international experience.

offices globally

Recently, we were commissioned to conduct EY Cyprus has long-term and deep commitment to a study for the Department of Merchant the shipping industry, with Y strong track record of Shipping of the Ministry of Transport, We arethrough able to respond fast accurately to proud people areand dedicated to quality, intoservice. Cypriot history a guided Communications andthere Works clients’ needs, irrespective that of pay location, Gold: Are otherregarding locations inthe homage towith their environment tourour in the monastery. development of a holistic Strategic tailored services from experienced with deep and love for CyCyprus which, in your view,Plan have for the andteams who have a passion the Cyprus Shipping Industry based the industry knowledge. Together with priot EY culture. Greece we are potential to be revitalised andon turned Gold: the hotel’s examinationinto and analysis a Describe team of over philosophy 130 experienced professionals a tourist hub inofthethe samepresent way as as well as foreseeable future trends and dedicated solely to supporting our shipping clients. Kalopanayiotis? Gold: Name one thing that makes and culture. developments in the International Shipping A.P.: Basically the whole of the Troodos Casale Panayiotis memorable and unA.P.: Τhe hotel’s philosophy revolves market. Our and development regioninsights needs better infrastructure and forgettable around breathing life back into a dying measures are in the process of being more incentives for local businessmen A.P.: It is a place that brings together a village and reviving a way of life. Thanks implemented by the Ministry strengthen to invest so that we canto drive tourism to and to the guest rooms in eight houses across rich culture, a luxury environment the local shipping industry. the mountains. The authorities should unique experiences told from a personal the village, as well as cafés and restaucreate a new classification for resort vilperspective. It provides an experience rants, the villagers themselves have been Our Transaction team lages like Advisory ours and notServices simply include us that people seek: a discovery on their inspired to invest in their own commuhas extensive advisory experience on in the hotel or agrotourism sectors. The own terms, guided by a friend who can OF THE BEST WErestoring HAVE OVER nity, their homes and opening marina developments andshould port transactions. tourism industry focus on winter give them insight into what is there. small businesses, preserving our mounExamples include Port, Limassol tourism the – notPiraeus by the sea but via the tain culture and way of life. A strong set Port and mountains. numerous marina developments Gold: Do you solutions have plans or projects of values permeates thethat entire webusiness; tap into to provide client in Greece and Cyprus. The same team is for the future development ofcurrently Casale we believe in a project that means someoffering advisory services to the Panayiotis? thing beyond profit and beyond personal Cyprus Governmenl for the re-development A.P.: We have many projects onofthe ambition; it is a very personal story and the Larnaca port and marina. horizon – all related to reinstating the experience that speaks for the wider Cysimple way of life and connection to priot community and culture; and there Stavros Pantzaris the land that was lost during difficult is dedication to a cause – the regeneraCountry Managing Partner times. Plans are in progress to retion of a community and providing a Stelios Demetriou establish vineyards that once covered window into a world where time has Head of Transaction Advisory Services surrounding mountainsides and to stood still. The attracts Find outhotel how weguests canwho help the you reach Tel : +357 22 209 999 preserve orchards and historic buildings.

230k people

your destination.

90 | GOLD | The Business Magazine of Cyprus

ey.com/cy

Our OurService Service Service Our Offerings: Offerings: Offerings: Assurance AssuranceServices Services Services Assurance

Financial Financial Statements Statements Audit Audit Financial Statements Audit Financial Financial Accounting Accounting Advisory Advisory Services Services Financial Accounting Advisory Services Assistance Assistance during during the the IPO IPO process process Assistance during the IPO process Fraud Fraud Investigation Investigation and and Dispute Dispute Services Services Fraud Investigation and Dispute Services Climate Climate Change Change and and Sustainability Sustainability Services Services Climate Change and Sustainability Services Accounting Accounting Compliance Compliance Services Services Accounting Compliance Services

Tax TaxAdvisory Advisory Advisory Tax &&& Compliance ComplianceServices Services Services Compliance Business Business Tax Tax Services Services Business Tax Services Transaction Transaction Tax Tax Transaction Tax Indirect Indirect Tax Tax Indirect Tax Human Capital Human Human Capital Capital International Tax Services (ITS) International International Tax Tax Services Services (ITS) (ITS) Tax advice ininin relation tototo planning ofofof Tax Tax advice advice relation relation planning planning investments ininin shipping through holding investments investments shipping shipping through through holding holding structures structures structures Tax advice related tototo the tonnage tax regime Tax Tax advice advice related related the the tonnage tonnage tax tax regime regime

Transaction Services Transaction TransactionAdvisory Advisory Advisory Services Services

Valuations and Business Modelling Valuations Valuations and and Business Business Modelling Modelling Restructuring Restructuring Restructuring Transaction Support Transaction Transaction Support Support M&A Advisory M&A M&A Advisory Advisory Project Finance Project Project Finance Finance

Advisory Advisory AdvisoryServices Services Services

Enterprise Intelligence &&Data Analytics Enterprise Enterprise Intelligence Intelligence &Data Data Analytics Analytics Performance Improvement Performance Performance Improvement Improvement Risk Risk Risk Service Organization Controls Reporting Service ServiceOrganization OrganizationControls ControlsReporting Reporting (e.g., ISAE 3402/SSAE 16, ISO 27001) (e.g., (e.g.,ISAE ISAE3402/SSAE 3402/SSAE16, 16,ISO ISO27001) 27001) Information Security Information InformationSecurity Security IT Internal Audit ITITInternal Internal Audit Audit Risk Management Financial Services Financial Financial Services Services RiskManagement Management Actuarial Services Risk Actuarial ActuarialServices Services

Global Compliance and Reporting Global GlobalCompliance Complianceand andReporting Reporting

Establishment and set up of legal entities Establishment Establishment and andset set up upofoflegal legalentities entities Corporate Secretarial Support Services Corporate CorporateSecretarial Secretarial SupportServices Services Administration ServicesSupport Administration Administration Services Services Accounting Services Accounting Accounting Services Services and personnel Payroll Administration Payroll Payroll Administration Administrationand andpersonnel personnel related services related related services services Tax and VAT services Tax Taxand andVAT VATservices services

Shipping Law Shipping LawRegistration Shipping Cyprus Law Ship

Cyprus Cyprus Ship ShipRegistration Registration Cyprus tonnage tax scheme assistance Cyprus Cyprus tonnage tonnagetax taxscheme schemeassistance assistance and advice and andadvice advice Charterparties Cargo recovery and defence Charterparties Charterparties Law of recovery the Sea and Cargo Cargo recovery anddefence defence Passenger &Sea cruise Law Lawofofthe the Sea ship Piracy and Maritime Passenger Passenger &&cruise cruiseSecurity ship ship Pollution Piracy Piracyand andMaritime MaritimeSecurity Security Protection Pollution Pollution & Indemnity Insurance Salvage Protection Protection&&Indemnity IndemnityInsurance Insurance Collisions Salvage Salvage Ship arrests Collisions Collisions Shipbuilding, Ship Shiparrests arrestsconversion & repair Ship finance and sale & purchase Shipbuilding, Shipbuilding, conversion conversion &&repair repair Yachts & Superyachts Ship Shipfinance finance and andsale sale&&purchase purchase Yachts Yachts&&Superyachts Superyachts

www.goldnews.com.cy | GOLD | 91

BUSINESS BRIEFING

VISITORS

H&M

NEW T CYPRUSO

:^LKPZO MHZOPVU YL[HPSLY /LUULZ 4H\YP[a / 4 PZ [V PUH\N\YH[L P[Z ÄYZ[ *`WY\Z Z[VYL VU :LW[LTILY 0[ PZ SVJH[LK PU [OL :OHJVSHZ ;V^LY I\PSKPUN PU 3LKYH :[YLL[ 5PJVZPH ¸*`WY\Z PZ H ]LY` PTWVY[HU[ THYRL[ MVY \Z HUK ^L HYL HU_PV\Z [V NL[ UL_[ [V V\Y J\Z[VTLYZ VɈLYPUN [OLT H \UPX\L W\YJOHZPUN L_WLYPLUJL ^P[O V\Y MHZOPVU HUK [OL L_JLSSLU[ WLVWSL PU V\Y [LHT ¹ ZHPK :HUKYPUL .HSWHYVSP *V\U[Y` 4HUHNLY MVY *`WY\Z .YLLJL HUK )\SNHYPH PU H JVTWHU` HUUV\UJLTLU[ / 4 J\YYLU[S` VWLYH[LZ PU JV\U[YPLZ ^P[O V]LY Z[VYLZ *`WY\Z ^PSS IL [OL JVTWHU`»Z YK [LYYP[VY` MVSSV^LK UL_[ TVU[O I` [OL [O 5L^ ALHSHUK

IN THE NEWS

MEDIA

EPSILON TV COMES TO CYPRUS .YLLR ;= JOHUULS ,WZPSVU PZ K\L [V

KING ABDULLAH II OF JORDAN

Jordan’s King Abdullah II paid an VɉJPHS ]PZP[ [V *`WY\Z VU :LW[LTILY /L ^HZ ^LSJVTLK I` 7YLZPKLU[ 5PJVZ (UHZ[HZPHKLZ PU H YLK JHYWL[ JLYLTVU` HUK HU VɉJPHS YLJLW[PVU H[ [OL WYLZPKLU[PHS WHSHJL MVSSV^LK I` H ^VYRPUN S\UJO 2PUN (IK\SSHO SHPK H ^YLH[O H[ [OL Z[H[\L VM (YJOIPZOVW 4HRHYPVZ 000 PU [OL WHSHJL NYV\UKZ ;OL RPUN ^HZ HJJVTWHUPLK I` OPZ 7YPTL 4PUPZ[LY [OL 4PUPZ[LY VM -VYLPNU (ɈHPYZ HUK V[OLY 1VYKHUPHU VɉJPHSZ ^OV OHK [HSRZ ^P[O [OL *`WYPV[ 4PUPZ[LY VM LULYN` @PVYNVZ 3HRRV[Y`WPZ +LMLUJL 4PUPZ[LY *OYPZ[VMVYVZ -VRHPKLZ [OL .V]LYUTLU[ :WVRLZTHU HUK V[OLY VɉJPHSZ

J&P WINS QATAR FOUNDATION STADIUM DEAL

( QVPU[ ]LU[\YL SLK I` *`WY\Z IHZLK JVU[YHJ[VY 1VHUUV\ 7HYHZRL]HPKLZ 1 7 OHZ ILLU H^HYKLK [OL JVU[YHJ[ [V I\PSK [OL UL^ 8H[HY -V\UKH[PVU 8- :[HKP\T MVY [OL >VYSK *\W ;OL ZLH[PUN JHWHJP[` Z[HKP\T PZ ZSH[LK ILNPU [YHUZTPZZPVUZ PU *`WY\Z I` [OL MVY JVTWSL[PVU PU ;OL ]LU\L»Z KLZPNU YLZLTISLZ H LUK VM [OL TVU[O 0[ ^PSS IYVHKJHZ[ VU ¸KPHTVUK PU [OL KLZLY[¹ HUK ^PSS MLH[\YL NLVTL[YPJ WH[[LYUZ [OH[ HWWLHY [V JOHUNL JVSV\Y HZ [OL Z\U HYJZ HJYVZZ [OL MYLX\LUJ` \ZLK I` 7S\Z ;= HUK ^PSS IL OV\ZLK PU [OL MVYTLY WYLTPZLZ [OL ZR` ;OL QVPU[ ]LU[\YL ^OPJO JVTWYPZLZ 1 7 8H[HY *VUZWLS 8H[HY 1 7 (]H_ :( HUK 1 7 6]LYZLHZ ^PSS VM 3;= PU 7`YNH ;OL VɉJPHS UHTL VM I\PSK [OL 8- Z[HKP\T [OH[ PZ ZL[ [V OVZ[ TH[JOLZ \W [V [OL [OL Z[H[PVU PZ , *OHUULS *` X\HY[LY ÄUHS Z[HNL

1,255,240

;/, 5<4),9 6- ;6<90:;: (990=05. 05 *@79<: 05 ;/, -09:; :0? 465;/: 6- (5 05*9,(:, 6- 65 ;/, :(4, 7,906+ 3(:; @,(9

SIR ALAN DUNCAN :PY (SHU +\UJHU [OL )YP[PZO 4PUPZ[LY MVY ,\YVWL WHPK H [OYLL KH` ]PZP[ [V *`WY\Z LHYSPLY [OPZ TVU[O K\YPUN ^OPJO OL ^HZ YLJLP]LK I` 7YLZPKLU[ (UHZ[HZPHKLZ OLSK [HSRZ ^P[O -VYLPNU 4PUPZ[LY 0VHUUPZ 2HZV\SPKLZ HUK TL[ [OL ;\YRPZO *`WYPV[ SLHKLY 4\Z[HMH (RPUJP :PY (SHU ZHPK ¸;OL <2 M\SS` Z\WWVY[Z [OL J\YYLU[ ZL[[SLTLU[ WYVJLZZ HUK Z[HUKZ YLHK` [V OLSW PU HU` ^H` P[ JHU PU VYKLY [V IYPUN SHZ[PUN WLHJL [V *`WY\Z ¸0 HT LUJV\YHNLK I` [OL LɈVY[Z VM [OL [^V SLHKLYZ 0 JVTTLUK 7YLZPKLU[ (UHZ[HZPHKLZ HUK 4Y (RPUJP MVY [OLPY JVU[PU\LK JV\YHNL HUK SLHKLYZOPW ¹ OL HKKLK

HOTEL AWARDS

HILTON CYPRUS

ANASSA

LONDA

;OL /PS[VU *`WY\Z OHZ ILLU YLJVNUPZLK HZ *`WY\Z»Z 3LHKPUN )\ZPULZZ /V[LS MVY [OL MV\Y[O JVUZLJ\[P]L `LHY H[ [OL YK >VYSK ;YH]LS (^HYKZ JLYLTVU` VU :LW[LTILY ;OL 5PJVZPH OV[LS ZJVVWLK VUL VM H^HYKZ ^VU I` /PS[VU >VYSK^PKL WYVWLY[PLZ HUK IYHUKZ HZ ]V[LK MVY I` [YH]LS HUK [V\YPZT WYVMLZZPVUHSZ NSVIHSS` *OHYPZ 4PJOHLS .LULYHS 4HUHNLY VM /PS[VU *`WY\Z ZHPK ¸;OPZ YLJVNUP[PVU PZ [LZ[HTLU[ [V V\Y JVTTP[TLU[ [V L_JLSSLUJL HUK [V WYV]PKPUN HU L_JLW[PVUHS N\LZ[ L_WLYPLUJL HUK PZ H YLÃ…LJ[PVU VM /PS[VU *`WY\Z»Z L_JLW[PVUHS [LHT TLTILYZ HUK MHJPSP[PLZ ¹

;OL (UHZZH VUL VM ,\YVWL»Z TVZ[ PJVUPJ OV[LSZ OHZ ILLU H^HYKLK H U\TILY VM PTWYLZZP]L HJJVSHKLZ PU [OL *VUKt 5HZ[ ;YH]LSSLY 9LHKLYZ» ;YH]LS (^HYKZ PUJS\KPUN [OL [OPYK ILZ[ OVSPKH` OV[LS PU ,\YVWL ;\YRL` 9\ZZPH 0[ ^HZ YHURLK [O PU [OL º>VYSK»Z ;VW » JH[LNVY` (UHZZH»Z ;OHSHZZH :WH ^HZ ]V[LK HZ [OL ÄM[O ILZ[ V]LYZLHZ spa ;OL OV[LS PU [OL 7HWOVZ KPZ[YPJ[ OHZ \UKLYNVUL H [OYLL `LHY SVUN YLM\YIPZOTLU[ JVTWSL[LK PU 4HYJO 0[ UV^ OHZ UL^ SVVR YVVTZ HUK Z\P[LZ UL^ ]PSSHZ HUK H YLM\YIPZOLK ZWH

;OL 3VUKH )LHJO /V[LS PU 3PTHZZVS OHZ ILLU UHTLK *`WY\Z» 3LHKPUN )V\[PX\L /V[LS HUK *`WY\Z» 3LHKPUN /V[LS H[ [OL YK >VYSK ;YH]LS (^HYKZ MVY [OL [O Z\JJLZZP]L `LHY 1VJOLU 5PLTHUU .LULYHS 4HUHNLY VM [OL 3VUKH )LHJO /V[LS ^OPJO PZ RUV^U MVY P[Z ZVWOPZ[PJH[LK S\_\Y` JVTIPULK ^P[O JVU[LTWVYHY` [YLUK` [V\JOLZ VM JVTMVY[ HUK LSLNHUJL ZHPK ¸0[ PZ H [Y\L OVUV\Y [V YLJLP]L [^V KPZ[PUN\PZOLK H^HYKZ MVY [OL [LU[O `LHY PU H YV^ H MVYLTVZ[ YLJVNUP[PVU VM `L[ HUV[OLY `LHY VM L_JLSSLUJL HUK \UWHYHSSLSLK ZLY]PJL ¹

19,766 ;/, ;6;(3 5<4),9 6- 9,.0:;,9,+ 46;69 =,/0*3,: 05 *@79<: -69 ;/, 7,906+ 1(5<(9@ 1<3@ (5 05*9,(:, 6- 6=,9 ;/, -0.<9, -69 ;/, *699,:765+05. 7,906+ 05

PIPELINE AGREEMENT WITH EGYPT

C

yprus signed a deal on August 31 for the transfer of natural gas via pipeline to Egypt, once extraction starts, firstly of discoveries made off Cyprus by US energy firm Noble Energy five years ago. The agreement

was signed in Nicosia by the Egyptian Minister of Petroleum & Mineral Resources, Tarek El Molla and Cypriot Minister of Energy, Commerce, Industry & Tourism, Yiorgos Lakkotrypis. A consortium

ENERGY

Trust in Jordans wherever your business takes you Based inTrust Nicosia, Jordans Trust Jordans Company Company (Cyprus) specialise (Seychelles) can help your in the formation and management business thrive. of companies, both in Cyprus and professional overseas, and provide an Our team provide extensive range corporate, local insight andof a full range of accounting andtrust tax and services. management, director services. Close links with our worldwide -k!#1A ',!*3"',% 2&# A A All services are regulated by andFinancial Seychelles, mean Authority you have the Services easy access to all our services (FSA) in the Seychelles. 2&0-3%& -30 7.031 -k!#@ Close links between all our We are able to deliver -k!#1 ', 2&# -0" ,1 %0-3.A considered localeasy insight and to mean you have access expertise wherever our services throughyou ourchoose Cyprus to do business. -k!# ', '!-1' @ Contact our Nicosia team today. -,2 !2 -30 '!-1' 2# + 2-" 7@

of Italy’s ENI and Korea’s KoGas also has a contract with Cyprus for exploration rights in three offshore blocks. French oil major Total has exploration rights in one block. Recently,

Jordans Trust Company (Cyprus) Limited T +357 22 767 294 E info@jordans.com.cy

www.jordanstrustcompany.com www.jordanstrustcompany.com www.goldnews.com.cy | GOLD | 13

BUSINESS BRIEFING

MILESTONES Demetra Kalogerou +LTL[YH 2HSVNLYV\ ^HZ YLHWWVPU[LK *OHPY^VTHU VM [OL *`WY\Z :LJ\YP[PLZ HUK ,_JOHUNL *VTTPZZPVU *`:,* I` [OL *V\UJPS VM 4PUPZ[LYZ SHZ[ TVU[O MVY HUV[OLY Ä]L `LHYZ \U[PS :LW[LTILY (UHZ[HZPH (UHZ[HZPHKV\ HUK (UKYLHZ 2SLHU[OV\Z ^LYL HSZV YLHWWVPU[LK HZ TLTILYZ VM [OL *`:,* *V\UJPS MVY HUV[OLY Ä]L `LHY [LYT

Demetrios Theophylactou

Evgenios Evgeniou

;OL UL^S` HWWVPU[LK (TIHZZHKVY VM *`WY\Z [V ;OHPSHUK +LTL[YPVZ ;OLVWO`SHJ[V\ WYLZLU[LK OPZ JYLKLU[PHSZ [V *YV^U 7YPUJL 4HOH =HQPYHSVUNRVYU PU )HUNRVR PU (\N\Z[ ;OLVWO`SHJ[V\ ^OV PZ *`WY\Z /PNO *VTTPZZPVULY [V 0UKPH WYVTPZLK [V \UKLY[HRL L]LY` WVZZPISL LɈVY[ [V M\Y[OLY WYVTV[L YLSH[PVUZ IL[^LLU [OL [^V JV\U[YPLZ

,]NLUPVZ ,]NLUPV\ OHZ ILLU YL LSLJ[LK HZ *,6 VM 7^* *`WY\Z MVY HUV[OLY Ä]L `LHYZ MYVT 1HU\HY` 0U HU HUUV\UJLTLU[ MYVT [OL JV\U[Y`»Z IPNNLZ[ H\KP[ ÄYT ,]NLUPV\ ZHPK [OH[ OL ^HZ OVUV\YLK [V YLJLP]L ^OH[ OL JHSSLK ¸[OL YLUL^LK ]V[L VM JVUÄKLUJL VM T` WHY[ULYZ¹

FOREIGN RELATIONS

T

BEIJING VISA CENTRE

he inauguration ceremony for the first visa application centre (VAC) in China was held at the Cyprus embassy in Beijing earlier this month. The centre has been operated on a trial basis since April by TLScontact, which transfers applications to the embassy for processing. The Cyprus embassy in Beijing processes visa applications for Cyprus from applicants residing in China, Japan, South and North Korea, Mongolia, Laos and Cambodia. BANKING

BANK OF CYPRUS

)HUR VM *`WY\Z [OL PZSHUKGZ SHYNLZ[ SLUKLY HUUV\UJLK H UL[ WYVÄ[ VM Á TPSSPVU MVY [OL ÄYZ[ OHSM VM I\PSKPUN VU [OL Á IPSSPVU YLK\J[PVU PU P[Z UVU WLYMVYTPUN SVHUZ *,6 1VOU /V\YPJHU ZHPK PU H Z[H[LTLU[ [OH[ [OL IHUR OHK JVUJS\KLK YLZ[Y\J[\YPUNZ HTV\U[PUN [V Á IPSSPVU HUK UV[LK [OH[ H M\Y[OLY YLK\J[PVU PZ L_WLJ[LK PU [OL JVTPUN X\HY[LYZ 5L^ SVHUZ HTV\U[LK [V Á TPSSPVU HUK [V[HS PUJVTL PU [OL ÄYZ[ OHSM VM [OL `LHY ^HZ Á TPSSPVU

HELLENIC BANK

/LSSLUPJ )HUR HUUV\UJLK H WYVÄ[ VM Á TPSSPVU MVY [OL ÄYZ[ OHSM VM 0[ HWWYV]LK Á TPSSPVU VM UL^ SLUKPUN PU [OL ÄYZ[ ZP_ TVU[OZ VM [OL `LHY HUK JVTWSL[LK M\Y[OLY SVHU YLZ[Y\J[\YPUNZ VM Á TPSSPVU ;OL )HUR»Z UVU WLYMVYTPUN L_WVZ\YLZ 57,Z MLSS MVY H YK JVUZLJ\[P]L X\HY[LY ^OPSL [V[HS KLWVZP[Z HTV\U[LK [V Á IPSSPVU HUK [V[HS NYVZZ SVHUZ YLHJOLK Á IPSSPVU /LSSLUPJ )HUR»Z ;PLY YH[PV ^HZ HUK UL[ SVHU [V KLWVZP[Z YH[PV HZ VM 1\UL

14 | GOLD | The Business Magazine of Cyprus

COOPERATIVE CENTRAL BANK

;OL Z[H[L V^ULK *VVWLYH[P]L *LU[YHS )HUR NLULYH[LK HU HM[LY [H_ WYVÄ[ VM Á TPSSPVU PU [OL ÄYZ[ ZP_ TVU[OZ VM JVTWHYLK [V Á TPSSPVU PU [OL ZHTL WLYPVK VM ;OL IHUR»Z JHWP[HS HKLX\HJ` YH[PV Z[VVK H[ VU 1\UL 3VHU YLZ[Y\J[\YPUNZ ^VY[O Á T PU [OL ÄYZ[ OHSM VM [OL `LHY OLSWLK [OL IHUR YLK\JL P[Z 573 YH[PV [V *\Z[VTLY KLWVZP[Z MLSS [V Á IPSSPVU HUK [V[HS NYVZZ SVHUZ [V Á IPSSPVU IV[O MYVT Á IPSSPVU

EUROBANK CYPRUS

,\YVIHUR *`WY\Z 3[K HUUV\UJLK HU HM[LY [H_ WYVÄ[ VM Á TPSSPVU MVY [OL ÄYZ[ OHSM VM 0[Z JHWP[HS HKLX\HJ` YH[PV Z[VVK H[ H[ [OL LUK VM 1\UL ^OPSL P[Z JVYL LX\P[` [PLY JHWP[HS YH[PV ^HZ ,\YVIHUR»Z SVHU WVY[MVSPV YVZL PU 1\UL [V I` Á TPSSPVU JVTWHYLK [V 1\UL [V V]LY Á IPSSPVU ^OPSL KLWVZP[Z YVZL MYVT Á IPSSPVU [V Á IPSSPVU ;OL IHUR»Z UVU WLYMVYTPUN SVHUZ HJJV\U[LK MVY VM P[Z WVY[MVSPV HZ VM 1\UL

Trust in Jordans wherever your business takes you The Seychelles remains a popular choice for International Business Companies *2&-3%& 2&# #.3 *'! -$ #7!&#**#1A *')# + ,7 -j1&-0# !#,20#1A & 1 $ !#" !-,1'"#0 *# !& **#,%#1 ', 2&# %*- * 31',#11 #,4'0-,+#,2A 0#!#,2 1304#7 7 -0" ,1 0312 -+. ,7 1&-51 2& 2 2&# -4#0 ** ',2#0#12 ', #7!&#**#1 ,2#0, 2'-, * 31',#11 -+. ,'#1 H 1J & 1 ,-2 "'+','1&#"@ ',!# 2&# #, !2+#,2 -$ 2&# ,2#0, 2'-, * 31',#11 Companies Act 1994, the Seychelles has become one of 2&# +-12 .-.3* 0 -j1&-0# (30'1"'!2'-,1A 5'2& ..0-6'+ 2#*7 Ă’Ă˜Ă–AĂ‘Ă‘Ă‘ 1 #',% 0#%'12#0#" 2-Q" 2# S Ă˜Ă‘AĂ‘Ă‘Ă‘ -$ 2&-1# 12'** #',% !2'4# 2-" 7@ &# #7!&#**#1 13!!#11 '1 + ',*7 220' 32 *# 2- 2&# (30'1"'!2'-,a1 i#6' *# !-0.-0 2# *#%'1* 2'-,A 5&'!& #, *#1 2&# 120 '%&2$-05 0" ',!-0.-0 2'-, -$ #7!&#**#1 1A 5'2& *-5 ,,3 * + ',2#, ,!# ," *'!#,1',% !-121@ Facing up to challenges #1.'2# 13!& "4 ,2 %#1A &-5#4#0A 0#!-++#," 2'-,1 ," 13 1#/3#,2 .0#1130# 0#% 0"',% ',$-0+ 2'-, #6!& ,%# 7 2&# *')#1 -$ 2&# ', ,!# !2'-, 1) -0!# H J ," 2&# 0% ,'1 2'-, $-0 !-,-+'! #4#*-.+#,2 H JA & 4# $-0!#" 2&# #7!&#**#1 ," -2&#0 -j1&-0# (30'1"'!2'-,1 2- 0#4'1# 2&#'0 *#%'1* 2'-,A 5&'!& & 1 !-,1#/3#,2*7 0#13*2#" ', + ,7 1203%%*',% 2- !&'#4# !-,2',3#" !-+.#2'2'4#,#11 ," h, ,!# 1#!2-0Q%0-52&@

#2A & 4',% !2'4#*7 1-3%&2 2- #+ 0 !# 2&#1# 2-3%& ',2#0, 2'-, * +# 130#1A 5&'*12 120#,%2&#,',% '21 0 ,"A 2&# #7!&#**#1 & 1 ##, !!-0"',%*7 0#5 0"#" $-0 '21 #j-021A 5'2& 2&# -03+ -, 0 ,1. 0#,!7 ," 6!& ,%# -$ ,$-0+ 2'-, $-0 6 30.-1#1 0#!#,2*7 %0 ,2',% '2 `* 0%#*7 !-+.*' ,2a -4#0 ** 0 2',% *-,%1'"# 2&# *')#1 -$ 7.031 ," 36#+ -30%@ Future of the Seychelles as a business centre - + ',2 ', 2&'1 +-+#,23+ S ," !-+.#2'2'4#,#11 Q ""'2'-, * 0#%3* 2-07 +# 130#1 0# ,-5 3,"#05 7A 5'2& 2&# 2'-, * 11#+ *7 -$ #7!&#**#1 & 4',% 0#!#,2*7 %'4#, '21 ..0-4 * $-0 2&# #, !2+#,2 -$ 2&# ,#5 ,2#0, 2'-, * 31',#11 -+. ,'#1 !2A Ă“Ă‘Ă’Ă— H^ !2_J@ &# .0-.-1#" ,#5 +# 130#1A 5&'!& 27.'! **7 +'00-0 + ,7 -$ 2&# ,#5 * 51 #',% ',20-"3!#" ', -2&#0 )#7Q-j1&-0# !#,20#1A *--) 3,*')#*7 2- "#,2 2&# #7!&#**#1 .-.3* 0'27@ ,"##"A -0" ,1a 1304#7 $-3," 2& 2 Ă˜Ă“ĂŁ -$ .0-$#11'-, * 0#1.-,"#,21 ', 2&# 7.031 h"3!' 07A * 5 ," !!-3,2 ,!7 1#!2-01A 5-3*" !-,2',3# 2- 31# #7!&#**#1 #,2'2'#1 $-0 &-*"',% -0 20 "',%@ '2& 2&'1 .-1'2'4# -32*--)A -0" ,1A *')# + ,7 -2&#01A 0# !-,h"#,2 2& 2 2&# #7!&#**#1 '1 1#2 2- 0#+ ', .-.3* 0 $# 230# ', + ,7 !0-11Q -0"#0 1203!230#1 $-0 1-+# 2'+# 2- !-+#@

Richard Melton , %',% '0#!2-0 -0" ,1 0312 -+. ,7 H 7.031J '+'2#" info@jordans.com.cy +357 22 767 294 www.jordanstrustcompany.com 1#" ', '!-1' A -0" ,1 0312 -+. ,7 H 7.031J 1.#!' *'1# ', 2&# $-0+ 2'-, ," + , %#+#,2 -$ !-+. ,'#1A -2& ', 7.031 ," -4#01# 1A ," .0-4'"# , #62#,1'4# 0 ,%# -$ !-0.-0 2#A !!-3,2',% ," 2 6 1#04'!#1@

MY WAY

Christos S. Christodoulou

Managing Director, CSC Christodoulou Chartered &HUWLÀHG Accountants & Business Advisors

PROPER PLANNING AND TEAMWORK AND A PERFECTIONIST OUTLOOK ARE ESSENTIAL ELEMENTS OF HIS MANAGEMENT STYLE AND THEY HAVE PAID OFF IN THE FORM OF GLOBAL AWARDS AND HONOURS. AWAY FROM WORK, HE HAS FOUND THE SECRET OF RELAXATION THROUGH FRIENDS, FAMILY AND ASTRONOMY, THOUGH HIS PASSION FOR SPORT DOES NOT ALWAYS ALLOW HIM TO STAY AS CALM AS HE WOULD LIKE…

“I

“I “I

n my family there is total respect both for ‘home’ and ‘work’ and we mutually allow the smooth accommodation of one with the other!”

admire all self-made persons who are successful not only in their business and /or profession but in their life in general.”

would describe my management style as that of a perfectionist who wants his business environment and his team to function like a fine-tuned Swiss watch. I am always seeking ways to satisfy clients and provide more than just numbers.”

“I “D

view all the awards and honours that I have received as trophies that recognise hard work and continuous development.”

“I

escape the dayto-day pressure of work by relaxing in many different ways: time spent with the family, pleasant company, stargazing through my telescope and, of course, with good food and wine! I am very passionate about sport too (football, basketball, Formula 1) but I tend to be nervous when watching them rather than relaxed!”

espite the obstacles I have had to face, the goal of creating a respectable and professional firm was never compromised. The support of my wife, both at home and at work, together with being lucky enough to meet the right people at the right time, has certainly been a blessing.”

“T

he biggest mistake that managers make concerns a lack of proper planning and control. Without these, you cannot manage anything effectively. Managers frequently fail, either because they have not evaluated a situation properly or they have not controlled it as it progresses.”

“I

believe that starting my professional career from an early age, working extremely hard and setting high standards from the beginning have helped me develop a style that hat only brings good results.”

“M

y greatest professional achievement is, undoubtedly, receiving a global award from ACCA for the firm’s professional work and putting CSC Christodoulou on the elite list of quality auditing firms. We celebrated that and our 10th anniversary with a party for clients, friends and associates.””

16 | GOLD | The Business Magazine of Cyprus

Christos S. Christodoulou is a GLEVXIVIH GIVXMÁIH EGGSYRXERX with 20 years of experience in the accounting and tax advisory profession. He is a member of the VAT committee of the -RWXMXYXI SJ 'IVXMÁIH 4YFlic Accountants of Cyprus

-'4%' ERH LEW IEVRIH RYmerous awards and honours during his career.

Global experience, local approach in the Funds Industry KPMG provides comprehensive audit, risk advisory, tax and regulatory services to fund managers in setting up and operating through Cyprus. Our clients look to us for leadership and guidance in areas such as: fund set-up and structuring; regulatory interpretation and support; proactive tax advice; investment acquisitions and due diligence; fund liquidation, re-domiciliation and/or restructuring. Our local practice is at the forefront of industry issues, working closely with the industry and its representatives and actively participating in the firm’s global product development programmes. The combination of a strong local practice, with significant professional and industry experience, along with the global reach of KPMG International fund services network places us in an optimal position to provide added value service to our clients as they address the industry challenges, and guide them in grasping opportunities.

For more information please contact: Christos Vasiliou Deputy Managing Director Primary Contact T: +357 22 209 113 E: cvasiliou@kpmg.com Marie-Helene Angelides Senior Associate Regulatory & Compliance T: + 357 22 209 227 E: mangelides@kpmg.com kpmg.com.cy

©2016 KPMG Limited, a Cyprus limited liability company and member of the KPMG network of independent member firrms affiliated with KPMG International Cooperative (”KPMG International”), a Swiss entity. All rights reserved.

Specialised and tailored solutions for the financial services sector on International Licensing, Compliance, Risk Management, Internal Audit, Fund Administration, Anti-Money Laundering, EMIR Reporting, IT Audit, Executive Training and more, based on an unparalleled knowledge and experience of financial regulation in Europe and beyond!

Contact today the award-winning teams of MAP S.Platis, the leading and most specialised international consultants for the financial services sector, to receive more information about our unique products and services for you and your clients

Investment Advisory

Research and Analysis

Valuations

Financial Advisory

Fund Selection and Monitoring

Specialised in Pension Funds, Provident Funds, Insurance Companies, Investment Funds and Corporates

Symmetria F.S. Ltd is regulated by the Cyprus Securities and Exchange Commission (CIF 228/14)

www.symmetriafs.com / info@symmetriafs.com / 4, Dorieon Street, 1101 Nicosia - Cyprus / Tel.: +357 7000 3313

FIVE

MINUTES

W

hat can you tell us about the firm? Economides Kranos Chambersfield is an innovative and progressive international law firm, based in Cyprus and with a physical presence in the United Kingdom, Singapore, Albania, Bahrain and Israel. It provides a full range of legal and corporate services to private and corporate clients, multinational companies, financial institutions and governments. Over and above our core business, our experience and knowledge of international commerce and business enables us to provide solutions to everyone, from multinationals to start-ups. One of our divisions is KnightsWorth, which provides integrated, tailor-made solutions for company formation, administration and fiduciary services in more than 21 jurisdictions. The Cyprus Institute of Law, which is another member of our group of companies, aims at advancing professional skills and reducing the training time needed in a company, develop organisational skills and thus increase productivity. The CIL also provides legal and practical training and education to legal assistants to enable them to gain employment in law firms, as well as advanced legal and compliance seminars for professionals on issues such as Anti-Money Laundering. What would you point to as the firm’s main objectives? Our mission is to provide clients with complete legal and corporate solutions and innovative services, specifically tailored to their particular needs. We work hard and focus on establishing positive long-term 20 | GOLD | The Business Magazine of Cyprus

WITH MICHALIS ECONOMIDES

relationships based on trust, reliability and respect. I would say that our key objectives are (1) to offer our clients outstanding legal representation that exceeds their expectations; (2) to ensure that our relationships are governed by mutual respect, so our focus is upon each client’s requirements; and (3) to combine our legal experience and international industry knowledge so as to provide the best possible, innovative solution to each project.

CEO, Economides Kranos 'LEQFIVWÁIPH You mentioned that the firm currently operates in six countries. Do you have plans for further expansion? Today’s business environment requires that entities operate and are active on an international level and a company like ours, which follows a client-focused approach, needs to be constantly updated in order to provide high-calibre cross-border services and cutting-edge solutions. Our strategy is, therefore, to further expand internationally so as to enable our clients to benefit from local services at an international level as we grow bigger and stronger. We believe in the notion “Think globally, act locally”.

Client service is a hugely important aspect of any business success. What is your philosophy in this regard? As mentioned earlier, Economides Kranos Chambersfield follows a client-focused approach, offering dynamic, tailor-made legal and corporate solutions. Loyalty, trust, professionalism, ethics, respect, quality and understanding are just some of the fundamental principles we value in our relationships with clients and they govern our team too. Each customer is unique, therefore our approach is always exclusive. We listen to our clients and personalize the proposed strategy in order to yield exceptional results in each case. How did the firm manage during the difficult three-year period after March 2013? We witnessed drastic changes not only to the Cyprus economy but to global business operations as a whole during this period. Economides Kranos Chambersfield diversified its business plans in order to expand its operations into new markets. I would note that, even during difficult financial times, a firm can still succeed if it provides quality, efficient and trustworthy solutions to its clients. We managed to differentiate our firm from others by making our clients’ interest our number one priority. Of course, success is never achieved overnight but the proactive approach that we have followed from the start, accompanied by personalized services, assisted us in mitigating any risk of operating exclusively in the Cyprus market. I believe that our passion, knowledge, determination and zeal differentiate our firm from the competition and these are the qualities that have enabled us to reach, establish and maintain the highest standards of professional integrity on an international level.

INSURANCES

77 77 77 75

QUOTES OF THE MONTH

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

“THE AIM OF THESE EFFORTS IS THAT THIS YEAR A NEW PARTNERSHIP WILL BE ESTABLISHED IN WHICH BOTH SIDES CAN LIVE WITHIN THE FRAMEWORK OF UN PARAMETERS... AFTER A SETTLEMENT, THE REAL DYNAMIC OF CYPRUS WILL EMERGE AND A PROGRAMME OF REGIONAL PROJECTS, WHICH HAS NOT YET BEEN EVALUATED, WILL BE IMPLEMENTED.” President Nicos Anastasiades? Actually, no. These are the words of Turkish President Recep Tayyip Erdogan, who sounded so reasonable that even the most vehement Greek Cypriot anti-settlement parties were stunned into silence.

NICHOLAS PAPADOPOULOS

“HE IS ENGAGING IN SECRET DIPLOMACY AND ENFORCING AN INFORMATION BLACKOUT. THIS IS A CRIME AND IT MUST STOP.”

Why doesn’t DIKO Chairman Nicholas Papadopoulos simply say that he doesn’t want President Anastasiades and Mustafa Akinci to resolve the Cyprus Problem?

“INSTEAD OF EVERYONE PUSHING FOR REFORM AND CHANGE, ALL WE ARE GOOD AT IS PUSHING FOR PAY RISES AND MORE STAFF.”

“I DIDN’T GO TO THE POLICE BECAUSE EVERY TIME I DID SO ON PREVIOUS OCCASIONS, THOSE IMPLICATED KNEW WHAT I HAD BEEN SAYING ABOUT THEM FIVE MINUTES LATER.”

HARRIS GEORGIADES

Finance Minister Harris Georgiades realises that to most people, ‘economic growth’ means ‘now we can go back to our old habits’.

“THE UNDERWORLD NEEDS TO REALISE THAT ITS END IS NEAR.” Even Superman and Batman didn’t issue the stern warning that our very own caped crusader President Anastasiades did last month.

PRESIDENT NICOS ANASTASIADES

22 | GOLD | The Business Magazine of Cyprus

ODYSSEAS MICHAELIDES

Paphos Mayor Phedon Phedonos explains why he didn’t trust the police to do anything about certain municipal councillors from Aradippou who, he alleges, demanded and received €50,000 from international VPSÄLSK ZLY]PJL JVTpany Schlumberger in return for issuing a building permit.

PHEDON PHEDONOS

“I AM NOT A POLITICIAN AND I CAN’T OPERATE ON THE BASIS OF WHETHER SOMETHING I DO IS POPULAR WITH THE PUBLIC OR NOT. BUT IB BELIEVE THAT PEOPLE SUPPORT THE AUDIT SE SERVICE BECAUSE THEY REALISE THAT IT IS A ACTING TO PROTECT THEIR INTERESTS.” Auditor-General Odysseas Michaelides shows that he understands why he is popular and has a clear picture of how and why our politicians take their decisions.

“THE MAYORSHIP IS A KIND OF RELAY RACE. IT’S NOT A 100-METRE SPRINT. YOU RECEIVE A LOT OF PROJECTS FROM YOUR PREDECESSOR, YOU DO THINGS YOURSELF AND THEN YOU DELIVER THEM TO THE NEXT ONE. THERE IS NO END. THIS IS THE IDEA. THIS IS THE ATTRACTION OF BEING A MAYOR.” Limassol Mayor Andreas Christou is clearly more Mo Farah than Usain Bolt.

ANDREAS CHRISTOU

|

|

g

yp

| EUROPE |

YET STRONG THE EU IS NOT PERFECT BUT IT T HAS AS A ALWAYS WAYS BEEN A POLITICAL UNION THAT HELPS HEL ELPS LPS PEOPLE PEO OPLE O LE OF F E IN HARMONY HAR H ARMON ONY AND A AN DIFFERENT NATIONALITIES TO LIVE PROSPERITY, SAYS THE FORMER IIRISH RISH R SH H TA TAOISEACH OISEA SE H (PRIME MINISTER), WHO WILL AD ADDRESS A RESS RE R S NEX N NEXT XT MONTH’S LIMASSOL ECONOMIC OMIC O C FORUM. FOR O UM OR M. BY JOHN VICKERS

24 | GOLD | The Business Magazine of Cyprus

I

t’s easy to find similarities between Cyprus and Ireland – a long-drawn-out peace process, an EU bailout, and its transformation into an international business centre and a services-based economy being just three of them – and I’d like to ask you about each one. The 1998 Good Friday Agreement, in which you were deeply involved, is often cited by those who are hopeful of a Cyprus settlement as proof that every seemingly intractable situation can eventually be resolved. Is that your view too? John Bruton: There are differences as well as similarities. The divided allegiance in Ireland goes back a longer time, perhaps, than is the case in Cyprus. The unionist community, in what is now Northern Ireland, have differed with the people in the rest of Ireland on the issue of continued un union with Britain for over 160 years. This di difference is reflected in the partition of Ire Ireland which dates back to 1920, while th the division of the Island of Cyprus, and th the hardships associated with it, are more re recent. In the case of Northern Ireland, th the settlement from the “mainland” took pl place 400 years ago whereas some of the se settlement of Northern Cyprus by Turkey is much more recent. An Another difference is that the Cyprus iss issue has been internationalised and there ha has been the involvement of the United N Nations. In Ireland’s case, the issue was de dealt with – to the extent that it was – by th the two governments and the two communi nities within Northern Ireland. That said, th there is much that those who are interested in reconciliation in both islands can learn fro from each other. In the Irish case, while a po political settlement has been reached, full re reconciliation at a local level remains to be co completed and Ireland may have much to lea learn from Cyprus in this regard. G Gold: As you will know from your own ex experience, the longer a conflict or an un unresolved situation goes on, the more

opposition there is to any eventual settlement, which is inevitably a compromise for both parties. Did you ever fear that there was too much history to allow the Good Friday Agreement to come about? J.B.: I did fear that the Good Friday agreement would never be reached, and, even when it was reached, that it would never be fully implemented. This was because of the continued existence and activity of private armies on either side of the conflict. On the one side, you had the Provisional IRA and, on the other, various loyalist paramilitary organisations. While these organisations were initially willing to cease military operations, they were much slower in finally getting rid of their weapons and thereby removing once and for all the threat of a resumption of violence. Such a threat polluted normal politics as long as it existed. There are genuinely different political world views on either side of the division between the two communities in Northern Ireland and these differences still remain. But we are moving in the right direction. Gold: Like Ireland, Cyprus has thrived since joining the EU and both countries were later forced to request an EU bailout when things went wrong. Despite the problems that came with it, they both emerged stronger at the end of the programme. How did you feel about the Irish experience? J.B.: I would not say that Ireland has emerged stronger from the circumstances that led to the request for an EU bailout. Substantial private and government debts still remain and Ireland is fortunate, giv-

en the scale of its debts, that international interest rates are low. The bubble that built up in the Irish economy in 20022008 also distorted it in a way that does continuing damage. Initially, our construction sector was unhealthily over-extended and then, when the crash came, it contracted to almost nothing. This led initially to too many people seeking careers in construction and then, later, to too many of those people having no option but to emigrate to other countries semi- permanently. At first, when Ireland had to seek assistance from the European Union and the IMF, most people, including myself, were somewhat ashamed that we found ourselves in that position. On the other hand, the conditions imposed by the EU and the IMF enabled Ireland to make reforms that might otherwise have been postponed, and that was good. Gold: Were you surprised by the way in which the Troika dealt with Cyprus, notably through the unprecedented ‘bail-in’ of bank deposits? J.B.: I was in Cyprus around the time that those conditions were imposed by the Troika and I was surprised that a bail-in of bank depositors was required in the case of Cyprus. Under the aid package that Ireland received from the EU, Ireland was not allowed even to bail in the junior bondholders of our failed banks. This showed an inconsistency of policy on the part of the European Union, which highlighted how unprepared it was for the crisis that arose in both of our countries. It has to be said, however, that these policy issues have now been settled in a consistent way by the EU and I hope that the same sort of problem will not

The conditions imposed by the EU and the IMF enabled Ireland to make reforms that might otherwise have been postponed www.goldnews.com.cy | GOLD | 25

| EUROPE |

on i n U n a e p o The Eurdy a political is alreIan fact, it was a union. al union and a politic l project from politicaery beginning the v arise in future. In Cyprus, it would appear that many more bailed-in depositors were not from the European Union than was the case with Ireland, and that their motives for placing their money on deposit in the banks was probably different in many instances. Gold: It was during your time as Taoiseach (1994-1997) that the Irish economy grew at an astonishing annual average rate of 8.7%, peaking at 11.1% in 1997. On reflection, was that in any way responsible for what happened in 2010? Again, I’m linking this to what happened in Cyprus in 2013 when the banking sector was more than seven times bigger than the country’s GDP. J.B.: I do not think the expansion of the Irish economy and 1994-1997 had anything to do at all with the problems that arose in 2008. The expansion in 1994-97 was based on a very substantial improvement on productivity and competitiveness in the Irish economy and to Foreign Direct investment. It was not characterised by the sort of foolish expansion in credit that fuelled the bubble in 2002-2008. Gold: You have always been an enthusiastic supporter of European integration and of the euro but you will be aware of the argument that the present monetary union is not backed by an adequate level of political union and that the euro is therefore in danger of collapse. Firstly, is further integration gradually becoming a reality or has anti-EU sentiment grown too strong to allow it? J.B.: I agree that more needs to be done to strengthen the sustainability of the euro.

26 | GOLD | The Business Magazine of Cyprus

For instance, we ought to have mutual deposit insurance across the entire European banking system, at least up to a certain proportion of the deposits. I have difficulty with this vague term “political Union”. The European Union is already a political union. In fact, it was a political union and a political project from the very beginning. The idea of a common market was always a means to an end, and that end was political reconciliation in Europe based on greater mutual economic interdependence. It is important to recognise that the European Union does not have the power to raise taxation, which is a matter from individual member states. So if the European union is not spending enough money on this or that, the reason is that the member states – or some of them at least – are unwilling to raise and contribute the taxes to enable the European Union to do what is asked of it. I agree that there is considerable anti-EU sentiment but I feel that some of this is due to a lack of understanding of what the EU can and cannot do. The EU is fundamentally a fragile institution. It exists only because of the consent of its 28 member states to accept and implement the decisions they take collectively. Gold: And secondly, do you have any worries about the durability of the euro? J.B.: Broadly speaking I do not. The costs for any country of leaving the euro greatly exceed any difficulties they experience from remaining in it. Gold: What was your reaction on June 24 when you heard the result of the UK referendum?

J.B.: My reaction was shock. I could see that the debate about the European Union in the UK, over many years, had been neither well- informed nor sympathetic but I assumed – wrongly – that UK voters would recognise that tearing up 40 or more years of joint work between the UK and its fellow EU members would not be in the interest of the British people. I think they have voted in a fashion that is against their interests and against the interests of Europe as a whole but we have to accept and work with that decision now. Gold: Do you think that the UK will indeed leave the EU? There is a lot of talk about a second referendum, etc. J.B.: I have difficulty envisaging the political conditions in which a second referendum would be possible. Legally, of course, it is entirely possible but even if the UK were to change its mind – say in four years’ time – and decide it wanted to stay in the EU after all, could one really rely on that remaining its position? Gold: Do you think the EU without the UK will be weaker or does the referendum result mean one fewer opponent of greater European integration? J.B.: I think the EU will, in the short run, be weaker without the UK but we just have to get on with things now. I do not believe in “greater European integration” as an end in itself. It is only justified to the extent that it helps people of different nationalities to live in harmony and prosperity. Gold: Do you envision the possible break-up of the UK, given the desire of the people of Scotland and Northern Ireland to remain in the EU? J.B.: This is possible but unlikely. A lot depends on what terms the UK seeks for its new relationship with the EU as a non-member. If Scotland did detach itself from the UK, this would involves significant financial losses for Scotland. Independence usually comes at a price, and the question is, are the Scots willing to pay the price? Certainly Irish independence

7+(

in the early 1920s came at a significant economic cost for the first thirty years or so but, after that, it carried very significant and substantial economic benefits which we would have not had been able to attain had we remained in the UK. So it all depends on a trade-off between the short and the long term. Gold: In 2010, you were appointed Chairman of the IFSC Ireland, which promotes the Republic of Ireland as a location of choice for international financial services. In this respect, it is the equivalent of the Cyprus Investment Promotion Agency (CIPA). Given the timing of your appointment, which coincided with the bailout, how difficult was it at first to persuade international companies that Ireland was a safe and secure place for them to set up branches and headquarters? J.B.: I think the fact that the Irish authorities acted quickly to deal with their problems, and that they had the support of the EU and the IMF in so doing, meant that there was very little negative effect on continued investment in Ireland, including in international financial services. By 2010, for example, Investment in the Irish Funds Industry was already on the rise again. Meanwhile, in other sectors such as pharmaceuticals, software and medical devices, foreign investment in Ireland continued to grow right through the economic crisis. Basically, Ireland, like Cyprus, has a good system of public

administration and a good legal system, and they enable both of us to overcome short-term difficulties. Gold: Although Cyprus and Ireland are competitors in the provision of business and financial services, is there a single piece of advice that you would give to CIPA to make the most of the island’s attractiveness as an investment destination? J.B.: If I were to give CIPA one piece of advice, it would be to ensure that the entire government system listens carefully to the concerns of foreign investors and is willing to respond to these in a fair-minded and transparent way. Gold: You’ll be addressing the Limassol Economic Forum about the future of the euro and the European economy. Can we assume that you will be passing on a positive message about both? J.B.: Yes. Gold: Finally, looking back over your career, which has been marked by remarkable success in many areas, is there one particular achievement of which you are most proud? J.B.: I believe I am most proud of the fact I helped people in the Nationalist tradition in Ireland to begin better to understand Unionist fears and concerns, and that, thereby, I helped Unionists to feel more comfortable working with Dublin than they had ever felt before.

The EU is fundame a fragile institunttally n, which exists onlio because of the c y of its 28 member onsent to accept and impstates the decisions thelement collectivelyy take

7+ /,0$662/

)2580

Friday 2 Four Se 1 October 20 a s o ns Hote 16, Spons l, Limas Neocle ors: Cyta, Delo sol ous and it Co LL te, Andreas Cockta Center CypC, World Trad e il Spon ru s Commu sor: Johnn ie Walk nicatio e n r S Gold M agazineponsors: A In asso ccountancy C and ciation y with: LSprus Asso E Organisciation Cypru Alumni s ers Magazin : INBusiness e and IM H

JOHN BRUTON

John Bruton is a former Irish Prime Minister (Taoiseach), who helped transform the Irish economy into the “Celtic Tiger,” one of the fastest-growing economies in the world. He was also involved in the Northern Irish Peace Process leading to the 1998 Good Friday Agreement, under whose terms a conflict of allegiances dating back to the 17th century was resolved. While Prime Minister, he helped finalize the EU’s Stability and Growth Pact, which governs the management of the single European currency. He served as a leading member of the Convention that drafted the proposed European Constitution, which was signed in Rome on October 29, 2004. That year he was appointed Ambassador of the European Union Delegation to the United States. John Bruton was first elected to the Irish Parliament in 1969 at the age of 22 as a member of the Fine Gael Party, becoming Party Leader in 1990 and leading it into government in 1994. He previously served as Ireland’s Minister for Finance (1981-1982 and 1986-1987); Minister for Industry & Energy (1982-1983); Minister for Trade, Commerce & Tourism (1983-1986); and was Parliamentary Secretary (Junior Minister) from 1973-1977. He has also been opposition spokesman on Agriculture and on Education.

www.goldnews.com.cy | GOLD | 27

| TAX EDUCATION |

Getting to Grips with The Chelco VAT International Academy launches next month ALEXIS TSIELEPIS, MANAGING DIRECTOR OF CHELCO VAT LTD, IS WIDELY CONSIDERED AS THE FOREMOST EXPERT ON VALUE ADDED TAX (VAT) IN CYPRUS. HE ADVISES BUSINESSES ON INTERNATIONAL VAT MATTERS AND LECTURES AT LOCAL AND INTERNATIONAL VAT CONFERENCES. NOW, AFTER MANY MONTHS OF PLANNING AND PREPARATION, HE HAS TAKEN THINGS A STEP FURTHER, WITH THE ESTABLISHMENT OF THE CHELCO VAT INTERNATIONAL ACADEMY. OVER THE COMING MONTHS, HE WILL BE SHARING HIS KNOWLEDGE ON VAT, IN A SERIES OF SEMINARS ORGANISED BY THE ACADEMY AND, AS HE TELLS GOLD, HE CAN’T WAIT TO START. By John Vickers

28 | GOLD | The Business Magazine of Cyprus

M ost people, especially those of us who don’t belong to the accounting profession or work for the Tax Department, would find it hard to get excited by a subject such as Value Added Tax but Alexis Tsielepis is clearly not like most people. Not only is he passionate about all things VAT but he wants to share his knowledge and understanding with others, which is why he has decided to set up the Chelco VAT International Academy. “I’m very excited about what I’m doing,” he says. “Having reached the stage where I understand something well, I believe I can explain it to others so I can’t wait to get out there and sink my teeth into the problems that exist in Cyprus in terms of VAT.” Tsielepis believes that the seed of the Academy idea actually arose more than a decade ago, when he returned to Cyprus from his training as a Chartered Accountant in London in 2004 and became a member of the Indirect Tax Committee of the Institute of Certified Public Accountants of Cyprus (ICPAC). He later created a seminar entitled “Basic Principles of VAT” which he and Christos Papamarkides, Tax Partner at Deloitte, presented together for several years.

“The seminar was very successful,” he recalls, “but I found it strange that every year we were seeing more or less the same people. When I enquired why they were essentially repeating the seminar, given that nothing had changed since the previous one, the reply was that many of them were not comfortable with their knowledge and understanding of VAT, so the more training they could have, the better. It soon became clear that there was a considerable knowledge gap that needed to be addressed.” Not one to overestimate his own abilities, Tsielepis decided that, while he considered himself well informed on Cyprus’ VAT legislation, he would like more training at an EU level and he therefore started looking for university courses on the subject. “There were elements of VAT within certain Master’s degrees but nothing dedicated,” he reveals. “The only training available in the detail that I wanted was by the VAT Forum, an association of VAT experts, many of whom advise the European Commission, which runs the EU VAT Experts Degree every two years. It is an 8-week training programme over a year and a half, with a thesis, a 3-hour written exam and a 1-hour oral exam at the end.”

Upcoming Topics

The Academy’s calendar includes either full-day or half-day seminars on: 5H]PNH[PUN [OL ,< =(; +PYLJ[P]L /VSKPUN *VTWHUPLZ HUK =(; ;OL UV[PVU VM ;H_HISL 7LYZVU ;OL 9L]LYZL *OHYNL TLJOHUPZT ;OL -P_LK ,Z[HISPZOTLU[ JVUJLW[ ;OL -P_LK ,Z[HISPZOTLU[ JVTWHYLK [V [OL 7LYTHULU[ ,Z[HISPZOTLU[ =(; PU *OHPU ;YHUZHJ[PVUZ *OHYNLHISL ,]LU[ HUK *OHYNLHIPSP[` VM =(; ,_LTW[PVUZ PU =(; +LK\J[PVUZ PU =(; 6ISPNH[PVU [V KPZJOHYNL [OL =(; SPHIPSP[` =(; PU [OL :OPWWPUN 0UK\Z[Y` =(; PU [OL /V[LS 0UK\Z[Y` =(; PU [OL 9LHS ,Z[H[L 0UK\Z[Y`

Wondering how it is possible for an EU Directive to require such time and effort, I ask Alexis Tsielepis if it is really so complicated. “Yes and no,” he says, and explains that the legislation in all 28 EU member states is derived from the VAT Directive, which has 414 articles, many of which start by saying ‘Member states shall…’, meaning that it should be the same in all 28 countries. But many of the Directive’s provisions start with the words ‘Member

I CAN’T WAIT TO SINK MY TEETH INTO THE PROBLEMS THAT EXIST IN CYPRUS IN TERMS OF VAT www.goldnews.com.cy | GOLD | 29

| TAX EDUCATION |

I WOULD LIKE TO DISCUSS THE IDEA OF CREATING A COURSE ON VAT WITH UNIVERSITIES IN CYPRUS ¸5H]PNH[PUN [OL ,< =(; +PYLJ[P]Lš ;OL (JHKLT`ÂťZ Ă„YZ[ ZLTPUHY 3PTHZZVS! ;\LZKH` 6J[VILY " 5PJVZPH! -YPKH` 6J[VILY ^PSS JV]LY [OL MVSSV^PUN HYLHZ VM =(; SLNPZSH[PVU! ‹ +LĂ„UPUN [OL [LYYP[VYPHS ZJVWL VM [OL =(; +PYLJ[P]L ‹ +LĂ„UPUN ^OH[ JVUZ[P[\[LZ H [H_HISL WLYZVU ‹ ,_WSHPUPUN [OL YL]LYZL charge principal ‹ ,_HTPUPUN [OL MV\Y [`WLZ VM [YHUZHJ[PVUZ ^P[OPU [OL ZJVWL VM [OL =(; +PYLJ[P]L ‹ +L[LYTPUPUN [OL WSHJL VM Z\WWS` VM [OLZL [YHUZHJ[PVUZ PUJS\KPUN H IYPLM L_HTPUH[PVU VM JOHPU Z\WWSPLZ HUK [OL Ă„_LK LZ[HISPZOTLU[ ‹ ,_HTPUPUN ^OLU [OL JOHYNLHISL L]LU[ HYPZLZ ‹ ,_HTPUPUN ^OH[ JVUZ[P[\[LZ [OL [H_HISL HTV\U[ HUK [OL =(; YH[L [OH[ HWWSPLZ ‹ +LĂ„UPUN [OL UH[\YL VM L_LTW[PVUZ ^P[O VY ^P[OV\[ [OL YPNO[ [V KLK\J[ PUW\[ =(; ‹ ,_HTPUPUN [OL Y\SLZ YLNHYKPUN [OL YPNO[ [V PUW\[ =(; KLK\J[PVUZ ‹ ,_HTPUPUN ^OV OHZ [OL YLZWVUZPIPSP[` HUK VISPNH[PVU [V KPZJOHYNL [OL =(; ‹ )YPLM L_WSHUH[PVU VM IVVRZ HUK YLJVYKZ

states may‌’ and that word ‘may’ appears more than 100 times. “So what we have ended up with,â€? he notes, “is not a harmonized but a very different VAT legislation across member states.â€? The Managing Director of Chelco VAT Ltd initially decided to do just three weeks of training, covering the Directive and the decisions of the European Court of Justice (ECJ), which is constantly being requested to interpret provisions of the Directive. “From Day One, I realized that where I thought I had a good knowledge of VAT, there was a lot more that I had not anticipated,â€? he admits. “The level was a lot higher than I had thought and I knew that I was going to have to do the whole degree, push myself to study and do the exams as well. That was the start in my mind of the 30 | GOLD | The Business Magazine of Cyprus

Academy. Having gone through all that, I now want to share it with others.� The main purpose of the Chelco VAT International Academy, is to offer VATdedicated knowledge to anyone wishing to broaden and further sharpen their understanding of VAT but, in particular, VAT advisors and professionals dealing with VAT matters as well as VAT Officers working in the tax administration, “In 1992, when the VAT system was introduced to Cyprus, people were transferred from the Inland Revenue to the new VAT Department. Many of those who were affected back then are now Heads of Department and I’m not sure that they have been given the opportunity to really study the legislation and especially the EU Directive and the ECJ cases in sufficient depth,� says Tsielepis. “There are parts of our legislation that are blatantly contrary to the Directive. If I don’t manage to convince the tax administration that a change is required, we have go to court and let a judge decide on the matter but it’s a very long process that can take several years from start to finish.� As a result, Alexis Tsielepis intends to offer ten places in Nicosia and ten in Limassol – free of charge – to members of the tax administration for every seminar that the Academy will be delivering on VAT-dedicated matters. The topics to be addressed will cover the VAT aspects of specific legislation, types of transactions or industries, offering attendees an unprecedented level of understanding of, and specialisation in, the subject. He will be leading the seminars himself and may invite guest speakers from abroad – academics, people working in the European Commission or VAT professionals with whom he has worked before. The Academy’s inaugural full-day seminar, entitled “Navigating the EU VAT Directive�, aims, as its title indicates, to

navigate attendees through the waypoints of the Directive and emerge possessing a comprehensive knowledge of the workings of VAT. “There is a logic surrounding the workings of the EU VAT Directive which forms the basis of the VAT system in any EU Member State,� says Tsielepis, “and the seminar will present a detailed map of the Directive, charted in such a way so as to help beginners and advanced VAT users alike to understand the basic reasoning and functioning of the VAT system throughout the EU, with reference to key judgments from the ECJ.� And the Academy is actually only the first step in Chelco VAT’s plans. Tsielepis says that would like to end up providing exactly what he couldn’t find for himself – a worldwide or Europe-wide recognized degree. “Once the Academy starts functioning and people see the possibilities of how you can teach VAT, I would like to discuss the idea of creating a course on VAT with universities in Cyprus because the need for such a Degree goes beyond the borders of Cyprus and maybe of the EU too.� The European Commission currently has an Action Plan that sets out how it wants VAT to work in the future and, says Alexis Tsielepis, the end result is a massive change. “Everything we know today is being turned upside-down and, personally, I doubt if it is workable in its present form. But there are massive changes on the horizon, so it will definitely require sufficient explanation if anyone is going to get to grips with the legislation.� It sounds like a very good time to be setting up the Academy, I tell him. With a broad smile, its instigator agrees: “It’s an excellent time!�

For more information about the Chelco VAT International Academy, visit www.chelcoVAT.com.

| INNOVATION |

LEADING INNOVATION IN PRACTICE By Dimis Michaelides | Photo by Jo Michaelides

C

EOs are no longer asking “Why innovate?” but “How much innovation can we manage?”, “How fast can we innovate?” and “How do we do it?”. Making an uncreative organisation innovative, or an innovative one more so, is much like embarking on a journey of which the destination and the itinerary are new, sometimes even completely unknown. Yet the voyage is necessary and it is best to set out with a good roadmap and much courage. Organisations innovate in many different ways. Companies on Fortune’s Fifty Most Innovative list (2015) include Apple, Google, Tesla Motors, IBM, Walt Disney, Marriott, Allianz, Visa, Pfizer, Huawei, Nike and Lenovo. While each of these remarkable companies has its own brand of innovation, the things that drive innovation are quite similar across organisations. In practice, there’s a four-stage roadmap: Diagnosis, Decisions, Declarations, Deeds. DIAGNOSIS: A clear and shared view of the business context is the essential starting point. It involves understanding the business environment, including clients and competitors, and an active and imaginative search for opportunities. It also involves understanding the organisation’s own appetite for change – how much people value new ideas, how open the culture is to taking risks. DECISIONS: Three questions need clear answers. First, how committed to innovation are we? Companies have to achieve both operational efficiency (doing what we do well, for profits today) and innovation (doing new things, for future profits). What proportion of resources is allocated to each of these essential areas must be a conscious choice. Innovation as a sideline is as good as no innovation. Second, what is our innovation all about? Innovation can be breakthrough – creating an entirely new business like Tesla in energy, automobiles and space travel today, Apple in consumer

32 | GOLD | The Business Magazine of Cyprus

electronics, Google’s search engine fifteen years ago. Innovation can also aim not to start a new industry, but to disrupt or change the rules of an existing business as IKEA did in furniture, AirBnB in room rentals, Amazon in retailing and Grameen in banking. Or innovation can extend existing products into new territories or market segments or bring new products or services to clients the company is already serving. Or simply, innovation can be the practice of “kaizen”, small continuous improvements, all the time, by all people. Third, what structure will deliver our innovation strategy? If the strategy is new, defining the processes and accountabilities to make it happen is also likely to be new. These questions are strategic and must be answered at the highest level. DECLARATIONS: Mobilising people for innovation is as difficult as making the key decisions. Leaders must communicate the rationale and strategic targets of innovation. They must overcome resistance to change, especially when this includes shifts in internal power configurations and new modes of collaboration. Writing up an Innovation Manifesto is a good start. DEEDS: Leaders must transform high-level strategic targets into concrete challenges and set up teams to deliver creative solutions. They should train, support and monitor these teams. And, most importantly, leaders must consciously design and direct the organization towards a new culture, which embraces innovation as a permanent feature, not a one-off event. Such transformation is nurtured by setting new examples, telling new stories, developing new behaviours and attitudes. For this to work, leaders must confront the biggest challenge of them all: changing themselves. An intelligent roadmap will make the innovation voyage more effective. The journey is exciting. It promises big rewards and, possibly, turbulence. It takes guts to set sail but to avoid it is more dangerous still.

www.goldnews.com.cy ld | GOLD | 33

investment ăXL CIPA INTERNATIONAL

awards John Vickers & Melanie Steliou, presenters

5th CIPA International Investment Awards ceremony took place, as always, in the gardens of the Presidential Palace in Nicosia on Wednesday, September 7. Once again, the unique and prestigious venue was packed with representatives of the growing community of foreign investors in Cyprus and the thriving local business scene. This year’s special guest speaker was Dr. Werner Hoyer, President and Chairman of the European Investment Bank, while the musical entertainment during the Gala Dinner was provided by the PapaGeorgio

r

String Quartet plus guest musicians NeSTL]XSW %WLMSXMW TMERS +EVIXL +VMJÁXLW and Andreas Giannakouras (trumpet). The CIPA International Investment Awards are hosted by Gold every year and presented by Chief Editor John Vickers and actress/presenter Melanie Steliou. This year’s sponsors were PwC (Platinum), Eurobank (Gold), TFI Markets (Silver) and Chivas Regal Extra (Silver). On the following pages we present photos of the event, plus information about the nine companies honoured with a 2016 CIPA International Investment Award.

r

winners

Evgenios Evgeniou, CEO, PwC Cyprus, Alexander Sidorov, Deputy CEO, Absolute Investment Group & Harris Georgiades, Minister of Finance

Constantinos Yiorkadjis, Mayor of Nicosia, Anna 9\VKORYD &KLHI 2SHUDWLQJ 2IÀFHU 5HQDLVVDQFH Capital & Dr. George Pamborides, Minister of Health

Marios Demetriades Minister of 7UDQVSRUW &RPPXQLFDWLRQV :RUNV & Prabhat K. Jha, Group Managing 'LUHFWRU 06& 6KLSPDQDJHPHQW /WG ers & Industrialists Federation (OEB), Christos Michaelides, Chairman, Cyprus Employ RXFDV 0DUDQJRV &(2 7), 0DUNHWV /WG 'HHSDN 3DGPDQDEKDQ &KDLUPDQ *2 SOF /

Andreas Athinodorou, Board Member, CIFA, Dana Dvorakova, Communications Manager, Emma Delta & Demetra Kalogerou, Chair, CySEC Pieter Olivier, Development Manager, Atterbury Cyprus

Sawiris, Chairman, Christodoulos Angastiniotis, Chairman, CIPA, Naguib &\SUXV *HPLQL 5HDO (VWDWH 0LFKDOLV /RXLV &(2 (XUREDQN

Noam Weiman, President and CEO, Diplomat Group

President Nicos Anastasiades & Dr. Werner Hoyer, President & Chairman, European Investment Bank

7KH 3UHVLGHQW RI WKH 5HSXEOLF Nicos Anastasiades

Daniella and Stavros Caramondanis, Caramondani Group

Harris Pavlides & Myria Neophytou, IMH, Vassilis 3HWULGHV /DLNR &RVPRV 7UDGLQJ (ULND 3K\ODNWL Christopher Constantinou, Marina Nicolaidou, Praxoula Valiandi & Maria Pilides, IMH

Maria Makkouli, George Sklavos, Melina Katsounotou & Avgi Chrysostomou, Ministry of Finance

Dr George Pamborides, Minister of Health & Constantinos Ioannou, IMH

Christos Christodoulou, 7UXVW International Insurance &RPSDQ\ /WG

PapaGeorgio String Quartet

,UHQD *HRUJLDGRX +HOOHQLF %DQN *URXS 7DNLV 7DRXVKDQLV &RRS &HQWUDO %DQN 6WHOLRV Constantinou, PwC Cyprus

Aliki Drakou, Yiannis Koulias and Maria Damalou, Cyta

/LDNRV 7KHRGRURX PwC Cyprus

6WDYURV 3DQW]DULV (< <LRUJLRV /DNNRWU\SLV 0LQLVWHU RI (QHUJ\ &RPPHUFH ,QGXVWU\ DQG 7RXULVP

Emily Yiolitis, Harneys Aristodemou /RL]LGHV <LROLWLV //&

Christodoulos Angastiniotis, CIPA, President Nicos Anastasiades, Evgenios Evgeniou, PwC Cyprus

Sophie Charalambous, Hua Jiang and Nicoletta Charalambous, Prospecta Development

Sotos Jacovides, MSJ Jacovides /WG $JQL -DFRYLGHV 5&% 1LFKRODV DQG /DNLV 7RIDULGHV 7RIDUFR

$UWHPLV 3DQWHOLGRX ,$& &KULVWRV &KULVWRGRXORX 7UXVW ,QWHUQDWLRQDO ,QVXUDQFH &RPSDQ\ /WG 'HPRV 'HPRX Holy Archbishopic of Cyprus

Anthony Indianos, Costas Indianos & Co

/LD ,RDQQLGRX $QMD Arsalides & Avgi Chrysostomou, CIPA

Demetris Aletraris, Emma Delta 9DULDEOH &DSLWDO ,QYHVWPHQW /WG & Odysseas Christodoulou, ,QWHUFROOHJH *OREDO 7UDQLQJ

Kiki Haida & 7KHUHVD -DQHW Cissell, Qatar Airways

1LWD -KD 06& 6KLSPDQDJHPHQW /WG 0DULRV 'HPHWULDGHV 0LQLVWHU RI 7UDQVSRUW Communications & Works & Prabhat K. Jha, 06& 6KLSPDQDJHPHQW /WG

Nicos 7RUQDULWLV MP, DISY

Nicos Shacolas, NKS Group

Georgia Papadopoulou, Fani Pedoulou, 2OJD 3URGURPRX 7), 0DUNHWV .DWHULQD Papavasiliou, Island Oil

Haris Hambakis, Eurobank

George Michael, IMH

Christodoulos Kyradjis, Nicky Ioannou & Armand Arton, Arton Capital

Kyriakos Parpounas, Green Dot Cyprus

Demetris Demetriou MP, DISY & Daphne Prodromou, Bank of Cyprus

Maria Pilides, IMH & Phidias Pilides, CCCI

GALA DINNER FOREST SALAD SERVED T, WITH SMOKED DUCK BREAS PROSCIUTTO, PINEAPPLE ED AND GLAZ WITH WILD BERRY VINAIGRETTE

OVEN-BAKED MILOKOPI SET ON BEANS SLAW, SERVED WITH SEASONAL VEGETABLES AND CITRUS OLIVE OIL

PRESENTED BY Platinum Sponsor

Gold Sponsor

MASTIC PANNA COTTA SERVED WITH A WILD BERRY COULIS

Silver Sponsors WINES O TIKO FTI EF HEF EVAMPELOS MARATHEFTIK RII R ER E STERI ST IST NIS NIS NIST XYN ELOS XYNIST PELOS EVAMP & EVAM

XL

ă

CIPA INTERNATIONAL INVESTMENT AWARDS

ă INVITED GUESTS

ă

9DVVLOLV 3HWULGHV /DLNR &RVPRV 7UDGLQJ /RXFDV 0DUDQJRV 7), 0DUNHWV

AWARDS PRESENTED SINCE 2012

Evgenios Evgeniou, CEO, PwC Cyprus 0LFKDOLV /RXLV &(2 Eurobank Cyprus

Every guest at the CIPA International Investment Awards ceremony was given a bag containing gifts from the sponsors: powerbanks from PwC, a Rubik Cube and folders from TFI Markets and a folder from Eurobank. The sponsors also provided napkin rings (PwC), ashtrays and lighters (TFI Markets) and chocolates (Eurobank), while in addition to the branded bar, a bottle of Chivas Regal extra was placed on each table.

Christoforos Hadjikyprianou, European University Cyprus

Michalis Avraam, Michalis Avraam & Partners, Andreas Xenophontos, A.A.Xenophontos and $QGUHDV .DVVDSLV 8+< $QWRQLV .DVVDSLV /WG Manthos Mavrommatis, University of Cyprus

Alexia Mavrocordatou, Eurobank

Chris Koufaris, CIBA & Andreas Neocleous, 071

Panicos Nicolaou, Bank of Cyprus, Phivos Stasopoulos, Hellenic Bank

Evgenia Christodoulou, Ancoria Bank Cyprus, John /RL]RX $QFRULD Insurance & Panayiotis /RL]LGHV 5&% Andreas Athinodorou & Omiros Pissarides, CIFA

3KLOLS 'LD] 'U :HUQHU Hoyer, Evangelos Antonaros & Ioannis Kaltsas, EIB

<LRUJRV /DNNRWU\SLV Minister of Energy, Commerce, Industry 7RXULVP

Nicolas Shiacolas, Cablenet, Christos Michaelides, OEB & 3HULNOLV 7KHRGRULGLV &DEOHQHW

Natasa Pilides, CIPA

Anna Caramondani, Jerry Caramondanis & and Erina Caramondani

Evros Papadopoulos & George 7VDNLVWRV /DLNR &RVPRV 7UDGLQJ

CHRISTOS THE FIRST NAME IN ETHICS

We are one of the world’s largest independent providers of trust, fund and corporate administration services. We are committed to helping our clients protect, nurture and grow their wealth. Above all, we are a people business. To find out more about our services and to get to know us better, visit www.firstnames.com

Constantinos Yiorkadjis, Mayor of Nicosia Nick Kaltsogiannis, Ilias Georgouleas & Alexis Kartalis, GMM

Stavros Ioannou, Eurobank

Christodoulos Angastiniotis, CIPA

Constantinos Petrides, Under-Secretary to the President

Christodoulos Kountouris & Andreas Lambrias, Laiko Cosmos Trading

Evangelos Antonaros, EIB

George Constantinou, GCC

Harris Georgiades, Minister of Finance

Adelina Santis, Laveco Ltd, Dimitris Katopodis, Leroy Merlin Cyprus & Costas Karaloizou, Albatross Adjusters Ltd

Nicos Kartakoullis, University of Nicosia

Theo Parperis, PwC Cyprus Panikos Akritas, CITEA & Philippos Mannaris, Aon Hewitt

xxxx

Theodoros Aristodemou, Aristo Developers

Demetra Kalogerou, CySEC

Elia Nicolaou, Amicorp

Marios Andreou, PwC Cyprus & Andreas Theodorides, USB Bank

Irena Georgiadou, Hellenic Bank Group

Thomas Kazakos, T Cyprus Shipping Chamber

Charis Papacharalambous, Meeting Point Cyprus Holidays

Lia Papaiacovou, OSM Group

RENAISSANCE CAPITAL L

RENAISSANCE CAPITAL ANNA VYSHLOVA

R

CHIEF OPERATING OFFICER

enaissance Capital is a leading independent investment bank, operating in frontier and emerging markets. It works to bring global and local investment capital to companies in the world’s high-opportunity regions, using its world class research, sales, trading and bankers to provide exceptional access to and deep knowledge of markets in Africa, Emerging Europe and the Middle East. For over 20 years it has been advancing its belief in the potential of the world’s rapid-growth regions. Renaissance Capital was the first international investment bank to establish a presence in Cyprus, where the company has operated since 1995. Ιt has a staff of 27 providing financial advisory services. Renaissance Securities (Cyprus) Limited is the key regulated trading and client-facing entity within Renaissance Capital, trading across 35 markets in the EMEA and Asia. The company also provides trading in corporate and sovereign bonds of Russian and Sub-Saharan African issuers, as well as REPO & derivatives services across most geographies, primarily focusing on Russian securities and being a top three broker on the Moscow Stock Exchange.

44 | GOLD | The Business Magazine of Cyprus

MSC SHIPMANAGEMENT LIMITED

PRABHAT K. JHA

M

GROUP MANAGING DIRECTOR

SC Shipmanagement Ltd is the in-house ship management company of the world’s 2nd largest container shipping company, Mediterranean Shipping Company S.A., headquartered in Geneva, Switzerland. MSC was founded by the Aponte family in 1970 and Capt. Gianluigi Aponte has led the company from a single vessel operation to become a world leader in global container shipping. Today the Group has 480 offices in 150 countries and employs over 60,000 people. It operates over 480 container vessels with a capacity of over 2.6 million TEU. MSC’s other interests include more than 48 container terminals in 21 countries. MSC Cruises, which employs over 15,000 people, is the largest privately-owned cruise line and currently has new cruise vessels worth over $8 billion on order. MSC Shipmanagement Limited started its operations in Cyprus in December 2008 with just 30 vessels. This number has now grown to over 180. The increase in the number of managed ships has led to the creation of a large number of local jobs and other related investments. www.goldnews.com.cy | GOLD | 45

DIPLOMAT CYPRUS

DIPLOMAT CYPRUS

46 | GOLD | The Business Magazine of Cyprus

CY NOAM WEIMAN

F

PRESIDENT & CEO

rom a local Israeli distribution company, the Diplomat Group has grown to become a global concern. The entire Group’s activities benefit from excellence in end-to-end supply chain management and logistics, supported by fully integrated creative brand marketing for the exclusive brands it represents. The Group’s rapid and successful global expansion was facilitated by Proctor & Gamble’s invitation to partner with them to operate in Georgia in 2008, followed by South Africa in 2010 and Cyprus in 2011. Diplomat Cyprus is now well on the way to becoming one of the island’s largest, most efficient and advanced distribution companies. It has earned a reputation for its broad range of services and a level of professionalism and expertise that is changing the face of the local market. Diplomat Cyprus reaches some 1,600 points of sale, direct and non-direct, via sub-distributors to key supermarket chains, hypermarkets, pharmacies, groceries and convenience stores. The company’s vision is to further expand in the market and to continue to provide maximum value to both retailers and consumers.

7+( 77+ /,0$662/

)2580 Friday | 21 October | 2016 Four Seasons Hotel | Limassol | Cyprus

The Main Economic Challenges for Europe and the World in 2017 The Forum is a prestigious and major platform of debate on political, economic and business issues in Europe and the Eastern Mediterranean. Featuring Speakers: John Bruton

Kyriakos Mitsotakis

Pablo Casado Blanco

Dirk Reinermann

Former Irish Prime Minister, Ireland

President, New Democracy, Greece

Member of the Parliament, Spokesman, Partido Popular, Spain

Program Manager for Southern Europe, World Bank Group

Harris Georgiades

Jan Schildbach

Michael Imeson

Averof Neofytou

Minister of Finance, Republic of Cyprus

Director & Head of Banking, Financial Markets and Regulation, Deutsche Bank Research, Germany

Contributing Editor, The Banker, Financial Times Group, UK

President, Democratic Rally (DYSI), Cyprus

Dr. Jon Danielsson

Jakob Wegener Friis

Stephen Fidler

Director, Systemic Risk Centre & Reader in Finance, London School of Economics and Political Science, UK

Head of Unit, Economic and Financial Affairs DG, European Commission

Brussels editor, The Wall Street Journal

This year’s agenda includes: Global Economy and the Challenges of 2017 Brexit and its impact on the economy Managing Immigration in Europe Geographical Issues and the Economy Europe’s Future: Fragmented Implosion or Greater Integration The Refugee Crisis: Europe’s Ultimate Stress Test Financial Stability, Financial Services and Capital Markets Union European Politics and Economics

Attendance is by invitation only

For further information 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 Sponsors

Organizers

Cocktail Sponsor

Communication Sponsors

Supported by

In Association with

ABSOLUTE INVESTMENT GROUP

ALEXANDER SIDOROV

A

DEPUTY CEO

bsolute Investment Group was founded by Russian businessman Alexander Svetakov in 1990. Over a quarter of a century later, it is a multi-dimensional investment group, employing 5,000 people and focusing on real estate development, management, wholesale electronics, telecommunication services, insurance, asset management, food & beverages and agricultural industries. The Group invests in Russia but elsewhere, including Cyprus. Among the Group’s most recent developments in Cyprus is the Noble Business Center in Limassol, which was completed in 2015 and received an International Property Award for Best Office Architecture in Europe. Absolute also participated in the first phase of the tender process for an Integrated Casino and, in the near future, it plans to develop a specialist college in Cyprus. In July 2014, the Absolute Charitable Trust was established in Nicosia with the main aim of providing child health and education support, in particular to orphans, those from socially deprived families, disabled children and others in need. The Trust has already distributed in excess of ₏1 million in charitable aid in Cyprus.

48 | GOLD | The Business Magazine of Cyprus

ABSOLUTE INVESTMENT GROUP

ABSOLUTE INVESTMENT GROUP

PIETER OLIVIER DEVELOPMENT MANAGER, ATTERBURY CYPRUS

A

tterbury Europe is a company incorporated in the Netherlands, that focuses on shopping centre investments and retail development opportunities, particularly in Central and Eastern Europe. Atterbury Europe represents a joint venture between the South Africa-based property developer Atterbury and a group of European investors. It partnered with the real estate capital growth fund Attacq Limited to tap into the European market and has already made investments in Cyprus and Serbia totalling €300 million. Atterbury Europe’s €200 million investment in Cyprus includes two key retail assets – the Shacolas Emporium Park and the Mall of Engomi – both with the expansion potential to facilitate the growth strategies of international retail brands in Cyprus. The investment in Cyprus in 2015 was mainly driven by the positive trend in the island’s economy following the financial crisis, and the many opportunities that exist to bring more exciting retail brands into the Cypriot market. Atterbury Europe believes that, by improving the current assets and potentially developing new projects, it can provide greater choice in the Cypriot market.

www.goldnews.com.cy | GOLD | 49

GO

GO DEEPAK PADMANABHAN

G

CHAIRMAN

GO

50 | GOLD | The Business Magazine of Cyprus

O is Malta’s leading communications services company and its first quad play operator, offering converged services across fixed phone and mobile telephony, broadband Internet services and digital TV. With more than 500,000 customer connections, GO is also Malta’s leading provider of data networking solutions, business IP services, managed and collocation facilities. The company’s growth has been built on a focused strategy to deliver a world-class service in terms of infrastructure and customer experience. Founded more than 40 years ago, GO and its predecessor companies have always been at the forefront in developing Malta’s communications infrastructure. This tradition continues to this day, with the company currently rolling out fibre Internet directly to homes across the country and launching Malta’s only fibre connected 4G network. GO invested in Cablenet in 2014, acquiring a majority share earlier this year. This investment in a Cypriot operator offering a triple-play package of TV, fixed telephony and high-speed Internet access forms part of GO’s strategy of seeking opportunities to grow its business beyond Malta’s shores.

STTATE

NAGUIB SAWIRIS

G

CHAIRMAN

emini Real Estate is a subsidiary of Gemini, an asset management company commissioned by the Sawiris Family to manage the portfolio of its various assets and investments. Its Chairman is Naguib Sawiris, who has received the highest national honours from the governments of France, Italy and Pakistan. The company invests in Real Estate projects in Europe and elsewhere, including Egypt, Kazakhstan and Grenada. With a focus on uniqueness and value preservation, Gemini Real Estate only invests with developers who deliver quality, putting their client’s interests at the heart of their decisions, and it sets the bar higher with every new investment. Quality has always been the standard of a Gemini Real Estate investment and the Ayia Napa Marina is no different. Already one of the most anticipated large-scale projects in Cyprus, the development is expected to cost $220 million and to create over 800 jobs for the local population. Ayia Napa Marina will have a capacity of around 600 vessels and will include a luxury hotel, villas and apartments.

52 | GOLD | The Business Magazine of Cyprus

EMMA DELTA

E

EMMA DELTA EMMA DELTA

A DANA DVORAKOVA

I

COMMERCIAL MANAGER

n 2013, the Emma Delta Fund acquired 33% of the share capital of OPAP SA from the Hellenic Republic Asset Development Fund for €652 million and thus became the majority shareholder, in charge of the management of OPAP, one of Europe’s largest listed betting firms. Last year, Emma Delta obtained authorization from the Cyprus Securities and Exchange Commission to operate as an internally-managed Alternative Investment Fund and is the largest Fund of its kind in Cyprus. The main investors in the Fund are the Emma Group, the KKCG Group and other Slovakian and Greek investors. The Emma Group specializes in strategic investments, in the Czech Republic, Greece, Romania, Russia, and Slovakia. It also owns a considerable stake in the Home Credit Group, one of the world’s largest providers of consumer credit. The KKCG international investment Group currently manages assets worth €1.6 billion and employs 2,500 people. It specializes in long-term strategic investments in lotteries and entertainment, crude oil and natural gas production, technology, tourism, real estate, manufacturing and other sectors.

www.goldnews.com.cy | GOLD | 53

DR. WERNER HOYER

T

PRESIDENT & CHAIRMAN

he European Investment Bank (or EIB) has been active in Cyprus for exactly 35 years: its first loan was granted in 1981 and since then, it has supported investments with loans of more than €2.7 billion, at advantageous interest rates and long-term maturities. The EIB was set up with the Treaty of Rome in 1958 to support the Member States of the then European Economic Community and it started supporting the Cypriot economy long before Cyprus joined the EU. It has remained a reliable partner, in particular through the recent challenging times for the country’s economy, when, as the EU Bank, it help promote important investments and bring back growth and development through the provision of more than €1.3 billion in loans to support both the private and public sectors. In 2015, lending volume reached € 215m or 1.5% of Cyprus’ annual GDP. The EIB is committed to remain equally active in Cyprus in the future, using its instruments in particular to increase its support for high quality investments.

54 | GOLD | The Business Magazine of Cyprus

PwC Cyprus

Eurobank Cyprus

TFI Markets Ltd

Chivas Regal Extra

PLATINUM SPONSOR

GOLD SPONSOR

SILVER SPONSOR

SILVER SPONSOR

T

he Platinum Sponsor of the 2016 CIPA International Investment Awards ceremony, PwC Cyprus, is the country’s leading professional services organisation. PwC Cyprus helps its clients create the value they are looking for and make a difference by adapting the expertise of over 1,000 professionals in Cyprus and the power of its global network of 208,000 experts in 157 countries.

T

he Gold Sponsor is Eurobank Cyprus, which focuses on the wholesale side of business – specifically on Corporate & Investment Banking, Wealth Management, International Business Banking, Treasury Sales & Global Capital Markets. The bank’s strong capital base, substantial liquidity, solid recurring financial results and customer-centric service approach enable it to continue its dynamic growth and ongoing support of the Cyprus Economy.

T

he first Silver Sponsor is TFI Markets Ltd, a Cyprus-based Payment Institution and Investment Firm. TFI Markets Ltd specialises in currency conversion, third party payments and the provision of risk hedging solutions to corporate clients. It services large corporate clients from a variety of industries including Information Technology, Pharmaceuticals, Service Providers and Shipping.

T

he second Silver Sponsor is Chivas Regal Extra, which marries whiskies matured in Oloroso sherry casks together with a selection of the rarest and finest malts in the Chivas inventory to create a rich and generous Chivas blend for those who look for more. This process delivers a profound depth of flavour and a whisky that showcases the character of this unique blend, taking it to a whole new level.

www.goldnews.com.cy | GOLD | 55

PwC Cyprus

Eurobank Cyprus

TFI Markets Ltd

Chivas Regal Extra

PLATINUM SPONSOR

GOLD SPONSOR

SILVER SPONSOR

SILVER SPONSOR

T

he Platinum Sponsor of the 2016 CIPA International Investment Awards ceremony, PwC Cyprus, is the country’s leading professional services organisation. PwC Cyprus helps its clients create the value they are looking for and make a difference by adapting the expertise of over 1,000 professionals in Cyprus and the power of its global network of 208,000 experts in 157 countries.

T

he Gold Sponsor is Eurobank Cyprus, which focuses on the wholesale side of business – specifically on Corporate & Investment Banking, Wealth Management, International Business Banking, Treasury Sales & Global Capital Markets. The bank’s strong capital base, substantial liquidity, solid recurring financial results and customer-centric service approach enable it to continue its dynamic growth and ongoing support of the Cyprus Economy.

56 | GOLD | The Business Magazine of Cyprus

T

he first Silver Sponsor is TFI Markets Ltd, a Cyprus-based Payment Institution and Investment Firm. TFI Markets Ltd specialises in currency conversion, third party payments and the provision of risk hedging solutions to corporate clients. It services large corporate clients from a variety of industries including Information Technology, Pharmaceuticals, Service Providers and Shipping.

T

he second Silver Sponsor is Chivas Regal Extra, which marries whiskies matured in Oloroso sherry casks together with a selection of the rarest and finest malts in the Chivas inventory to create a rich and generous Chivas blend for those who look for more. This process delivers a profound depth of flavour and a whisky that showcases the character of this unique blend, taking it to a whole new level.

Now there’s a rewards currency that’s as convenient as cash Emirates Business Rewards, our reimagined corporate traveller programme, lets you redeem Business Rewards Points for any available seat as if you were paying JHZO·L]LU VU SHZ[ TPU\[L ÅPNO[Z ,HYULK 7VPU[Z ^PSS HSZV IL X\PJRS` YLÅLJ[LK PU `V\Y HJJV\U[ ^P[OPU [^V weeks, while a simple enrolment process makes it easier [OHU L]LY [V NL[ Z[HY[LK ,_WLYPLUJL ,TPYH[LZ )\ZPULZZ 9L^HYKZ ^P[O JHZO SPRL JVU]LUPLUJL

emirates.com/cy/businessrewards-en

| CIPA |

THE ANNUAL CIPA INTERNATIONAL INVESTMENT AWARDS ARE AN IMPORTANT BUT NONETHELESS SMALL ASPECT OF WHAT THE CYPRUS INVESTMENT PROMOTION AGENCY DOES TO FULFIL ITS THREEFOLD MANDATE OF PROMOTING CYPRUS AS AN ATTRACTIVE INTERNATIONAL INVESTMENT AND BUSINESS CENTRE, PROVIDING FACILITATION AND SUPPORT TO NEW AND EXISTING INVESTORS, AND ADVOCATING REFORMS IN ORDER TO FURTHER IMPROVE THE REGULATORY AND BUSINESS ENVIRONMENT AND INFRASTRUCTURE SO AS TO MAKE THE COUNTRY AN EVEN MORE ATTRACTIVE DESTINATION FOR FOREIGN DIRECT INVESTMENT. NICOLAS THEOCHARIDES, A MEMBER OF THE BOARD OF DIRECTORS OF CIPA AND CHAIRMAN OF THE BOARD’S PROMOTION COMMITTEE, EXPLAINS HOW THE AGENCY GOES ABOUT ITS WORK. BY JOHN VICKERS PHOTO BY JO MICHAELIDES

58 | GOLD | The Business Magazine of Cyprus

PROMOTING FOREIGN INVESTMENT

W

e all know the importance of foreign investment to Cyprus, which makes the work of CIPA absolutely crucial to the country’s economy. How does the Agency go about promoting Cyprus as a place worth investing in? Nicolas Theocharides: We focus on achieving a number of different but related objectives, such as increasing awareness of Cyprus and enhancing the country’s image, which we do through events that we organise ourselves and also through our participation in high-calibre events abroad which, we believe, fit our profile and mission. Over the years, CIPA has recognised that a targeted approach is the most effective way to attract foreign investment. So, for example, we shall be sponsoring two of the three 2016 Bloomberg Markets Most Influential Summits in Hong Kong and London on 28 September. At the Hong Kong event, we will have the opportunity to present Cyprus at the close of the lunch being held for the 20 highest-level participants, while in London, CySEC Chair Demetra Kalogerou will discuss her work on Bloomberg and take part in a panel discussion on the UK’s decision to leave the European Union. Our presence at such events is not simply a matter of

We are looking at how to make Cyprus a regional centre for medical tourism, education and start-ups Public sector LMÄJPLUJ` PZ VU the rise being there and making contacts. It’s all about making the case for Cyprus. An example of one of our own events is a summit aimed at high-level institutional investors in New York on September 22, which will be attended by President Anastasiades. Later we will be involved in events in Central and Eastern Europe, India, China and the Middle East. In addition to these, we also organise investors’ summits in Cyprus, where we can meet serious investors and companies and talk to them face-to-face. Gold: You mentioned the Brexit panel discussion. Do you think that Cyprus has an opportunity to benefit from the result of the UK referendum? N.T.: Yes. There are many companies that will be wanting a new route into

Europe through a country that offers a friendly business environment, the right infrastructure, the British legal system (which many prefer over others) and high-quality professional services. So, for example, we may be looking at funds being set up in Cyprus and run from here, the European operations of UKbased companies, Far Eastern companies looking to do business in Europe, and so on. Of course, things are still at a very early stage and nobody really knows what shape Brexit will actually take but it helps if we make our voice heard from the beginning and let the world know that we are here and we can offer a credible alternative. In this regard, we are planning a number of events dealing specifically with areas such as investment funds, financial services, shipping and other previously untapped sectors. Gold: Such as? N.T.: We’re planning to target the international film industry. We are also looking at how to make Cyprus a regional centre for medical tourism, education and start-ups. Of course, before we can tell potential investors that Cyprus is a credible location and jurisdiction in these sectors, new legislation and, in some cases, the right infrastructure needs to be in place and we are focusing on this right now. We’re also in the process of designing our digital promotion strategy and our general international communications strategy, not only regarding the areas in which we have been working for many years but also with a view to promoting these new opportunities.

www.goldnews.com.cy | GOLD | 59

| CIPA | Gold: CIPA was established eight years ago. How have its operating methods changed since 2008? N.T.: CIPA started from scratch so there has naturally been a learning curve for everyone involved. The Agency is now at a much more mature stage so we have a far better understanding of what types of events and activities are more likely to yield results. We have developed internal assessment methods, based on a points system, for every event attendance, sponsorship and advertising proposal, which gives us an objective conclusion about whether we are getting a good return on every euro spent. We have gradually ventured into promotional campaigns with tools we have never used before – for example, you may recall that, after the financial crisis, we created an animated clip about how Cyprus was on the way to recovery. Right now British Airways Media is producing a 12-minute documentary about Cyprus as a Foreign Direct Investment destination, as well as a 90-second videoclip which will be played on BA’s long-haul flights for a month and which we will also use ourselves at events we organise or attend. So we are constantly improving and refining our methods for better results. Gold: Are you still having to work hard to persuade people that Cyprus is a reliable FDI destination or is there now a general perception abroad that we have indeed recovered from the 2013 crisis? N.T.: I think that successive upgrades by the leading Rating Agencies have been very important in changing the international investment community’s perception of Cyprus today because they are a clear indication that the island is now an attractive investment destination. Don’t forget that investors want to see signs of sustainable growth because they know that, since the economy will continue to improve, investments can be made with less money today than they will two to three years down the road. Savvy investors are now looking at Cyprus and let’s not forget that there have already been others who made their investments one or two years ago. International investor confidence is now stronger than ever and it’s rising continuously. The interest in the last government bond issue, which

60 | GOLD | The Business Magazine of Cyprus

CIPA’s role is currently restricted to promoting Cyprus was oversubscribed several times, is a clear indication of this. Gold: So Cyprus is again being seen in a more positive light as an investment destination? N.T.: Certainly. There is considerable interest from abroad but I would like to stress that this is not enough. It’s up to the Cypriots to offer international investors opportunities to obtain a rate of return that corresponds to their perceived level of risk. People on the Cypriot side need to be realistic about what it takes to make a deal and, in my view, even one year ago, they were not. Deals have been going through and there is still interest but, with a more realistic approach, it could have been greater. Gold: In the recent World Bank Doing Business report, there are a number of areas in which Cyprus does very poorly. When CIPA sees such reports, do you take some kind of action? N.T.: Yes, of course. We call meetings of all stakeholders featured in, for example, the Doing Business report, along with the appropriate government agencies, and we have extensive discussions on what needs to be done. I would note that, even in the sectors where we are doing badly in the report, there has in most cases been some improvement year-on-year. Things cannot be changed overnight but they are getting better and, most importantly, a great deal of attention is being given to these things by the present Government. Gold: Are you optimistic that red tape and bureaucracy – which everyone complains about – will eventually be abolished? N.T.: Definitely. Public sector efficien-

cy is on the rise. There are now many high-calibre people in key positions with a great deal of prior experience, in many cases from abroad, and their aim is to be part of a new kind of public sector – one that works more like the private sector. The Government is working on issues like increased accountability and target setting, which will help reduce red tape, raise efficiency and minimise the time needed to obtain permits and fulfil all the parameters that international investors are looking at in order to take a decision on whether to set up in Cyprus or somewhere else. Gold: So, all in all, are you optimistic about the country’s economic future? N.T.: Yes, I am. The economy is growing faster than predicted, employment is on the rise, tourism – traditionally seen as one of the main engines of the economy – appears to be having its strongest season in a long time, public sector reforms are on the way and Cyprus is back on the map for international investments. Gold: And are you similarly optimistic about the role that CIPA can play in maintaining this positive trajectory? N.T.: In promoting Cyprus abroad, we face fierce competition from other jurisdictions and national agencies similar to CIPA. Most of our competitors have more staff and bigger budgets and they have been set up in such a way as to have the executive powers that enable them to go out and meet potential investors, invite them to come and set up shop in their country and even cut deals with them on the spot. CIPA’s role, in contrast, is currently restricted to promoting Cyprus. However, given the Government’s desire to create an Under-Secretariat for Development, our mandate may be redefined and the agency given a more substantive role in approaching specific companies from abroad that we would like to see in Cyprus. Whatever happens, there is always going to be a great deal more work to be done by all stakeholders, CIPA included. One thing that we have learned over the past eight years is that you can never stop in this business!

special promotional feature

RISK MANAGEMENT, INSURANCE AND G.A.P. VASSILOPOULOS RISK MANAGEMENT IS AN APPROACH TO THE PROBLEM OF RISK THAT HAS AS ITS OBJECTIVE THE REDUCTION AND ELIMINATION OF RISKS FACING A BUSINESS FIRM. RISK MANAGEMENT EVOLVED FROM THE FIELD OF CORPORATE INSURANCE BUYING AND IS NOW RECOGNIZED AS A DISTINCT AND IMPORTANT FUNCTION FOR ALL BUSINESSES AND ORGANIZATIONS.

T

hose who are responsible for the entire program of pure risk management (of which insurance buying is only a part) are risk managers. In the broad sense of the term, risk management is the process of protecting one’s person and assets. In the narrower sense, it is a managerial function of business that uses a scientific approach to dealing with risks. As such, it is based on a specific philosophy and follows a well-defined sequence of steps. The definition of risk management states that it deals with risk by designing and implementing procedures that minimize the occurrence of loss or the financial impact of the losses that do occur. This indicates the two broad techniques that are used in risk management for dealing with risks. These techniques are grouped into two broad approaches: risk control and risk financing. Risk control focuses on minimizing the risk of loss to which the firm is exposed and

62 | GOLD | The Business Magazine of Cyprus

includes the techniques of avoidance and reduction. Risk financing arranges the availability of funds to meet losses and includes the tools of retention and transfer. HANDLING RISK Because risk is the possibility of a loss, people, organizations, and society usually try to avoid risk, or, if it is not avoidable, then to manage it somehow. There are 6 major methods of handling risk: 1. Risk control 2. Risk avoidance 3. Risk reduction 4. Risk financing 5. Risk retention 6. Risk transfer Insurance is the major method that most people, businesses, and other organizations can use to transfer pure risks, by paying a premium to an insurance company in exchange for a payment of a possible large loss. By using the law of large numbers, an insurance company can estimate fairly reliably the amount of loss for a given number of customers within a specific time. An insurance company can pay for losses because it pools and invests the premiums of many insureds to pay the few who will have significant losses. Insurance is the pooling of money by a company from a group of people or organizations, to pay for the fortuitous losses that any of them may suffer. The money that the people pay to the insurance company is called the premium, and for this premium,

the company promises to indemnify any of its customers for covered losses. INSURABLE TYPES OF RISK There are generally 3 types of risk that can be covered by insurance: personal risk, property risk, and liability risk. 1. Personal risk is any risk that can affect the health or safety of an individual, such as being injured by an accident or suffering from an illness. 2. Property risk is any risk that can cause a partial or total loss to property, such as fire and theft. 3. Liability risk is the personal or business risk associated with being found liable to another because of negligence that caused a loss to another's property or person, such as injuring someone whilst driving, or because the insured failed to perform a duty, such as performing contractual obligations. Most types of insurance cover all 3 types of risk to some extent, depending on the type of insurance. WHY G.A.P. VASSILOPOULOS? G.A.P. Vassilopoulos Group are Lloyd’s Coverholder for a number of Lloyd’s syndicates. Lloyd’s is the world’s specialist insurance market where individual underwriters accept risks on behalf of syndicates of individual and corporate members whose resources provide the security behind Lloyd’s policies. Business comes into the market primarily from Lloyd’s brokers who bring business from clients and other brokers and intermediaries worldwide.

*OYPZ[VKV\SVZ 7YVLZ[VZ! .LULYHS 4HUHNLY :[LSSH 2HZZPHUPKP! 4HUHNLY VM *YLKP[ 0UZ\YHUJL :\WLY]PZVY VM :HSLZ MVYJL (UKYLHZ AHYPÄZ! *OPLM <UKLY^YP[PUN 6ɉJLY ,SLUH 7HWHKVWV\SV\! 4HYPUL 0UZ\YHUJL 6ɉJLY *OYPZ[PUH 3HTIYV\! .LULYHS )YHUJO HUK (KTPUPZ[YH[PVU 6ɉJLY 4HYPH 7HSSHYP! 4V[VY 0UZ\YHUJL 6ɉJLY

Lloyd’s syndicates ccurrently enjoy ‘A’ rating from A.M. Best and ‘A’+ from Standard & Poor’s. The Group has a binding authority with Talbot syndicate, a subsidiary of the Validus Group and writes a comprehensive marine cargo account tailored to clients’ evolving needs. Through other Lloyd’s Brokers, the Group promotes Yacht Insurance coverage. On the non-marine business, the G.A.P. Vassilopoulos Group represents XL Catlin Insurance Group with which it has a binding authority. The latter is publicly listed Property, Casualty Insurer. XL Catlin Insurance UK is authorised and regulated by the Financial Conduct Authority of the UK, and enjoys a financial strength rating of ‘A’ from A.M. Best and ‘A’+ from Standard & Poor’s. The Property and Liability Insurances provided are the following: a) Commercial Property and Household (Fire and Allied perils). b) Business Interruption c) General Third Party Liability d) Products Liability e) Employer’s Liability f) Goods in Transit g) Motor Insurance h) Personal Accident

i) Travel Insurance j) Private Fine Arts and Antique Collectors k) Foreign Workers Medical Credit Insurance: The G.A.P. Vassilopoulos Group has access to top level International Credit Insurance Companies. In particular, it cooperates with Atradius, Euler Hermes and Coface. The latter companies enjoy ‘A’ ratings from A.M. Best, Standard & Poor’s, Moody’s and Fitch. Credit insurance, is the protection against the risk of non-payment for the provision of goods and services supplied from one business to another on credit terms. Non-payment may arise either form insolvency of from insufficiency of funds to pay debts. Medical Health Insurance: In addition to the above, the G.A.P. Vassilopoulos Group cooperates with the International Medical Group (IMG), which is a worldwide leader in the provision of range of International Medical and Health related products to individuals, families and companies. IMG provides complete plan administration on behalf of the globally recognised underwriter Sirius International Insurance Corporation which offers the financial security. The latter is rated ‘A’ by A.M. Best and ‘A’- by Standard & Poor’s.

www.goldnews.com.cy | GOLD | 63

| COMPLIANCE |

EFFECTIVE

CORPORATE

COMPLIANCE 64 | GOLD | The Business Magazine of Cyprus

THE 2ND INTERNATIONAL COMPLIANCE FORUM TAKES PLACE AT THE HILTON PARK HOTEL IN NICOSIA NEXT MONTH, BRINGING TOGETHER COMPLIANCE PROFESSIONALS IN BANKS, ACCOUNTING, TAX AND LEGAL FIRMS, ADMINISTRATION SERVICES (FIDUCIARY) FIRMS, INTERNATIONAL CORPORATIONS AND THE VARIOUS REGULATORY BODIES, TO DISCUSS AND EXCHANGE PRACTICAL IDEAS ON HOW TO ACHIEVE EFFECTIVE COMPLIANCE WITH EU DIRECTIVES, INTERNATIONAL AND NATIONAL LAW. THE CHAIRMAN OF THIS YEAR’S FORUM, MARIOS M. SKANDALIS, IS DIRECTOR, GROUP COMPLIANCE DIVISION, BANK OF CYPRUS GROUP, VICE-PRESIDENT OF ICPAC AND EXECUTIVE VICE-CHAIRMAN OF TRANSPARENCY INTERNATIONAL (CYPRUS). HE TELLS GOLD HOW AND WHY REGULATORY COMPLIANCE HAS BECOME SO IMPORTANT IN RECENT YEARS.

C

ompliance” and “transparency” have become buzzwords in recent years, as greater regulation has been imposed on organisations, often as a reaction to scandals, crises and malpractice. Does this growing burden suggest that, despite greater awareness, many organisations are not fulfilling their obligations? Marios Skandalis: The evolution of the compliance function over the past decade has indeed been tremendous, not only in terms of content volume but also in its scope, nature and complexity. Above all, compliance has been elevated from a simple oversight function to a strategic internal control function, vital to any corporation that wishes to reflect a high governance profile. The increased frequency of scandals that have been revealed does not mean that the level of awareness is not of an adequate standard or that adherence is still

BY JOHN VICKERS

poor. On the contrary and encouragingly, this eruption of scandals indicates, an enhanced notion of transparency which was not evident in the past due more concealed corruption and the absence of ethical corporate values. The continuous exposure of Cyprus to international regulatory and governance frameworks, following its accession to the European Union

The Panama Papers scandal reminds everyone of the importance VM LɈLJ[P]L KYC procedures and of full transparency

and, later, the unfortunate event of having to go through an onerous Memorandum of Understanding process with the Troika, imposed these principles in a rather harsh way but with a longer-term beneficial outcome for the business world and the economy. This outcome, the crystallization of which has only now commenced, is reflected in the way financial scandals have come to light. Gold: Many large regulated organisations now have a Chief Compliance Officer (CCO) and even a Compliance Division. Do they generally accept the need for compliance or is it viewed in a negative light as an additional and often costly burden? M.S.: The initial reaction of all profit-making organisations to any form of increased oversight and control is always

www.goldnews.com.cy | GOLD | 65

| COMPLIANCE |

negative. Which organisation wants to adhere to increased procedural frameworks, which may hinder its flexibility with increased controls and oversight? Deriving all the relevant benefits from an effective compliance function, without perceiving it as a burden, depends on three critical aspects: (1) The direction of the Board, which needs to shift focus from a finance- driven strategy to a value-based and culture-driven one. If ethical values and behaviours lie at the heart of every corporate strategy, such a strategy will eventually lead to better financial performance, greater innovation and lower rates of misconduct; (2) The approach of Senior Management, which should provide unconditional support for the compliance programme, shifting its sights from the short-term to the medium- and longer-term financial and reputational benefits. The Senior Management of the organisation needs to effectively infuse this practical support into all levels of management within the organisation and align divisional plans with the key principles of the value-based strategy introduced by the Board; and (3) The Chief Compliance Officer, who needs to demonstrate a blend of high technical competency, efficient critical thinking/performance and strong ethos. This blend can transform the perception of the compliance function from one that prevents the inflow of business and hinders operational efficiency to one that provides the means for further engaging with customers and building stronger relationships on the grounds of reliability and credibility, leading eventually to sustainable long-term success for the organisation.

level of impact of corruption/fraud. What differentiates the two is how increased regulatory requirements are introduced into an organisation and whether these new requirements are seen as points on a checklist of tasks to perform or as values that form part of the overall behaviour of the members of the organisation. The latter will ensure success in mitigating occurrences of corruption/fraud. This is fully reflected in recent statistics issued in the US by CEB Inc., which reveal that in corporations that focus on building a corporate culture of ethics, 59% of their employees perceive, observe and eventually report misconduct/corruption, in contrast to only 7% of employees of corporations whose focus is simply on building a rigid compliance framework of rules and procedures.

Gold: Are there any studies that have shown that stricter regulation has led to fewer instances of fraud and corruption within corporations? M.S.: Stricter regulation does not necessarily lead to a lower level of corruption/ fraud. Effective compliance measures, though, do mitigate the frequency and

Gold: Do you think the publication of the so-called ‘Panama Papers’ earlier this year has led to a greater desire for compliance and regulation? M.S.: The Panama Papers scandal is definitely an event that has pushed demand further for greater transparency in the affairs of organisations. It reminds

66 | GOLD | The Business Magazine of Cyprus

The Chief Compliance 6ɉJLY ULLKZ to demonstrate a blend of high technical competency, LɉJPLU[ JYP[PJHS thinking/ performance and strong ethos

everyone once more of the importance of effective KYC procedures and of full transparency in relation to the ownership of organisations. Gold: Would you agree with those who say that money laundering will never be eradicated, no matter how strict compliance becomes? If so, what is the answer? M.S.: Of course money laundering and other forms of financial crime will never be eradicated, hence the risk-based approach that regulators and regulated parties apply in adhering to the various regulatory requirements. Financial crime will always be part of the world economy, with a greater or lesser extent in some countries. For this reason, the focus and attention should not be on completely eradicating financial crime, which will inevitably lead to increased regulation, adding absolutely no value but, on the contrary, hindering organisations’ operational efficiency. The focus should be on mitigating the most adverse effects of financial crime through the introduction of sophisticated risk-based monitoring and assurance procedures, addressing the highest risks of default, with less focus on the lower risks and no focus on the insignificant ones. Gold: Tax evasion, money laundering and terrorist financing are three key areas that have been targeted by international regulation. Is there a danger of the burden on banks and other financial institutions becoming too heavy? M.S.: Tax evasion, money laundering and terrorism financing are all examples of financial crime. The concept of money laundering first came to the surface in the 1980s when the prime and sole burden of financial institutions was to identify money derived from drug transactions. By the dawn of the 21st century, the financial crime focus range had broadened to include money laundering and terrorist financing, primarily driven by the

| COMPLIANCE | Friday 14 October 2016, Hilton Park Hotel, Nicosia Presented by: Bank of Cyprus Sponsors: PwC Cyprus, Hellenic Technical Enterprises Communication Sponsors: Reporter Online, INBusiness, Accountancy Cyprus Under the Auspices of CFA, ICPAC

events of 9/11. In this decade, the focus of the AML function has broadened even further to include cases associated with financial crime, fraud and tax evasion, as reflected in the forthcoming 4th EU AML Directive. Inevitably, this increases the financial and administrative burden on financial institutions, which are called on to be resourced adequately, to acquire the relevant competency and enhance their policy/procedural framework. However, as mentioned earlier, this extra effort should not be seen as a burden but rather as a challenge to effectively address increased market risks, primarily for the protection of our customers and then of the financial institution itself, to get to know our customers better and even explore cross-selling opportunities through the resulting better knowledge acquired and enhanced trust. Gold: As Director of the Group Compliance Division of Bank of Cyprus, you have first-hand experience and expertise regarding issues of compliance and transparency. How much has changed in your bank and others since the pre-2013 era? M.S.: Obviously, the increased regulatory requirements in 2014 have tightened the compliance framework in all banks in Cyprus. The new Bank of Cyprus is probably the best model of effective corporate restructuring, proving in reality the truth of Friedrich Nietzsche’s saying: “That which does not kill us makes us stronger”! The significant cultural transformation of the Bank of Cyprus in only 2 years is not at all coincidental. On the contrary, it is the outcome of its diverse and international new shareholding basis, its highly skilled and internationally reputable new Board of Directors, a highly competent new senior management team, its equally competent, hardworking and committed staff and, above all, its new values and culture. The new Bank of Cyprus has managed in a short period of time to regain the confidence of its customers and stakeholders by applying

68 | GOLD | The Business Magazine of Cyprus

a robust compliance function, based not solely on local regulatory requirements but on the best international practices of major financial institutions. What differentiates our bank’s compliance framework is the fact that it is value- and culture-based rather than a rigid rulesbased regulatory framework. The new values of the Board of Directors, based on integrity, transparency and confidentiality in conjunction with strategic enhancements in the overall monitoring, assurance and awareness of compliance, have inspired all members of the bank at all levels of management to behave correctly. This cultural transformation has been recognized and rewarded by independent international institutions. Bank of Cyprus is the only financial institution in Cyprus to be positively accredited by the Business Integrity Forum of Transparency International and granted membership since 2015. Moreover, external independent consultants have positively assessed the new Bank of Cyprus for its robust corporate governance framework, setting it as a benchmark among the best-governed institutions in Europe. Gold: Many of these issues will be discussed at next month’s 2nd International Compliance Forum in Nicosia, which you will be chairing. Who do expect to attend and what will they gain? M.S.: The 2nd International Compliance

Money laundering and other forms of ÄUHUJPHS JYPTL ^PSS never be LYHKPJH[LK

Forum is probably the most important compliance event in South-Eastern Europe and the Middle East, both in terms of its diverse thematology as well as of the quality of presenters participating. The Forum will cover all aspects of the compliance function, including corporate governance, regulatory and financial crime compliance. Moreover, for the first time, all the regulators in Cyprus – the Central Bank of Cyprus, the Cyprus Exchange & Securities Commission, the Institute of Certified Public Accountants and the Bar Association – represented by their respective Heads, will participate in a round table discussion on the challenges they face and respond to questions from delegates. All those attending will acquire knowledge of recent compliance trends, the evolution of various regulations and governance frameworks, the effective functioning of Boards, the implementation of effective anti-financial crime frameworks, the tactics needed to successfully transform the culture of an organisation, etc. Gold: What makes this Forum different? M.S.: What mostly differentiates this Forum from other similar ones is its international status, which is reflected in the quality and internationalisation of its speakers. For the first time ever in Cyprus, participating speakers include the CEO of the International Compliance Association (UK), the CEO of Spencer Stuart (France), the Director of the Anti-Financial Crime Unit of Deutsche Bank (New York), the European Director of ACAMS and other renowned international professionals. It is primarily for Compliance Officers, AML Officers, Corporate Governance officers, Company Secretaries, Board Members and CEOs of financial institutions and other regulated entities, qualified accountants, law professionals and members of regulatory as well as other competent authorities. It is definitely an event not to be missed!

SPECIAL PROMOTIONAL FEATURE

PRESENTS

THE BUSINESS

OF HEALTH

& HEALTH

INSURANCE THE PRIVATE HEALTHCARE SECTOR IN CYPRUS IS THRIVING, AND NOT ONLY BECAUSE HEALTH IS A TOP PRIORITY FOR EVERYONE; THE ISLAND IS GROWING INCREASINGLY POPULAR AS A MEDICAL TOURISM DESTINATION THANKS TO ITS EXCELLENT PRIVATE HOSPITALS, CLINICAL LABORATORIES AND WELLNESS CENTRES. ON THE FOLLOWING PAGES, NINE COMPANIES PRESENT THEIR PRODUCTS AND SERVICES IN DETAIL.

contents contents contents YGIA POLYCLINIC PRIVATE HOSPITAL AIMIS | AMERICAN INSTITUTE OF MINIMALLY INVASIVE SURGERY AMERICAN MEDICAL CENTER AMERICAN HEART INSTITUTE APOLLONION PRIVATE HOSPITAL C.A.PAPAELLINAS CNP FILEMINDERS MSD YIANNOUKAS MEDICAL LABORATORIES

72 74 76 78 80 82 84 86 88

CENTRE OF EXCELLENCE www.goldnews.com.cy | GOLD | 69

THE BUSINESS

OF HEALTH

& HEALTH

INSURANCE special promotional feature

PRIVATE HEALTHCARE & MEDICAL TOURISM THE CYPRUS HEALTH SERVICES PROMOTION BOARD AND THE RUSSIAN COUNCIL OF HEALTH TRAVELLERS RECENTLY SIGNED A COOPERATION AGREEMENT AIMING TO PROMOTE AND DEVELOP MEDICAL/HEALTH TOURISM BETWEEN CYPRUS AND RUSSIA. THIS IS ONLY THE LATEST MOVE IN WHAT, IT IS HOPED, WILL GRADUALLY BECOME AN EVEN MORE LUCRATIVE SECTOR FOR THE ISLAND, WHICH HAS ALREADY EARNED AN INTERNATIONAL REPUTATION FOR EXCELLENCE IN PRIVATE HEALTHCARE.

CENTRE OF EXCELLENCE 70 | GOLD | The Business Magazine of Cyprus

C

yprus is growing increasingly popular among medical tourists across the globe since it is able to offer the right mix of healthcare assistance and leisure. Language is not a concern in medical facilities in Cyprus as a majority of local medical professionals are trained in the UK and the US. All doctors speak very good English and those who have trained in other European countries often speak their language too. Private medical centres and hospitals around the island have succeeded in attracting patients from all over the

world thanks to their technological sophistication, skilled surgeons who carry out the medical procedures, high nursing standards and reasonably priced healthcare – Cyprus offers excellent value for money and medical expenses are invariably cheaper than in most countries. The cost of medical care (including the vacation) is often a fraction of what patients would have to pay elsewhere. The most popular treatments sought by medical tourists range from simple check-ups / diagnostic tests and wellness treatments, dentistry, cosmetic and plastic surgery and eye surgery to Assisted Reproduction/ IVF, orthopaedic surgery, cardiology and neurosurgery. A large number of clinical laboratories in Cyprus offer a vast range of diagnostic tests, both routine and specialised, with speedy results.

FOR MANY LOCAL RESIDENTS, PRIVATE HOSPITALS ARE THEIR FIRST CHOICE IN THE EVENT OF REQUIRING MEDICAL TREATMENT

In addition, many spas throughout the island provide holistic wellness using the broadest range of popular techniques for the mind, body and soul including mineral spas, which make use of the natural qualities of thermal springs with healing properties. Most foreign residents – and Cypriots who can afford to – take out private health insurance, which is widely available and offers a high standard of private healthcare. The insurance market in Cyprus is highly competitive and sophisticated and there is a huge range of both Cypriot and international insurance companies offering policies. Health plans can be tailored to your individual needs and budget and may cover outpatient consultations, medication and in-patient treatment at the hospital or clinic of your choice, as well as nursing care in your home. Generally speaking, the higher the premium, the more choice you have regarding doctors, specialists and hospitals. You may be able to obtain a discount if you accept a larger excess value. For many local residents, with or without health insurance, private hospitals are their first choice in the event of requiring medical treatment, while a visit to a private

doctor is the norm for all but the least well-off, given the frequent overcrowding, excessive waiting times and often overworked medical staff in the state hospitals. You pay but you get things done. It is hoped that the introduction of the National Health Service will narrow what is currently a huge gap between public and private sector healthcare. Whether this will actually happen is anyone’s guess at present. What is certain, however, is that Cyprus has an exceptionally high standard of private healthcare and it is constantly being raised still further.

CYPRUS OFFERS EXCELLENT VALUE FOR MONEY AND MEDICAL EXPENSES ARE INVARIABLY CHEAPER THAN IN MOST COUNTRIES

CENTRE OF EXCELLENCE www.goldnews.com.cy | GOLD | 71

THE BUSINESS

OF HEALTH

& HEALTH

INSURANCE special promotional feature

Department is fully equipped with modern technology and highly trained personnel, ready to face a wide range of heart diseases including acute myocardial infarction (heart attack). The center offers Diagnostic, Interventional and Therapeutic Services:

',$*1267,& 6(59,&(6

<*,$ 32/<&/,1,& 35,9$7( +263,7$/ <*,$ 3RO\FOLQLF 3ULYDWH +RVSLWDO ZDV HVWDEOLVKHG LQ DQG FRPPHQFHG LWV RSHUDWLRQV LQ /RFDWHG LQ WKH KHDUW RI /LPDVVRO LW LV WKH ODUJHVW DQG RQH RI WKH EHVW HTXLSSHG SULYDWH KRVSLWDOV LQ &\SUXV

Y

gia Polyclinic Private Hospital is leading with: ¡ Infrastructure: Building and facilities provide a comfortable and hygienic, safe and pleasant environment for patients. ¡ Technology: Continuous investment and upgrading of equipment to provide quality diagnosis, preventative treatments and advanced treatment plans. ¡ Staff: Large investment in staff training, including scientific training with overseas attendance and participation in international medical related conferences, Clinical supervision based on knowledge exchange and audits against best medical practices. ¡ Associate Doctors: Leading names and reputation with large spectrum of specialisations. ¡ Services: Provides total solution for patients and so ensuring further patient safety as all required clinical services and specialisations are available without the need to transfer patients to other third party facilities. ¡ Knowledge leaders: provides lectures for the University of Nicosia / St George’s University of London medical faculty students and other associated universities. ¡ Patient Safety and Quality of Services: CHKS accreditation sets the level of patient service, quality and safety to world class standards.

+($57 &$7+(7(5,6$7,21 &(175( $7 <*,$ 32/<&/,1,& YGIA Polyclinic’s Catheterisation Department operates 24 hours a day and deals with both planned and emergency cases. The Department Director is Dr. Majid Kalani, Interventional Cardiologist. The 72 | GOLD | The Business Magazine of Cyprus

• Pacemakers operation. • Electrophysiology studies. • Coronary Angiography • Complete heart catheterisation, measurement of cardiac chambers pressures, left ventriculography, aortography, calculation of cardiac output and vascular resistance. • Valvular heart disease studies. • Complete study of congenital heart disease. • Myocardium Biopsy. • Pericardial Puncture for diagnostic purposes.

,17(59(17,21$/ $1' 7+(5$3(87,& 6(59,&(6 • Percutaneous aortic valve replacement and aortic valvuloplasty (TAVI, Transcatheter Aortic Valve Implantation). • Primary angioplasty: it is the most efficient method of treating acute myocardial infarction. The Catheterisation Laboratory is staffed with qualified medical, nursing staff and technicians, who are prepared to perform primary angioplasty (PPCI) 24hours. • Percutaneous coronary angioplasty. • Atherectomy and rotablation: modification of the plaque with a rotational atherectomy system before stent positioning. • Alcohol septal ablation for haemodynamic improvement of Hypertrophic Obstructive Cardiomyopathy. • Periocardiocentesis for the

treatment of tomponate or significant pericardial effusion. • Implantation of permanent cardiac pacemakers (single / dual chamber, biventricular, rate responcive - VVi, VVIR, DDD, DDDR, CRT-P, CRT-D). • Implanting permanent cardioverter - defibrillator (ICD). • Interventional treatment of arrhythmia: ablation of arrhythmogenic foci for the treatment of atrial fibrillation and atrial flutter.

- Alcon) – that promises painless surgery, fast recovery and excellent results.

; 5$< '(3$570(17

Ygia Polyclinic’s Radiology Department has been operating for 27 years and its staff are constantly being trained to ensure that the best possible 23+7+$/02/2*< services are provided '(3$570(17 to all patients. YGIA Polyclinic’s It is one of the Ophthalmology Department most advanced is located in a brand new, stateRadiology of-the-art area where patients are Departments in treated in a pleasant and relaxing Cyprus. The Head of environment. The new department the Department is Dr. is equipped with the latest Annie Philippou generation of surgical facilities, Papoutsou. 7+( 0$002*5$3+< 6(/(1,$ ',0(16,216 6<67(0 including an eye theatre and a Each year, the $W <*,$ 3RO\FOLQLF 3ULYDWH +RVSLWDO RXU WRS dedicated refractive laser suite. Department SULRULW\ LV WR SURYLGH KLJK TXDOLW\ KHDOWKFDUH YGIA Polyclinic’s Ophthalmology VHUYLFHV conducts more 7KHUHIRUH VKRZLQJ RXU RQJRLQJ FRPPLWPHQW than 30,000 Department is the only eye WR RXU SDWLHQWV ZH KDYH UHFHQWO\ XSJUDGHG examinations. unit with the most modern RXU VHUYLFHV E\ SURYLGLQJ WKH 5DGLRORJ\ Most of our infrastructures and services in 'HSDUWPHQW ZLWK D VWDWH RI WKH DUW QHZ x-ray rooms Cyprus. The department’s mission HTXLSPHQW WKH 0DPPRJUDSK\ 6HOHQLD 'LPHQVLRQV use the latest is to upgrade patients’ quality of 6\VWHPŠ digital detectors life by providing health services 7KH 0DPPRJUDSK\ 6HOHQLD 'LPHQVLRQV providing that improve vision and prevent 6\VWHP LV D QHZ SUHPLHU ODWHVW WHFKQRORJ\ GLJLWDO superior quality blindness. PDPPRJUDP ZKLFK LV WKH PRVW LQQRYDWLYH A variety of procedures are images almost ZD\ RI GHWHFWLQJ EUHDVW FDQFHU ZLWK WKUHH GL instantly, and are performed in the department PHQVLRQDO linked to a fully including cataract surgery, ' WRPRV\QWKHVLV ZLWK WKH IROORZLQJ DGYDQWDJHV integrated RiS/ strabismus, retina, vitreous, x ([FHOOHQW YLVLELOLW\ ZLWK PLQLPDO UDGLDWLRQ PACS System glaucoma, eyelids, lacrimal GRVH (Radiology apparatus, ocular oncology and x :LWK WKH VDPH SUHVVXUH LQ WKH EUHDVW Information keratoplasty. YGIA Polyclinic’s VLPXOWDQHRXVO\ SHUIRUPV PDPPRJUDSK\ DQG WRPRV\QWKHVLV System Ophthalmology Department x ,W LV IOH[LEOH IRU DQ\ W\SH RI EUHDVW and Picture also includes on its premises an x ,PSURYHG WHFKQLTXHV Archiving and operating room dedicated to x (UJRQRPLF GHVLJQ IRU FRPIRUW DQG HDVH refractive surgery and laser surgery RI XVH Communication x %UHDVW VFUHHQLQJ ZLWK WKUHH GLPHQVLRQDO for correcting eye problems such System). The ' WRPRV\QWKHVLV LV PRUH DFFXUDWH LQ as myopia, hyperopia, astigmatism GHWHFWLQJ EUHDVW FDQFHU FRPSDUHG WR SULRU DUW Department and presbyopia. The department is PDPPRJUDSK\ conducts the x %DVHG RQ WKH ODWHVW VFLHQWLILF VWXGLHV LW FDQ equipped with the most advanced following LGHQWLI\ XS WR PRUH DJJUHVVLYH WXPRUV system worldwide – the Excimer examinations: Laser (Wavelight Refractive Suite • Plain imaging

(X-Rays) e.g. chest, abdominal, skeletal X-rays • Breast Imaging Unit with a new state of the art, Full field digital 3D mammography system for screening mammograms, stereotactic biopsies and localization. • Fluoroscopy, e.g. barium swallow, barium meal, enema.HSG, IVP • Ultrasound examinations with high accuracy e.g. organs, triplex, soft tissue, biopsies and localization • Panoramic & Cephalometric • Bone Density testing

05, ± &7 '(3$570(17 Our hospital’s MRI and CT Scan Department is one of the most up-todate and well-equipped in Cyprus. The Department has been fully renovated and equipped with the latest M.R.I and CT scan technology (CT 64 slices, MRI 1.5 Tesla excite), capable of handling a full range of examinations based on international protocols. The Head of the Department is Dr. Cleanthis Ioannides. Each year the Department conducts more than 10,000 examinations. It offers the full spectrum of diagnostic and interventional examinations performed with the most recent CT and MRI international protocols for dose protection and accurate diagnosis including: • Neuro-spinal imaging • Body imaging (head and neck, chest, abdomen-pelvis, liver imaging, urogenital system, oncological imaging-staging) • Cardiac imaging (coronary angiography, cardiac MRI) • Imaging of the musculoskeletal system with CT guided interventions (injections, arthrographies, bone tumour ablation, biopsies) • MR-CT angiographies (whole body, carotids, cranial angiography, peripheral angiography, pulmonary angiography) • Breast MRI and MR guided breast interventions (biopsies and lesion localization with clip or wire) • Interventional radiology (biopsies, injections, aspirations, drainages, tumour ablation) • Quantitative Magnetic Resonance Imaging

&217$&7 ,1)250$7,21

$GGUHVV 1DISOLRX 6WUHHW /LPDVVRO &\SUXV _ 3RVWDO DGGUHVV 3 2 %R[ /LPDVVRO &\SUXV _ 7HO _ ,VODQGZLGH QXPEHU )D[ _ H PDLO LQIR#\JLDSRO\FOLQLF FRP _ :HEVLWH ZZZ \JLDSRO\FOLQLF FRP www.goldnews.com.cy | GOLD | 73

THE BUSINESS

OF HEALTH

& HEALTH

INSURANCE special promotional feature

$,0,6_$0(5,&$1 ,167,787( RI PLQLPDOO\ LQYDVLYH VXUJHU\ :RUOG /HDGLQJ +HDOWKFDUH 3URYLGHU LQ 6SLQH 5RERWLF 6XUJHU\

A

+HDOWKFDUH ZLWK 3UHFLVLRQÂŞ %\ WKH %HVW IMIS, the American Institute of Minimally Invasive Surgery, is a world leading centre of excel'U :LOOLDP 6PLWK lence in spine and robotic surgery. AIMIS consists &KDLUPDQ RI $,0,6 3URIHVVRU DQG &KLHI of leading US-based and international surgeons, who are RI 1HXURVXUJHU\ 8QLYHUVLW\ 0HGLFDO the pioneers and inventors of technologies, proctors and &HQWHU RI 6RXWKHUQ 1HYDGD 86$ trainers of unique and exceptionally advanced surgical procedures in the field of spine and robotic surgery. Âł%5,1*,1* Each of our surgeons performs hundreds of MIS surgeries each year, bringing 72*(7+(5 an unprecedented medical standard to (MIS) – second to none – worldwide! 7+( %(67 AIMIS was established in 2011 in Europe and effectively offers top quality $0(5,&$1 %$6(' ,17(51$7,21$/ American healthcare, BUT at affordable and competitive prices at a brand 685*(216 new state-of-the-art facility, the American Medical Center in Nicosia. ,1 (8523(´ At AIMIS we bring together the best spine and robotic surgeons in a collective environment, beyond borders, to perform minimally invasive surgeries in Europe and specifically on the island of Cyprus - a highly developed Mediterranean member of the European Union, sitting at the crossroads of three continents – Europe, the Middle East and Africa. AIMIS Spine consists of 30 leading US-based MIS Spine Surgeons offering exceptional and most difficult treatments for re-dos/revision/failed back surgery, complex spinal cord Injuries, Tarlov and Meningeal cysts, scoliosis, kyphosis and general spine cases. AIMIS’ leading surgeons follow procedures with true minimally invasive approaches by utilizing the latest, proven, most advanced and cutting edge technologies, such as:

74 | GOLD | The Business Magazine of Cyprus

Revisional Failed Back Surgeries • Total Disk Replacements • Scoliosis & Deformities • Spinal Cord Injuries and Paralysis • Advanced Cyst Treatments (Tarlov, Meningeal) • Cancer Growths • ALIF: Anterior Lumbar Interbody Fusion • Anterior Cervical • Anterior Cervical Discectomy & Fusion • AxiaLIF(Axial Lumbar Interbody Fusion) • Decompressor Discectomy • Laminectomy • Kyphoplasty • Lumbar Interbody Fusion Lumbar Disc Microsurgery • PLIF: Posterior Lumbar Interbody Fusion Posterior Cervical Foraminotomy • TLIF: Transforaminal Lumbar Interbody Fusion • Artificial Cervical Disc Replacement • XLIF Lumbar Corpectomy • XLIF: Lateral Lumbar Interbody Fusion Following the proven success and track record of AIMIS Spine, we have established AIMIS Robotics, a renowned medical centre of excellence utilizing the world’s latest and most advanced da Vinci Xi 4 Arm 3DHD system for robotic minimally invasive surgery( launched in 2014). Robotic surgery is the future of minimally invasive surgery. The new robot da Vinci Xi 4 Arm is defined as “the next frontier in minimally invasive surgeryâ€? with 7 years’ progress from the previous Si model, providing the surgeon with the following unique features: • Endowrist Instrumentation: The da Vinci Xi Surgical System provides a natural extension of the surgeon’s eyes and hands into the patient. It enables surgeons to per-

vide. Every movement he form delicate and commakes with the master conplex operations through trols is replicated precisely a few small incisions, by the robot. The surgeon’s allowing the surgeon’s eyes and hands are always hand movements to be perfectly aligned with his view scaled, filtered and translatof the surgical site, minimizing ed into precise movements of surgeon fatigue.The ultimate effect the instruments working inside is to give the surgeon unprecethe patient’s body. dented control in a minimally • Magnified 3D HD invasive environment. Vision: A crystal-clear As a result, the combination image allows surgeons of AIMIS Robotics’ exto see anatomical strucceptional surgeons with the tures with enhanced world’s most advanced surdefinition and in natural gical robot, the da Vinci Xi 4 colour. The da Vinci Xi Arm 3DHD, AIMIS provides Surgical System is designed exceptionally high level healthcare to be fluorescence imagingtreatments, especially dealing with capable. Firefly Fluorescence complicated oncological and Imaging provides real-time cancer cases in Gynaecology, visualization and assessment Urology, G.I., Gastro -Hepaof vessels, bile ducts, and to- Biliary, Transplant Surgery, tissue perfusion. Head and Neck, Bariatric and • Four Quadrant Anatomimost other surgical specialties. cal Access: The da Vinci Xi combines the functionality of 'U (YJHQ\ 6RORPRQRY 7+( %(1(),76 2) 0,6 a boom-mounted system with 5RERWLF +3% 6XUJHRQ &KLHI RI *HQHUDO DQG 685*(5,(6 $5( the flexibility of a mobile platform. +HSDWRELOLDU\ 6XUJHU\ 'HSDUWPHQW • Less blood loss and less need for The hybrid architecture enables =LY 8QLYHUVLW\ +RVSLWDO ,VUDHO transfusion full, four quadrant anatomical • Total cancer removal acaccess while making it easy to Âł$,0,6 685*(216 curacy work around the patient. $5( 7+( 3,21((56 • A shorter hospital stay • Enhanced Ergonomics: $1' ,19(17256 Faster recovery time & reWhether it is the first or last 2) 7(&+12/2*,(6 •turn to daily activities case of the day, the ergo2) 81,48( $1' • Less post-operative pain and nomically adjustable surgeon (;&(37,21$//< discomfort console makes performing $'9$1&(' 0,1,0$//< surgery with the da Vinci Xi ,19$6,9( 685*,&$/ • Lower risk of complications and wound infections surgical system feel comfort352&('85(6´ • Smaller incisions associated able and natural. with minimal scarring The surgeon controls these • Minimal scars, better aesthetic results instruments and the camera from a console • Less need for narcotic pain medicine located in the operating room. Placing his • More complete recovery fingers into the master controls, he is able to operate all four arms of the da Vinci Xi 6(&7256 :( 23(5$7( $1' 75($7 simultaneously while looking through a • Gynaecology stereoscopic high-definition monitor that literally places him inside the patient, giving • General Surgery him a better, more detailed 3-D view of the • Liver Surgery • Gastric Surgery operating site than the human eye can pro-

• Hernia Surgery • Colorectal Surgery • Gall Bladder and Bile Ducts Surgery • Hepatobiliary • Pancreatic Surgery • Bowel Surgery • Rectum Surgery • Spleen Surgery • Adrenal Surgery • Urology • Prostate Surgery • Kidney Surgery • Urinary Bladder Surgery • Bariatric • Head & Neck Hospital Facility and VIP Personalized Concierge Services AIMISSpine and AIMIS Robotics patients benefit from the world’s most comprehensive “AIMIS Conciergeâ€?, a very personalized and VIP patient service without delays, with seamless processes and family-like relationship services as described at www.aimis.com AIMIS operates at the American Medical Center, a licensed private hospital based in Nicosia, Cyprus and offers the highest level of healthcare to patients from all over the world, combined with personalized VIP concierge services of the highest level – making the patient and those accompanying him/her feel important, loved, cared for, and being part of a “familyâ€? – without waiting as is usually the case with any hospital.

3$7,(17 05, 5(9,(: 0(',&$/ 3/$16 AIMIS Spine and Robotics offer a comprehensive review of your MRI images and medical records. The future patient should provide the most recent MRI Images (less than 12 months old). Our US-based and international medical board will review the MRI, and note each condition, its cause and severity. A medical report of their findings will then be sent to you. If you are a candidate for surgery we will discuss the surgeon’s findings and surgical options medical plans with you.

&217$&7 ,1)250$7,21

$GGUHVV $,0,6 $PHULFDQ 0HGLFDO &HQWUH 6S\URX .\SULDQRX $YH 1LFRVLD &\SUXV _ 7HO _ H PDLO LQIR#DLPLV FRP _ :HEVLWH ZZZ DLPLV FRP

www.goldnews.com.cy | GOLD | 75

THE BUSINESS

OF HEALTH

& HEALTH

INSURANCE special promotional feature

The American Heart Institute continues its activities within the American Medical Center as a specialized heart centre. The pioneering state-ofthe-art facilities and the internationally renowned staff of AMC/AHI, contribute substantially in raising the standards of health care in Cyprus and the region.

3$7,(176 ),567

$0(5,&$1 0(',&$/ &(17(5 $0(5,&$1 +($57 ,167,787( 7KH $PHULFDQ 0HGLFDO &HQWHU $PHULFDQ +HDUW ,QVWLWXWH $0& $+, LV D VWDWH RI WKH DUW KHDOWKFDUH IDFLOLW\ RIIHULQJ D ZLGH UDQJH RI PHGLFDO VHUYLFHV

I

t originally started as a dedicated cardiovascular Institute, known as the American Heart Institute (AHI) specializing in diagnostic and interventional cardiology services, cardiac-disease prevention and rehabilitation services, offering the entire spectrum of adult cardiothoracic surgery. AHI was founded in 1999 as the first private hospital of its type in Cyprus and since 2001 it has maintained an agreement with the Ministry of Health to treat state-referred patients. In 2004 the American Heart Institute was awarded with the ISO 9001:2000 Certificate by the TUEV Rheinland/Germany, for initiating and maintaining a quality management system for patient admission, treatment and discharge processes. The Certificate has been successfully maintained by annual audits. In March 2011, after the Institute moved to its new premises, it initiated a rapid expansion of health care services. The ongoing, successful and quality-driven expansion of the Clinic, which included the introduction of several new medical specialties, was recognized by TUV Rheinland/Germany. The ISO 9001:2008 Certificate covers the AMC/AHI until 2016. The Certificate recognizes high quality in patient admission, diagnostics, treatment, discharge processes as well as providing an ever growing physician pool.

76 | GOLD | The Business Magazine of Cyprus

The primary concern of AMC/AHI is patient satisfaction. The dedicated and compassionate physicians, nurses and staff members provide patients with excellent care and comfort through a nurturing environment that is conducive to healing and one that promotes patient safety. The very impressive new building includes a welcoming, well-arranged reception area, a modern cafeteria and well equipped waiting areas with indoor gardens. Moreover, AMC/ AHI provides facilities for members of all faith communities to practice their religion, their traditions and rituals. The Multi-Faith Prayer Room is situated in the basement floor and it is designed to be a welcoming and accessible space for people of all faiths. The space can accommodate up to 1020 people and is open during regular building hours.

08/7,',6&,3/,1$5< 0((7,1*6 AMC/AHI aims to provide patients with the best

care and support available. The hospital organizes multidisciplinary team meetings on a regular basis, where a group of doctors from a range of different fields work together. These meetings provide a forum where all the necessary specialties can review each case. They also help the patient avoid having to go back and forth between many different physicians and they provide a mutually agreed plan for treatment for the patient that optimizes outcome

+($/7+ 6(59,&(6 Surgical/Interventional • Cardiothoracic surgery • Electrophysiology • Gastroenterology • General surgery • Interventional Cardiology • Interventional Neuroradiology • Interventional Radiology • Neurosurgery • Oral and Maxillofacial surgery • Orthopedic surgery • Plastic surgery • Robotic/Laparoscopic surgery • Spine Surgery Center • Surgical Oncology • Urology • Vascular surgery Non-surgical • Cardiology • Diagnostic Imaging Center • Hematology • Internal Medicine

• Nephrology • Neurology • Occupational Medicine and Epidemiology • Oncology Center • Pain Management Center • Primary Care/ Preventive Medicine • Pulmonology • Rheumatology • Syncope (Fainting) Center Pediatrics • Cardiothoracic surgery • Cardiology • Electrophysiology • General surgery • Interventional Cardiology • Neurology • Pulmonology • Orthopedic surgery • Rheumatology

38%/,& /(&785(6 The hospital organises free public lectures on a wide variety of health topics aimed at a general audience. The purpose of these lectures is to educate people about prevention, diagnosis, treatment and management of various health problems. The lectures are held at the AMC/AHI restaurant usually on weekday evenings. More

information regarding the lectures can be found at the AMC/AHI website and Facebook page.

$ *5((1 +263,7$/ AMC/AHI facility was commissioned to set a benchmark as a modern, green hospital aiming to create an overall healthier environment for its patients and staff. The hospital building was awarded multiple international and local architectural and landscape awards due to its innovative design and concept. The hospital was the first hospital awarded the Green Building award by implementing energy saving techniques, utilization of natural lighting and the most efficient technologies for heating, cooling and lighting. Moreover the building uses renewable sources of energy; a photovoltaic system has been installed on the roof and geothermal field. In order to efficiently manage energy and comfort, a sophisticated Building Management System (BMS) has been installed. The System allows the monitoring and adjustment to the needs of the building and optimizes the comfort levels of patients, visitors and employees.

:25/' &/$66 )$&,/,7< From an architectural point of view, the building is a landmark structure. A triangular shaped canopy at the main entrance is a very characteristic architectural feature designed to offer protection and comfort to patients, visitors and employees, while at the same time giving the building its own unique identity, thus making it a point of reference. The facility extends to over 3 floors in an area of 14,000 square metres. It possesses 5 operating theatres, and the total number of hospital beds amounts to 50. A helicopter landing pad on the roof of the hospital helps in case of emergency evacuations.

&217$&7 ,1)250$7,21

$GGUHVV 6S\URX .\SULDQRX $YHQXH 6WURYRORV 1LFRVLD &\SUXV _ 7HO _ )D[ _ H PDLO LQIR#DPF FRP F\ _ :HEVLWH ZZZ DPF FRP F\

www.goldnews.com.cy | GOLD | 77

THE BUSINESS

OF HEALTH

& HEALTH

INSURANCE special promotional feature

The Apollonion Private Hospital’s Accident & Emergency Department operates on a 24-hour basis. It is fully staffed with doctors, clinical staff and an ambulance service. In order to provide a better service to patients, we operate a Microbiology, Biochemistry and Hematological Laboratory as well as Radiology, CT Scan and Ultrasound and Mammography Department and Cath Lab Department, also on a 24-hour basis.

05,

$32//21,21 35,9$7( +263,7$/

T

he Apollonion Private Hospital is an ultra-modern purpose-built hospital that offers the best and most 'U *LRUJRV 0 *HRUJLRX complete medical care to patients. Daily contact with many doctors of various 7+( $32//21,21 specialities, their exchange of ideas and scientific 35,9$7( +263,7$/¶6 collaboration, in combination with fully equipped &$7+ /$% ,6 3$57 and comfortable surroundings, make the medical care 2) 7+( &$5',2/2*< provided here unique. On our website, you will find information relating &/,1,& $1' ,6 to your stay at the Apollonion Private Hospital. If you have any doubts $ %(1&+0$5. or questions, the doctor on duty or the Administrator of the hospital are ,1',&$7,1* 7+( available to answer your enquiries. Our main concern lies in offering you the +263,7$/¶6 /($',1* 52/( ,1 best possible healthcare and ensuring that you make a speedy recovery. 7+( 3529,6,21 2) The Apollonion Private Hospital stands on an area of eight acres on &203/(7( 0(',&$/ Lefkotheon Avenue in Makedonitissa, Nicosia, near the Makarios Stadium 6(59,&(6 2) 7+( and 200 metres from the Archangelos traffic lights. +,*+(67 48$/,7< The Apollonion consists of 80 beds in single and double rooms. All rooms are equipped with central heating/ air conditioning, bath, radio, television, telephone, Internet and a central oxygen supply. Patients can communicate with nurses on duty at any time via the internal nurse-call system available in all the rooms.

78 | GOLD | The Business Magazine of Cyprus

In today’s competitive market, with a large number of MRI scanners operating in Cyprus, the Apollonion Private Hospital has once again shown its dedication to innovation and quality by acquiring the modern MAGNETOM aera 1.5 MRI scanner, which is the most efficient and reliable system in the global market at present.

&$7+ /$% The Apollonion Private Hospital’s Cath Lab is part of the Cardiology Clinic and is a benchmark indicating the hospital’s leading role in the provision of complete medical services of the highest quality. The Cath Lab is manned by specialized medical and healthcare staff on a 24-hour basis, as required by a modern Cardiology Clinic. It is equipped with the latest digital vascular equipment (INNOVA IGS 530) required to carry out complex diagnostic and invasive operations in the fields of invasive cardiology,

electrophysiology and interventional radiology. The support equipment of the lab provides cover for any complications and emergencies.

'(3$570(176 '2&7256

ANAESTHESIOLOGY • Dr. Aleka Vriki • Dr. Antigoni Pontikou Pantela • Dr. Maria Alaeddine • Dr. Maria Miliatou • Dr. Martha Pouangare • Dr. Perikles Zavrides • Dr. Revecca Anastasiadou BARIATRIC SURGERY • Dr. Pericles Paleomylitis • Dr Petros Myrianthefs CARDIOLOGY • Dr. Constantinos Economides • Dr. Ioannis Stephanou • Dr. Petros M. Petrou • Dr. Stelios Hadjistylllis COLON AND RECTAL SURGERY • Dr Pericles Paleomylitis • Dr Petros Myrianthefs DERMATOLOGY - VENEREOLOGY • Dr Michalis St. Michaelides EAR, NOSE AND THROAT SURGERY • Dr. Iacovos Kakkouras • Dr. Kyriaki C. Sevastidou • Dr. Xenakis Pouangare ENDOCRINOLOGY/DIABETOLOGY • Dr Costas Oxynos • Dr George Georgiades GASTROENTEROLOGY HEPATOLOGY • Dr Giorgos Potamitis • Dr Marios Christoforou • Dr Marios Panos GENERAL SURGERY • Dr Andreas Dimitriou

• Dr Christoforos Varianos • Dr Christos Elisseos • Dr Louben Kroushiovski • Dr Michael Taliadoros • Dr Panicos Nicolaou • Dr Pericles Paleomylitis • Dr Petros Myrianthefs • Dr Sofoulis Papavarnavas GYNAECOLOGY • Dr Charilaos Kymisis • Dr Christos Ppouris • Dr Constantinos Antoniades • Dr Constantinos Sotiropoulos • Dr Irene Andreou • Dr Kyriakos Kakoullis • Dr Marios Eleftheriou • Dr Marios Phylactou • Dr Tasos Christodoulou HEMATOLOGY • Dr Maria Michael INTENSIVE CARE MEDICINE • Dr Angelos Rigas • Dr Giorgos Minas • Dr Stelios Kakoullis INTERNAL MEDICINE • Dr Andreas Kallis • Dr Avgi Vryonidou • Dr Costas Oxynos • Dr Giorgos Potamitis • Dr Kyriacos Yiallouros • Dr Stelios Vouniotis INTERVENTIONAL CARDIOLOGY • Dr. Giorgos M. Georgiou INTERVENTIONAL RADIOLOGY • Dr. Tsitskari Maria MAXILLO-FACIAL SURGERY • Dr Stavros Kallis NEPHROLOGY • Dr Kyriakos Ioannou • Dr Polys Polycarpou NEUROLOGY • Dr Costas Pouyiouros

• Dr Kyriakos Kyriallis NEUROSURGERY • Dr Achilleas Perdios • Dr Alkis Lapithis • Dr Costas Violaris ONCOLOGY • Dr Giorgos Astras OPTHALMOLOGY • Dr Elena Hadjioannou ORTHOPEDICS-TRAUMATOLOGY • Dr Alexander Kroushovski • Dr Alkis Lapithis • Dr Andreas Christou • Dr George Shiamishis • Dr Ioannis Papayiannis • Dr Louis Loizou • Dr Nicos Maroudias • Dr Panikos Atalianis • Dr Phivos Kynighos • Dr Stelios Hadjichristofi PAEDIATRICS • Dr Michalis Anastasiades PAEDIATRIC SURGERY • Dr Panikos Theodorou PLASTIC SURGERY • Dr Christos Kitsios • Dr Giorgos Anayiotos • Dr Nicos Mantas PNEUMONOLOGY • Dr Angelos Rigas • Dr Evis Bagdates • Dr Stelios Kakoullis RADIOLOGY • Dr Antonis Papaleontiou • Dr Karga Archontia RHEUMATOLOGY • Dr Marilena Solonos Haralambous • Dr Nedi Hadjichristofi THORACIC SURGERY • Dr Nicolaos Polydorou UROLOGY-ANDROLOGY • Dr Andreas Myrianthous • Dr Mikis Christofides • Dr Prodromos Philippou VASCULAR SURGERY • Dr Constantinos Kouyiallis • Dr Lakis Hadjimichael • Dr Petros Petrides

&217$&7 ,1)250$7,21

$GGUHVV /HINRWKHRX $YHQXH 6WURYRORV 1LFRVLD _7HO _ )D[ _ H PDLO DSROORQLRQ#F\WDQHW FRP F\ _ :HEVLWH KWWS ZZZ DSROORQLRQ FRP

www.goldnews.com.cy | GOLD | 79

80 | GOLD | The Business Magazine of Cyprus

www.goldnews.com.cy | GOLD | 81

82 | GOLD | The Business Magazine of Cyprus

www.goldnews.com.cy | GOLD | 83

THE BUSINESS

OF HEALTH

& HEALTH

INSURANCE special promotional feature

7+,6 ,61Âś7 -867 '$7$ ,7Âś6 $%287 7+( 3$7,(17 The patient file is a collection of documents that provide an account of his/her medical history; health status, laboratory and radiology reports, tests performed, care provider notes, order sheets, admission records, discharge summaries and other critical data. We clearly understand how important patient data is and why healthcare providers need to have access to consolidated patient data from any source, under a single patient view.

/(7Âś6 &216,'(5 7+( %,**(67 %$55,(5 72 7+( 6,1*/( 3$7,(17 9,(:

),/(0,1'(56

:RUNLQJ 7RZDUGV DQ ,GHDO +HDOWK 'HOLYHU\ 6\VWHP 7KH KHDOWKFDUH DQG LQVXUDQFH ODQGVFDSH PD\ EH FKDQJLQJ EXW RQH WKLQJ UHPDLQV LQWDFW KHDOWK WUHDWPHQW UHTXLUHV D KXPDQ DSSURDFK

I

t’s comforting to see that the Cyprus government is taking steps towards modernizing the National Health Service, transforming it into a centralized healthcare delivery system where coordinated treatment can take place across multiple care providers, supported by the corresponding universal health coverage programme. Regardless of the precise form that the final healthcare delivery system takes, one of the key challenges for this project will be patient files management. It is the single most important component that needs to be constantly updated and seen clearly throughout the health delivery spectrum (care providers, insurance agents, etc). This will guarantee the delivery of high-quality care by preventing the occurrence of medical errors.

84 | GOLD | The Business Magazine of Cyprus

$QGUHD $QWRQLRX &KLHI ([HFXWLYH 2IILFHU

7+( .(< ,6 72 (67$%/,6+ $ 7:2 :$< &20081,&$7,21 &+$11(/ :,7+ 7+( 1(:/< &5($7(' 3$7,(17 '$7$ $1' 7+$7 5(6,',1* ,1 7+( +,06 62 7+$7 7+( 3$7,(17 ),/( :,// %( 83 72 '$7( $7 $// 7,0(6

Foremost, it is the physical form of the patient file. Available only in hard copy, means that it requires time for retrieval and filing, space for storage and an ongoing labour force to manage it. Additionally, as each health institution has its individual file for every patient, their medical history stays within that institution and only. This results in care providers within other health institutions not having complete track of the patient’s medical history, at point of care. This insufficient information can lead to a misdiagnosis which could lead to wrongful treatment.

and the experience of the patient throughout the care delivery process. The time wasted The ideal scebetween the monario would ment the patient be to convert registers and the the entire patime doctors retient file from ceive the patient’s a physical to file for diagnosis an electronic and treatment format; then to will be dramatically centralize that reduced. The abilinformation through ity of care providers to the integration of a quickly and accurately treat Health Information Manpatients is critical, especially agement System (HIMS) in departments like the and link the two with Intensive Care Unit or an Enterprise ConEmergency Rooms, tent Management where instant access system that is to current and accuavailable to all care rate patient informaproviders at the tion can define the point of care. outcome. The key is to Furthermore, the establish a two-way link established by the communication chanadoption of the Health nel with the newly creInformation Management ated patient data and that residing in the ',*,7,=,1* 7+( 3$7,(17 System connected with the ),/( 0($16 7+$7 :( Enterprise Content ManageHIMS, so that the .((3 7:2 758( &23,(6 ment system will make the patient file will be up 2) 7+( 6$0( ),/( sharing of health informato date at all times. :,7+ 7+( 3+<6,&$/ tion among multiple care The digitization pro21( 86(' 21/< )25 providers (both private and cess is no easy task. ',6$67(5 5(&29(5< government) and departIt requires extensive $1' %86,1(66 ments (Registration, Laboraknow-how, expertise &217,18,7< 3/$1 tory, Radiology, etc.), easy and experience. 385326(6 and secure. This results in coordi:+$7 :28/' 7+( nated treatment across care providers, +($/7+ '(/,9(5< 6<67(0 /22. /,.( ,) 7+( ,'($/ 6&(1$5,2 :$6 improving the patient experience from the point of care to treatment and to 5($/,=('" payment. This transition from old paper records Lastly, it's about the added security to a new electronic health records sysfeatures. The patient file contains tem would improve the quality of care

+2: '2 :( 29(5&20( 7+,6 %$55,(5"

confidential information that should be safeguarded at all times. Digitizing the patient file means that we keep two true copies of the same file, with the physical one used only for disaster recovery and business continuity plan purposes. Therefore, the secure storage of that file is of the utmost importance. Moreover, since the information distribution will be carried out by the Enterprise Content Management System, its security features should meet legislative and regulatory requirements. Such features may include automatic permission controls and audit trail logs that only give access to certain information to specific people at any given point during the care delivery spectrum. This ensures data security and confidentiality while maintaining accessibility for everyone that requires it. About Fileminders: Fileminders Ltd is the leading company in Records and Information Management (RIM) in Cyprus , and one of the most innovative Information Processing companies in the region. Our innovative solutions take our clients beyond the traditional RIM services enabling them to better organize, control and access the increasing volume and variety of their physical and digital assets- with just one information management partner. The total information lifecycle solution is provided through our three pillars Record Management, Digital Solutions and Secure Destruction, as they link the management of both physical and digital records. To date we have successfully completed some of the country’s most monumental projects for both the government and private sector.

&217$&7 ,1)250$7,21

7HO _ :HEVLWH ZZZ ILOHPLQGHUV FRP F\

www.goldnews.com.cy | GOLD | 85

MEDICAL BREAKTHROUGHS MAY COME OUT OF THE LAB.

BUT THEY BEGIN IN THE HEART. For more than a century, a very special passion has driven the people of MSD. Our goal is to develop medicines, vaccines, and animal health innovations that will improve the lives of millions. Still, we know there is much more to be done. And we’re doing it, with a long-standing commitment to research and development. We’re just as committed to expanding access to healthcare and working with others who share our passion to create a healthier world. Together, we’ll meet that challenge. With all our heart.

Copyright © 2016 Merck, Sharp & Dohme Corp., a subsidiary of Merck & Co., Inc., Kenilworth, NJ, USA. All rights reserved. CORP-1174828-0000 Last revised Feb 2016. For more information please contact MSD in Cyprus at 80000 673, www.msd-cyprus.com.cy

MSD: 125 YEARS OF HELPING THE WORLD BE WELL Celebrating a legacy of invention and medical breakthroughs The year 2016 is a milestone for Merck, known in Cyprus as MSD, as it marks the company’s 125th anniversary as a global health care leader. Since 1891, MSD has pushed the boundaries of science aiming to lead to major advances in health. Through its prescription medicines, vaccines, biologic therapies, and animal health products, the company operates in more than 140 countries, including Cyprus where it established its presence in 2005, delivering innovative health solutions. An indispensable part of Merck’s extended presence in Europe, MSD in Cyprus shares Merck’s goals and aspirations to improve health care worldwide. Since the company’s inception, it has remained committed to increasing access to healthcare through far-reaching policies, programmes and partnerships. This commitment to improving people’s health is evident throughout the company’s history -- testament to the major change it has brought to the health care sector on a global scale. From the development of the first vaccines for measles and mumps, to the development of groundbreaking medicines for heart disease, osteoporosis, diabetes, tuberculosis, HIV and melanoma, MSD has played a pivotal role in changing people’s lives through medical breakthroughs. The company has been guided by its rich legacy and has always aimed to improve the health and wellbeing of people around the world. Its founders George Merck, and his son, the company’s former president George W. Merck, known for his “medicine is for the people” speech, laid the groundwork for the company’s identity, goals and success. Vaccines are one of the greatest public health success stories and MSD has played its part in that story, dedicating itself to the complex business of research and production. Distinguished scientists, among them Maurice Hilleman and Bill Campbell, who

spent more than 25 years with Merck, had an unmatched impact on public health. Dr Hilleman was credited by The New York Times with “having developed more human and animal vaccines than any other scientist, helping to extend human life expectancy and improving the economies of many countries.” Dr Campbell, recently awarded the Nobel Prize for Physiology and Medicine, together with Dr Mohammed Aziz and others, championed the discovery and development of a treatment for river blindness. The treatment is still being distributed throughout the world to this day. These are just some of the countless examples of people at Merck who have achieved immeasurable success. Apart from pioneering work in vaccination, MSD has also had a long history of leading the way in corporate responsibility with its Mectizan Donation Programme, through which more than one billion treatments have been donated in areas affected by river blindness. Now, three countries have been verified as free of river blindness by the World Health Organisation. Presently, MSD is making important strides in the fight against maternal mortality through Merck for Mothers, a longterm effort that aims to create a world where no woman has to die from complications in pregnancy and childbirth. Today, MSD is at the forefront of inventing tools for the fight against some of the world’s most urgent global health challenges. This includes more than 30 different cancers, hepatitis C, Alzheimer’s disease, Ebola, antibiotic-resistant “superbugs,” cardio-metabolic diseases, and many others. The company’s goal is to build on its legacy of invention and scientific discovery and to continue making a difference in the lives of people globally by developing and providing innovative products and services that save and improve lives around the world

MSD MILESTONES MSD legacy of invention began 125 years ago and continues today 1891 Company Established 1895 First diphtheria antitoxin introduced

1936 Chemists from MSD and Bell Labs synthesise vitamin B1 1944 Cortisone synthesised

1974 First to isolate broad-spectrum antibiotics

1997 MSD forms the MSD Genome Research Institute

2011 MSD for Mothers established to reduce maternal deaths worldwide

1925 Diphtheria antitoxin rushed by dogsled to Nome, Alaska

1942 MSD begins producing penicillin “G”

1944 Antibiotic streptomycin discovered

1987 Commitment to donate Mectizan to eradicate River Blindness 2006 First cervical cancer vaccine

2014 First anti-PD-1 therapy approved in the United States

THE BUSINESS

OF HEALTH

& HEALTH

INSURANCE special promotional feature

<,$1128.$6 0(',&$/ /$%25$725,(6

³7KH ZD\ WR VXFFHVV LV WKURXJK WKH FRRSHUDWLRQ RI WKH SXEOLF DQG SULYDWH VHFWRUV ´ .\ULDFRV <LDQQRXND %6F 06F ),%06

A

%287 86

1LFRV 6 <LDQQRXND 3K ' ([HFXWLYH $GYLVHU

:( +$9( 387

The Quest for Excellence *5($7 ())257 Yiannoukas Medical Laboratories (YML) was estab29(5 7+( /$67 lished in 1975 by Dr Nicos Yiannouka and over the <($56 ,172 last 40 years, it has become one of the island’s largest (67$% /,6+,1* accredited laboratories. $ 67$7( 2) 7+( Our laboratories are comprised of our main premises in the centre of Nico$57 &/,1,&$/ sia, seven sampling centres and a nationwide number of mobile units, making /$%25$725< :,7+ 7+( /$7(67 us the only laboratory able to provide services throughout Cyprus. 7(&+12/2*< Today, the laboratory is managed by Kyriacos Yiannouka (FIBMS) and Dr $9$,/$%/( Harris Stefanou, together with another 15 university graduates. All our staff are highly qualified based on the laboratory’s accreditation system and this ensures that we provide high-quality laboratory services. These days, the clinical laboratory is the main tool used in the medical profession for the correct prognosis, diagnosis and patient therapy. Therefore, we must be able to produce high-quality analytical test results in the shortest possible time, with precision, accuracy and at the minimum possible cost. In order to meet the expectations of high-quality results by doctors and patients alike, we have ensured that our laboratory is accredited with ISO 15189.

285 9,6,21 • We are committed to continue the Quest for Excellence in our Laboratory.

88 | GOLD | The Business Magazine of Cyprus

• Our first priority is our customers and other interested parties who use our services and rely upon our test results for their diagnosis and treatment. We aim to enhance customer satisfaction. • Our aim and future goal is to maintain and continuously improve and upgrade our services to the highest professional standards. To this end, we provide the necessary infrastructure, i.e. new equipment, new ideas and the appropriate education and funds to both management and employees. • We provide the necessary training programmes to ensure the implementation and continuity of the high-quality test results expected from our employees and management. • Our staff are dedicated to respecting and maintaining confidentiality with regard to all information concerning our customers’ results or personal data and do disclose or permit the disclosure of any such information and data. • Both management and employees are free from any undue commercial, financial and other pressures and influences that may adversely affect the quality of our work. • Our Quest for Excellence will always be an achievable goal. We will maintain and improve our Laboratory’s Quality System, and all our personnel will implement the related policies and procedures in their work at all times.

7+( /$%25$725< Nicos. S. Yiannouka, Ph.D: Executive Advisor Nicos Yiannouka received his BSc in Clinical Biochemistry

in Haematology with Merit from the University of Salford in 1967 and his in 1998. During his final BSc year at Kings ColMSc in Medical Virology and Bacteriology lege London, he carried out an experimental a year later from the project under the suUniversity of Manchester. In 1970, pervision of Professor Kypros Nicolaides at he was awarded a the Harris Birthright Ph.D by the UniCentre at Kings College versity of ManchesHospital. The project’s ter for his research on 'U +DUULV ' 6WHSKDQRX %6F 06F 3K' Âą aim was to determine the Inducible Enzymes. $VVLVWDQW 'LUHFWRU <LDQQRXNDV prevalence of antiphospholipFrom 1967-1970, he /DERUDWRULHV id antibodies (lupus anticoagulant was chief clinical laboratory asand/or anticardiolipin antibodies) sistant at Manchester University in the plasma of women with Hospital and, from 1970spontaneous abortion or 1972, he was assistant to foetal death during their the principal biochemist pregnancy and with no Salford Royal Infirmary. history of previous foetal In 1973, he returned loss. His MSc project deals to Cyprus and estabwith genotypically different lished himself in private Îą-thalassaemia patients and practice as a sole practitheir Îą/β globin ratios. tioner until 1979, when he During his time in London, established YML. Kyriacos worked at University ColNicos Yiannouka is a member lege Hospital Laboratories under of the American Association the Supervision of Mr Manolis of Clinical Chemistry, the Gavalas. In 2007 & 2008, he reAssociation of Clinical Bioceived an MSc in Biochemistry chemists UK, and a Fellow and Microbiology respectively of the Chemical Society by distance learning, from the UK, also an associate of the International Accreditation AgenRoyal Institute of Chemistry. .\ULDFRV 1 <LDQQRXND %6F cy for Online Universities. In 2009, He has published several articles 06F ),%06 0DQDJLQJ 'LUHFWRU he received a certificate for First Aid on Osteoporosis, Lipids and Athand in 2010 for Phlebotomy erosclerosis, Allergy, and 285 /$%25$725< 6,1&( Services from the PhlebotoDisorders of Lipid and ,76 (67$%/,6+0(17 +$6 my Training Services UK. Lipoprotein Metabolism $/:$<6 %(/,(9(' 7+$7 He is a member of the in Children and Adoles35(9(17,21 ,6 %(77(5 American Association of cents. 7+$1 &85( 285 0$,1 Clinical Chemistry (AACC), $&7,9,7< +$6 $/:$<6 Kyriacos. N. Yiannouka, %((1 7+( ,1752'8&7,21 the AOAC (dedicated to analytical excellence) and BSc, MSc, FIBMS: Man$1' 35202 7,21 aging Director 2) &+(&. 836 )520 a Fellow of the Institute Kyriacos Yiannouka re,1)$1&< 72 $'8/7+22' of Biomedical Science U.K.(FIBMS). From 2005ceived his BSc in Clinical 2010 he was a member of the Board of Sciences from the University of London in 1997 with First Class Honours and his MSc Directors of The Association of Clinical

Laboratory Directors of Cyprus. Dr Harris D. Stephanou BSc, MSc, PhD: Assistant Director Harris D. Stephanou graduated from the University of Thessaly (Health Sciences) in 2007 with a BSc (Hons) in BiochemistryBiotechnology, and two years later he obtained an MSc in Environmental Health from the Cyprus International InstituteHarvard school of Public Health. In 2015 he completed his Doctorate in Molecular Biology at the University of Cyprus. Whilst studying, he worked at the Research Centre for Molecular Medicine of the University of Cyprus under the guidance of Professor Constantinos Delta. During his studies at the Centre, he worked on the study of Nephropathy of the thin basement membrane both in cellular and animal models. Harris D. Stephanou has been a member of Yiannoukas Laboratories since January 2015 with the aim of increasing the group’s exposure in the molecular diagnostics field. In addition to operating a state-of-the-art clinical laboratory in the commercial centre of Nicosia, YML provides a courier service for the collection of samples from anywhere within the Republic of Cyprus. It also runs a voluntary information service for medical practitioners and its customers. The objective of this service is to provide regular updates on matters of common interest, such as the proper procedure for patient preparation, sample collection for the different tests, normal ranges, the availability of new tests and, of course, the familiarisation of patients with the clinical significance of test results in relation to preventive medicine. We have created a modern website and a Facebook page and we are the first Laboratory to create an app for both Apple and Android, giving our valued customers the latest hands-on technology. Remember: Prevention is better than cure. Make sure that you always inform your doctor about your laboratory test results.

&217$&7 ,1)250$7,21

$GGUHVV ,ILJHQLDV $YHQXH 6XLWHV 1LFRVLD &\SUXV _ 7HO ,VODQGZLGH QXPEHU )URP DEURDG _ H PDLO \LDQQRXND#F\WDQHW FRP F\

www.goldnews.com.cy | GOLD | 89

Magazine The official magazine of the Institute of Certified Public Accountants of Cyprus (ICPAC) The Institute of Certified Public Accountants of Cyprus (ICPAC) and IMH are collaborating on the publication and distribution of the quarterly magazine Accountancy Cyprus, which deals with issues pertaining to economics & finance, business, accounting, taxation, audit, compliance, news of the Institute and much more. The magazine is being redesigned and upgraded with additional content to ensure that it remains a point of reference as the most reliable source of information for news of the sector. Accountancy Cyprus will now provide a modern and dynamic information platform for members of ICPAC, the business world, the political leadership and government officials. Accountancy Cypus is published 4 times a year and mailed free of charge to more than 9,000 subscribers in Cyprus and abroad.

The first issue of the magazine to be published under the new ICPAC-IMH arrangement will be available in July. Collaboration For further information 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

| INTERVIEW |

*VUÄYTH[PVU STATEMENT *VUÄYTH[PVU JVT [OL SLHKPUN WYV]PKLY VM VUSPUL H\KP[ JVUÄYTH[PVUZ VWLULK HU VɉJL PU *`WY\Z MV\Y TVU[OZ HNV HZ WHY[ VM P[Z NSVIHS L_WHUZPVU PUP[PH[P]L By John Vickers | Photo by Jo Michaelides

T

he new Nicosia-based office of Confirmation. com offers the company the opportunity to expand its market position in Cyprus and other European and Middle Eastern markets. Regional Manager Christos Panteli, an auditor with eight years of experience working at a ‘Big Four’ accounting firm tells Gold about the company and why he believes that online audit confirmations are destined to become the norm in Cyprus.

Gold: First of all, for non-auditors, what exactly are “audit confirmations”, and what are the limitations of the manual process? Christos Panteli: The main purpose of an external audit is the issuance of an audit opinion. Shareholders, investors and financial institutions rely on that opinion to assess whether a company’s financial statements give a true and fair view of that company. One of the main substantive procedures performed by auditors is to request independent third parties to confirm the balances/transactions with their clients as of a specific date. This confirmation process is covered by the International Standard of Audit (“ISA”) 505. The process of getting audit confirmations has traditionally been manual, which results in unnecessary costs for preparing and following up those requests, wasting valuable time and inefficiencies due to delays in receiving a reply (on average it takes more than one month). Because of its inherent limitations, each manual process is prone to unintentional and intentional errors resulting in additional follow-up costs and, moreover, due to the ease of circumventing the paper confirmation the auditor may not be in control of the whole process, which may result in fraud (e.g. Parmalat, Peregrine Financial Group, Shepherd, Kmart, etc.). Gold: So what is today’s replacement for the manual process? C.P.: Instead of using the manual process, professionals can now 92 | GOLD | The Business Magazine of Cyprus

use a secure electronic solution, via which users can be validated, requestors (e.g. auditors, accounting firms) can upload their audit requests and responders (i.e. banks, law firms) can respond much more quickly. Through this paper-less online solution, users will experience greater efficiency, reduce costs associated with the confirmation process, and effectively manage and control every aspect of the audit confirmation process. They can feel confident of receiving a request/reply from a validated requestor/responder, use a more secure and reliable channel of communication, thereby reducing the risk of fraud, and stay in compliance with the requirements of ISA 505 which governs the external confirmation process. Gold: So is it really a simple matter of bringing the audit profession into the 21st century and making full use of online/digital technology? C.P.: It is as simple as it sounds. The manual audit confirmation process has been around for more than 100 years and everyone involved in this process has to deal with the inefficiencies and unnecessary costs associated with it. At the same time, the auditing world continues to evolve at a rapid pace with ever-changing regulations and new technologies. As such, auditing professionals know that the only constant within the profession is change itself. A significant number of accounting/audit firms that are looking to increase efficiency have implemented – or are in the process of implementing – a paperless audit process. As long as you have the right technology in place, the implementation process is simple. Gold: And Confirmation.com has that “right technology”? C.P.: Yes, we are confident enough to claim our technology as the right one. We have been doing this for more than 15 years, we serve more than 3,500 banks worldwide, including numerous global banks. At the same time, we are being used by more than 13.000 audit firms, including the Big-4s. One of our top priorities is the security and confidentiality aspect of our platform. We operate industry-leading secu-

*OYPZ[VZ 7HU[LSP

THE MANUAL AUDIT CONFIRMATION PROCESS HAS BEEN AROUND FOR MORE THAN 100 YEARS www.goldnews.com.cy | GOLD | 93

| INTERVIEW |

IT IS BETTER TO BE IT IS BETTER TO BE THAN TAKEA A PROACTIVE PROACTIVE THAN TO TO TAKE CHANCE AND UNTIL CHANCE ANDWAIT WAITT UNTIL FRAUD TAKES PLACE PLACE FRAUD TAKES

rity practices to meet our customers’ needs, which means that we undergo all three Service Organization Control (SOC 1, SOC 2, SOC 3) examinations every six months. Our Confirmation.com service has received an ISO27001 certification. Confirmation.com is endorsed by the American Bankers Association and the British Bankers Association, which is further evidence that this secure tool brings great value to their bank members.

Gold: The company website says that Comfirmation.com can “save time, combat fraud, and improve your client’s experience”. In what way do you achieve these three aims? C.P.: Any tool that streamlines and automates a manual process can save time. Using secure technology helps reduce the manual input and its inherent limitations, thus the process becomes more efficient and less prone to errors, either unintentional or intentional (fraud). By becoming more efficient, you are less likely to create delays for your client and this helps improve your client’s experience. Gold: Is the electronic confirmation system being used by both internal and external auditors? C.P.: Yes, it can be used by both. Gold: If someone is going to do something fraudulent, is there anything to stop the entering of false information online, as in the traditional way? C.P.: This is just one of the many benefits of an electronic tool compared to the manual process. When using the manual process, the reply will come by post and thus the requestors cannot be confident on whether the reply was received by the proper person; in other words, they may not be in control of the process as per the requirements of the relevant standards. The Peregrine Financial Group (PFG) fraud is a perfect example. The CEO of PFG, Russell Wasendorf, used his position to have all bank statements directed to him. Using scanners, Photoshop, printers, etc., he created bogus bank statements to inflate the company’s cash reserves. Wasendorf also rented a P.O. Box to intercept bank confirmation requests and forged documents to conceal the missing money. On 9 July 2012, less than 24 hours after giving auditors authorization to send electronic confirmations using Confirmation.com, Wasendorf attempted suicide, leaving behind a note stating how easy it was to fool the auditors and the regulators who relied on traditional, paper-based audit processes. He was sentenced to 50 years in prison for stealing more than $215 million from clients. By using Confirmation.com, users are validated and they know exactly who is receiving what, while the users have their own log-in details (User ID/password). These tools help users ensure they will not fall victim to confirmation fraud. Gold: Traditionally, auditors have never been expected to look for signs of fraud. Is Confirmation.com trying to extend the scope of the audit? C.P.: No, this is not the aim. At the same time, however, every case of fraud results in millions or even billions of losses for the state, the

94 | GOLD | The Business Magazine of Cyprus

banks, the accountants and most importantly the public. It is better to be proactive than to take a chance and wait until fraud takes place. Gold: Cyprus depends a great deal on its thriving professional services sector. Do you believe Confirmation.com can improve its practices in a major way? C.P.: Absolutely. This is one of the main reasons we consider Cyprus an ideal jurisdiction to introduce our service. Serving local and international clients means that local service providers need to be continuously aiming to improve efficiency without compromising quality. At the same time, service providers need to remain competitive and follow technological advances. Our service is used in more than 140 counties, showing a clear global trend. Cyprus has been challenged so many times in the past on whether we follow the right procedures. The only way to avoid such allegations is to be more loyal than the king and put in place procedures and controls that will keep us on the safe side. Gold: With more than 13,000 accounting firms and 100,000 auditors around the world being part of the Confirmation. com system, it is obvious that something was missing from the market. What kind of a response have you had from local audit firms and banks to the establishment of the Cyprus branch of the company? C.P.: We established our Cyprus office in mid-May and, since then, we have been in communication with the local associations, the majority of the local and offshore banks, as well as with a significant number of accounting/audit firms. We have received very positive feedback from both industries. They all acknowledge the limitations of the manual process and, at the same time, they appreciate the benefits of using an electronic tool. The majority of banks have established transformation departments, while an increasing number of service providers are introducing the paperless concept. It is clear that both have the same strategy – to find ways to simplify processes that will reduce costs and improve efficiency. We believe our service fits perfectly with their strategy and mindset and that together we can drive an industry change. Gold: What are your aspirations for the company’s Cyprus operations? Do you have specific short- and long-term targets? C.P.: As the global leader of audit confirmations serving markets around the world for more than 15 years, we have only one target and that is to significantly improve the audit confirmation process for all stakeholders in Cyprus. Confirmation.com’s technology helps users be more efficient and avoid unnecessary costs and it reduces the chance of financial fraud going undetected.

Opinion

WELCOME TO THE POST-MEMORANDUM ERA CYPRUS MAY HAVE EXITED THE ECONOMIC ADJUSTMENT PROGRAMME BUT IT HAS NOT YET EXITED THE CRISIS

O

By Savia Orphanidou

n March 7, 2016, the right track. These include the stricter following three exenforcement of financial supervision, tremely difficult years, progress made in restructuring non-perCyprus officially forming loans, improved public finance exited the Economic indicators at fiscal and macro levels and, Adjustment Proof course, all those structural changes that gramme (often referred to as the Memoshould have already been implemented, randum of Understanding or MoU), after i.e., public administration reform (curexperiencing increasingly positive ratings rently being discussed at parliamentary and improved economic indicators for the level), the autonomy of hospitals (the first time in a very long time. In July 2016, legislative proposal has been prepared), Cyprus’ successful attempt to borrow €1 the implementation of a National Health billion from the international markets was Service (political guidance has already the first of the post-Memorandum era, been given), economic growth and enerproving that investor confidence in the gy issues, and the promotion of measures economy has been firmly restored. to fight against tax evasion and corrupThe Memorandum era is officially over. tion. There will be no detailed reviews by the And although Cyprus has exited the Troika every three months, no more reneMemorandum, we still need to repay a gotiations of the Memorandum, no more debt of €7.3 billion. For the last three imposed new measures or actions. Howevyears, the Government has prudently er, this does not mean that Cyprus has fully and rationally managed public finances, exited the crisis. A lot still needs to be done allowing us to reduce our debt to sustainInfo: Savia Orphanidou with regard to the high level of unemployment and able levels below 100% of GDP by 2018 and curis an Economist. www.saviaorphanidou.com the implementation of essential structural measures rently providing us with a surplus of available liquidto benefit all citizens. For this reason, as in the case of ity of over €1.5 billion. In order for Cyprus to sucall ex-Memorandum countries, Cyprus has entered the European cessfully respond to its financial obligations, the Government has Commission’s Post-Programme Surveillance (PPS), where it will managed to replace expensive borrowing with much cheaper terms remain until a minimum of 75% of the financial assistance reand to smooth the maturity of public debt through borrowing ceived by Cyprus is repaid. It is only logical, after all, that someone from the international markets four times since 2014 and through who has lent €7.3 billion to a country wants to be sure that he buybacks of domestic bonds which carried high interest rates. The will get his money back! Government has proactively managed the public debt maturities, During the implementation of the PPS, surveillance will take in order to ensure low refinancing needs between 2016-2018 until place twice a year, no new measures/provisions will be promoted the economy has fully recovered. These actions have resulted in and monitoring will not be particularly intense. The three institua series of upgrades to the Cyprus economy by the main internations that make up the Troika (Eurotional credit rating agencies, which have pean Commission, European Central maintained Cyprus’ outlook at stable or THE TROIKA Bank, International Monetary Fund) positive, thus creating the right conditions will be on a mission to Cyprus from for the upgrading of its bonds to investWILL BE ON A 26-30 September, during which they MISSION TO CYPRUS ment level. Provided that this prudent will review progress regarding the immanagement of public finances continues FROM Ą ā plementation of issues considered vital in the future, Cyprus will be able to repay SEPTEMBER for keeping the country’s economy on all its debts in the next decade.

96 | GOLD | The Business Magazine of Cyprus

| BANKING |

WE REMAIN

E WQEPP ÂI\MFPI prudent organisation with a lean cost structure

George Spyrides

98 | GOLD | The Business Magazine of Cyprus

SMALL IS BEAUTIFUL

T

HE HISTORY OF CDBBANK, FORMERLY THE CYPRUS DEVELOPMENT BANK, STRETCHES BACK MORE THAN 50 YEARS BUT, DESPITE CHANGES OF OWNERSHIP, IT REMAINS TRUE TO ITS FOUNDING PRINCIPLES OF OPERATING AS A SMALL, FLEXIBLE AND PRUDENT ORGANISATION. ACTING CEO GEORGE SPYRIDES EXPLAINS HOW THE BANK FOUND ITS OWN NICHE EARLY ON AND HAS CONTINUED TO FOCUS ON LOOKING AFTER CORPORATE CLIENTS WITH GREAT SUCCESS EVER SINCE.

By John Vickers I Photo by Jo Michaelides

GOLD: cdbbank has over 50 years of history but it has changed a great deal since its establishment in 1963 as the stateowned Cyprus Development Bank and is arguably one of the best examples of a successful privatisation in Cyprus. Would you agree with that description? George Spyrides: We were the first bank in Cyprus to deal with project financing and we also offered valuable advice to the Government on numerous infrastructure projects, which have added value and contributed to the growth of the economy over the years. Business proposals were always evaluated according to their financial and economic viability and we were possibly the only state-owned development bank in the world which was operating profitably. Our culture was always results-oriented and we do indeed consider that the Bank’s privatisation in 2008 to be a success story as it enhanced our professional culture and developed it into a more market-oriented approach. Gold: There is an interesting continuity, too, in the fact that, 25 years ago, the

European Investment Bank became a shareholder in the original Bank and earlier this year it signed a €15 million loan with cdbbank to support local companies. How important is this recent collaboration? G.S.: The European Investment Bank was a shareholder in the Bank, initially with a 5.5% stake in 1991, increasing to 12% in 1996, which it held until the Bank’s privatisation in 2008. This relationship has proved to be very beneficial to the Bank, as it gave us the opportunity, from our early stages, to familiarise ourselves with how European Institutions operate. We are happy to continue our cooperation with EIB through the recent granting of the €15 million facility for the support of local businesses. It will enable the Bank to pass on to these enterprises

the benefit of lower interest rates for new business opportunities. Furthermore, an additional benefit of 0.5% may arise for enterprises that employ young people, which is an extra incentive to them and an opportunity for the Bank to assist with the serious problem of youth unemployment. Gold: Some years ago, prior to privatisation, the Bank had set out a new strategy to “remain a small, flexible financial institution, without an extensive branch network.” Does that still apply to today’s cdbbank? G.S.: Yes, this is our “modus operandi”. We remain a small, flexible, prudent organisation with a lean cost structure, dedicated to offering comprehensive, specialised advice and services suited to the specific needs of our clients. Apart from our Nicosia HQ, we have an additional business centre in Nicosia and we recently established one in Limassol to service our clients’ needs in the country’s two main business areas. Gold: cdbbank is dedicated to supporting corporate clients. Do you envisage any change to this in the foreseeable future where the bank might look at the retail market or is it already saturated? G.S.: As I have already mentioned, our focus remains on servicing the needs of corporate clients as we consider that this is where the Bank enjoys a comparative competitive

WE ARE

INCREASINGLY SEEING A STRENGTHENING OF CLIENTS’ REPAYMENT ABILITY AS REGARDS THEIR LOAN SERVICING OBLIGATIONS

www.goldnews.com.cy | GOLD | 99

| BANKING |

WE FOCUS ON ATTRACTING QUALITY CLIENTS WITH AN EMPHASIS ON SECTORS OF THE ECONOMY THAT OUTPERFORM AVERAGE GDP GROWTH advantage. This, of course, relates to our services regarding the funding of business-related activities. However, we do offer a full range of competitive deposit products to individual retail clients or to more sophisticated investors as well as to institutional clients like pension funds, provident funds, corporations, and the general public. As for additional branches, for the time being we feel that the business centres in Nicosia and Limassol are adequate. Gold: The bigger banks in the local market naturally want to attract corporate clients. Apart from your focus on this particular sector, as you just mentioned, where else do you see cdbbank as having a competitive advantage over the main players? G.S.: We consider that the Bank is able to provide flexible, integrated financing solutions and our aim is to be close to our customers and proactive as regards their needs, providing professional service and responding quickly to their requests. At the same time our clients have direct access to, and attention from, more senior and experienced managerial levels, which ensures that they will be offered suitable solutions that cater to their specific needs. The trend in retail banking may be towards online transactions and a lack of what we might call the ‘old-style’ personal touch but corporate clients still prefer personal contact. Gold: Is your clientele composed mainly of SMEs or do you serve major corporations too? G.S.: Our clientele includes both SMEs and major key players in the respective segments of their operation. We focus on attracting quality clients with an emphasis on sectors of the economy that outperform average GDP growth. Apart from tourism, we consider such sectors to be services, education, health, wholesale and retail and green/clean energy projects. 100 | GOLD | The Business Magazine of Cyprus

Gold: We know what happened to the big players in the banking sector in 2013. How was cdbbank affected by events at that time? G.S.: After March 2013, we acted immediately by directly contacting our clients to evaluate their problems and consider how the Bank could provide assistance. By September 2013, we had effected restructurings in the region of more than 60% of our active banking portfolio, which was seen as a great success. In 2014, the Bank proceeded to inject €26 million of additional capital and, at the same time, took measures to secure its liquidity through the expansion of its depositor base by attracting more deposits from individual retail domestic customers and we were very successful in this too. In addition, we significantly reduced our operating costs and improved our internal processes and human resource management. Gold: Did you have a problem with non-performing loans like that of the island’s two main banks? G.S.: All banks with a long presence in Cyprus were unavoidably affected by the crucial issue of non-performing loans. As mentioned earlier, the Bank reacted immediately to the events of 2013 and effected a significant number of restructurings. Our aim has always been to provide viable restructuring solutions to our clients taking into account their operations and their repayment capability. We have been sensitive to their needs and accommodating to their problems, by granting them adequate time to improve their distressed situation and thus be able to service their future loan obligations in a timely manner. The issue of NPLs still remains but, given the type and quality of our clients, we consider that, with our support, this issue will be resolved to a large extent over the next two to three years. Gold: Now that Cyprus has exited the Troika’s economic adjustment programme, is cdbbank seeing tangible improvements on the local business scene?

G.S.: Recent statistics and macroeconomic projections indicate that the economy is recovering. Increasingly, clients are approaching us for new business opportunities which suggest a change of sentiment in the market, and this is one of the key factors signalling an improvement in the business climate. Also, we are increasingly seeing a strengthening of clients’ repayment ability as regards their loan servicing obligations. Gold: What are your short- and longterm aspirations for cdbbank? G.S.: As in all successful organisations, our focus is on the preservation and efficient allocation of our resources, both capital and human. In this respect we shall continue our prudent and supportive policy of ensuring that our clients are and remain healthy. Being a small institution gives us the flexibility to quickly offer innovative products and services that add value to our domestic and international clients alike. In this regard, 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. For example, we have recently introduced – and we are continuing to enhance – a new e-banking system that addresses, in a very user-friendly manner, not only the needs of individuals but also the requirements of our corporate clients with respect to effecting electronic transactions and enquiries specific to their own organisational structure and needs. You mentioned online banking earlier but it’s not as easy for corporate as it is for individuals who can simply enter a username and password. Our new system is flexible and goes some way to making things easier for our corporates customers. In the long term, we want to continue being a one-stop-shop that caters for all the funded and non-funded needs of our clients’ businesses by addressing their particular specialised needs with a high level of professionalism. We have no plans for any kind of major expansion. Our intention has always been to grow with our clients.

| INVESTMENT |

MAKING YOUR MONEY WORK HARDER FOR YOU TAX RELIEF AND DIVERSIFICATION CAN ENHANCE YOUR INVESTMENT RETURNS

By Ian Woodcock Investment Consultant Chase Buchanan

IN TODAY’S MARKET, THE VAST MAJORITY OF PEOPLE’S INVESTMENTS ARE MADE FOR VERY SPECIFIC PURPOSES. WHETHER IT’S PLANNING FOR RETIREMENT, SAVING FOR YOUR CHILDREN’S EDUCATION COSTS OR JUST ACCUMULATING FUNDS FOR FUTURE USE, THERE IS USUALLY AN END GOAL BEHIND EVERY INVESTMENT WE MAKE. HOWEVER, WITH MARKET FLUCTUATIONS AND MOVEMENTS SOMETIMES DIFFICULT TO PREDICT, INVESTORS CAN FIND CONSISTENT POSITIVE RETURNS HARD TO COME BY, MEANING THAT THE END OBJECTIVE IS HARDER TO ACHIEVE WITHIN THE PLANNED TIME PARAMETERS.

U

sing an investment structure, where contributions qualify for income tax relief, is a simple, smart way to improve your net investment gains without having to take any additional risk, and it greatly increases your chances of meeting future goals. In Cyprus, investors may claim income tax relief for contributions made to unitlinked investments held inside a specific Life Insurance ‘wrapper’ when additional death benefits are selected. Depending on individual circumstances, this may allow investors to deduct 100% of the premi-

INVESTMENT PLANNING CAN HELP PROVIDE SUBSTANTIAL ADDITIONAL RETURNS ON YOUR MONEY ums paid from their taxable income. The maximum amount of tax relief available for any one person is 1/6th of total income, net of deductions, as the following example illustrates: A 40 year old male wishes to retire at 55. He earns €50,000 annually and decides to invest €1,000 per month into a qualifying investment structure with an additional death benefit figure in the region of €150,000. Under Cypriot tax law (assuming he has no other deductions from earnings and is not making any contributions to alternate qualifying investments), he is eligible for Tax Relief on €8,333 of his annual premiums (1/6th of his €50,000 annual income). This reduces his total taxable income to €41,667, meaning that the income tax payable (based on Cypriot tax rates as at 01/09/2016) will be €5,385, instead of the €7,885 he would normally be required to pay. The man will thus have a tax saving of €2,500 in just one year by using an investment structure that qualifies for tax relief. In effect, his annual investment of €12,000 is a net outlay of only €9,500 – meaning that even if he decides to only invest in cash, he will still get a 26.31% uplift on the returns simply due to the tax saved! By investing only €1,000 per month over 15 years it is possible to generate investment funds of €250,000+ (based on only 5% annual returns), and additionally experience tax savings of up to €37,500 over the same time frame as shown by the figures above (based on current tax rates). Investment planning in this way can help provide substantial additional returns on your money, making it easier to reach specific financial goals within shorter time frames.

Such investment structures are common in Cyprus but most of them have a very limited range of funds and restrictive flexibility. Venturing into the offshore providers of qualifying contracts and investment vehicles allows investors access to a much wider range of funds from the likes of Fidelity, JPMorgan, etc. The offshore institutions that provide these structures for residents of Cyprus are internationally recognizable names and the investments generally come with an extensive range of funds, often 200+, meaning that they can be managed in line with your personal preferences and attitude to investment risk, and this approach to investment management brings its own additional rewards. All too often, investment structures provided by local banks or fund houses are very rigid, offering investors oversimplified and generic structures which often do not align closely with people’s attitudes to risk or investment requirements. The fund baskets provided by the offshore institutions are much more flexible and allow investors to create their own balance of funds, meaning they have the choice of which type of fund, as well as which geographical and market sectors to invest in. For optimum results, structuring of the investment allocation should be carried out by a qualified independent financial advisor with the relevant market knowledge who can construct a carefully chosen portfolio based around your personal input. The end result is a combination of an investment qualifying for substantial tax relief with investment funds chosen purely with the client’s end goals in mind, meaning your money is working harder for you, so you don’t have to work harder for it.

www.goldnews.com.cy | GOLD | 103

| TOURISM |

Reinventing

tradition 104 | GOLD | The Business Magazine of Cyprus

Nestled in the beautiful mountain village of Kalopanayiotis, the Casale Panayiotis hotel and spa YL[YLH[ LɈVY[SLZZS` JVTIPULZ luxury and tradition in a ^H` [OH[ ML^ L_WLJ[ [V ÄUK PU *`WY\Z -LH[\YPUN N\LZ[YVVTZ SVJH[LK PU eight individually restored OV\ZLZ HJYVZZ [OL ]PSSHNL it promises a memorable Z[H` ÄSSLK ^P[O Y\YHS JOHYT Gold spoke to Andreas Papayiannis, Business Development Manager at Casale Panayiotis, about the idea and philosophy behind [OL JYLH[PVU VM [OL OV[LS HUK how the island’s tourism H\[OVYP[PLZ ZOV\SK IL MVJ\ZPUN TVYL VU [OL TV\U[HPU HYLHZ By Artemis Constantinidou

H

ow did the idea of creating Casale Panayiotis arise? Andreas Papayiannis: As the owner of Casale Panayiotis, John Papadouris said, “It was not my intention to start a business; it was to revive a village.” He spent decades work-

ing abroad before returning to Cyprus and Kalopanayiotis, his old village, which was in a state of neglect and on the verge of disappearing. After raising funds and investing his own money, he managed to drive a restoration project to preserve the village, its culture and its connection with the past. Gold: What is unique about the hotel and what facilities does it offer? A.P.: The unique selling points are many, including the ability to be immersed in a traditional Mediterranean village, the location where you are surrounded by beautiful mountains, and a sense of wellness and spirituality as it provides a healthy escape, full of fresh air, stunning scenery and ancient religious sites. Casale Panayiotis is embedded throughout the village. Each of our 43 guest rooms were once village homes – all lovingly restored to retain the original character and charm of each house while showcasing Cypriot style with a luxury finish. As regards food and drink, visitors can enjoy traditional Cypriot recipes with a local mountain infusion at the Byzantino Restaurant or a relaxing glass of wine in the courtyard of the Byzantino Cafe, which, during the winter months in particular, is ideal for curling up with a book by the fireside in the library-lounge. Gold: The spa experience is a key part of Casale Panayiotis. How important is this in a village like Kalopanayiotis?

Ƴ,) ,38)0¸7 4,-03734,= 6):30:)7 %6392( &6)%8,-2+ 0-*) &%'/ -283 % (=-2+ :-00%+) %2( 6):-:-2+ % ;%= 3* 0-*) A.P.: The Myrianthousa Spa offers rebalance with natural treatments, inspired by the historic spa village of Kalopanayiotis and its healing sulphur springs. Natural sulphur spring water flows all year-round from nearby springs and has drawn pilgrims and visitors for thousands of years to take the waters in this place of awe-inspiring natural beauty. Gold: What other authentic local experiences do guests have access to? A.P.: Guests can pamper themselves with an assortment of spa treatments or engage in yoga and meditation while others can discover our deep-seated connection with the land and its ingredients through orchard tours, a cooking class and by tasting the best of our local food and drink. Guests can also follow the mountain trails by bicycle and delve into Cypriot history through www.goldnews.com.cy | GOLD | 105

| TOURISM |

a guided tour in the monastery. Gold: Describe the hotel’s philosophy and culture. A.P.: Τhe hotel’s philosophy revolves around breathing life back into a dying village and reviving a way of life. Thanks to the guest rooms in eight houses across the village, as well as cafés and restaurants, the villagers themselves have been inspired to invest in their own community, restoring their homes and opening small businesses, preserving our mountain culture and way of life. A strong set of values permeates the entire business; we believe in a project that means something beyond profit and beyond personal ambition; it is a very personal story and experience that speaks for the wider Cypriot community and culture; and there is dedication to a cause – the regeneration of a community and providing a window on a world where time has stood still. The hotel attracts guests who are dedicated to quality, proud people that pay homage to their environment and who have a passion and love for Cypriot culture. Gold: Name one thing that makes Casale Panayiotis memorable and unforgettable A.P.: It is a place that brings together a rich culture, a luxury environment and unique experiences told from a personal perspective. It provides an experience that people seek: a discovery on their own terms, guided by a

106 | GOLD | The Business Magazine of Cyprus

friend who can give them insight into what is there. Gold: Do you have plans or projects for the future development of Casale Panayiotis? A.P.: We have many projects on the horizon – all related to reinstating the simple way of life and connection to the land that was lost during difficult times. Plans are in progress to re-establish vineyards that once covered the surrounding mountainsides and to preserve orchards and historic buildings. Gold: Are there other locations in Cyprus which, in your view, have the potential to be revitalised and turned into a tourist hub in the same way as Kalopanayiotis? A.P.: Basically the whole of the Troodos region needs better infrastructure and more incentives for local businessmen to invest so that we can drive tourism to the mountains. The authorities should create a new classification for resort villages like ours and not simply include us in the hotel or agrotourism sectors. The tourism industry should focus on winter tourism – not by the sea but via the mountains.

8,) ;,30) 3* 8,) 8633(37 6)+-32 2))(7 &)88)6 -2*6%7869'896) %2( 136) -2')28-:)7 *36 03'%0 &97-2)771)2 83 -2:)78

IN GOOD COMPANY

CREATING VISION

+2: $1'5($6 1(2&/(286 &2 //& :,16 7+( 7$/(17 5$&( By Artemis Constantinidou

:( $,0 72 3529,'( $ 9$/8$%/( :25.,1* (;3(5,(1&( $1' $ /,)(/21* /($51,1* 23325781,7< 72 (9(5< ,1',9,'8$/ :+2 +2/'6 $ 326,7,21 ,1 285 ),50

108 | GOLD | The Business Magazine of Cyprus

T

he largest law firm in Cyprus and one of the largest and most respected in the South-East Mediterranean region, Andreas Neocleous & Co LLC has grown consistently over the past five decades, through a combination of organic growth and selective mergers. Founded in 1965 and

headquartered in Limassol, with branches in Nicosia and Paphos and representative offices in Moscow, Kiev, Brussels, Prague, Budapest and Sevastopol, the firm boasts an impressive client portfolio of leading individuals and businesses, market-leading multinational companies and international organisations. Anna Mylona, Human Resources Director at Andreas Neocleous & Co LLC, notes with pride that the Legal 500 and Chambers & Partners guides rank the firm in the top tier in all practice areas, a standard achieved by only a handful of firms worldwide. “We have maintained these top rankings for several consecutive years, demonstrating consistent quality over time,” she says. Every year, Andreas Neocleous & Co LLC recruits around 10 trainee lawyers

through a rigorous selection process, with the aim of developing the future leaders of the legal profession. “Our candidates benefit from an intense trainee programme, in which they need to demonstrate skill, resilience, stamina, integrity and aptitude, opening the door to unlimited opportunities within the firm,” says Mylona. “We are proud of the fact that we are the employer of choice for the highest calibre graduates,” she adds. The legal career path starts at the very early stage of summer placements, when the firm opens its doors to non-graduates in order to learn more about the profession and start developing their skills. Many of these individuals subsequently apply for the lawyer trainee programme. Once this is completed and after they have qualified as lawyers, they tend to stay with the com-

www.goldnews.com.cy | GOLD | 109

IN GOOD COMPANY

pany and begin their next stage of development. “We are proud to be a meritocratic organisation and we consider it our duty and obligation to support and nurture the talent of our people,� says Mylona. “Consequently,� she continues, “we invest heavily in Training and Development and Talent Management practices. With our welldesigned knowledge management system, and an immense pool of educational material and training resources, our employees have the opportunity to broaden their vocational knowledge, to achieve excellence and personal growth.� Employee satisfaction at Andreas Neocleous & Co LLC is evaluated in a number of ways, the most effective one being constant feedback. “Management has an ‘open door’ policy,� says Anna Mylona, “and welcomes constructive feedback on how to improve our operations, client service, working environment and generally on how we can excel ourselves and achieve excellence.� Focusing on creating a rewarding work environment, the firm ensures that employees enjoy working in contemporary building facilities and under excellent conditions. Among the benefits offered are a medical plan for employees and family members, parking space for everyone, inhouse dining and discounts in several restaurants, hotels and stores. In addition, employees have a two-floor in-house library, a knowledge management system and library software for access to books, journals and legal magazines as well as various subscriptions to online library memberships. ‘Visionary’ is the single word which best describes the firm’s innate corporate culture, according to Anna Mylona. “At Andreas Neocleous & Co LLC, we have a vision and, when we have achieved it, we create a new one to take us to the next level. Our working environment is based on strong leadership, expertise in all disciplines, employee loyalty, transparency, partnership, equality and excellence. We aim to provide a valuable working experience and a lifelong learning opportunity to every individual who holds a position in our firm.� She cites strategy guru Michael Porter when describing the company’s HR strategy: “Operational effectiveness means you

110 | GOLD | The Business Magazine of Cyprus

285 )81'$0(17$/ 35,1&,3/( ,6 7+$7 $6 $ 7($0 :( $5( 67521*(5 7+$1 $1< 6,1*/( 7$/(17(' ,1',9,'8$/ are running the same race faster but strategy is choosing to run a different race because it is the one you have set yourself up to win.� She further notes that the firm’s HR strategy has been designed with the aim of further developing the skills and capabilities of its people through a clear career path. “While building our core capabilities, we have taken into consideration the sharpening of skills required to perform core roles, the soft skills that enhance our client service and a transparent and fair performance system to assess both. We have focused on technology, automation and skills development, thus enhancing productivity and client service delivery. This has always enabled us to ‘run the same race faster’.� Most importantly, however, the firm’s main focus has always been on enhancing its values, culture, teamwork, communication, people management and performance improvement. “This is what allows us to unlock our full potential and eventually ‘run a different race’, which in

turn establishes our competitive advantage in the market,� Mylona says. The HR Director concludes by emphasising the significance of teamwork in achieving excellence. “Our fundamental principle, which is supported by our experience, is that, as a team, we are stronger than any single talented individual. This is how our team excels itself. When surrounded by excellence, the strong emulate the stronger and all strive to reach a higher level, and are prepared to go the extra mile to achieve it.�

BUSINESS CLASS

How often do o you travel, iness whether for business ? or pleasure?

What is the most e exciting destination you have visited for work? And for pleasure? The most exciting destinations Th for work w are always the countries of the Chinese world, meaning China, Hong Kon Kong and Taiwan. Nowhere in the world KV 0 ÄUK [OL ZPULZZ KV 0 ÄUK [OL LɉJPLUJ` HUK VWLUULZZ PU I\ZPULZZ as in those countries, c iteness. paired with subtle politeness. I have to admit that I do not much travel vel for pleasure, pleasu rather combining business trips w wit h some days of leisure. One exciting leisure eisure with ttrip tri p I do remember, though, was a photo to excursion to Petra in Jordan. e

I travel abroad approximately ximately 15-20 times a year. ar.

Stefan Nolte The Managing Director of Shanda Consult Ltd. travels almost exclusively for business but makes a point of including some leisure time too. In China, ,SRK /SRK ERH 8EM[ER XLMW [SVOW ÁRI FYX LI¸W WXMPP XV]MRK XS ÁRH E KSSH MRK XS ÁRH E KSSH excuse to visit Bali for anything more than pleasure! asure! What is the most impressive pressive hotel you have ave ever stayed at and why? ?

Tell us about your best corporate travel experience. Well, I could mention the business trip when a client from Europe sent his own plane to pick me up. That was cool! The best one, though, was probably when I was working on a development project at the Palace of Morocco. I had to stay in Marrakesh for a while and, as a guestt of the Palace, I was invited to stay at the King’s Palace in Marrakesh. That was amazing.

If you could travel anywhere tomorrow, where would you go? I would go to Australia, if I had the time. I have never been there, so I am curious about it and I would like to visit some very good old friends there.

112 11 1 12 | GO 12 GOLD GOL G OL O LD | The Th hee Business Busin Bu sin si ineess essss Magazine Ma M ag gaz ga azine a ine in ne o off Cy C Cyprus yp prrru us

What is your favourite y? airline, and why?

Having travelled very frequently for all my adult life, there are no really impressive hotels anymore. Generally speaking, the hotels in South East Asia tend to be the most impressive, because of their polite and attentive service.

My favourite airline is Singapore Airlines, because the sophistication of its services is unmatched, if not unmatchable. Its business class is the best as well.

What is your favourite international destination and why? Bali. Unfortunately I can’t combine it with business trips! Bali is a paradise on earth, especially if you stay in the interior parts of the island, away from the typical tourist spots.

How does Cyprus compare to this location? Although Cyprus is a nice place where I live with pleasure, you can’t compare the two. Bali PZ [V[HSS` KPɈLYLU[" P[ ^V\SK UV[ be fair to compare.

3rd

Cyprus International Business Sector

The Way

Forward Thematology ^^International Tax Developments ^^International KYC and AML Developments ^^A critical analysis of the jurisdiction of Cyprus ^^The Government Strategy for Developing the Business and Professional Services Sector of Cyprus - What has been done so far?^

7KH )RUXP LV DGGUHVVHG WR &)$ PHPEHUV $XGLW DQG 7D[ ILUPV /DZ ILUPV $GPLQLVWUDWLYH 6HUYLFHV 3URYLGHUV $63V 7UXVW 6HUYLFHV -XULVGLFWLRQDO 5HSUHVHQWDWLYHV %DQNV DQG RWKHU ILQDQFLDO LQVWLWXWLRQV :HDOWK 0DQDJHPHQW ([SHUWV &RQVXOWDQWV *RYHUQPHQW RIILFLDOV

Full attendance

of the Forum corresponds to a maximum for

3 CPD units

)ULGD\ 1RYHPEHU _ &DURE 0LOO _ /LPDVVRO 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

6SRQVRUV

&RRUGLQDWRU

&RPPXQLFDWLRQ 6SRQVRUV

2UJDQL]HU

BOOK SHELF

BOOKS of the month 1

The most in-depth portrait yet of the man who would be president.

1.

THE MAKING OF DONALD TRUMP By David Cay Johnston (Melville House, 2016) R.R.P. £18.99 (£18.99 FROM AMAZON.CO.UK)

The Pulitzer Prizewinning author takes a close look at the Republican presidential candidate’s rise to power, from his childhood in Queens, NY, through his business empire and his TV career to his present position. Trump’s career has always been plagued by legal troubles and controversy, so what we see today is nothing new. The most in-depth portrait yet of the man who would be president.

2

3

How small and achievable steps can alter our routines and, ultimately, ourselves.

2.

The role of a sports-team leader is the same as that of any business leader.

4

5

Following the principles of someone who knows how to invest successfully.

While economic integration outpaces political integration, can the euro succeed?

3.

SMALL MOVE, BIG CHANGE: USING MICRORESOLUTIONS TO TRANSFORM YOUR LIFE PERMANENTLY By Caroline L. Arnold (Penguin Life, 2016) R.R.P. £9.99 (£7.99 FROM AMAZON.CO.UK)

THE FIVE STEPS TO A WINNING MINDSET: WHAT SPORT CAN TEACH US ABOUT GREAT LEADERSHIP By Damian Hughes (Macmillan, 2016) R.R.P. £12.99 (£12.08 FROM AMAZON.CO.UK)

We’re always setting goals and making resolutions to improve our lives, which, according to Arnold, are bound to fail because they rely on our limited willpower battling against much stronger ingrained behaviours and attitudes. To permanently change ourselves, she says, we need to focus our selfcontrol on small and achievable steps (microresolutions), which alter our routines and, ultimately, ourselves.

The role of a sports-team leader is partly about recruiting, developing and nurturing talent, communicating a shared vision, overcoming challenges, handling pressure and staying focused. According to Hughes, the five key principles that separate the best coaches and teams from the rest are STEPS: Simplicity, Tripwires, Emotions, Practical, Stories. These are familiar to leaders in all sectors.

114 | GOLD | The Business Magazine of Cyprus

4.

5.

This book focuses on Business Perspective Investing, beginning with a discussion of the ideal characteristics of a business worthy of investment. It sets out a number of valuation methods to determine the likely economic worth of a company and concludes with thoughts on sound portfolio construction. Throughout, the emphasis is on the SDL UK Buffettology Fund’s methodology.

Designed to bring the EU closer together, the euro has actually done the opposite, according to Stiglitz, one of the world’s leading economists, who argues that Europe’s stagnation and bleak outlook are a direct result of the fundamental flaws inherent in the euro project – economic integration outpacing political integration. This book addresses the euro-crisis on a bigger scale than any other.

INVEST IN THE BEST: APPLYING THE PRINCIPLES OF WARREN BUFFETT FOR LONG-TERM INVESTING SUCCESS By Keith Ashworth-Lord (Harriman House, 2016) R.R.P. £28.99 (£28.99 FROM AMAZON.CO.UK)

THE EURO AND ITS THREAT TO THE FUTURE OF EUROPE By Joseph Stiglitz (Allen Lane, 2016) R.R.P. £20.00 (£17.00 FROM AMAZON.CO.UK)

Lunc Lunch with STELLA KYRIAKIDES

A CLINICAL CHILD PSYCHOLOGIST BY PROFESSION, STELLA KYRIAKIDES ENTERED PARLIAMENT TEN YEARS AGO AND HAS GAINED A REPUTATION AS A DEDICATED, HARD-WORKING AND SELFLESS REPRESENTATIVE. SHE IS SEEN AS A ROLE MODEL, PARTICULARLY BY MANY YOUNG WOMEN, AND IS ADMIRED BY ALL FOR THE WAY IN WHICH SHE HAS USED HER OWN HEALTH EXPERIENCES TO BRING ABOUT POSITIVE OUTCOMES FOR OTHERS.

Gold

I

t would be rather disingenuous of me to say that I have known Stella Kyriakides for more than 40 years but the truth is that I first came across her in 1972 when she was still a student at the English School. At the end of our lunch at the always bustling Pantopoleio restaurant in Nicosia, we discover that we also have a previously unknown number of mutual friends and acquaintances from the same era. And in many ways, the DISY MP, who was re-elected to the House of Representatives in May with the second-largest tally of votes for any candidate, has not changed

116 | GOLD | The Business Magazine of Cyprus

since her schooldays when she decided that she wanted “to work with people in one of the more humanistic professions” and set her mind on achieving her aim. Her determination to succeed and to overcome whatever obstacles may be placed in her way has never diminished. Nor has her conviction that things happen in life and it is up to us to make something positive out of them. In the ‘70s, the young Stella could have taken what she calls “the obvious route” of a career in the legal profession. Her father was the Attorney-General,

By John Vickers

POLEIO TO PANTO lou St. av P s o 7, Vasile Nicosia A MOUSSAK BEANS ED BLACK EY WATER MINERAL

€9.60 €8.80 €2.30 €20.70

TOTAL

after f all, l her brother would become a well-known lawyer and almost all her cousins were following the same path. But she had other ideas. “I didn’t like the idea of becoming a lawyer,” she recalls. “It didn’t seem to fit my kind of personality. I knew I wanted to work with children and I think the idea of studying psychology arose when someone came to the English School to talk to us about different professions and I started reading more about psychology. It was not all about finding out about myself!” She naturally informed her father about her study plans.

“One of the things I respect my father most for,” she recalls, “is the fact that when I said I wanted to study psychology and eventually to work with children, he never said no. He set only one condition, which I remember very clearly. He told me, ‘Whatever you decide to study, you’re not doing it just to hang a certificate on the wall. Choose whatever you want to do in the knowledge that you’re going to come back and work’.” Many years later, she would be fascinated when her obviously proud father was asked in interviews what he might have done had he not become a lawyer and he replied, ‘A psychologist’. “Did that come after he saw what I was doing?” she asks. “Who knows?” Kyriakides studied Psychology at the University of Reading before obtaining an MA in Psychology (University of Manchester,) and Child Psychology (Institute of Psychiatry in London) and, carrying out her father’s instructions as well as her own wishes, she did indeed work as a psychologist – for 27 years. One of the reasons why she considers herself to be a lucky person – though others may find it difficult to agree with her, considering the serious health issues she has had to deal with – is, she says “Because I am one of the few people who, every day of my working life, loved going to work. How many people can say that? I

was doing something made me feel fulfilled.” So, she considers herself to be a lucky person but, I suggest to her, most people would find it difficult to describe themselves in such positive terms if, like her, they had been diagnosed with cancer three times in 20 years. “A lot of people say, ‘Oh my God, poor Stella’,” she tells me, “but I really do think I’m very lucky. I’m well and I’m active, I’m doing things and I’ve feel I’ve got lots more to do. Nobody gives us a guarantee that things are going to be easy in this life so we have to take things in our stride. My philosophy is to deal with things as they come and look on the positive side.” In this case we do know what is going to happen in the next 10 minutes because, right on time, our food arrives – fresh black-eyed beans for my guest and moussaka for me – but we continue on the theme of being positive. “I never see a glass

half-empty but always halffull – even a real glass!” she jokes, and asks, “Will I gain anything by complaining? Or blaming God or society for what has happened to me? It’s just a waste of energy!” Energy is one thing that Stella Kyriakides has lots of, as she shows in her work as an MP and in various other posts she holds (she has been Pres-

ident of the Europa Donna Cyprus Breast Cancer Forum since 2000). But, I ask her, since she was so happy as a psychologist, why did she give it up? “I was given the opportunity to run for parliament and I accepted because I felt that I had moved into certain areas which, if I wanted to take them to another level, I needed to see from a different perspective and speak with a different voice,” she explains, and adds, “I did not go into parliament thinking that I was going to change the world but there were a lot of issues that people tend to think of as ‘soft politics’ which nonetheless concern our everyday life – children’s rights, sexual abuse, women’s rights, equality, patients’ rights – and I knew that I could use my voice to raise awareness and put them on the table in parliament.” Asked if things have gone as expected, she replies with characteristic modesty, “I’m sure that I could have

I DID NOT GO INTO PARLIAMENT THINKING THAT I WAS GOING TO CHANGE THE WORLD www.goldnews.com.cy | GOLD | 117

| LUNCH WITH GOLD |

done a lot more and things could have moved faster in some areas but yes, I think that, together with many of my colleagues in the House, we have managed to change the agenda for many issues that were previously passing under the radar.” These include patients’ rights and Assisted Reproductive Technology (ART), which, she says, “may be viewed by some as small things but in three to five years they are going to change the way attitudes and policies are shaped in Cyprus.” As someone who comes across as a woman of strong principles, I can’t help thinking that she must have problems with the clientelism/patronage system that been rife in Cypriot politics for so long. How has she avoided it? “I say ‘no’. It’s as simple as that,” she states firmly. “My phone does not ring with calls from people asking me to help them be appointed somewhere. And there are other parliamentarians who have the same philosophy. It’s going to take time to change a culture and way of life that has been in place since the Republic was founded but more and more people are pushing for change. We are all learning and the public is not so tolerant anymore.” Not surprisingly, the MP says that the last three years have been the most difficult of her years in parliament. “After the crisis, my colleagues and I were dealing every day with people who were not only angry but desperate and we could give them nothing,” she explains. “Not only that,” she goes on, “we couldn’t advocate the things that we wanted to see done because there was absolutely no way we could ask for any sort of funding for anything.” From her everyday contacts with people, she says that she can see that things have got better but, she is quick to point out, the economic crisis has not been resolved. “It’s still less than

118 | GOLD | The Business Magazine of Cyprus

six months since we exited the Troika’s programme and everyone has started asking for things. It’s amazing how quickly we forget!” she says. “I hope the Government and the Finance Ministry will continue to be strict because we can’t afford another mistake,” she adds. “Unfortunately, as in all countries, politicians here love to say things that are music to people’s ears but I believe that every political party, whether in government or opposition, should act responsibly.” On the key issue of the Cyprus Problem, Kyriakides says, “I would like to be optimistic but I need to be realistic too. What we have now is not a solution. I don’t want my children and my two grandchildren to have another 40 years of this situation. I totally support the President’s efforts to negotiate and I don’t agree with ‘shooting’ this process

ture, it opened up a world that she previously knew nothing about as she spent more than two difficult months in London, where her son was living at the time, until the baby was well enough to go home.”When I saw the state-of-the-art unit at the London hospital and the support that parents were offered, I couldn’t help comparing it to what we had in Cyprus, and that was the inspiration for a new association called Miracle Babies (‘Mora Thavmata’) run by volunteer parents, grandparents and friends here.” The association intends to build a new unit at the Makarios Hospital (“It will cost over €1 million and we have already raised over €200,000) and to support the existing unit new equipment. “Out of a very difficult life experience, something very positive has happened,” she tells me. “I look at my

EVERY POLITICAL PARTY, WHETHER IN GOVERNMENT OR OPPOSITION, SHOULD ACT RESPONSIBLY every day before we’ve had the chance to see what it can bring to the table. Every Greek Cypriot is aware that, if we are going to move ahead, the key to a solution lies with Turkey. We have to wait and see If Turkey has the political will required to solve the problem but we also need to support the process, see what comes out of it and then we can decide. I think most Cypriots would like to see movement on the Cyprus Problem after 42 years and we should all give peace and the process a chance.” We end our lunchtime conversation with a story that, in many ways, sums up Stella Kyriakidou’s attitude to life. When her grandson was born prema-

grandson and I think to myself that he is the reason for bringing a lot of people together to make things easier for others. That’s what it means to belong to a society – taking every little thing that comes your way and trying to make it into something that will benefit the many instead of feeling sorry for yourself. It’s about changing a negative into a positive.” As we leave the restaurant, I can’t help thinking that Stella Kyriakides is not only one of the most positive people I have ever met but one whose seemingly limitless energy deserves our total admiration. She will doubtless blush at the description but she is a true inspiration.

WHAT’S

ON

THINGS

to do THEATRE

DANCE MUSIC SLAVA he Russian singer, actress and DOLCE model in CLUB, LIMASSOL her only FRIDAY, Cyprus SEPTEMBER 23, perfor8PM mance.

T

ANTIGONE ophocles’ ancient tragedy in the first collaboration between the National Theatre of Greece, the National Theatre of Northern Greece and the Cyprus Theatre Organisation. In Greek. Ancient Curium, Limassol Wednesday, September 21 & Thursday, September 22, 8.30pm Ancient Odeon, Paphos Saturday, September 24 & Sunday, September 25, 8.30pm Ancient Theatre, Salamis Wednesday, September 28, 8.30pm Pattichion Municipal Amphitheatre, Larnaca Friday, September 30, 8.30pm

S

W&W escheduled show is the final Guaba Carnival Sunday. y

R

FESTIVAL 32ND AYIA NAPA INTERNATIONAL FESTIVAL our days of music and dance from Cyprus and elsewhere, the highlights being concerts on Saturday (Greek composer Stamatis Spanoudakis) and Sun day (Pavel Smirnov Accordion Orchestra of St. Petersburg)

F

Guaba Beach Bar, Limassol Sunday, September 25, from 10am

WORLD MUSIC MUSICAL BRIDGES he’Koyokh, hailed as “one of London’s musical treasures, playing the best Balkan and klezmer music in Britain” and the Cypriot trio Monsieur Doumani present a performance based on the music traditions of Cyprus, the Mediterranean, the Middle East, the Balkans and Eastern Europe. Part of the 2016 Kypria International Festival. Rialto Theatre, Limassol Tuesday, September 27, 8.30pm Municipal Amphitheatre, Dhali Wednesday, September 28, 8.30pm Xenion High School, Paralimni Thursday, September 29, 8.30pm Chlorakas Amphitheatre, Paphos Friday, September 30, 8.30pm

S

BODY AND SOUL onstantinos Tsahouridis (vocals) and his brother Matthaios Tsahouridis (Pontic lyre) have performed their own blend of classical, traditionMakarios III Amphitheatre, Nicosia al and popular Thursday, September music all over 22, 8.30pm the world. Part Ancient Curium, of the 2016 Limassol Saturday, Kypria InternaSeptember 24, tional Festival.

K

8.30pm

MAIN SQUARE, AYIA NAPA THURSDAY, SEPTEMBER 22, SUNDAY, SEPTEMBER 25, 9PM

www.goldnews.com.cy | GOLD | 119

WHAT’S

ON

GREEK MUSIC

JAZZ MUSIC

OPERA

EVANTHIA REBOUTSIKA & Ancient ELLI PASPALA Curium, Limassol ast meets Monday, September West in the 19, 8.30pm Municipal Greek composer’s work, with Amphitheatre, Dhali her older songs Tuesday, September 20, 8.30pm performed by Elli Paspala. Part of the 2016 Kypria International Festival.

ROMAN MIROSHNICHENKO ussia’s best-know jazz guitarist performs with the Leonid Nesterov Trio.

OU... PATSIA... RA... contemporary opera by the award-winning Cypriot composer Andy Skordis, about a sculptress Dancehouse, Nicosia who falls in love Wednesday, with one of her October 5-Friday, creations when October 7, it comes to life. 8.30pm Part of the 2016 Kypria International Festival.

E

DIMITRA GALANI - ELENI TSALIGOPOULOU - YIOTA NEGA harity concert Municipal by three of Garden Theatre, Greece’s best-estabLimassol Friday, lished female singers. 7ITXIQFIV ā ĄTQ

C

R

Rialto Theatre, Limassol Sunday, September 25, 8.30pm

ROCK MUSIC MOONSPELL he dark metallers bring their Road to Extinction Tour to Larnaca.

T

T

ELENI DIMOU he popular Greek singer returns to VINYLIO Cyprus WINE ETC, for two LIMASSOL FRIDAY, more SEPTEMBER 30 perfor& SATURDAY, mances. OCTOBER 1,

T

9PM

120 | GOLD | The Business Magazine of Cyprus

MOTOR SPORT

SAVINO LIVE, LARNACA CYPRUS RALLY rews battle chalSATURDAY, lenging stages OCTOBER 8, and punishing am10PM

C

ART THE SONG OF THE DEAD BROTHER he Cyprus Symphony Orchestra, Greek singers Dimitris Basis and Sophia Avraamidou with the Bicommunal Choir for Peace in Cyprus perform Mikis Theodorakis’ classic song cycle. Narrators: Petros Yiorkadjis, Baris Refikoglou. Part of the 2016 Kypria International Festival. St. Paul’s High School, Paphos Wednesday, September 28, 8.30pm Strovolos Municipal Theatre, Nicosia Thursday, September 29, 8.30pm Rialto Theatre, Limassol Friday, September 30, 8.30pm 0pm

A

THE COLOURFUL CYPRUS he title of this exhibition of work by the award-winPeter’s ning photographer Gallery, and painter Derek Limassol Wednesday, Harris says it all. October 5, 7pm. Until Monday, October 31

T

ABSOLUTE ZERO A AB rawings, signature paper and coloured fabric cut-outs and new w raw ra pigment paintings by British artist st Adam Ad Ball.

D

Start & Finish: Nicosia Friday, October 7-Sunday, October 9

bient and ground temperatures around the island in this year’s rally, which marks the end of the 2016 FIA European Rally Championship. Drivers contesting the final two stages will battle for a share of a €60,000 prize fund.

Pharos Centre for Contemporary Art, Nicosia Wednesday, September 28, 7.30pm. Until Saturday, October 22, 10am-1pm.

8th INTERNATIONAL PHAROS CONTEMPORARY MUSIC FESTIVAL

T

he International Pharos Contemporary Music Festival has established itself as one of the most innovative and cutting-edge annual music events in the Eastern Mediterranean. Under the artistic direction of the internationally renowned Cypriot composer, Evis Sammoutis, it is dedicated to the promotion of new music: well-established masterpieces of the 20th century as well as new works by the younger generation of composers. Past Festivals have presented hundreds of Cyprus premieres as well as a great number of world premieres by composers especially commissioned by the Foundation to write new pieces for the occasion. This year’s Festival draws attention to contemporary masterpieces in which human voice takes the lead, including Schoenberg’s Pierrot Lunaire, only ever once performed in Cyprus, featuring legendary vocalist Marianne Pousseur and the exceptional ensemble Het Collectief under the direction of conductor Robin Engelen. The Festival also presents the Cyprus premiere of Kurtág’s monumental 70-minute masterpiece for voice and violin, Kafka Fragments, performed by the internationally acclaimed mezzo-soprano Loré Lixenberg and violinist Aisha Orazbayeva. A second Cyprus premiere is that of Beat Furrer’s Lotófagos for soprano and double-bass features double-bassist Uli Fussenegger of Klangforum Wien and French soprano Hélène Fauchère. The Festival will conclude with a recital by pianist Joseph Houston, one of the most sought-after rising stars on the international contemporary music scene, in a programme of works by Scarlatti and Liszt, all the way through to Messiaen, Ives and Xenakis, and the Cyprus premieres of works by Thomas Simaku and Christian Mason. All the events take part at The Shoe Factory in Nicosia.

Wednesday, October 5, 8.30pm

CONCERT Vocalist Marianne Pousseur and ensemble Het Collectief under the direction of Robin Engelen in Schoenberg’s Pierrot Lunaire, Berg’s Pieces for Clarinet & Piano Op.5 and Schoenberg’s Verklärte Nacht. CONCERT Soprano Hélène Fauchère and double-bassist Uli Fussenegger in Beat Furrer’s Lotófagos L I, plus works by Henry Purcell, P Klaus Huber, Vito Zuraj and an Evis Sammoutis. Sunday, October 9, 8.30pm Su

LECTURE Marianne Pousseur on Vocal Techniques in New Music, followed by a workshop with the participation of young professional singers. Thursday, October 6, 11am

FILM F IL Jud Kele’s Judit documentary, doc Kurtág: The Kur Matchstick Man Mat Tuesday, OctoTues bber 11, 8.30pm

FILM L Larry Weinstein’s documentary, My War Years – Arnold Schoenberg Thursday, October 6, 8.30pm PRE-CONCERT TALK Memory and Oblivion – Psychological and Musical aspects on Beat Furrer’s Lotófagos by Andreas Tsiartas, composer.

Sunday, October 9, 7.30pm

CONCERT C Mezzo-soprano Loré M Lixenberg and violinist L Aisha OrazA bbayeva in Wednesday, Kurtág’s K October 12, 8.30pm Kafka K Fragments. PIANO RECITAL Joseph Houston in works by Messiaen, Ives, Xenakis, Scarlatti,, Liszt, Thomas Sunday, Simaku and October 16, Christian 8.30pm Mason.

www.goldnews.com.cy | GOLD | 121

Eleni Kaloyirou

I

wake up at 6am m and I have my coffee while reading the local papers online as well as a selection of the foreign press before setting off for Larnaca. Since I live in Nicosia, I need to leave home around 7.15am in order to be at the office between 8am and 8.15am. It’s not a difficult commute, partly because the heavy traffic tends to be going in the opposite direction in the morning. I’m fortunate to be one of those people who can say that I don’t have a fixed routine and so every day is varied and different. As CEO, in addition to the strategic direction of the company I am ultimately responsible for the smooth operation of our two airports, including all aspects of customer care, airline handling, maintenance of the facilities, staff issues, and commercial

A DAY IN THE LIFE

operations within both airports. I was appointed three months ago, after being Executive Manager Business Control and then CFO of Hermes Airports since joining in November 2014 and, some years prior to that, Deputy CEO and CFO of Cyprus Airways. My previous experience of working for an airline has definitely been useful in enabling me to understand and appreciate the challenges that we face here. I studied Economics at h Cambridge University before becoming a Chartered Accountant. When I returned to Cyprus I was offered a position with Cyprus Airways and that’s how my career started. Both the travel business and the aviation industry are very exciting areas to work in and I’m very happy to be here. Beyond the stress that comes with being the CEO of any firm, I can’t really think of anything negative to say about my job unless it’s the fact that it is often a 10-hour day but I try to ‘switch off’ from work once I’m at home. Of course, we’re a 24/7 operation but if something happens that requires my attention, people know where to find me. I try to go to the gym three times a week and if I manage to

The CEO of Hermes Airports Ltd reveals a passion for reading, music and diving, explains why she loves her job and admits to having extremely ambitious travel plans.

go twice, I’m happy! I’m lucky that my husband enjoys cooking so he will usually prepare something if we are not out with friends. I’m not a great fan of TV so I don’t watch much but I do enjoy seeing a good film on the big screen. Most of the films shown in Cyprus these days are aimed at a younger audience but I did see the latest Star Wars movie and Spectre at the cinema. I read a lot, especially historical fiction. The last book I read – which I can highly recommend! – was Ken Follett’s Edge of Eternity, the last volume of his Century Trilogy. I’m now reading Hilary Mantel’s Wolf Hall. I enjoy music, mostly soft rock by bands like Fleetwood Mac and Dire Straits or newer ones like Coldplay. My husband has a subscription to Spotify so when we’re at home it’s easy to listen to a compilation in a style that suits our mood. Sport has always been part of my life. I played tennis at school and university and I still play every Sunday morning. I also like walking and we sometimes take the nature trails in the mountains with friends. To me, travel is one of the biggest joys of life and we try to visit a different place every year. I’m a keen diver and we often base our holidays around that, trying to combine a new place with diving. But no matter how

much I enjoy travelling, I am always happy to be home again. I’ve never considered I like to relax living anywith historical where other ÀFWLRQ than Cyprus. If I have the ability to travel, it is an ideal base for me. Saturdays $ JRRG ÀOP LV tend to be DOZD\V EHVW RQ taken up with WKH ELJ VFUHHQ mundane things like supermarket shopping as well as ,·P DOZD\V seeing family happy to hear members and FRPHV FODVVLF soft rock friends, while Sundays start with tennis and may include a trip to the mountains or to the sea in summer. General relaxation! I have reached a point in my life where I feel very contented and balanced. My work is challenging and I like this. If there is one thing I would love to do, it is to visit every country in the world. Doing that and having time to read a few more books will definitely keep me busy and happy for the next 10 years!”

IF THERE IS ONE THING I WOULD LOVE TO DO,

IT IS TO VISIT EVERY COUNTRY IN THE WORLD 122 | GOLD | The Business Magazine of Cyprus

www.pwc.com.cy

Expertise Solutions Value

We support you to create the value you are looking for by providing specialised solutions based on quality. Together we build relationships based on trust and we say things as they are, to assist you to deal with issues that tomorrow will prove important. We adapt our expertise and the power of our global network to your specific needs helping you make the difference.

Š 2016 PricewaterhouseCoopers Ltd. All rights reserved

Turn static files into dynamic content formats.

Create a flipbook
Issuu converts static files into: digital portfolios, online yearbooks, online catalogs, digital photo albums and more. Sign up and create your flipbook.