ISSUE 40 july 14 - august 13, 2014 PRICE â‚Ź4.95
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the international investment, finance & professional services magazine of cyprus
a e Living S e h t on Limassol Marina puts Cyprus on the global yachting map
+ NOBEL LAUREATE SIR CHRISTOPHER PISSARIDES ON THE CYPRUS ECONOMY BUSINESS
Hector Kolanas on entrepreneurship and startups
INTERVIEWS
Maria Kyriacou Nasos Kyriakides Evgeny Tarakanov
PROFILE
The Cyprus Fiduciary Association
Plus:
MONEY / BUSINESS ECONOMY TAX & LEGAL LIFESTYLE / OPINION
Live, dine, shop and sail in absolute luxury at the most exciting new destination in Cyprus. Now open, call us on +357 25 020 020 limassolmarina.com
Living on the sea
Issue 40 July 14-August 13, 2014
6 EDITORIAL 8 UP FRONT 14 FIVE MINUTES WITH…
Limassol Marina puts Cyprus on the global yachting map WITH ITS BREATHTAKING VIEWS AND OUTSTANDING RANGE OF FACILITIES, THE €350 MILLION LIMASSOL MARINA AIMS TO BECOME THE MOST EXCLUSIVE MARINA RESORT IN THE MEDITERRANEAN AND ONE OF THE FINEST IN THE WORLD.
Living on the Sea
+ OPINION THE GLOBAL CLAMPDOWN ON TAX EVASION By Amy Duff
36
FLYING PIGS AND BLACK SWANS By Savvas Savouri
48
ATTRACTING THE CRÉME DE LA CRÉME By Effy Pafitis 52
62 | BEYOND EXPECTATIONS
42
46 | DENTAL EMERGENCY
16
How the financial crisis in Cyprus led a dentist to change many aspects of her practice for the better.
The first ten years of Limassol law firm Nasos A. Kyriakides & Partners.
64 | THE KID DONE GOOD Hector Kolanas, who set up his latest business as a result of the Cyprus financial crisis, explains why.
49 | PROMOTING CYPRUS
66 | GAME CHANGERS FOR THE CYPRUS PROFESSIONAL SERVICES SECTOR
The Cyprus Fiduciary Association and the need for strong regulation.
The 6th Professional Services Conference
54 | “A CRISIS IS A TERRIBLE THING TO WASTE”
FEATURE
32
32| SAGE ADVICE Interview with Sir Christopher Pissarides, winner of the 2010 Nobel Prize in Economics and Chairman of the Council of Economic Advisers of Cyprus.
According to ACCA Past President Mark Gold, Cyprus needs to address its shortcomings and instigate fundamental structural changes to guarantee the survival of the island’s SMEs.
SPECIAL
SUPPLEMENT 23 | TELECOMMUNICATIONS FIRMS OFFERING BUSINESS SOLUTIONS
58 | PERFECTING THE BALANCING ACT Ingrid Hoferova on being a professional, a mother and a woman making her way in a still predominantly tly male-centricc world.
38 | BEATING THE BLUES Members of the accounting profession are not ot immune to recession, redundancy and the need ed for retraining, says CABA’s Lucy Whitehall.
42 | FROM RUSSIA WITH LOVE Evgeny Tarakanov on his love of Cyprus and e. why the island remains the apple of Russia’s eye.
4 Gold THE INTERNATIONAL INVESTMENT, FINANCE & PROFESSIONAL SERVICES MAGAZINE ZINE OF CYPRUS
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70 72 74 76 80
{money} {business} {economy} {tax & legal} {lifestyle}
EDITORIAL
Good Vibrations
A
s the second half of 2014 gets under way, it is impossible not to compare the present situation with the one we were experiencing twelve months ago. And any comparison cannot fail to create at least a small amount of optimism about the direction in which Cyprus and its economy are heading. Indeed, the contents of this month’s issue of Gold are indicative of the positive tack that things have taken, starting with our cover story about the €350 million Limassol Marina which has placed Limassol, Cyprus and the country’s tourism product in the global spotlight. With contracts in excess of €130 million already signed for its luxury residences, the remarkable level of interest surrounding the unique waterfront development has exceeded all previous experience and expectations. On a smaller scale but continuing the business momentum that is starting to emerge, we have the personal stories of two people who dealt with the March 2013 crisis ways that led to positive change: Anna Maria Yiannikos, a pioneer in the field of Dental Lasers and Cosmetic Dentistry, tells her own story (page 46) and we meet Hector Kolanas who set up Desk&Co as a direct reaction to what he was seeing following the bailout agreement with the Troika (page 64). For Cypriot members of the ICAEW facing difficulties in the wake of the financial crisis, help is at hand from the Chartered Accountants’ Benevolent Association (CABA), as Lucy Whitehall reveals (page 38). Of course, there is still a long way to go before Cyprus returns to positive growth and prosperity but it would appear that the private and public sectors alike are taking notice of those who are in a position to offer sound advice. Nobel Laureate Sir Christopher Pissarides, who now heads the Council of Economic Advisers, gives his views on where the economy is going (page 32) while Mark Gold, a past president of the ACCA, is the latest in a long line of experts whose ideas on how to support SMEs at this crucial juncture are definitely worth acting on. We also talk to Ingrid Hoferova, Managing Director of Penta Investments Cyprus (page 58) and Evgeny Tarakanov, Financial Director of Bilarex Co. Ltd (page 42), both of whom are happy to be working in Cyprus but have some valuable things to say about what could be done to improve the experience for foreign investors. Elsewhere in this issue we profile the Cyprus Fiduciary Association whose Board and General Manager have played such an important role in bringing about legislation and regulation in a key professional services sector (page 49) and we also talk to Nasos Kyriakides, who set up his own law firm at the age of 26 and, a decade later, is still looking for new challenges (page 62). The good news continues in our specialist features, with a positive message from Dr. Michael Kammas, Director General of the Association of Cyprus Banks (page 70) and a generally positive report by the European Court of Auditors (ECA) on the reform of European banking sector legislation and the creation of the European Banking Authority (page 71). Eurozone growth is predicted in the latest EY Eurozone Forecast (page 74) and there is even good news on VAT on telecommunications, broadcasting and electronic services (page 77). While summer 2014 is not likely to remembered as a turning point in the island’s fortunes, it undoubtedly finds Cyprus in a better position than a year ago. This is, admittedly, small comfort for those who are out of work or struggling to make ends meet but if the Cypriots have one quality it is resilience. They have survived and rebounded from worse situations and the fact that the country has returned to the international markets well ahead of schedule through its recent bond issue is a tribute to the current government and its determination to follow the Troika’s difficult but necessary recommendations. The long hot summer of 2012 may have felt more comfortable to many people but this one is unquestionably healthier and leading us all to a better future.
John Vickers, Chief Editor
john@imhbusiness.com
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ISSUE 35 FEBRUARY 14 - MARCH 13, 2014 PRICE €4.95
THE INTERNATIONAL INVESTMENT, FINANCE & PROFESSIONAL SERVICES MAGAZINE OF CYPRUS
BANKING How Spain restructured its system
BITCOIN The Future of the Digital Currency
INTERVIEWS Peter Greenberg Matthew Kidd Alexis Tsielepis
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6 Gold THE INTERNATIONAL INVESTMENT, FINANCE & PROFESSIONAL SERVICES MAGAZINE OF CYPRUS
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UP FRONT
47% OF PC
RYANAIR
IN CYPRUS
L
SOFTWARE
T
he advantages of using licensed software are being promoted at the centre of a new campaign launched by the Business Software Alliance (BSA) in a bid to combat piracy. It has been found that 47% of PC software devoid of proper licensing was installed in 2013 in Cyprus.Nicholas Ktenas, Advocate, Partner, Deputy head of 5PJVZPH VMÄJL *VYWVYH[L HUK *VTTLYJPHS Department of Andreas Neocleous & Co LLC, described this as “unfortunately a high percentage” and noted that this entailed “various risks” such as data loss, the inability to update unlicensed software, hacking, and compatibility, as well as the moral issue: how are programmers expected to continue producing software if they are not being re-
UNLICENSED
warded for their work due to piracy? “The aim of the BSA is neither to punish nor [V [OYLH[LU ¶ ^L HSS RUV^ [OL ÄUHUJPHS ZP[\ation in the country at the moment – but on the other hand we want to communicate messages to people, not regarding consequences from using illegal software but reNHYKPUN [OL ILULÄ[Z VM \ZPUN SLNHS ZVM[^HYL ¹ he pointed out. According to a BSA survey for 2013, the rate at which PC software was installed without proper licensing in Cyprus in 2013 amounted to 47%, the commercial value of which totalled almost €14 million.
SALES BOOST for Luxury Real Estate
T
he luxury real estate market in Cyprus has begun to experience a much needed boost, with five properties being sold in the first quarter of 2014, according to a report compiled by Leaf Research. Luxury property sales (defined as houses
and apartments with a transaction price in excess of €2 million) showed an upward trend in the fourth quarter of 2013, following a sharp contraction during the third quarter of the year, with annual sales reaching 2011 levels of some 25 transactions in total. In the first quarter of
2014, meanwhile, five properties were sold for over €2 million each, one more than the four units sold during the same period in 2013. Of these five transactions, two properties were located in Nicosia and one each in Limassol,
Larnaca and Paphos. Leaf research predicts that the trend of increasing luxury property sales will be limited to real estate located in Limassol, with modest sales in Nicosia, Larnaca, Paphos and Famagusta.
Cyprus to Host First Comic Con
C
`WY\Z ^PSS OVZ[ P[Z ÄYZ[ Comic Con fan convention dedicated to comic book culture on September 13. Having begun in San Diego, California in 1970, comic cons have become enormously popular, held annually worldwide. The events celebrate the art and culture derived from comic books, including the subsequent movies, TV series, HUPTH[PVUZ HJ[PVU ÄN\YLZ IHZLK upon original comics. In Cyprus,
the event is being organized by the Cyprus Comic Con (CCC), a UVU WYVÄ[ VYNHUPZH[PVU ;OPZ ÄYZ[ event will be “experimental,” says Despina Theocharidou, PR Manager of Cyprus Comic Con, “and will let us know what to change for the next events,” indicating that the organisation intends on making the Comic Con an annual event. The Cyprus Comic Con will be held at the European University. Admission will be free of charge.
8 Gold THE INTERNATIONAL INVESTMENT, FINANCE & PROFESSIONAL SERVICES MAGAZINE OF CYPRUS
PASSENGER TRAFFIC UP
ow-cost airline Ryanair experienced increased passenger traffic in June due to its reduced fares and improved services, the company has revealed. Citing traffic statistics for the month, Ryanair announced that it transported 8.3 million customers in total, a 5% increase of 400,000 passengers. Its load factor, meanwhile, increased 4%, from 84% to 88%. As a result, tolling annual traffic rose to a record 82.7 million customers, up 3%. Ryanair recently extended its Groups Services to Cyprus via its website Ryanair.com, enabling groups and businesses to book the lowest fares available. “2014 is set to be a very exciting year for Cyprus groups and business customers,” Ryanair’s Head of Corporate Travel and Groups, Lesley Kane said, “as Ryanair’s entry into these markets will significantly lower their costs of travel.”
Cyprus Wines Cypru Promoted via Annual
LONDON L OND EVENT
T
he 31st Wine Festival opened its gates in London last month, starting a two-day celebration intent on highlighting Cyprus’ comparative advantages, culture and beauty. Organised annually by Parikiaki newspaper, the festival – along with a trade fair – attracts Cypriots and foreigners alike. Minister of Agriculture, Natural Resources and Environment, Nicos Kouyialis, was present at the event on behalf of the Government. He noted that the Ministry is collaborating with winemakers and wine grape growers to draft a multiannual national strategic plan on viticulture, which is hoped to help boost wines produced in Cyprus. According to the Minister, between 2008 and 2013 a total of €20 million was disbursed to Cyprus from European funds to implement a national programme in support of the wine industry; available funds for the period 20142018 are approximately €23.2 million. The High Commissioner of Cyprus to the United Kingdom, Euripides Evriviades, stressed the importance of wine-making for Cyprus and highlighted the importance of the community in promoting Cyprus in this capacity.
UP FRONT
Zenobia Week Promotes
Hadjiantonas
Tourism
T
Winery Celebrates
Diving
L
ast month saw the start of a campaign to publicize the fact that Cyprus is a major diving destination with a week of activities at the end of June taking place under the “Zenobia Week” banner, a reference to one of the island’s most popular diving attractions, the Zenobia shipwreck, which is being promoted as ideal for the discerning visitor, populated and decorated with sea fauna and flora, fish of all kinds, purple coral rocks decked with flowers, starfish, octopus, crabs, shells, and more. The Cyprus Tourism Organisation is now pushing scuba diving as being both a relaxing means of expe-
10th Anniversary
riencing the warm waters of the Mediterranean, whilst fathoming the enigmas of the deep. Unofficial figures estimate that around 35,000-50,000 divers visit the island annually.The Zenobia, a Swedish roll-on-roll-off ferry, was fully loaded with 104 trailers and trucks when she sunk on her maiden voyage to Cyprus in June 1980, off Larnaca’s fishing harbour. The wreck of the Zenobia now lies on her port side at a depth of 42 metres, 1.5km from the shore. The top of the wreck is 16m below the water surface. The Zenobia wreck has now become a protected artificial reef and the dive site is currently rated amongst the top ten wreck dive sites of the world.
More Honours for Hellenic Bank
H
ellenic Bank has been named the most reliable credit institution operating in Cyprus for the fourth consecutive term by the quarterly Reliability Index. Created by RAI Consultants, the index compares ratings of the 10 most prominent Cyprus credit institutions, basing results on 500 consumer ratings. The bank received the highest ratings of all, being ranked first for reliability among both the commercial banks and credit institutions used by businesses. The bank’s subsidiaries – Pancyprian Insurance and Hellenic Alico Life – have both also gained positive media attention in recent months for their impressive rankings in similar surveys. The former was evaluated first for reliability among the non-life insurance companies in Cyprus, whilst the latter was rated first for reliability among life insurance firms affiliated to a bank, and second for reliability among life insurance institutions overall. Meanwhile Hellenic Bank has been honoured by Deutsche Bank, one of the largest financial institutions in the world, with two awards related to the quality of its service. Hellenic Bank received both the 2013 EUR STP Excellence Award, and the USD STP Excellence Award. This honour is described as being “the fruit of concerted hard work on the part of the bank to advance its technological systems, resulting in expedited process, reduction of costs, and an enhancement, overall, of the services offered to customers by the bank.”
10 Gold THE INTERNATIONAL INVESTMENT, FINANCE & PROFESSIONAL SERVICES MAGAZINE OF CYPRUS
he Hadjiantonas Winery recently celebrated ed ten years off operation in the village of Pareklishia, Limassol. During its ÄYZ[ KLJHKL [OL ^PULZ WYVK\JLK I` /HKQPHU[VUHZ OH]L ILLU TL[ ^P[O OPNO HJJSHPT IV[O SVJHSS` HUK PU[LYUH[PVUHSS` ^P[O [OL :OPYHa *HILYUL[ :H\]PNUVU ^P[O :OPYHa *OHYKVUUH` :LTP :WHYRSPUN :^LL[ 4\ZJH[ HUK 9VZL >PUL HSS OH]PUN YLJLP]LK HJJVSHKLZ PU ^VYSK^PKL JVTWL[P[PVUZ (JJVYKPUN [V MV\UKLY ;OLVKVYVZ /HKQPHU[VUHZ [OL ^PULY` OHZ ILLU H[ [OL J\[[PUN LKNL VM [OL PUK\Z[Y` L_WLYPTLU[PUN ^P[O UL^ ISLUKZ VM LUKLTPJ HUK PTWVY[LK NYHWL ]HYPL[PLZ HUK [OPZ OHZ UV[ VUS` JOHUNLK [OL JOHYHJ[LY VM *`WYPV[ ^PULZ I\[ PTWYV]LK [OLPY X\HSP[` /HKQPHU[VUHZ PZ UV^ SVVRPUN H[ [OL PKLH VM WYLZLU[PUN P[Z TVZ[ WVW\SHY ^PULZ PU TS ZPUNSL ZLY]L IV[[SLZ ^OPJO HYL HSYLHK` WVW\SHY ^P[O HPYSPULZ HUK OV[LSZ /HKQPHU[VUHZ >PULY` PZ SVJH[LK PU H [OYLL Z[VYL` I\PSKPUN [OH[ PUJVYWVYH[LZ H ZPaLHISL JLSSHY VU [OL SV^LY NYV\UK ÅVVY =PZP[VYZ HYL HISL [V SLHYU HIV\[ the fermentation process and about the use of oak barrels for proK\JPUN X\HSP[` ^PUL 6U [OL [OPYK ÅVVY [OLYL PZ H ^PUL [HZ[PUN SV\UNL YLZ[H\YHU[ V]LYSVVRPUN [OL ^PULY` NHYKLUZ
CYFIELD in Talks about
Land Opposite Hilton ommunications & Works Minister Marios Demetriades met with the management of Cyfield Group earlier this month, in the context of discussing the development of the land opposite the Hilton Cyprus in Nicosia. The meeting served as an initial briefing
C
through which an overview of the proposed project was discussed, and an analysis of the investors’ plan conducted. Over the summer, more meetings are expected to be held and they will look into further details of the project and its design. The proposal is for a mixed-use project,
comprised of office space and apartments spread across 20 floors, as well as event rooms and hotel apartments. Currently, the proposal is for development of the building via the Built-Operate-Transfer (BOT) method, and involves two plots of land, which will be granted 99-year leases.
NEW LIMASSOL
OFFICES FOR
GRANT THORNTON eading accounting firm Grant Thornton Cyprus has moved its operations into new premises in Limassol as a result of the firm’s development and expansion strategy of the firm, following its merger with Mouzouris & Polyviou. Grant Thornton Cyprus recently merged with Mouzouris & Polyviou Ltd, which specialises in serving small and mid-sized businesses across a range of industries including construction, property, investment holding and
L
financing. Grant Thornton International has focused on the accurate execution of its expansion strategy throughout 2014, announcing 17 successful mergers and acquisitions around the world in the seven months to April 30, in locations including the United Kingdom, Australia, Canada, Cyprus and the Isle of Man. Grant Thornton Cyprus offers audit, tax and advisory services to private enterprises, enterprises of public interest and public sector enterprises.
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UP FRONT
THE HIGHEST-PAID
WORLD CUP FOOTBALLERS
A
fter a month of matches, the Final of the World Cup took place yesterday (July 13). Some of the best-known players in Brazil this summer are also among the highestpaid and richest sportsmen in the world. Below is the Top 10 of those who played for their country, according to their estimated earnings which don’t always correspond to the number of goals scored for their country. And a considerable part of their wealth comes from advertising and product endorsement.
1 CRISTIANO RONALDO – PORTUGAL
TOTAL EARNINGS IN 2014: $80 MILLION
(Salary: $52 million. Endorsements $28 million) Ronaldo Won the 2013 Ballon d’Or, having scored 69 goals in 59 matches for Real Madrid and Portugal. His last 5-year contract is said to be worth $206 million.
2 LIONEL MESSI – ARGENTINA TOTAL EARNINGS IN 2014: $64.7 MILLION
(Salary: $41.7 million. Endorsements $23 million) In addition to his contract with Barcelona, Messi has lucrative deals with Adidas and Turkish Airlines. Currently features on Cyprus TV in the Lays crisps ad.
3 NEYMAR – BRAZIL
TOTAL EARNINGS IN 2014: $33.6 MILLION
(Salary: $17.6 million. Endorsements $16 million) Brazilian superstar Neymar (full name: Neymar da Silva Santos Jùnior) was transferred to Barcelona for 57 million last year. Frequently compared to the great Pele.
2
3
4 5
Rank:
6
1
10
7 9
4 WAYNE ROONEY – ENGLAND TOTAL EARNINGS IN 2014: $23.4 MILLION
(Salary: $18.4 million. Endorsements $5 million) One of England’s most gifted footballers, the Manchester United forward is currently the highest-paid player in the English Premier League. His future with Man Utd. looks sure.
5 SERGIO AGUERO – ARGENTINA TOTAL EARNINGS IN 2014: $23.3 MILLION
(Salary: $18.3 million. Endorsements $5 million) The son-in-law of Argentine legend Diego Maradona is a key player at Manchester City and earns another $5 million from deals with companies like Puma, Pepsi and Gillette.
6 YAYA TOURÉ – IVORY COAST TOTAL EARNINGS IN 2014: $21.7 MILLION
(Salary: $19.2 million. Endorsements $2.5 million) Last year the younger brother of Kolo Touré HUK 4HUJOLZ[LY *P[` TPKÄLSKLY ZPNULK H new 4-year deal to stay at the Etihad Stadium until 2017.
7 FERNANDO TORRES – SPAIN TOTAL EARNINGS IN 2014: $21.3 MILLION
(Salary: $17.8 million. Endorsements $3.5 million) Before joining Chelsea in 2011, he became the fastest player in Liverpool history to
12 Gold THE INTERNATIONAL INVESTMENT, FINANCE & PROFESSIONAL SERVICES MAGAZINE OF CYPRUS
8
score 50 league goals. Since then his form for club and country has been rather erratic.
8 ROBIN VAN PERSIE – THE NETHERLANDS
TOTAL EARNINGS IN 2014: $19.5 MILLION
(Salary: $16.5 million. Endorsements $3 million) After eight years with Arsenal, Van Persie joined Manchester United in 2012 and proved to be another shrewd Alex Ferguson signing. His stunning header in Brazil remains unforgettable.
9 STEVEN GERRARD – ENGLAND TOTAL EARNINGS IN 2014: $18.7 MILLION
(Salary: $13.2 million. Endorsements $5.5 million) Gerrard, who captains Liverpool and England, made his club debut in 1998 and has ZWLU[ OPZ LU[PYL JHYLLY H[ (UÄLSK 6UL VM [OL HSS [PTL NYLH[ ,UNSPZO TPKÄLSK WSH`LYZ
10 DAVID SILVA – SPAIN
TOTAL EARNINGS IN 2014: $16 MILLION
(Salary: $15 million. Endorsements $1 million) The third Manchester City player in the Top 10 spent six years at Valencia before moving to his current club where his speed and passing ability have made him extremely valuable.
INTERVIEW
five minutes es with...
George Mouskides Director, Property Consultant, FOX
H
ow did you become involved in FOX? I was previously with a boutique investment firm – CLR group – through which we offered stockbroking services and managed funds. It was during the years of the booming stock market: different times, different tempos. The funds that were diverted from the stock market to real estate sparked the beginning of the infamous property bubble. CLR dealt with shares, bonds and derivatives, which are traditionally volatile, and through my personal experience with real estate, I realised that there was a certain profile of investor which was better matched to lower risk and longer-term outlooks. I entered the real estate market via an association with RE-MAX (a US agency group) who, at the time, had seven offices throughout Cyprus operating under their brand. I wanted the opportunity to acquire the know-how of a big international firm, so in 2007 we became shareholders in a new venture. A year and a half later, RE-MAX ceased its operations in Cyprus because the legal framework with regard to estate agents was too strict. Could you elaborate? The estate agents law has changed seven times in the past 10 years, stipulating different requirements every time. Also, the requirements for foreign estate agents to
operate in Cyprus are too high. With this legal framework, it was next to impossible for them to sustain operations. Just think: Re-MAX works out of 68 countries and it was only with Cyprus that they had a problem. So, as a consequence, we set up our own FOX Smart Estate Agency. What sets FOX apart from its competitors? We focus greatly on developing an elevated degree of professionalism. For example, despite oral contracts still being common practice in Cyprus, we push for written agreements and documentation at every stage of contact with our clients. We follow certain procedures to ensure the safety and protection of both buyer and seller. What are the biggest problems facing the real estate sector at present? The whole procedure involved in real estate – from the licensing of new properties to the issuance of title deeds and their transfer to new owners – has many problems. There are huge delays, a lack of transparency, and bureaucratic impediments. When all of these issues are addressed, then the job of an estate agent will become much simpler, and the rights of buyers will be bolstered. At present, it is very difficult for estate agents to protect the rights of buyers.
14 Gold THE INTERNATIONAL INVESTMENT, FINANCE & PROFESSIONAL SERVICES MAGAZINE OF CYPRUS
Is this due to legislation? No. The laws are actually adequate; they are not fundamentally flawed. The problem is the interpretation and implementation of the said laws by various Government departments. Thank God for the Troika! As a consequence of the bailout agreement and adjustment programme, a lot of irregularities and anomalies within this sphere will be resolved. How is the market faring at present? Refreshingly, there is interest in the market at present. The economy is ameliorating, and the numbers are improving (even though we may not see it yet). I expect liquidity to improve, banks to be recapitalised even more, and a decrease in lending interest rates which will, in turn, improve the real estate sector, and aid prices to stabilise. However, there is a damaging idea circulating that the banks will sell all of the properties attached to non-performing loans (NPLs) at once, and people are thus waiting to buy from auction, expecting a more competitive deal. It is not in the banks’ interest to sell all of the properties at once. The market will disintegrate, and they know this. If anything, as the economic environment improves, and employment increases, NPLs – to a large degree – could start performing again, meaning that the banks won’t have to foreclose at all in those cases.