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ISSUE 58 January 17, 2016 PRICE €3.00
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Gold ISSUE 58 | january 17,
The Beauty
2016 | the beauty business in cyprus
Business in Cyprus
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Key Players, Market Trends, Consumer Behaviour REFORM MOVEMENT
British High Commissioner Ric Todd on reform in the EU & Cyprus
EXCHANGE RATE FICTIONS
Devaluation shocks are on the way
INTERVIEWS Christian Jacob Andrew Pyne Frixos Savvides
WHAT’S ON Art, Theatre, Music, Opera, Film & More
SHIPPING AGENCY
WAREHOUSE AND DISTRIBUTION LOGISTICS
MERCHANDISING
CUSTOMS CLEARANCE AND BONDED WAREHOUSING
SHIPS PROVISIONS AND SUPPLIES OPERATION
DOMESTIC EXPRESS COURIER
INTERNATIONAL EXPRESS COURIER
ÌCXM@LHBÌ@MCÌΌDWHAKDÌNQF@MHR@SHNMÌ SG@SÌis progressing and growing. The G.A.P. Vassilopoulos Group was founded in 1964 and is listed on the Cyprus Stock Exchange. The Group employs over 1,000 people and operates through a network of 3,000 offices and associates throughout Cyprus, in the UK, the Netherlands, Belgium, Luxembourg and Israel. The Group is a modern and flexible organisation operating in the services industry. It provides a broad range of services in the Transport & Logistics sector, the Financial sector and the Hospitality & Consumer sector.
INSURANCE SERVICES
Services are backed up by quality certifications ISO 22000:2005 and ISO 9001:2008 and the Group is a certified AEO (Authorized Economic Operator). Services • Warehousing and Distribution of products for trading companies • Merchandising of Consumer Goods via strategic placement and maintenance at points of sale • Shipping Agency • International Freight Forwarding from/to anywhere in the world • Ship provisions and supplies • Support services to Oil & Gas companies • Domestic and International Express courier • Retail E-Link Supply Chain Management • Customs Clearing • Airlines Representation • Airport Ground Handling • General Insurance • Credit Insurance • International Money Transfers • Foreign Exchange Payments • Hotels • Tourism
INTERNATIONAL BUSINESS PAYMENTS
INTERNATIONAL MONEY TRANSFERS
AIRLINES REPRESENTATION - GSA
AIRPORT GROUND HANDLING SERVICES
HOTELS
FREIGHT FORWARDING
TRAVEL & TOURS
QUALITY
www.gapgroup.com 20 Stroviolos Avenue, 2011, Nicosia Tel: 22710000 | Fax: 22514081 | info@gapgroup.com
ISSUE 58 JANUARY 17, 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
| COVER STORY |
THE BEAUTY BUSINESS
KEY PLAYERS, PLA LAYERS, YERS MAR YERS, M MARKET MARKE ARKET TRENDS, CONSUMER BEH BEHAVIOUR By Effy Pafitis & Artem Artemis Constantinidou Photos by Emma Charalam Charalambous & Andreas Loucaides
GOLD GO G OLD OL D
B
eauty sells – just ask the leaders in the interna-tional cosmetics industry, who amass billions SJ IYVSW MR TVSÁXW IZIV] ]IEV EW E VIWYPX SJ GSR-WYQIVW¸ IZIV MRGVIEWMRK HIWMVI XS FI FIEYXMJYP -RHIIH WS TS[IVJYP MW XLI MRHYWXV] MR WIGYVMRK TYVGLEWMRK TS[IV XLEX MX LEW GSQI XS JEGMPMXEXI MRGVIEWIH WTIRHMRK SJ HMWTSWEFPI MRGSQI MR XLI TSWX GVMWMW GPMQEXI WS QYGL WS XLEX MR ĀþÿĂ MX [EW ZEPYIH EX SZIV ¾ĂĀþ FMPPMSR F] Research and Markets. 8LI KPSFEP ÁRERGMEP GVMWMW YRHSYFXIHP] TYX E HEQTIV SR XLI KPSFEP FIEYX] QEVOIX ERH HYVMRK XLSWI ]IEVW QSVI EJJSVHEFP] TVMGIH QIVGLERHMWI [EW OI] ,S[IZIV XLI TEWX JI[ ]IEVW LEZI WIIR MQEKI GSRWGMSYW +IRIVEXMSR = IRXIV XLI NSF QEVOIX E HIZIPSTQIRX [LMGL LEW TVSZIR XS FI E KVIEX HVMZIV SJ FSXL PY\YV] ERH RMGLI GSWQIXMG ERH JVEKVERGI FVERH WEPIW 8LI ']TVMSX MRHYWXV] LEW YRHIRMEFP] FIIR MRÂYIRGIH F] XLIWI MRXIVREXMSREP XVIRHW [LMGL ³ TEMVIH [MXL MXW S[R TEVXMGYPEVP] GLEPPIRKMRK ÁRERGMEP GVMWMW WEZZ] GSRWYQIV IRZMVSRQIRX ERH YRMUYI GSVVIPEXMSRW between both the European and Middle Eastern markets – has led to XLI IQIVKIRGI SJ E WIVMIW SJ MXW S[R XVIRHW 8S ÁRH SYX XLI HIXEMPW SJ XLI PSGEP FIEYX] FYWMRIWW [I WTSOI [MXL WIZIR I\IGYXMZI VITVIWIRXEXMZIW SJ XLI MRHYWXV]¸W QSWX TVSQMRIRX PSGEP TPE]IVW [LS HMZYPKIH XLIMV MRWMHIV ORS[PIHKI SJ ']TVMSX GSRWYQIVW¸ MRGVIEWIH HIQERH JSV FVMKLXP] GSPSYVIH GSWQIXMG TVSHYGXW E WLMJX XS cheaper skincare, an increase in men’s interest in personal care prodYGXW E KVIEXIV MRÂYIRGI SJ WSGMEP QIHME ERH FPSKKMRK MR WLSTTIVW¸ TYVGLEWMRK LEFMXW ERH QYGL QSVI 8LSYKL GSRGPYWMZI HEXE MW RSX EZEMPEFPI XLIMV IWXMQEXIW MRHMGEXI XLI ']TVMSX QEVOIX XS FI [SVXL ¾Ăþ ¾ăþ QMPPMSR 3R XLI JSPPS[MRK TEKIW [I TVIWIRX XLI ZMI[W SJ VITVIWIRXEXMZIW SJ WM\ ']TVMSX ÁVQW [LMGL HSQMREXI XLI [LSPIWEPI QEVOIX ³ Andry Tryfonos, &YWMRIWW 9RMX 1EREKIV EX :EVREZEW ,EHNMTERE]MW 0XH Vicky Guezukutchukian +IRIVEP 1EREKIV EX %VXZMI[ 'S 0XH Eleonora Orthodoxou, 'LMIJ 1EVOIXMRK 3JÁGIV EX ' % 4ETEIPPMREW Monica Papaellina, DeTEVXQIRX 1EREKIV 4IVJYQIW 'SWQIXMGW (MZMWMSR EX 'SWXEW 4ETEIPPMREW 3VKERM^EXMSR Lily Knobel 7EPIW 1EREKIV EX ,SYWI SJ &IEYX] 0XH ERH Nebojsa Petridis +IRIVEP 1EREKIV EX ** +VSYT ']TVYW ³ EW [IPP EW X[S I\IGYXMZIW SJ XLI MWPERH¸W PIEHMRK VIXEMPIVW [LS WXVMOMRKP] FIEV MHIRXMGEP names – Rea Ioannidou ,IEH SJ &YWMRIWW 9RMX EX &IEYX] 0MRI ERH Rea Ioannidou 'SWQIXMGW 'SQQIVGMEP 1EREKIV EX (IFIRLEQW ']TVYW
CONTENTS 8 | BUSINESS BRIEFING
Economic & Business Highlights of the past month.
14 | MY WAY
Despo Lefkariti’s management style.
COVER CO
STORY ST
ld
18 | FIVE MINUTES WITH… Andrew Pyne
| GOLD | 35
20 | THEY SAID WHAT?
30 | T The Beauty
A selection of memorable recent quotes from Cyprus.
Busine in Cyprus Business Representativ Representatives of eight Cypriot leading fi firms in the local wholesale an and retail cosmetics and fragran fragrances industry give their views on the latest trends, consumer behaviour and the most successful brands in the multi-million euro Cyprus market.
OPINION 26 | SETTING A STANDARD By Kyriakos Parpounas
28 | 2016: CHALLENGES FOR THE CYPRIOT ECONOMY By Dr. George Theocharides
FEATURES 20 | REFORM MOVEMENT
Ric Todd, British High Commissioner to Cyprus, explains what David Cameron hopes to achieve in his renegotiation of the UK’s relationship with the EU and how Britain has been helping the Cyprus government to reform the public sector.
66
24 | RETIREMENT INADEQUACY
20
REVEALED 70% of Cypriots will not have the required savings upon reaching pension age.
40 | LEADING AND MANAGING
PEOPLE Françoise Chevalier, trainer of the IN Business Executive Leadership Programme.
72
41 | APPLIED GOVERNANCE: BEYOND COMPLIANCE Photos from the 1st Compliance Forum
42 | INCOME INEQUALITY,
REDISTRIBUTION AND ECONOMIC GROWTH Governments need to perform a ÄUL IHSHUJPUN HJ[
66 | SURVIVING IN A
CHANGING WORLD 7YVÄSL VM .(/ (\KP[ :LY]PJLZ Ltd.
76
68 | TAKING CARE
OF BUSINESS Interview with the founders of recruitment agency Career Finders.
70 | LEAVING IT TO THE
72 | EXCHANGE RATE
FICTIONS It is only a matter of time before devaluation in Central, Eastern HUK :V\[OLYU ,\YVWL ZH`Z +Y :H]]HZ :H]V\YP
EXPERTS Asset Management in a Nutshell.
74 | SOCIAL MEDIA AND THE
71 | THE 3RD CYPRUS
75| BOOKSHELF
BANKING FORUM Photos from last month’s event.
4 | GOLD | The Business Magazine of Cyprus
FINANCIAL SERVICES INDUSTRY By Mariana Antonescu
Five of the best new business titles.
SPECIAL PROMOTIONAL FEATURE Tax Guide 2016
In 2015, Cyprus made a number of changes to its tax legislation. Nine leading firms present their products and services, as well as information on the key legislative amendments affecting their clients.
76 | LUNCH WITH GOLD
Yvonne Georgiadou, Artistic Director of the Pharos Arts Foundation.
79 | BUSINESS CLASS
Manuela Mazzacco, CEO of AFX Capital.
80 | WHAT’S ON
Gold’s guide to the best cultural events of the coming month.
82 | A DAY IN THE LIFE -YP_VZ :H]]PKLZ
www.goldnews.com.cy | GOLD | 67
| EDITORIAL |
GOLD
Smells like…Big Business
ISSUE 58 JANUARY 17, 2016 PRICE €3.00
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
THE BEAUTY Business in Cyprus
5 291295 000577
00001 >
KEY PLAYERS, MARKET TRENDS, CONSUMER BEHAVIOUR REFORM MOVEMENT
British High Commissioner Ric Todd on reform in the EU & Cyprus
EXCHANGE RATE FICTIONS
Devaluation shocks are on the way
INTERVIEWS Christian Jacob Andrew Pyne Frixos Savvides
WHAT’S ON Art, Theatre, Music, Opera, Film & More
PUBLISHED BY IMH ISSN 1986 - 3543
O
MANAGING DIRECTOR
George Michail
GENERAL MANAGER
Daphne Roditou Tang
ver the past two decades, the global beauty market has enjoyed annual growth rates ranging from around 3% to 5.5%. The lowest of these were the years of the global financial crisis and they are, in fact, reasonably accurate indicators of how well a country’s economy is doing. When the going gets tough, retailers of skincare, haircare, make-up products and fragrances in particular are among the first to feel the pinch. In Cyprus, it’s the same story, as we discovered when researching this issue’s cover story. Cypriots (for a change we are talking mainly about women) follow all the international trends and spend as much as €50 million a year on beauty products when things are going well. Sales slumped in 2013 but now they are back on track, according to the representatives of eight leading cosmetics wholesalers and retailers who gave us their opinions and input (see page 30). While several of them noted that men are spending an increasing amount on personal care products, the fact remains that this is very much an industry aimed at and supported by women. The success of outlets such as Beauty Line and the cosmetics departments of Debenhams department stores shows how much purchasing power the so-called fairer sex wields in Cyprus. ************************* You don’t need Gold to tell you how influential a songwriter and musician the late David Bowie was. However, you may not be aware of his connections with Cyprus which lasted from Christmas 1969 – when he wrote The Prettiest Star for his future wife Angie and sang it to her down the phone to her when she was in Nicosia with her parents – to 1979 when he sang “Cyprus is my island” on Move On, a track on his album Lodger. Angie Bowie was born in Nicosia and spent much of her youth in Cyprus, since her American father was a mining engineer and worked for the Cyprus Mines Corporation. In July 1972, I found myself on a flight from London to Nicosia, sitting next to Bowie, his wife and two members of his band (the Ziggy Stardust album had been released a month earlier). Their destination was Kyrenia, for a well-earned rest ahead of the tour that would make him an international superstar. I regret to say that I was too shy to say a word to him. He came back in 1977 in the company of Iggy Pop, staying (and running up a hefty bill that was reluctantly paid by the local representative of his record company) at the Hilton Cyprus. Fast-forward four decades to January 8, his 69th birthday. I John Vickers, downloaded his new album. And you probably know by now that Chief Editor one of the songs, Lazarus, begins with the words, “Look up here, I’m in heaven”. What a way to say goodbye. john@imhbusiness.com
6 | GOLD | The Business Magazine of Cyprus
MEDIA MANAGER
Elena Leontiou
EDITOR-IN-CHIEF
John Vickers
JOURNALISTS
Effy Pafitis, Artemis Constantinidou CONTRIBUTORS TO THIS ISSUE
Tassos Anastasiades, Mariana Antonescu, Amalia Hadjipapa, Kyriakos Parpounas, Savvas Savouri, George Theocharides PHOTOGRAPHY
Jo Michaelides, Emma Charalambous, Andreas Loucaides ART DIRECTION
Anna Theodosiou
SENIOR DESIGNER
Alexia Petrou
PHOTOGRAPHY
Jo Michaelides, Harris Kyprianou 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
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BUSINESS BRIEFING
TOURISM TO
S CYPRU
“A NEW CYPRUS IN 2016”
2015 A GOOD YEAR FOR TOURISM FO
Cyprus witne witnessed record tourist arrivals during the summer sum months of 2015, while November saw sa 32.7% increase over the previous year, due mainly to more visitors from Britain and Russia. Numbers of tourists from Greece, Poland, Switzerland, France and Austria also a rose. The year was also successful as a regards tourism revenue.
In a New Year article published d in the local press, President Nicos Anastasiades wrote that if all sides Z\WWVY[ [OL LɈVY[ LZWLJPHSS` ;\YRL` ¸>L JHU [HSR ;\YRL` ¸>L JHU [HSR g in 2016”. He deabout a new Cyprus emerging nd Turkish Cypriot scribed the solution that he and JYLH[L HZ ¸H MLKLYHS SLHKLY 4\Z[HMH (RPUJP ^HU[ [V JYLH[L HZ ¸H MLKLYHS L PUZ[P[\[PVUZ [OH[ ^PSS Z[H[L ^P[O OLHS[O` HUK LɈLJ[P]L PUZ[P[\[PVUZ [OH[ ^PSS osperous country with ensure a secure future in a prosperous [OH[ ^PSS IL ¸[OL H ,\YVWLHU PKLU[P[`¹ HUK ZHPK [OH[ ^PSS IL ¸[OL key year for the decisions that will determine our future.”
N AVIATIO
ENTERTAINMENT
Cyprus was named the least expensive of 10 favourite winter sun destiUH[PVUZ PU [OL <2»Z SH[LZ[ 7VZ[ 6ɉJL Z\Y]L` with 7 nights in Paphos and air fare costing £239 per head. UK visitors are also benLÄ[PUN MYVT [OL MHSS PU [OL ]HS\L VM [OL L\YV against the pound sterling.
Cobalt Air to operate soon
A
ustralian-backed Cobalt Air is in the final stages of obtaining authorisation to set up as a locally based airline. According to CEO Andrew Pyne, the airline aspires to fill the void left by the closure of Cyprus Airways and also to enhance Cyprus’ image as an all-year-round destination and a regional air base. “For us, Cyprus is our home, not just another base,” Pyne said. “Our job is to promote Cyprus as a travel destination and a transit centre.”
Emirrat marks its Emirates 30th h yyear
E
mirates, the world’s largest international airline, concluded another year of growth in 2015, having carried over 51.3 mil million passengers, or 9% more than the previous year. During its 30th year of operations, Emirates added 26 new aircraft to its fleet and expanded its network to 150 destinations in 2015. In March, a report by Frontier Economics estimated that Emirates contributed €6.8 billion to the economies of European Union counun tries in 2013 and 2014, supporting more tthan 85,000 jobs.
8 | GOLD | The Business Magazine of Cyprus prus
CYPRUS IS BEST-VALUE WINTER DESTINATION
EIGHT BIDDERS
FOR CYPRUS CASINO RESORT ;OL ÄYZ[ ZLSLJ[PVU WOHZL MVY [OL
SPJLUZPUN VM H JHZPUV YLZVY[ PU *`WY\Z OHZ ILLU JVTWSL[LK HUK LPNO[ WHY[PLZ YLTHPU PU [OL MYHTL MVY I\PSKPUN HUK VWLYH[PUN [OL T\S[P TPSSPVU WYVQLJ[ ;OL LPNO[ IPKKLYZ HYL [OL (TLYPJHU NYV\W /HYK 9VJR [OL 7OPSPWWPULZ YLNPZ[LYLK )SVVTILYY` [OL (ZPHU NYV\W 5HNH [OL -YLUJO JVUZVY[P\T VM )V\`N\LZ (JJVY HUK 3\JPLU )HYYPuYL [OL 9\ZZPHU JVTWHU` (IZVS\[L [OL -YLUJO 7HY[V\JOL .YV\W [OL (TLYPJHU JVTWHU` 2HYSV\[ZVZ 4HR HUK [OL :V\[O (MYPJHU JVTWHU` :\U 0U[LYUH[PVUHS ;OYLL JHUKPKH[LZ ^PSS IL ZLSLJ[LK [V [HRL WHY[ PU [OL UK WOHZL VM [OL L]HS\H[PVU WYVJLZZ K\YPUN ^OPJO [OL` ^PSS IL HZRLK [V Z\ITP[ H KL[HPSLK HUK JVTWYLOLUZP]L WYVWVZHS KL[H MVY [OL WYVQLJ[ MVY [OL WYVQ
INCREASE IN WEDDING TOURISM
Around 8,000 couples from abroad chose Cyprus as their wedding destination last year, with the number steadily climbing, according to the Cyprus Tourism Organisation (CTO). Currently, around half of the couples HYL )YP[PZO (JJVYKPUN [V ();( VUL PU Ä]L UK weddings now takes place abroad with Cyprus attracting some of the biggest.
PAPHOS MARINA TO GO AHEAD
The development of the Paphos Marina, which looks ready to go ahead after the settlement of a protracted court case, will accommodate more than 1,000 yachts and is expected to attract more and new visitors to Paphos from neighbouring countries. The marina will be built in the area between Kissonerga and Peyia.
NEW TO CYPRUS
HARD ROCK CAFE
CIGAR LOUNGE
CIAO STELIO HOTEL
he legendary Hard Rock Cafe is due to open in Ayia Napa, through a franchise with Karmia Enterprises Ltd., the company associated with TGI Fridays in Cyprus. The location has already been selected (opposite the monastery of Ayia Napa) and work has already started on the building, which consists of three floors and covers an area of 600 m2. The typical decoration of the franchise will be adjusted to the local heritage and culture and Hard Rock Cafe Ayia Napa will open this summer. Hard Rock International is one of the world’s most globally recognized brands and it is known for its collectible fashion and music-related merchandise, dining experience and Hard Rock Live performance venues.
K Luxury Group celebrated the opening of the Cigar Lounge at Limassol Marina last month. Elegant and adorned with sophisticated décor, the lounge is expressly designed to be a tranquil sanctuary, where cigars and quiet conversation can be enjoyed by visitors. Hardwood floors, luxury seating, a stateof-the-art ventilation system and soothing colours are just a few of the refined features. Premium cigar brands on offer include Cohiba, Montecristo, Partagas, Trinidad, Romeo Y Julieta and Davidoff. A range of wines and spirits is also displayed on the second floor. The Cigar Lounge joins the EK Luxury Group’s other stores at Limassol Marina: Graff jewellery, Halcyon Gallery, Zilli fine garments for men and Shiraz carpets.
ocated in the McKenzie beach area of Larnaca, Ciao Stelio is a luxury boutique hotel combining the exclusivity of a private house with all the comforts of a 5 star establishment. Part of HotelREZ Hotels & Resorts latest addition in Cyprus, Ciao Stelio has 52 adults-only guestrooms, each beautifully decorated with silks and brocades, marble shower rooms and exceptional furnishings. Free highspeed Wi-Fi, complimentary bathrobes and slippers, bespoke luxury toiletries, large plasma TVs with a variety of free satellite channels, a fully stocked mini-bar and complimentary coffee and tea facilities, are some of the luxury amenities on offer. Higher room categories include a jacuzzi, large balcony with sea views, complimentary fruits and wine, and an express check-in service.
T RGY ENE
ENI-KOGAS LICENCE RENEWED
O
n 28 December 2015, the Council of 4PUPZ[LYZ YH[PÄLK H two-year extension of the Italian/South Korean consortium Eni-KOGAS’ licence to explore for hydrocarbons In Cyprus’ exclusive economic zone (EEZ). Energy Minister Yiorgos Lakkotrypis said that the extension until February 2018 will enable th consortium to re-evaluate the potential in Blocks 2, 3 and 9 of the Cyprus EEZ, following the discovery of huge reserves in the neighbouring Egyptian zone. Based on a preliminary plan submitted to the Government last year, a new round of drilling is expected to begin in mid-2017.
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Cyprus solution on Guardian 2016 global predictions list
POLITICS
Solving the Cyprus Problem has been included in The Guardian’s list of global predictions for 2016. The UK newspaper wrote: “It’s been dubbed a graveyard for peacemakers, the Rubik’s ik’ Cube of diplomacy, but despite the odds Cyprus may well defy naysayers in 2016 by solving its decades-long division.” It noted that Greek and Turkish Cypriots alike regard the year ahead as the last best chance to end the ethnic divide. According to The Guardian, it is the stance of Turkey that gives the biggest hope. “A confluence of events – ranging from Ankara’s recent run-in with Russia to the re-energising of its EU accession process – has put the need for a Cyprus settlement centre stage. A solution would afford Turkey a badly needed foreign policy success, allow it to diversify its energy supplies – with the island’s subsequent transformation into a regional transport hub for oil and gas reserves – and boost its chances of joining the EU. It would also free up Turkish funds: the island’s breakaway north is utterly dependent on Turkey bankrolling it,” the paper reports. www.goldnews.com.cy | GOLD | 9
BUSINESS BRIEFING
FACTS & FIGURES Car Registrations Up
Vehicle registrations YLJVYKLK H ZPNUPÄJHU[ increase in JanuaryNovember 2015 compared to 2014, according to the SH[LZ[ ÄN\YLZ YLSLHZLK I` the Statistical Service of Cyprus. The total number of registrations of motor vehicles increased by 13.6% to 23,598 from 20,775 in the corresponding period of 2014.
Deposits and Loans Down
Total deposits in banks in Cyprus in November 2015 fell by €67.9 million, compared with a net increase of €287.9 million in October 2015, according to data from the Central Bank of Cyprus. Total loans for the same month also fell by €493.2 million, compared with €106.2 million in October 2015. Outstanding loans increased by €2.1 billion to €63.2 billion.
PRIVATISATION
Cyprus has second biggest foreign population in EU
After Luxembourg, Cyprus has the highest number of foreign nationals living on the island as a percentage of population than any other EU member state, according to a new Eurostat report. From a population of 858,000, some 80% have Cypriot citizenship. The remaining 20% are foreign nationals, either from other EU countries or third countries.
The Government and its international lenders recently reached agreement on the future of the Electricity Authority of Cyprus (EAC), which removed the semi-government organisation from the list of those due to be privatised. The agreement provides, nonetheless, for the legal unbundling of the Authority into two separate companies, one of which will be responsible for the transmission and distribution networks and the other for electricity generation and supply. The EAC employees’ unions, which had fought privatisation from the outset, have threatened action to prevent the division of the Authority’s operations, including strikes. 10 | GOLD | The Business Magazine of Cyprus
President Nicos Anastasiades and the Turkish Cypriot leader Mustafa Akinci have said the cost of a solution has been estimated at €25-€30 billion. They told CNN Turk that the cost of a settlement is a major problem but one that they believe can be solved. The estimated cost is almost twice the current €17.5 billion annual GDP of the Republic.
Cyprus has welcomed the appointment of a new Director, Michael Heger, subject to approval by the European Central Bank. Once approved, Heger will also participate as a member of the Human Resources & Remuneration Committee. Heger, who is the General Manager, Finance and Investment of S.I.F. International S.A., Luxembourg, has extensive financial and banking experience, having held a variety of executive positions with the UniCredit Bank Austria Group.
REGINOS TSANOS Reginos Tsanos, CEO of Lavar
Shipping, has been elected as President of the Cyprus Shipping Association (CSA), one of the most important and prestigious organisations in the Cyprus shipping industry. The CSA is the official body representing the profession in Cyprus. Tsanos, who will serve a two-year term said, “I look forward to working with my colleagues on the board to help overcome the major challenges for our profession and take the right steps forward”.
Record tourist numbers from Israel
Close to 100,000 tourists from Israel visited Cyprus in 2015, making it a record year, the Cyprus Hotel Association (CHA) announced in December. The */( ZHPK PUJYLHZLK LɈVY[Z to promote Cyprus in the Israeli market are responsible for the increased number of visitors tourists from the neighbouring country.
AWAR DS
PEOPLE
MICHAEL HEGER The Board of Directors of the Bank of
CHANGE OF PLAN FOR EAC
€25-€30 billion Cyprus solution
Columbia Shipmanagement
Limassol-based Columbia Shipmanagement was honoured with the ‘President’s Award’ at this year’s BIMCO Annual Conference and Awards Dinner. The award is presented and chosen by the Baltic and International Maritime Council (BIMCO) President Philippe Louis-Dreyfus, in honour of an individual or company which has made a significant contribution to shipping and the maritime industry. Louis-Dreyfus gave the award to Columbia Shipmanagement for its outstanding work in rescue operations involving migrant boats in the Mediterranean.
ForexTime
ForexTime (FXTM) was named Best Investor Training Institution by cnforex.com, the leading source of real-time financial news in China, in December. It was FXTM’s second award from cnforex.com in 2015, having already been named Most Promising Forex Broker in China. “Being recognized for our efforts to provide the best possible trading services by cnforex.com is a huge accolade as cnforex.com commands respect both in the Forex industry and all over Asia,” FXTM representatives noted.
BUSINESS BRIEFING
EDUCATION CYPRUS AND QATAR TO STRENGTHEN COOPERATION During an ofďŹ cial visit to Qatar, Education & Culture Minister Costas Kadis spoke about the development of
MUSIC
an education cooperation programme between Cyprus and Qatar. Such a programme could signiďŹ cantly facilitate the enhancement of bilateral relations between the countries, he noted. The Cypriot Government hopes to have its higher education institutions recognized by Qatar in the framework of its efforts to become a regional education hub. The Qatari Education Minister, Dr. Mohammed bin Abdul Wahid Al Hammadi, expressed his willingness to promote cooperation between the universities of the two countries in the ďŹ elds of education and research.
Bowieâ&#x20AC;&#x2122;s Cyprus Connection
REAL E ESTAT
D
avid Bowie, who died on January 10, visited Cyprus on more than one occasion in the â&#x20AC;&#x2DC;70s, due to the fact that his first wife Angela (Angie) was born in Nicosia and lived in Cyprus for many years, as her father worked for the Cyprus Mines Corporation (CMC). She met Bowie in London in 1969, and they were married a year later. They divorced in 1980. David and Angie (about whom Mick Jagger is said to have written the eponymous Rolling Stones track) holidayed with members of his band in Kyrenia in July 1972. He visited the island again in 1977, this time with Iggy Pop, the two of them staying at the Hilton Cyprus. His 1979 album Lodger contains the song Move On, which contains the lyrics: â&#x20AC;&#x153;Cyprus is my island / When the goingâ&#x20AC;&#x2122;s rough / I would love to find you / Somewhere in a place like thatâ&#x20AC;?. IN THE NEWS
BLACK FLAMINGO RETURNS A rare black ďŹ&#x201A;amingo thought to be the
only one of its kind in the world has returned to the Akrotiri Salt Lake, within the Western Sovereign Base Area of Cyprus, just under a year after its last visit. Last March, the ďŹ&#x201A;amingo caused a media storm with its whereabouts being published in news all over the world. Pantelis Charilaou, the SBAA Environmental OfďŹ cer, said he was thrilled to see the ďŹ&#x201A;amingo return again this year: â&#x20AC;&#x153;Very few people had ever been fortunate enough to lay eyes on it prior to last year so for it to return again is wonderful.â&#x20AC;? 12 | GOLD | The Business Magazine of Cyprus
PAFILIA BUILDS THE TALLEST SEAFRONT RESIDENTIAL TOWER IN THE MED
One of the largest projects in Europe, and the tallest seafront residential tower in the Mediterranean, is to be constructed in 3PTHZZVS I` 7HĂ&#x201E;SPH +L]LSVWLYZ Construction work on the One WYVQLJ[ PZ K\L [V ^P[OPU TVU[OZ As its name suggests, once completed, the building will be one of H RPUK 6UL ^PSS IL Ă&#x2026;VVYZ HUK TL[YLZ PU OLPNO[ SVJH[LK VU [O 6J[VILY (]LU\L 0[ ^PSS JVU[HPU S\_\Y` HWHY[TLU[Z ^P[O HWHY[TLU[Z WLY Ă&#x2026;VVY PUJS\KPUN ILKYVVT HUK K\WSL_ HWHY[TLU[Z 7HĂ&#x201E;SPH PZ JVVWLYH[PUN ^P[O four international companies â&#x20AC;&#x201C; Atkins, WKK, HBA and BurohapWVSK ,UNPULLYPUN Âś VU [OL WYVQLJ[ AIR IC TRAFF
LIMASSOL MARINA: 95% OF APARTMENTS SOLD
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