GOLD MAGAZINE issue 52 by INBusiness

AWARDS

MAXIM SAFONOV Head of Global Markets, Managing Director, Sberbank CIB

VASSILIS PETRIDES CEO, Laiko Cosmos (Silver Sponsor)

THIERRY NOYER General Manager, Carrefour Cyprus Marinopoulos SA

BJĂ&#x2DC;RN TORE LARSEN Founder, OSM Group

JAFFAR AGHA-JAFFAR Managing Director, Prime Licensing and Group Executive, TSYS

SUNIL KAPOOR Director & General Manager, FML Ship Management Ltd

CHRYSSES DEMETRIADES Partner, Chrysses Demetriades & Co. LLC.

LOUCAS MARANGOS CEO, TFI Markets (Silver Sponsor)

Photo by Jo Michaelides The award winners, sponsors and organisers were photographed at the Presidential Palace.

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PETROS THE FIRST NAME IN PRECISION

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ISSUE 52 JULY 14 - AUGUST 13, 2015

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 10 | EDITORIAL 14 | BUSINESS BRIEFING

Economic & Business Highlights of the past month

18 | MY WAY

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19 | FIVE MINUTES WITHâ&#x20AC;¦ Nikolaos Georgikopoulos

COVER

22 | THEY SAID WHAT?

38 | 4th CIPA

24 | Cyprus Banking System â&#x20AC;&#x201C; The Aftermath

STORY

A selection of memorable recent quotes

International Investment Awards Photos from the event, profiles of the winners, comments from the sponsors

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28 | A Passion for Innovation

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32 | Standing Out from the Crowd

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34 | Taxing Issues

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36 | Ecological Disaster and Reputational

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54 | Taxation of Upstream Oil & Gas Activities )` 6SNH *OLY]PUZRH`H

58 | Donâ&#x20AC;&#x2122;t Panic!

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84 | 15 Years On

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86 | Exciting Times Ahead

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SPECIAL PROMOTIONAL FEATURE 61 | Banking in Cyprus

56 SPECIAL OFFER Subscribe today for just â&#x201A;¬90

OFFER INCLUDES

FREE

ACCESS TO DIGITAL EDITIONS

and get an annual subscription to both Gold & IN Business

Call us on (+357) 22505555

88 | Quorum Needed!

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90 | Overlooked and Unloved 92 | Committed to Excellence

103 | BUSINESS CLASS *OYPZ[VZ 4PJOHLS 4HUHNPUN +PYLJ[VY VM -PYZ[ 5HTLZ .YV\W PU *`WY\Z VU OPZ TVZ[ TLTVYHISL [YH]LS L_WLYPLUJLZ

95 | BOOKSHELF

104 | WHATâ&#x20AC;&#x2122;S ON 6\Y N\PKL [V [OL ILZ[ J\S[\YHS L]LU[Z

96 | IN GOOD COMPANY

106 | A DAY IN THE LIFE )HYIHYH 3PSSPRHZ

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8 | GOLD | The Business Magazine of Cyprus

100 | LUNCH WITH GOLD (]LYVM 5LVWO`[V\ *OHPYTHU VM [OL +LTVJYH[PJ 9HSS` +0:@

Today, the issue is no longer about owning the most data but rather about how to gain the lost insight from it. In short, how to turn data into insights, and insights into real business advantage. Data is everywhere, telling us everything. But do companies really know where to look? The reality is that turning mountains of data into valuable, practical and actionable business analytics is not nearly as straightforward as people believe. Business leaders will also need to focus on ensuring that they can count on the veracity of their data. In fact, we believe that, as more and more unstructured and external data becomes integrated into the organizational analytics, confidence in the accuracy of their data – and the insights gleaned from the data - will help ensure smarter business decisions. KPMG combines deep industry experience, extensive regulatory insight and a business-led view of Data & Analytics to create winning strategies for our clients helping them make the most of their data and create valuable and reliable business insights. Our people have the right Data & Analytics capabilities, approaches and strategies to cut through the complexities our clients are facing. We set ourselves very high standards for delivering the best service to our clients. For more information please contact: George Tziortzis Board Member T: 22 209 336 E: georgetziortzis@kpmg.com Gerasimos Ntouskas Senior Manager T: 22 209 041 E: gntouskas@kpmg.com Visit our website at: www.kpmg.com.cy

©2015 KPMG Limited, a Cyprus limited liability company and member of the KPMG network of independent member ﬁrms afﬁliated with KPMG International Cooperative (”KPMG International”), a Swiss entity. All rights reserved.

Going beyond the data: Achieving actionable business insights with data and analytics

| EDITORIAL |

Fourth Time Around

PUBLISHED BY IMH ISSN 1986 - 3543

MANAGING DIRECTOR

George Michail

hen Gold d magazine was launched more than 4 yyears ago, we approached the Cyprus Investment Promotion Agency (CIPA), which is the official body entrusted with the task of attracting foreign investment to Cyprus, and proposed the creation of an award that would recognize the contribution of foreign companies and investors to the economy. The idea was welcomed by CIPA and since 2012, a total of 36 CIPA International Investment Awards have been presented to companies, organisations and individuals as a tribute and a “thank you” for helping Cyprus gain a reputation for excellence as an International Business Centre. Every year we have hosted the annual CIPA International Investment Awards at the Presidential Palace in Nicosia and devoted our cover story to a presentation of the event and the award winners. This year is no exception, though, as regular readers may have realised, for the past two years this special issue has been published in September. This year we decided to hold the event two months earlier for the simple reason that, after worries about the weather in 2014 (the award ceremony and gala dinner are held outdoors in the Presidential Palace gardens), we thought it safer to organise the awards in July when the likelihood of rain was much smaller. It proved to be the right decision. I am pleased and proud to note that the CIPA International Investment Awards have become established as the most prestigious in Cyprus, with the annual ceremony seen as a genuine celebration of the successful collaboration between Cyprus and those who have demonstrated their confidence in the island and its economy in a tangible manner. You can see and read about the event in our coverage starting on page 38. Another major event in Cyprus during the past month was the inauguration of the Microsoft Innovation Center at European University Cyprus and we have an interview with Don Grantham, President of the Microsoft Central and Eastern European region, who visited the island to attend the ceremony (page 28). Other recent visitors to the island were Michael Izza, CEO of the Institute of Chartered Accountants in England and Wales (ICAEW), who spoke to us about tax issues (page 34), and Ian Cox, the author of the bestseller Disrupt IT, who gave the keynote presentation at last month’s MTN conference entitled Integration of Telecoms with IT: Enabling and Inspiring Growth and spoke to Gold about the themes of his address and his book (page 58). Since many of you will be taking some summer leave, we have recommended more than just business books for some holiday reading (page 96) and recommended a variety of cultural events, ranging from ancient John Vickers, Greek drama to a DJ set by Snoop Dogg. I believe that you will find Chief Editor plenty of interest in this month’s issue and, as always, I look forward to your comments and feedback. john@imhbusiness.com

10 | GOLD | The Business Magazine of Cyprus

GENERAL MANAGER

Daphne Roditou Tang MEDIA MANAGER

Elena Leontiou

EDITOR-IN-CHIEF

John Vickers

JOURNALISTS

Effy Pafitis, Artemis Constantinidou CONTRIBUTORS TO THIS ISSUE

Tonia Antoniou, Olga Chervinskaya, Glen Richards, Savvas Savouri. Special thanks to Bo Concept for the furniture used in this month’s cover photo ART DIRECTION

Anna Theodosiou

SENIOR DESIGNER

Alexia Petrou

PHOTOGRAPHY

Jo Michaelides

MARKETING EXECUTIVE

Kevi Chishios

SALES & BUSINESS DEVELOPMENT EXECUTIVE

Stavros Epifaniou

ADVERTISING EXECUTIVES

Irene Georgiou, Christopher Constantinou 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

SPECIAL PROMOTIONAL FEATURE

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CIM Becomes Full Member of ACU British High Commissioner Ric Todd hosted a cocktail reception at his residence earlier this month to mark the full membership of the Cyprus Institute of Marketing (CIM) to the Association of Commonwealth Universities (ACU). The event was attended by guests from Government and the Education and Business Sectors. The ACU is the worldâ&#x20AC;&#x2122;s first and oldest international university network, promoting and supporting excellence. It has a distinguished reputation for managing prestigious and internationally renowned scholarship schemes.

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WEDDING CEREMONY A total of 66 couples from Israel were married in a mass civil ceremony in Larnaca, with the townâ&#x20AC;&#x2122;s mediaeval castle as a backdrop. The couples, mainly from Israel and Russia, had travelled with friends and relatives on a cruise ship from Haifa to Larnaca. The ceremony was conducted by Deputy Mayor Petros Christodoulou. It was the Ã&#x201E;M[O JVUZLJ\[P]L `LHY PU ^OPJO 3HYUHJH has hosted mass civil weddings, in cooperation with the Larnaca Tourism Development and Promotion Company.

14 | GOLD | The Business Magazine of Cyprus

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THE MARSHALL ISLANDS Corporate Registry

BIRTHDAY TELECOM S

LIMASSOL MARINA Celebrates First Year

imassol Marina, the first – and only – luxury marina development on the island, marked its first year of operations on 19 June, exactly 12 months since President Nicos Anastasiades officially opened it. Since opening its gates to the public, it has been attracting an average of 3,000 visitors daily. One year on, the waterfront development has also delivered its first villas with private berths or direct access to the beach, welcomed some of the world’s most distinguished superyachts, established a thriving community at its spa and fitness club, all while extending its shop offering with world-renowned brands like Graff Diamonds, Halcyon Gallery, Vilebrequin and Shiraz.

ANDREY & JULIA PHILANTHROPY DASHIN’S FOUNDATION DONATION

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CytamobileVodafone Launches Russian Number Service

ytamobile-Vodafone has announced the introduction of a new service entitled Russian Number, which allows both pay monthly and Soeasy customers who receive frequent calls from Russia to obtain a Russian phone number in addition to their existing one. In this way, all phone calls to Russia will be charged local Russian call rates, as opposed to steep international rates for Cyprus.

PostCy Introduces New VPN Packages

ostyCy Data Centre has released a series of new packages offering its premium Virtual Private Networking (VPN) solutions. “In a world where people travel more frequently for a variety of reasons, the age-old concept of completing work from a home or office computer device is now invalid,” PostCy explained. PostCy’s solution offers an uninterrupted VPN service, while the company is manned by a strong team of technicians dedicated to the resolution of any unexpected technical errors, thus ensuring a smoother VPN experience.

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New EU-style Driving Licences

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16 | GOLD | The Business Magazine of Cyprus

AWARD S

LOIS Builders 3LHKPUN *`WY\Z KL]LSVWTLU[ Ã&#x201E;YT 360: )\PSKLYZ OHZ ILLU OVUV\YLK ^P[O [OL ,TWSV`LY ,X\HSP[` H^HYK I` [OL *`WY\Z 4PUPZ[Y` VM 3HIV\Y 7YLZLU[ LK [V [OL Ã&#x201E;YT H[ HU VÉ&#x2030;JPHS H^HYKZ JLYL TVU` PU [OL JVU[L_[ VM [OL 4PUPZ[Y`Â»Z VIQLJ[P]L VM YLK\J PUN [OL YLT\ULYH[PVU NHW IL[^LLU TLU HUK ^VTLU [OL H^HYK THRLZ 360: )\PSKLYZ VUL VM Q\Z[ [^V I\PSKPUN JVU[YHJ[VYZ VU [OL PZSHUK [V OH]L ILLU YLJVNUPaLK MVY NLU KLY LX\HSP[` 360: PTWSLTLU[Z HU PU[L NYH[LK HJ[PVU WSHU [V WYVTV[L NLUKLY LX\HSP[` H[ HSS SL]LSZ HUK VWLYH[PVUZ

HOTEL S& TOURIS M

APHRODITE HILLS

LAUNCHES NEW JEWELLERY BOUTIQUE Luxury five-star resort Aphrodite Hills has launched a new addition to its retail offering, in the form of the new Orchid Jewellery boutique located in the Village Square. The boutique stocks a variety of beautiful pieces of jewellery, including those by the renowned Pandora brand.

OLYMPIC LAGOON RESORT

PAPHOS OPENS MOT ORIN G

Kanika Hotels has officially launched the Olympic Lagoon Resort Paphos, only the second of its kind in Cyprus, after the Olympic Lagoon Resort in Agia Napa which opened in 2010. The new hotel is located in a prime beachfront area of Paphos, with panoramic views of the Mediterranean across to the fishing harbour and the mediaeval fort. The Premium All-Inclusive package includes an unprecedented variety of gastronomic options in 5 different restaurants serving international, local, all-American and Japanese cuisine, as well as snacks with an Italian twist. Five indoor and outdoor bars offer liquid refreshment.

BANKIN G

EBRD & Eurobank Sign â&#x201A;Ź20 million Agreement

n 1 July, the European Bank for Reconstruction and Development (EBRD) signed a â&#x201A;Ź20 million trade facility agreement with Eurobank Cyprus, under the EBRDâ&#x20AC;&#x2122;s Trade Facilitation Programme (TFP), aiming at supporting the expansion of international trade in Cy-

prus. Through the facility, the EBRD will issue guarantees in favour of international commercial banks, covering the political and commercial payment risk of the transactions undertaken by Eurobank Cyprus. In addition, Eurobank Cyprus will also benefit from the EBRDâ&#x20AC;&#x2122;s award winning technical cooperation projects in trade finance. The agreement was signed by the head of the Cyprus office of the EBRD Libor Krkoska and CEO of Eurobank Cyprus Michalis Louis.

Our local knowledge, your global advantage Jordans Trust Company H 7.031J -j#01 #1.-)# BVI and Seychelles services, including shelf companies. *-1# *',)1 5'2& -30 -k!#1 in these locations enables us to provide relevant, local knowledge giving our clients the advantage.

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Astrophysics World Conference

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Going Down

40,876

Contact our Nicosia -k!# 2-" 7; T +357 22 767 294 E info@jordans.com.cy

THE NUMBER OF REGISTERED UNEMPLOYED IN CYPRUS IN MAY 2015 WAS 40,876, DOWN BY 9.1% ON THE FIGURE FOR THE SAME MONTH IN 2014. ACCORDING TO THE STATISTICAL SERVICE, THE FALL IS MAINLY DUE TO RECRUITMENT IN THE CONSTRUCTION, FINANCIAL, TRADE AND MANUFACTURING SECTORS.

www.jordanstrustcompany.com www.goldnews.com.cy | GOLD | 17

MY WAY

Ghada Shami

'LVMWXSÁHIW

Manager, IBL BANK SAL

EFFECTIVE CORPORATE LEADERSHIP IS INSTRUMENTAL IN THE SMOOTH OPERATION, DEVELOPMENT AND PROFITABILITY OF ANY ORGANISATION AND, AS SUCH, EXECUTIVE MANAGERS ARE KNOWN TO CAREFULLY CONTEMPLATE THEIR LEADERSHIP TECHNIQUES. THIS IS CERTAINLY TRUE OF GHADA SHAMI CHRISTOFIDES, MANAGER AT IBL BANK SAL, WHO REVEALS THAT THE ABILITY TO ADAPT TO UNIQUE CIRCUMSTANCES IS – IN HER OPINION – AMONG THE KEY FACTORS WHICH ENSURE MANAGEMENT SUCCESS.

“I

don’t have a specific leadership style, but have been fortunate to work under a number of managers with different styles – this has enabled me to pick and choose. A lot depends on the people I am working with and the specific situation. I can be very democratic, involving everybody in the decision-making, but I can also be authoritative, when that is, in my opinion, necessary to ensure the best results.

“I

would describe my management style as fair; I try to lead by example. I also like to teach and share my knowledge with others. This enables me to delegate responsibilities to able persons who can work independently. Of course, I offer guidance and will accept responsibility, in case anything goes wrong. I believe in ‘the carrot and the stick’ approach with much more weight given to ‘the carrot’! I encourage other members of my team to participate in decision-making and try to share as much information with them as I possibly can. I listen to them, and encourage them, by putting suggestions into action. The biggest and most frequent mistake that managers make is trying to do everything themselves and trying to please everyone!”

“N

“I

have achieved a healthy balance between life at work and at home, but it took a lot of imbalance – focusing on my career at the expense of my family life – before I could reach where I am now. One thing I have learnt to do is leave work behind when I go home, and vice-versa. I enjoy my work and could stay at the office all day and sometimes through the night to achieve the best results, but I stop myself from doing so in order to be with my family… and myself.”

“T

he object of my professional admiration is my ex-boss at BNP Paribas. Thierry Gigant was slightly younger than me, very smart and with an enormous amount of positive energy. He worked very hard but also enjoyed life to the maximum. He was very professional but also very modest and great fun to be around.”

othing relaxes me more than a good massage… especially after a sauna. I also enjoy my weekend afternoon naps, and find music and yoga - when I get the chance to exercise - very relaxing. My favourite pastimes include reading, walking, swimming, and skiing. I am keen on social media as it keeps me in touch with my family and so many friends in Cyprus and abroad. I like singing but my greatest passion is dancing. No outing is good enough for me if I don’t get the chance to dance!”

18 | GOLD | The Business Magazine of Cyprus

Ghada Shami 'LVMWXSÁHIW WXYHMIH Business Administration at the American University of Beirut. For more than 20 years she was the Director, Cyprus Market of BNP Paribas and since January 2012 she has been Branch Manager of IBL Bank SAL.

FIVE

MINUTES WITH

Has

Cyprus finally found a new economic model for growth? Cyprus’ previous model was based on the services sector but the crisis showed that the size of the banking sector had grown far beyond the capacity of the real economy to underwrite it. The new business model that Cyprus is gradually starting to adopt should not depend on services and imports, but on traditional sectors such as tourism, domestic production, the utilisation of resources and exports. That said, the services sector has actually proven more resilient than expected, with law and audit & accounting firms surviving the banking sector shrinkage while new banks have emerged to provide services that were reduced when the major CY banks underwent resolution and/or recapitalisation. How are the banking system and financial industry doing now? In 2012, withdrawals from Cypriot banks were such that the banks were threatened with insolvency. In spring 2013, Cyprus had to impose capital controls, yet they were not as disruptive as many had feared and the banking system is recovering well from the crisis. Major banks, such as Bank of Cyprus, which returned to profitability after two consecutive years of significant losses, appear to have been stabilised. Bank of Cyprus was recapitalised with €1 billion of new capital from international investors, including Wilbur Ross, which was a huge vote of confidence. Hellenic Bank also received fresh capital from foreign investors, while the Cooperative Central Bank passed the ECB’s stress tests without having

NIKOLAOS GEORGIKOPOULOS

to draw on the €1 billion credit line offered by the Troika. The last remaining problem concerns the high level of non-performing loans, which has to be tackled urgently. Has Cyprus recovered from the crisis? It is still premature to determine whether Cyprus has fully recovered. Across the island, there are shops which once sold luxury brands but now have almost no

Visiting Research Professor at New York University Stern School of Business & Senior Research Fellow in Financial Economics at the Centre of Planning and Economic Research, Athens

customers. Nevertheless, most companies have managed to survive thanks to the fact that they have developed associations with associates abroad who support them and their clients. The mutual trust established with foreign suppliers before the crisis was crucial for Cyprus to start

the recovery process without suffering any major impact. These well-connected companies, which have survived the crisis, are the same ones that will play a major role in bringing the country back to full prosperity. Has the lifting of capital controls supported the recovery? No doubt about it! The last controls were lifted on 6 April 2015, basically signallin nalling the restoration of confidence in the banking b system. This and the return to normality no are correlated to improvements in the business climate as seen in ment servi services confidence indicators. However, the lifting of capital controls alone w will not lead to economic growth; tthe Government needs to implement policies that will encourage a faster economic recovery, a sharper decline in unemployment, and a m more rapid turnaround in the stock m market. More consistent macro-economic policies and an adequately capno italiz italized and regulated financial system are essential. es What role will the oil & gas industry Wha play in this new model? Cyprus has unparalleled opportunities to exploit its oil and gas reserves in order to establish itself as a regional hub. The prospects for investment and knowhow in the region are enormous. Most importantly, hydrocarbons extraction requires infrastructure and companies that specialise in energy resource development, innovative technologies and consulting. It offers Cypriots an opportunity to gain industry intelligence in the emerging new offshore oil & gas market and to sign contacts with foreign corporations with expertise in this field. www.goldnews.com.cy | GOLD | 19

SPECIAL PROMOTIONAL FEATURE

COSTAS TSIRIDES & CO. LLC

ostas Tsirides & Co. LLC was founded in 1970 and, since then, has become established as one of the most reputable and YLZWLJ[LK SH^ ÄYTZ PU *`WY\Z ;OL ÄYT ZWLJPHSPZLZ PU JP]PS JVTTLYcial and cross-border litigation, among other areas. Managing Director Alexandros ;ZPYPKLZ OHZ ILLU HJ[P]L PU [OL HYLH VM JP]PS HUK JVTTLYJPHS SH^ MVY TVYL [OHU `LHYZ He is a member of the *`WY\Z )HY (ZZVJPH[PVU According to Mr. Tsirides, [OL \ZL VM *`WYPV[ JVTpanies in international business structures HUK [OL JV\U[Y`»Z YLSPHISL SLNHS Z`Z[LT THRL *`WY\Z HU H[[YHJ[P]L WSHJL to litigate. Mr Tsirides is perZVUHSS` ZLLPUN HU PUJYLHZL PU commercial and cross-border SP[PNH[PVU PU *`WY\Z 6UL VM V\Y WYPTHY` [HYNL[Z HUK JVUJLYUZ in dealing with clients has been to respect their ILZWVRL ULLKZ VɈLYPUN H WLYZVUHSPZLK ZLY]PJL [OH[ PZ [HPSVYLK [V [OLPY ZWLJPÄJ JPYJ\TZ[HUJLZ 4VYLV]LY [OL ÄYT PZ JVTTP[[LK [V OHUKSPUN LHJO JHZL ^P[O YLZWLJ[ HUK KPZJYL[PVU HPTPUN [V KL]LSVW H WLYZVUHS YLSH[PVUZOPW ^P[O JSPLU[Z IHZLK VU T\[\HS [Y\Z[ ;OPZ WOPSVZVWO` OHZ HS^H`Z OLSWLK \Z VɈLY V\Y L_WLY[PZL I` \UKLYZ[HUKPUN [OL [Y\L ULLKZ VM V\Y JSPLU[Z HUK ^L WYPKL V\YZLS]LZ VU [OL MHJ[ [OH[ LHJO JSPLU[ WYP]H[L VY JVTTLYJPHS PUKP-

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ARBITRATION

COSTAS TSIRIDES & CO LLC PZ PU H WVZP[PVU [V WYV]PKL P[Z JSPLU[Z ^P[O ZLY]PJLZ PU [OL Ã&#x201E;LSK VM HYIP[YH[PVU HZ YLX\PYLK 4LTILYZ VM [OL Ã&#x201E;YT OH]L Z\IZ[HU[PHS L_WLYPLUJL in arbitral proceedings of commercial disputes, acting IV[O HZ JV\UZLS HUK HYIP[YH[VYZ >L OH]L H IYVHK L_WLYPLUJL PU H ]HYPL[` VM JVTTLYJPHS HYLHZ HUK JHZLZ PU]VS]ing disputes ranging from breach of contract to fraud and IYLHJO VM Ã&#x201E;K\JPHY` K\[` ;OL Ã&#x201E;YT OHZ L_WLYPLUJL PU HK]PZPUN JSPLU[Z VU HSS HZWLJ[Z

of arbitration law and proceedings, from the drafting of [OL ULJLZZHY` HYIP[YH[PVU HNYLLTLU[Z [V YLMLYYPUN KPZputes to arbitration, the hearing of the matter in dispute and dealing with the enforcement of arbitral awards, both local and foreign. 4LTILYZ VM [OL Ã&#x201E;YT OH]L ILLU HWWVPU[LK HZ TLTILYZ of the Chartered Institute of Arbitrators. Costas Tsirides & Co. LLC is also one of the leading law Ã&#x201E;YTZ PU *`WY\Z ^P[O H ]HZ[ L_WLYPLUJL VM 9LHS ,Z[H[L HUK 7YVWLY[` 3H^ VÉ&#x2C6;LYPUN H ^PKL YHUNL VM ZLY]PJLZ 6\Y Ã&#x201E;YT HSZV WYV]PKLZ [OL M\SS YHUNL VM JVUZ[Y\J[PVU SH^ HK]PJL HUK HZZPZ[HUJL ;OL Ã&#x201E;YT PZ H TLTILY VM ) . 0 H ^VYSK^PKL HZZVJPH[PVU VM PUKLWLUKLU[ SH^ Ã&#x201E;YTZ www.bgi-law.com).

AWARDS

Costas Tsirides & Co. LLC has received the following awards: â&#x20AC;¢ )\ZPULZZ -VYTH[PVU 3H^ -PYT VM [OL @LHY PU *`WY\Z (^HYK *VYWVYH[L 05;3 SLNHS H^HYKZ â&#x20AC;¢ )V\[PX\L 3H^ -PYT VM [OL `LHY PU *`WY\Z (^HYK *VYWVYH[L 05;3 .SVIHS H^HYKZ â&#x20AC;¢ 3P[PNH[PVU 3H^ -PYT VM [OL `LHY PU *`WY\Z *VYWVYH[L 05;3 SLNHS H^HYKZ â&#x20AC;¢ )\ZPULZZ -VYTH[PVU 3H^ -PYT VM [OL @LHY PU *`WY\Z (^HYK .SVIHS 3H^ ,_WLY[Z 7YHJ[PJL (^HYKZ â&#x20AC;¢ )\ZPULZZ -VYTH[PVU 3H^ -PYT VM [OL @LHY PU *`WY\Z (^HYK *VYWVYH[L 05;3 .SVIHS H^HYKZ â&#x20AC;¢ 3P[PNH[PVU 3H^ -PYT VM [OL `LHY PU *`WY\Z H^HYK *VYWVYH[L 05;3 3LNHS (^HYKZ à ® .SVIHS 3H^ ,_WLY[Z )\ZPULZZ -VYTH[PVU 3H^ -PYT VM [OL @LHY PU *`WY\Z à ® .SVIHS 3H^ ,_WLY[Z 3P[PNH[PVU 3H^ -PYT VM [OL @LHY PU *`WY\Z

ALEXANDROS TSIRIDES, MANAGING DIRECTOR Tel: c e-mail: HSL_HUKYVZ'[ZPYPKLZ JVT c Website: www.tsirides.com

QUOTES OF THE MONTH

They Said What? Some of the more interesting utterances made by well-known Cypriots over of the past month.

â&#x20AC;&#x153;THIS YEAR BOTH THE CANDIDATES AND THEIR PARENTS ARE CRYING. THE RESULTS JUSTIFY THE TEACHERSâ&#x20AC;&#x2122; CRITICISM OF THE GREEK EXAM.â&#x20AC;?

RIKKOS EROTOKRITOU

â&#x20AC;&#x153;WITH ALL HONESTY, I EXTEND TO THE ATTORNEY GENERAL AND HIS WIFE... MY SINCERE APOLOGY FOR THE PAIN I HAVE CAUSED, FOR EVERYTHING I SAID UNDER THE WEIGHT OF UNBEARABLE BITTERNESS, ANGER, PANIC AND CONFUSION.â&#x20AC;?

According to Demetris Taliadoros, President of the WHDFKHUVÂˇ XQLRQ 2(/0(. WKH fact that the average mark for WKH *UHHN SDSHU LQ WKLV \HDUÂˇV university entrance exams was 7.97 out of 20 was all GXH WR D GLIĂ&#x20AC;FXOW HVVD\ WRSLF Last year, when the essay was much easier, the average mark was an impressive 9.14.

22 | GOLD | The Business Magazine of Cyprus

IRENE CHARALAMBIDOU

GEORGE PERDIKIS

:KDW FRXOG *HRUJH 3HUGLNLV WKH *UHHQVÂˇ RQO\ 03 possibly be describing? A proposal by ruling DISY to split the government grant to political parties according WR HDFK SDUW\ÂˇV VKDUH RI WKH SRSXODU YRWH *XHVV ZKLFK SDUW\ ZLOO EHQHĂ&#x20AC;W OHDVW IURP WKLV

â&#x20AC;&#x153;IT IS HUMILIATING FOR DOCTORS TO STAND IN A CUE WITH OTHER WORKERS.â&#x20AC;?

NICOSIA GENERAL HOSPITAL

AKEL MP Irene Charalambidou, after DISY MP Andreas Kyprianou tried to take a photo up her skirt, in retaliation for her threat to photograph him smoking in parliament, where it is banned.

â&#x20AC;&#x153;IT IS AN ACT OF POLITICAL IMMORALITY AND BARBARIC RETRIBUTION.â&#x20AC;?

Deputy Attorney-General Rikkos Erotokritou to the Supreme Court, which is considering a request for his dismissal for conduct XQEHFRPLQJ Ă&#x20AC;OHG E\ KLV ERVV

Maro Kontou, leader of the JRYHUQPHQW GRFWRUVÂˇ XQLRQ PASYKI, explains why her PHPEHUV GRQÂˇW ZDQW WR FORFN in for work.

â&#x20AC;&#x153;AN ASSAULT AGAINST A WOMAN, AIMING TO DEGRADE HER AND HUMILIATE HER, IS A CRIME, REGARDLESS OF WHO THE PERPETRATOR IS.â&#x20AC;?

DEMETRIS ETRIS CHRISTOFIAS

â&#x20AC;&#x153;PEOPLE HAVE ALREADY BEGUN TO MISS ME.â&#x20AC;? Who would have thought that former President Demetris &KULVWRĂ&#x20AC;DV ZDV D -RQL 0LWFKHOO fan? Kellaki village echoes WRS KHU IDPRXV O\ULF Â´'RQÂˇW LW always seem to go/That you GRQÂˇW NQRZ ZKDW \RXÂˇYH JRW WLOO LWÂˇV JRQHÂľ

â&#x20AC;&#x153;THIS GIFT IS A TOKEN OF APPRECIATION FOR YOUR TIRELESS AND HEROIC EFFORTS TO MAINTAIN AND SAFEGUARD THE HONOUR AND DIGNITY OF THE GREEK PEOPLE WHICH OUR POWERFUL, DISGUSTING PARTNERS ARE MOCKING SO MUCHâ&#x20AC;Ś DAMN THEM.â&#x20AC;? Extract from a letter sent by an 88-year-old Limassol PDQ 2QRXIULRV 0LFKDHOLGHV WR *UHHN 3ULPH 0LQLVWHU Alexis Tsipras, together with his monthly pension cheque of â&#x201A;Ź505 to help the country during the crisis.

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Opinion

CYPRUS BANKING SYSTEM THE AFTERMATH HARD WORK AND DETERMINATION HAVE RESTORED CONFIDENCE.

By Tonia Antoniou

he Cyprus bankinvestment banking, retail banking sector found ing, syndicated loans, custodian itself on the front services and more. line in March The restructuring of the Cyprus 2013 when the banking sector has brought Eurogroup and the many changes to the banking Government signed an agreement regulations and procedures. for the provision of €10 billion The procedures for opening of of financial assistance to Cyprus, a corporate bank account for according to which Cyprus Popular international clients through Bank was absorbed by Bank of Cyinternational business units has prus, bank deposits over €100,000 become more complex with the in Cyprus Popular Bank and some stringent screening of customers, of those in Bank of Cyprus were their transactions and overall used for recapitalisation through a business. “bail-in” of uninsured deposits. LiIt may sometimes seem to us quidity to the Cyprus banking sector professionals and our clients was maintained by the European that Cypriot banks are asking Central Bank. for things over and above of w The aftermath of the “bail-in” and what other EU banks require. the resolution of Cyprus Popular However, this is not the case. Bank left the island’s banking sector We give our clients broad opW shaken and weakened by numerous tions when it comes to setting restrictions imposed on the movement of capital. up bank accounts anywhere in the world and we Info: Tonia Antoniou, a partner of Michael Kyprianou & Co. LLC, heads The last restriction was lifted on 6 April 2015 and have come to the conclusion that the banks in Banking and Finance Department the banks were called upon to defend their deposit the Cyprus still hold a competitive advantage over of the firm’s Limassol office. Contact base from leaving Cyprus. their counterparts elsewhere, thanks to their her on 25363685 or at tonia@ kyprianou.com.cy The Cyprus banking sector comprises domestic faster service and personal interaction with their banks, International Banking Units (IBUs), customers. So long as the professional introCooperative Credit Institutions, authorized foreign credit institu- ducer is approved by the bank and the required due diligence tions and branches of foreign credit institutions from EU Memprocedures and regulations are applied, then the application ber States operating under “European Passport”. Foreign banks should go through smoothly. The more transparency there is from the Middle East, Europe and Asia also operate subsidiaries, in the application, the easier it will be to obtain approval. branches or representative offices in Cyprus. There are a total of Since the events of 2013, Cyprus has returned to internation24 local authorized credit institutions, six subsidiaries of foreign al markets with a stronger and restructured banking sector credit institutions, 26 branches and it has shown remarkable deterof EU and non-EU foreign credand success in rebuilding its BANKS IN CYPRUS STILL mination it institutions and two representbanking system. Recent credit rating HOLD A COMPETITIVE ative offices. upgrades and positive first quarter ADVANTAGE OVER Banks located in Cyprus offer a bank results have marked an end to variety of services ranging from THEIR COUNTERPARTS the prolonged uncertainty that had asset management, private bankcharacterized the banking system for ELSEWHERE ing, international, corporate and two years.

24 | GOLD | The Business Magazine of Cyprus

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KYPRIANO L E U A & H C

LOCATIONS Nicosia Address: 2 Agias Elenis Street, 6th & 7th Floor, 1060 Nicosia, Cyprus. Tel.: +357 22 447777 Fax: +357 22 767880 Email: info@kyprianou.com.cy

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Paphos Address: Michael Kyprianou House, 19 Kinira Street, 8011 Paphos, Cyprus Tel.: +357 26 930800 Fax: +357 26 930808 Email: paphos@kyprianou.com.cy

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Limassol Address: Michael Kyprianou House, 116 Gladstonos Street, 3032 Limassol, Cyprus Tel.: +357 25 363685 Fax: +357 25 363698 Email: limassol@kyprianou.com.cy

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Athens Address: 5 Zalokosta Street, 3rd Floor, Syntagma 10671, Athens, Greece Tel.: +30 210 3387060 Fax: +30 211 7150149 Email: info@kyprianou.gr Thessaloniki Address: 44 Tsimiski Avenue & Karolou Diehl, Thessaloniki 546 23, Greece Tel.: +30 2310 222267 Fax: +30 2310 222269 Email: thessaloniki@kyprianou.gr Birkirkara Address: 115A Valley Road, Level 5, Birkirkara, BKR 9024, Malta Tel.: +356 21 331810 Fax: +356 21 331810 Email: info@kyprianou.com.mt www.kyprianou.com.cy

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State-of-the-Art Facilities for Secure Archive Management and Storage

Kaniklides (Cyprus) Ltd, specialized in the management and storage of archive materials, has made anunprecedented investment of more than â&#x201A;Ź5 million to establish a state-of-the-art, highly secure facility â&#x20AC;&#x201C; with a capacity of more than 4,000 square metres â&#x20AC;&#x201C; offering services to organisations dealing with sensitive personal data and documents, such as financial services companies. The storage centre, located in the Nicosia district, meets the strict standards of the European Union. It is the only facility of its kind to comply with the Fire Security regulations and legislation of the Cyprus Fire Service for archive storage providers. Among other things, the facil26 | GOLD | www.goldnews.com.cy

ity provides 24-hour video surveillance, an Access Control system which offers controlled access to the data room by individuals, a specialized anti-theft system and a smart fire detection system which, in case of fire, locates the heart and activates the extinguishing system at the specific area, leaving the rest of the archive area untouched. The fire detection system operates with carbon dioxide (CO2) and features specialized fire extinguishing technology with 90 tons of water. Regarding the archive storage, Kaniklides has invested in advanced technologies which allow direct access to all stored files. Any archived material can be easily and quickly located thanks to the digital location detectors and trackers, operating with barcodes. The Company also provides a modern box sealing system, a process which takes place in the presence of

the customers. All the archival material stored in the Kaniklides storage centre is digitalized, which allows customers to directly access their files through their personal computers. Referring to this important investment, the General Manager of Kaniklides, Andreas Georgiou, stated: â&#x20AC;&#x153;We respect the needs of our clients as well as the strict European guidelines concerning the important safety standards for storage facilities and the management of sensitive files, especially for financial services organisations. This is the reason why we have proceeded with a massive investment for the establishment of these facilities. No expense can be spared against the huge responsibility for the protection of such archived materials. With the fire detection system that we have installed, we ensure the best possible protection of the archived material from possible dangers and thus the protection of our client-companies from the consequences of a possible loss of their archive.â&#x20AC;?

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| TECHNOLOGY | DON GRANTHAM, PRESIDENT OF THE MICROSOFT CENTRAL AND EASTERN EUROPEAN REGION

A Passion for Innovation DON GRANTHAM, PRESIDENT OF THE MICROSOFT CENTRAL AND EASTERN EUROPEAN REGION, OVERSEES MICROSOFT’S OPERATIONS IN 16 SUBSIDIARIES, SERVICING 33 COUNTRIES AND EMPLOYING OVER 3,000 PEOPLE. HE IS RESPONSIBLE FOR ENSURING A POSITIVE EXPERIENCE FOR MICROSOFT CUSTOMERS AND PARTNERS IN THE REGION AND ENGAGES WITH GOVERNMENT LEADERS, BUSINESS MAKERS AND COMMUNITY REPRESENTATIVES THROUGHOUT THE REGION. HE WAS IN CYPRUS LAST MONTH TO ATTEND THE INAUGURATION OF THE MICROSOFT INNOVATION CENTER AT EUROPEAN UNIVERSITY CYPRUS, AND HE SPOKE TO GOLD ABOUT THE PROJECT, THE WAY THAT CLOUD COMPUTING IS TRANSFORMING OUR WORLD, AND HOW MICROSOFT AIMS TO HELP PEOPLE REALIZE THEIR FULL POTENTIAL THROUGH THE POWER OF TECHNOLOGY. By John Vickers

ECOLOGICAL DISASTER AND REPUTATIONAL DAMAGE

28 | GOLD | The Business Magazine of Cyprus

Gold: What was the reason behind your recent – and first – visit to Cyprus? Don Grantham: The main purpose of my visit was the opening of the Microsoft Innovation Center, which will support local entrepreneurs and start-ups, accelerating the creation of new companies and new jobs.

It is a privilege to work for a company with Microsoft’s heritage... I stand in awe of all that we have achieved The timing could not have been better for this visit and I’m delighted that we are supporting the society and economy of Cyprus through investments that boost innovation, especially during the challenging times the country is facing. As part of my visit, I also had the privilege to meet President Anastasiades and many government ministers, in order to identify further areas where we might be able to contribute in the future. In addition, I met with our valued partners and customers to catch up and discuss their evolving needs and priorities. Gold: What is the expected outcome of the Microsoft Innovation Center in Cyprus? D.G.: The Microsoft Innovation Center will play a vital role in fostering innovation, empowering local entrepreneurship and growing a sustainable local technology economy. It will provide targeted training in necessary technology and business skills, to students, young entrepreneurs, professional software developers, IT professionals, and academic researchers. Most importantly, it will act as an incubator for local start-ups, giving them a great head-start for business success. Microsoft Innovation Centers are an initiative we drive as a top-priority. We have already invested in 27 such centres across Central and Eastern Europe, through which we’ve supported nearly 10,000 start-up companies in the region through our BizSpark program, which offers our complete and latest technology solutions at no cost, plus mentoring and training. We see the tangible impact of this investment, with a 50% YoY growth in the number of CEE start-ups joining BizSpark – many of which really take off and become successful companies even at a global level.

Gold: You have been involved in technology from the start of your career and, of course, things were very different when you started. What was the attraction of the sector back then? D.G.: I started at IBM in 1982 and a lot has changed since then, clearly. However, then, as now, I was interested in how technology can be leveraged to help businesses grow and improve our everyday lives. I was also fascinated, as I still am, by the speed at which this sector evolves and transforms. Convinced that technology and its advancement can change people’s lives, I was excited to work in an environment that has such a fundamental impact. Most importantly, though, I was attracted to the dynamic of the industry and its people – technology has always been a draw for talent and I was keen to work with intelligent, creative individuals who had an undying passion for innovation. Gold: When you began your career, could you ever have imagined developments such as Cloud computing and mobile technology? D.G.: It is incredibly difficult to predict the future, especially when it comes to technology, and the amount of disruption in our industry is unmatched by any other sector. The rising dominance of mobile technology and Cloud computing has led to a world where technology is seamlessly integrated into all facets of our lives, causing a major disruption in both the commercial and consumer space. In the ‘80s it was impossible to foresee that one day Cloud computing would offer companies instant scale; or that the rise of Internet-enabled devices – what we call the Internet of Things – would provide such unprecedented opportunities to improve services delivered to customers and help people lead fuller lives. Gold: Among the greatest innovations of the past 30 years we can count the development and spread of Personal Computing and the Internet, two areas in which Microsoft has played an essential and leading role. How does it feel to be part of such an innovative company, one that has literally changed the world? D.G.: It is a privilege to work for a www.goldnews.com.cy | GOLD | 29

| TECHNOLOGY |

company with Microsoft’s heritage. When I look back, I stand in awe of all that we have achieved and contributed to the world of business, and also to economies and citizens around the globe. But, what’s more exciting to me is our future. Our vision has always been to help people realize their full potential, through the power of technology. And today, where smart devices are becoming more affordable and ubiquitous, and the Cloud emerges as the backbone for delivering services and keeping us connected, we are reinventing what it means to be productive, to empower individuals and organisations to achieve ach more. For example, e our Cloud offering is giving even the smallest organisations the ability to instantly scale and dream bigger. Today’s big one-person business can become an international operation overnight. In fact, because of the Cloud, we expect to see the emergence of disruptive new businesses, where great ideas are not held back by traditional barriers like the need for a large amount of capital. We also expect to see people take greater control of their lives, giving them more time to connect with who and what matters most to them. For example, apps like Skype Translator are bringing the world closer together by bridging both space and language barriers – this kind of technology holds tremendous promise for bringing families and friends closer together as well as helping people do business.

It’s time we saw IT for what it has become: a strategic asset for growth

ternet of Things” where, for example, we will be able to control everything in our home from a mobile phone. How close are we to such a situation? D.G.: The Internet of Things (IoT) is already here. This is evident, from a consumer point of view, by the emergence of wearables like the fitness bands that are keeping people healthy, and Internet-enabled appliances that are helping us run more efficient homes. IoT is already having an impact on businesses and the public sector too. Even the agriculture sector is getting in on the action – a recent Microsoft customer who operates a cattle farm, deploys cow-mounted sensors on the animals and uses Azure and the power of the Cloud to predict and analyse the gathered data, in order to bolster the rate of its production. This is a great example of how virtually any organisation can use IoT technologies to improve the bottom line. Gold: Microsoft is now said to be entering into a new era, transforming itself as a company under a new leader. What are your views regarding the recently introduced “Mobile First, Cloud First” strategy? D.G.: “Mobile First, Cloud First” is the reality that surrounds us – people today are more mobile than ever, living their lives, both professional and personal, via mobile devices that are powered by the Cloud to deliver the solutions and connectivity they need. Our goal is to help them achieve more in this new world. In this new era, smartphones outnumber people and the Cloud is the key that keeps us and all of these devices connected and efficient at any given time.This empowers us all for greater productivity and innovation, through tools that allow us to accom-

Today’s one-person business can become an international operation overnight

Gold: You mentioned the “In-

30 | GOLD | The Business Magazine of Cyprus

plish more, irrespective of our location or the type of device we are using. Gold: As President of Microsoft Central and Eastern Europe, you have under your leadership 33 countries with many different cultures and challenging political environments. In practical terms, how difficult is it to manage such a diverse region? D.G.: Countries throughout the region are indeed diverse and can vary dramatically in terms of their economy, market dynamics and technology adoption, but also as regards their geo-political situation and societal needs. This is, of course, a challenge but, at the same time, it is also an opportunity for us to learn from one another and leverage these learnings to try out new ideas and attempt innovative approaches. I travel a good deal, visiting as many countries as possible every year. This enables me to assess the individual needs and areas of opportunity of each market and get a first-hand feeling of the dynamics at play, so that I can contribute in a substantial way. Time and again, on my travels I have confirmed that we have fantastic human resources throughout Central and Eastern Europe. I never fail to be impressed by the achievements of local talent, generating innovative ideas that manage to shine at a global level. This depth of talent helps us to tackle obstacles faster and more efficiently. Our goal is to empower these dedicated people to achieve excellence in all facets of the business they serve. Currently employing 3,500 people across CEE and cooperating closely with an ecosystem of over 40,000 partners, we have a wealth of human resources on the ground, on whom I can rely. Gold: Microsoft Cyprus has a substantial presence in the market, not only as a technology leader but as a company with a strong Corporate Social Responsibility aspect. How do you intend to ensure that Microsoft will continue driving impact in Cyprus? D.G.: Microsoft has strived to be Cy-

prus’s partner in growth for the last 13 years. We will continue to invest in the country and we are always looking for more ways to address the market’s challenges. The inauguration of the Innovation Center is one such example of an investment and joint commitment, which aims to contribute to local entrepreneurship as a catalyst for growth.I am proud to see that Microsoft Cyprus is perceived as not only a multinational company operating in the country, but also as an organisation with a solid Corporate Social Responsibility presence, supporting people and businesses to realize their full potential.I feel very strongly about our cooperation in supporting the education and skills development of young people with an eye on boosting employability. As a technology leader, our approach is to always begin with our customers’ needs, to exceed their expectations and to help them achieve growth. We want to be true partners and trusted advisors, giving them the tech background to best serve their customers, to scale and empower their workforces. And it’s important to note that we can’t accomplish this mission without our invaluable partner ecosystem. Our partners are a vital component of our customers’ success, so we are continuously assessing their business model and strategy areas, and investing in their sales and technical readiness. Gold: Cyprus has experienced severe economic challenges in recent years. What is needed to retain and even grow a business during such difficult times? D.G.: There are two main parameters which contribute to growth during times of economic adversity. First and foremost, it is people and their commitment to a winning strategy. Secondly, it is the adoption of technology as a strategic pillar for increased productivity and growth. Mobile and Cloud solutions offer a wealth of connectivity and collaboration options to today’s companies, large and small, enabling faster and more educated decisionmaking, secure communication platforms

People today are more mobile than ever, living their lives via mobile devices that are powered by the Cloud

and the provision of business insights in a trusted and consistent manner. All this becomes twice as important during times of distress and increases the chances of any corporation to fare well versus its competition. It’s time we saw IT for what it has become: a strategic asset for growth. Gold: Microsoft recently teamed up with Real Madrid. What’s the connection there? D.G.: The Real Madrid partnership is a great example of the way technology is changing the world of sport, and it is one of many fantastic sports organisations we’re working with across Europe. In fact, Microsoft recently opened the Global Sports Innovation Center (GSIC) in Madrid, which is focused on advancing the way Microsoft technologies bolster athletic and team performance. Products like Power BI and the Azure Cloud platform have incredible potential to help athletes and their coaches achieve better results by delivering data insights based on tracking and improving performance, both during training and in actual competitive situations. When it comes to elite sport, even small margins of 1% or 2% matter – minimal, incremental changes can increase individual and team achievement, reduce injury risks, and help improve tactics. The Real Madrid partnership also shows how sports brands can use technology to better communicate with their fans. Through Microsoft Cloud technology and devices, Real Madrid have launched a more immersive

and personal fan-experience platform that is transforming how the club connects with its 450 million fans around the globe. Gold: As President of Microsoft Central and Eastern Europe, what is the one thing you want to be remembered for and why? D.G.: Allow me to reposition this if I may: I’d like Microsoft to be remembered, or rather acknowledged, for contributing as a true partner to the region’s business and economic growth. Technology is a key driver of productivity and economic development and is, therefore, critical for increasing Central and Eastern Europe’s relevance in the global economy. The European Union is currently deploying a strategy to deliver an annual total boost of €160 billion to GDP; we’re here to help Central and Eastern European markets capture their fair share of this. The ICT sector in the region has great potential and we’ve been making great efforts to help businesses realize the full value of Cloud and mobile technologies. By listening

Microsoft is committed to fostering a competitive business ecosystem and the next generation of young talent closely to our customers’ evolving needs, through our continuous investment in education initiatives, local training and entrepreneurship programs, as well as our strong relationships with the public and private sectors in the region, Microsoft is committed to fostering a competitive business ecosystem and the next generation of young talent.

www.goldnews.com.cy | GOLD | 31

| PROFESSIONAL SERVICES |

STANDING OUT

FROM THE

ELIA NICOLAOU, MANAGING DIRECTOR OF AMICORP (CYPRUS) LTD. TALKS TO GOLD ABOUT THE CHANGES THAT CYPRUS NEEDS TO MAKE IF ITS FIDUCIARY SECTOR IS TO SURVIVE AND GROW. By Effy Pafitis

CROWD T

he offices of Amicorp (Cyprus) Ltd., located on the top floor of a multi-storey complex in Nicosia, offer an expansive view of the heart and capital of Cyprus. The city has changed significantly in recent months, with consecutive developments in the island’s banking sector, real estate market, public and private sectors changing the face of its product and service offering.

Despite these changes, however, some things remain the same: “If you want to be a proper global provider, you cannot remove Cyprus from your map,” affirms Elia Nicolaou, Managing Director of Amicorp (Cyprus) Ltd., in whose office I am standing and admiring the view. Indeed, the firm’s presence in Cyprus is proof enough of her emphatic statement, confirming the island’s strategic relevance in the ever-evolving international business environment. Amicorp is a multinational firm offering

32 | GOLD | The Business Magazine of Cyprus

a comprehensive range of trust and fiduciary services, its 45 branches in 32 countries facilitating its sectoral dominance. The Group offers entity formation and management services, as well as a range of foundation formation, fund structuring, compliance, and outsourcing services to a variety of private and corporate clients. One of the top ten trust companies in the world and the best in emerging markets, its Cyprus office – I learn – was not created on a whim.

“The Cyprus branch was established following a number of successful years of cooperation with professionals on the island,” Nicolaou explains. At the time, the local fiduciary and trust industry had peaked in maturity and its local product offering was well-known in international business circles. Thanks to the island’s favourable tax regime, an established network of Double Tax Treaties, EU membership, its legal system and highly qualified workforce, the business community was wholly

supportive and ready to accept such a prominent multinational fiduciary firm. “Unfortunately, though these advantages are still present, their relevance has declined in the light of Cyprus’ challenging reputation abroad, derived from its fiscal troubles in recent years. Indeed, although thanks to the consolidated efforts of many professional sectors – including legal, accounting and banking – Cyprus has managed to attract significant investments from reputable multinational organisations and High Net Worth Individuals in recent years, the island’s legal and tax frameworks, as well as its Double Tax Treaty network, have not been substantially improved during this period. “More importantly, the way we do business, in an ever-changing environment governed by transparency and compliance, is still not implanted in the foundations of our service and mentality,” Nicolaou observes, emphatically explaining that, for this reason, direct action must be taken to revive and indeed develop the local fiduciary industry. “The only way for the industry to survive is for it to be completely revamped and further benefit from the creation of new, out-of-the-box incentives to get structures through Cyprus and create substance on the island, she says. We don’t need to portray ourselves as a country from where one may operate just any company; in fact, Nicolaou explains, Cyprus can become a very reputable jurisdiction and follow in the footsteps of Luxembourg and the Netherlands, countries which have become renowned – and accepted – for their extreme due diligence. “It is just a matter of educating people on the many benefits of having transparent operations.” The island’s fiduciary firms are not here to hide illegal proceeds, she continues, but rather to at-

tract healthy and morally sound international organisations, while complying with increasing international transparency and anti-corruption requirements. “The faster we realize that changes are inevitable and adapt accordingly, the more chance we have of surviving as an industry.” Learning from other countries which have implemented stricter regulations over the years would be one way to begin moving in this direction, she tells me, to which I wonder: is it appropriate to emulate these jurisdictions, considering the unique challenges faced by each market? “I don’t believe in the advantages of a second mover,” she says. “Emulating the practices of others, even in an improved way, can only give you limited attractiveness. I envision Cyprus exploiting its full upside potential through a fully re-engineered legal and tax system, following an outside-the-box approach. We have many intellectual professionals in

that the firm’s absence from the local market comprises an element of its strategic approach. “I am not confident that a locally focused company would need the services that we offer – or would even be willing to pay for them,” she says, noting that Cypriot corporate culture dictates that most businesses will make use of services offered by family members or friends with legal and accounting practices rather than turning to a multinational firm to resolve any issues. “We are in no way looking down on the local market; it would simply not take advantage of the value-added that we are in a position to offer, and neither appreciate nor exploit it.” Despite Amicorp’s absence from the local market, Nicolaou closely monitors its progress. Cyprus has done extremely well in achieving a respectable position on the international fiduciary map, she tells me, which is why all companies in the sector have a responsibili-

Elia Nicolaou

CYPRUS CAN BECOME A VERY REPUTABLE JURISDICTION AND FOLLOW IN THE FOOTSTEPS OF LUXEMBOURG AND THE NETHERLANDS Cyprus and with the support of international experts, we can make this happen!” Though Nicolaou – who began with Amicorp (Cyprus) in 2007 as Director of Legal and Corporate Services, before assuming the role of Managing Director in 2009 – is clearly enthusiastic about encouraging the development of Cyprus’ fiduciary industry, its development does not in fact affect the operations of the firm. “Amicorp (Cyprus) doesn’t have any clients based in Cyprus,” she confides, revealing

ty to aid its further development and attract additional multinational firms – such as Amicorp – to the island in the process. “We have to be grateful to the visionaries of the private sector who, 35 years ago, dreamt of making this small island a financial centre,” Nicolaou affirms. She is similarly grateful to the visionaries who, 23 years ago, established Amicorp’s first division, Amicorp NV, now Amicorp Curaçao BV. Following this, the firm embarked on consecutive developments throughout Latin America,

before expanding further into Africa, Asia Pacific, the Americas and Europe, retaining its primary focus on the provision of trust and supplementary services throughout. “We are not your typical trust company,” Nicolaou stresses, explaining that Amicorp’s steadfast focus isn’t common. In fact, many trust firms spring from law or audit firms which decide that the fiduciary business is more profitable and thus convert their operations. In addition to the Group’s entity management and financial services, Amicorp has also set up its own bank to facilitate client transactions, and an insurance company, as well as creating its own funds with approximately US$2 billion under management – all of which are offered through its Cyprus location. Furthermore, it has a team of social sector specialists who are experts on Corporate Social Responsibility (CSR) and Philanthropy; in 2001, the firm established the Amicorp Community Foundation (ACF) as a channel through which to focus its social empowerment efforts, increase environmental awareness and preserve biodiversity. The Group sets aside 1% of its net profit annually for CSR activities throughout Latin America, Asia and Africa, which range from building a vocational and life skills training centre in Bali, Indonesia, offsetting the Group’s carbon emissions by planting over 70,000 trees in Santiago, Chile, providing day-care and child-care facilities for underprivileged children on the island of Curaçao and protecting endangered rhinoceros and elephants through projects in Africa. Amicorp’s unique focus and targeted efforts to attain excellence in its corporate practices and social responsibility, it seems, may just be the root of the Group’s slogan and objective, to stand out from the crowd.

www.goldnews.com.cy | GOLD | 33

| TAX |

MICHAEL IZZA, CHIEF EXECUTIVE OFFICER OF INSTITUTE OF CHARTERED ACCOUNTANTS IN ENGLAND AND WALES (ICAEW) TALKS TO GOLD ABOUT TAX, THE EU, THE CYPRUS PROBLEM AND... MORE TAX. BY JOHN VICKERS

TAXING

ISSUES 34 | GOLD | The Business Magazine of Cyprus

he Institute of CharTax’), which came what is the ICAEW’s tered Accountants in into force on 1 April official line on this? IF YOU WANT England and Wales and other countries are “We have sampled (ICAEW) is a profesnow looking to see if it our business membersional membership might be applicable to ship twice,” Izza says, organisation that them. “Our concern as “and on both occasions, promotes, develops a professional body,” about 45% have said and supports over says Izza, “is that if you IT’S MUCH BETTER that they want to stay 144,000 chartered accountants worldwide. want to fix the tax sysin the EU come what In Cyprus, ICAEW has 1,850 members and tem, it’s much better to may, a further 40% around 700 students, which is one reason do it with all countries would like to stay within WITH ALL why the organisation’s Chief Executive Ofcooperating rather than a reformed EU, with ficer, Michael Izza, visits the island at least individual countries doand the remaining 15% once a year. ing it unilaterally.” wanting to exit. The “Cyprus is a significant part of our memThe third and final question that we haven’t bership,” he says, “and it’s good for me change is the recent asked is ‘If the EU isn’t to touch base with the members here on announcement by Amazon that it intends reformed, do you still want to stay in it?’ the issues that they are facing, to get their to start booking sales in the European coun- but given that 45% want to stay whatever feedback on how we are doing, and so on. tries in which they are made rather than in happens, it wouldn’t take much to get a I want to make sure that what we do is not Luxembourg. “That’s a fairly big move on majority. However, there can be no doubt too UK-centric but international, in terms their part and I think it’s the start of them that even those who are the most pro-Euof how we support business and the profesacknowledging that perhaps their structure rope think that there are things that could be sion and it’s important to hear from them.” is unacceptable to both politicians and condone better so perhaps all 28 states should When I ask Michael Izza what has been sumers,” says Michael Izza.. treat this as an opportunity to address some happening in the ICAEW world since we Last year, the CEO of ICAEW spoke of those issues and blame it on the UK!” last met 12 months ago, he replies with a about the issue of government reporting and I suggest that Michael Izza will have seen smile, “I’d like to be able to say that absopublic sector financial management. Is that a greater amount of confidence in governlutely nothing has happened and that I’ve still the focus of a lot of attention? ment circles than he did twelve months ago been leading a life of leisure! But it’s actually “I think it’s going to be the focus of the pro- and I wonder if that confidence is reflected been an incredibly busy year in which I have fession, of governments and the public for in his conversations with ICAEW members spent most of my time on tax issues, not the rest of the decade because it still hasn’t here. In fact, he tells me, “although there’s least because the European Union is now gone away,” he explains. “In the UK we definitely a feeling abroad that things are imlooking at tax in a more intrusive and interran a deficit last year of £90 billion. In the proving, I’m not sure that anybody is getting esting way”. He notes the work of the Euro- course of the last parliament, when the coali- wildly enthusiastic in government circles yet pean Parliament’s Taxe Committee which is tion government was supposedly putting because they know they still have quite a lot looking at whether the national tax policies in place an austerity environment, we still of work to do.” But if government officials of the Netherlands, Belgium, Luxembourg increased our debt by £650 billion. That’s are playing down any improvements to the and Ireland are in any way anti-competitive not sustainable“. economy, Izza’s Cypriot members have been or constitute state subsidies, with specific I wonder if he expects things to move rather more optimistic. reference to four companies: Amazon, Apforwards or backwards under the new Con“That’s not to say that they’re breakple, Starbucks and Fiat. servative government. Without wanting to ing out the bottles of champagne but they Izza notes that there have been three main express a definitive view as to whether what can see an improvement over last year and developments since he last time he spoke they’re proposing as a strategy is right or they’re getting more optimistic regarding to Gold. First, the OECD is 12 months wrong, he believes that the government’s their own hiring plans and when talking to further on in its attempts to reform the goal of ensuring that the country is living businesses about plans for growth. However, international tax system and it appears to be within its means and maintaining a sustainthings are all still quite fragile”. making progress but, he says, “any progress able level of is “absolutely the right thing Finally, I ask Michael Izza if he has been able will ultimately be determined by whether to do”. He adds, in the interest of fairness, to gauge any opinion among the Institute’s the OECD member that “interestingly, at members in Cyprus about the chances of states are prepared to the time of the election, the Cyprus issue being resolved in the latest accept its findings and Labour’s proposals were negotiations. change their tax system. not much different”. “Insofar as we have discussed it,” he says, It’s all about the digital A major issue for the “people seem to think that the stars are economy these days.” business world in the aligning and there is, at last, a chance of The second (and reUK and Europe is the finding a settlement that’s acceptable to both WHO ARE MOST lated) issue is that some promised referendum on sides. However, as I understand it, there has countries have decided the UK should been not dissimilar optimism in the past so I THINK THAT THERE whether to resolve the problem remain in or leave the think people are waiting to see exactly what ARE THINGS THAT EU. The majority busi- will be negotiated. There are still some diffithemselves. In 2014 the UK announced the ness view is very much cult issues that need to be grappled with and COULD BE Diverted Profit Tax geared towards continthey’ll doubtless make their minds up once (the so-called ‘Google ued membership but they see exactly what’s being offered”.

TO FIX THE TAX SYSTEM,

TO DO IT

COUNTRIES COOPERATING

EVEN THOSE

PRO-EUROPE

DONE BETTER

www.goldnews.com.cy | GOLD | 35

| NATURE |

ECOLOGICAL DISASTER AND REPUTATIONAL DAMAGE THE AMENDED BIRD TRAPPING PLAN SPELLS TROUBLE FOR CYPRUS ON MANY FRONTS

36 | GOLD | The Business Magazine of Cyprus

llegal bird trapping for the so called â&#x20AC;&#x153;gourmetâ&#x20AC;? consumption of songbirds in Cyprus has long been the subject of heated discussion. According to the Terra Cypria Foundation, the state is losing anything from â&#x201A;Ź40-â&#x201A;Ź100 million per year in unrealized income due to the conscious boycotting of Cyprus as a tourist destination by environmentally aware tourists. BirdLife Cyprus is an NGO in the forefront of addressing the â&#x20AC;&#x153;ambelopouliaâ&#x20AC;? (blackcaps and other small birds) issue in a scientific and objective manner. Dr. Clairie Papazoglou, Executive Director of BirdLife Cyprus, spoke to Gold about this other Cyprus problem. Gold: Letâ&#x20AC;&#x2122;s start with the basics. Why is bird trapping illegal? And why is the consumption of songbirds a problem in Cyprus? Dr. Clairie Papazoglou: The consumption of â&#x20AC;&#x2DC;ambelopouliaâ&#x20AC;&#x2122; may have started as tradition â&#x20AC;&#x201C; or even as a need in the past â&#x20AC;&#x201C; but our systematic monitoring data clearly shows that, today, illegal bird trapping is taking place on an industrial scale. It is illegal not only due to the large scale but also the non-selective methods. Our monitoring system shows that 152 different species â&#x20AC;&#x201C; of which 78 are threatened â&#x20AC;&#x201C; are affected and it is estimated that 2.5 million birds of different species were killed in Cyprus in 2014. Gold: Since trapping has been illegal in Cyprus since 1974, why is there still a problem 40 years later? C.P.: The only reason that this still goes on is because the law has not been implemented effectively and consistently with a â&#x20AC;&#x2DC;zero toleranceâ&#x20AC;&#x2122; approach. You are correct that trapping with non-selective methods (limesticks and mist nets) and the trade of â&#x20AC;&#x2DC;ambelopouliaâ&#x20AC;&#x2122; have been illegal since 1974. Moreover, Cyprus ratified the Bern Convention in 1988, prohibiting the killing and consumption of blackcaps and listing them as a protected migratory species. In 2003, prior to EU membership, Cyprus also transposed the Birds Directive into national law, which bans the use of non-selective and largescale killing methods. So trapping and killing, as well as the trade and consumption of â&#x20AC;&#x2DC;ambelopouliaâ&#x20AC;&#x2122;, were illegal long before Cyprus joined the EU.

;OL ZP[\H[PVU PZ V\[ VM JVU[YVS 3LNHSPaPUN P[ ^PSS VUS` THRL [OPUNZ ^VYZL Gold: The subject is in the news again, following the Council of Ministersâ&#x20AC;&#x2122; decision to amend and approve the Strategic Action Plan to tackle the illegal trapping of birds. There has been widespread opposition to the amendments from environmental organisations. Why? C.P.: The Strategic Action Plan (StAP) is actually an initiative of BirdLife Cyprus, which was developed together with all the relevant stakeholders in recognition of the severity and persistence of the illegal bird trapping problem and the need to tackle it. It is a complex issue that needs to be addressed from many angles. This was agreed by all, including the Ministry of Interior and the Game and Fauna Service, in the course of the StAP development workshops. The catastrophic â&#x20AC;&#x2DC;alternative planâ&#x20AC;&#x2122; for the â&#x20AC;&#x2DC;selective hunting of blackcapsâ&#x20AC;&#x2122;, as approved recently by the Council of Ministers, was never discussed with any stakeholder. This â&#x20AC;&#x2DC;alternative planâ&#x20AC;&#x2122; is wrongly being presented as the solution to the problem. The situation is out of control. Legalizing it will only make things worse, and it will certainly not put a stop to this activity. Gold: Is it possible that Cyprus will be allowed a derogation from the Birds Directive for hunting blackcaps? C.P.: No, because the criteria for derogations are not met. All the derogations that are in force in the EU are for huntable species: the blackcap is not; itâ&#x20AC;&#x2122;s a protected species. Obtaining a derogation requires meeting several criteria related to a â&#x20AC;&#x2DC;lack of alternativesâ&#x20AC;&#x2122;. None of those criteria are met in the case of â&#x20AC;&#x2DC;ambelopouliaâ&#x20AC;&#x2122;.

negative consequences, some of which are, inevitably, financial. In addition to the yearly losses, estimated by Terra Cypria at anything between â&#x201A;Ź40 million and â&#x201A;Ź100 million, from environmentally sensitive tourists choosing other destinations, the Game and Fauna Service estimates that the black market for this illegal activity is in the order of â&#x201A;Ź15 million every year.

INFO: BirdLife Cyprus is a registered non-profit, non-governmental organisation (NGO) that works to conserve wild birds, their habitats and wider biodiversity in Cyprus, through research, monitoring, lobbying and conservation and awareness-raising actions. This interview was given within the framework of the BIOforLIFE Project (2012-2015) which aims to make Cypriots aware of [OL ZPNUPĂ&#x201E;JHUJL VM biodiversity in our lives.

Gold: So solving the â&#x20AC;&#x2DC;ambelopouliaâ&#x20AC;&#x2122; issue would help tourism and Cyprusâ&#x20AC;&#x2122; image? C.P.: The potential of Cyprus as a birdwatching destination â&#x20AC;&#x201C; an alternative and sustainable form of tourism â&#x20AC;&#x201C; needs to be widely recognized and promoted. Tackling the â&#x20AC;&#x2DC;ambelopouliaâ&#x20AC;&#x2122; problem requires time and persistence but it would significantly ameliorate Cyprusâ&#x20AC;&#x2122; image abroad. We strongly believe that the benefits from stopping illegal trapping and the promotion of Cyprus as a birdwatching destination are many. Gold: What do you think we need to do to solve this problem? C.P.:. The adoption and implementation of a Strategic Action Plan on the basis of a â&#x20AC;&#x2DC;zero toleranceâ&#x20AC;&#x2122; approach, as developed by BirdLife Cyprus and the relevant stakeholders, is crucial if Cyprus is to truly and honestly tackle this problem. If the so-called â&#x20AC;&#x2DC;alternative planâ&#x20AC;&#x2122; is implemented, at the very least we are looking at being brought before the EU Court, possibly having to pay a huge fine, the continuation of the ecological disaster, and a worsening of Cyprusâ&#x20AC;&#x2122; image abroad. BirdLife Cyprus will continue its systematic monitoring, awareness-raising and lobbying actions to avoid this.

Gold: The Terra Cypria Foundation has stated that the â&#x20AC;&#x2DC;ambelopouliaâ&#x20AC;&#x2122; issue also has an adverse economic impact on Cyprus. Do you agree? C.P.: It is an ecological disaster with many

TPSSPVU IPYKZ VM KPÉ&#x2C6;LYLU[ ZWLJPLZ ^LYL RPSSLK PU *`WY\Z PU www.goldnews.com.cy | GOLD | 37

GOLD

4TH CIPA INTERNATIONAL

INVESTMENT

AWARDS George Michail, IMH

Nicos Anastasiades, President of the Republic

Koulis Theodorou performed traditional Cypriot songs during the evening

Melanie Steliou Co-Presenter of the Award Ceremony

Nicos Anastasiades, President of the Republic & Evgenios Evgeniou, PwC Cyprus

Christodoulos Angasti niotis, Chairman, CIPA, Thierry Noyer, General Manager, Carrefour Cyp rus (Marinopoulos S.A.) &. Phidias Pilides, Preside nt of the Cyprus Chambe r of Commerce & Indu stry

Chrysses Demetriades, grandson of the late Chrysses Demetriades and Partner at Chrysses Demetriades & Co. LLC.

Loucas Marangos, TFI MarRL[Z 3[K 1HɈHY (NOH 1HɈHY Managing Director, Prime Licensing and Group Executive, TSYS, Marios Pilavakis, Cyprus Stock Exchange

Gene Kornegay, Country Manager, Noble Energy International Ltd

On the evening of Wednesday, 1 July, the gardens of the Presidential Palace in Nicosia were once again thronged with specially invited guests from the world of business and investment for the 4th CIPA International Investment Awards ceremony. Among the 400 people attending were government ministers, company CEOs, senior executives, foreign investors and leading entrepreneurs. Before the presentation of the prestigious awards to eight foreign companies and a posthumous Lifetime Achievement Award to pioneering lawyer Chrysses Demetriades, they enjoyed music from Cypriot singer Koulis Theodorou who performed with his band during the Gala Dinner. During the ceremony, a recorded video message by Wilbur L. Ross, the American billionaire investor in Bank of Cyprus, received enthusiastic applause when it was screened. President Nicos Anastasiades also addressed the elite gathering and later presented an award. Eight companies were recognised for their contribution to the Cyprus economy.

Evgenios Evgeniou, PwC

Cyprus

Melanie Steliou & John Vickers, Presenters of the event

Sunil Kapoor, Director & General Manager, FML Ship Management Ltd

Vassilis Petrides, CEO, Laiko Cosmos, Maxim Poletaev First Deputy Chairman of the Executive Board of Sberbank CIB & Demetra Kalogerou. Chair, Cyprus Securities & Exchange Commission

Bjørn Tore Larsen, Founder, OSM Group

Michalis Louis, CEO Eurobank Cyprus, Roman Nikitin, representative of Emerald Coast Properties Ltd & Harris Georgiades, Minister of Finance

GOLD

Andreas Stylianou & Andri Hadjikkou

Marios Lanitis, Lanitis Holdings Ltd & Michalis Spanos, Bank of Cyprus

Constantinos Neophytou, Emergo Wealth & Glafkos Mavros, AS Expobank

Chris Koufaris, CIBA & Marios Klitou, Baker Tilly Klitou

Angelos Gregoriades, CIPA, Michael Ioannou & Christos Theodoulou, Ioannou & Theodoulou Ltd

Marios Demetriades, Minister of Transport, Communications & Works

Haris Pavlides, IMH, Evros Papadopoulos, Laiko Cosmos & Irene Georgiou, IMH

Charalambos Michael, Etihad & Dimitris Ioannides, Action Global Communications

Christos Christodoulou, Trust Insurance, Chris Georgiades, Chrysses Demetriades & Co. LLC, and Christos Mavrellis, CIPA Sunil Kapoor, Raphael Ryckx FML Ship Management Ltd

Photos Photiades, Photos Photiades Group

Kyriakos Kokkinos, CIPA

Demetris Aletraris, OPAP, Xenia Korneliou, Christdoulos Angastiniotis, CIPA, & Cleopatra Kitti, FTI Group Liu Xinsheng, Ambassador of the People’s Republic of China

9LUH 7L[YPKV\ 3H^ 6ɉJL VM [OL 9LW\ISPJ VM Cyprus & Kyriakos Kokkinos, CIPA

Eleni Vickers, Plus500Cy Ltd & Alexandros Tapaccos, NCR Cyprus

Haris Hambakis, Eurobank Cyprus

Yiorgos Lakkotrypis, Minister of Energy, Commerce, Industry & Tourism

GOLD

Nicolas Theocharides, Marios Tannousis, CIPA & Charles Charalambous, Deloitte

4th

CIPA INTERNATIONAL INVESTMENT AWARDS

450+ INVITED GUESTS

Andri Georghiou, CDB Bank Jean-Luc Florent, Embassy of the French Republic Alexandros N. Zenon, Ministry of Foreign (ɈHPYZ

Menu Myria Constantinidou

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FOREST SALAD SERVED WITH SMOKED DUCK BREAST, PROSCIUTTO, PINEAPPLE AND GLAZED D WITH WILD BERRY VINAIGRETTE OVEN-BAKED MILOKOPI SET ON BEANS SLAW, SERVED WITH SEASONAL VEGETAB LES AND CITRUS OLIVE OIL MASTIC PANNA COTTA SERVED WITH A WILD BERRY COULIS WINES EVAMPELOS MARATHEFTIKO & EVAMPELOS XYNISTERI

Sophie Constantinou & Nicole Shialou, IMH

Christodoulos Angastiniotis, CIPA & Loukis Papaphilippou, ANT1 Cyprus

Christos Patsalides, Christos Patsalides LLC

Glafkos Mavros, AS Expobank

Andreas Hadjipetrou, Columbia Shipmanagement Ltd & Constantinos Herodotou, Privatisation Commissioner

AWARDS PRESENTED SINCE 2012 Guests were given a special bag containing: Hawthorn jam from Eurobank, <n_Übgdl [r <akblmbZg EZ\khbq _khf Ip< <riknl >nkh <hbg ;hq from TFI Markets

TSYS

processes nearly

48 million

transactions a day.

But he’ll only remember this one — the purchase that made memories that will last longer than any photo album. From the ordinary to the extraordinary to the moments they’ll remember for the rest of their lives, we realize it’s the little things that can make a big difference to consumers. As a leading global payments solutions provider offering processing and licensing payment solutions to meet the needs of modern lifestyles, TSYS knows that behind each and every transaction is a person — and that payments have the power to change lives. TSYS is honored to receive the CIPA International Investment Award 2015. Our presence in Cyprus dates back to 1989, and since that time our team has grown to approximately 250 team members. TSYS is a Fortune 1000 company, recognised as one of the world’s most ethical companies and was nominated for the Cyprus IN BUSINESS Best Workplace Award in 2014.

twitter.com/tsys_tss

facebook.com/tsys1

linkedin.com/company/tsys

Get to know us. +357 22882600 tsys.com tsysinternationalcareers.com

GOLD

Marios Demetriades, Minister of Transport, Communications & Works

Christophoros Hadjikyprianou, Laureate International Universities in Cyprus

Constantinos EconoTPKLZ 6YHUNLĂ&#x201E;LSK Fidelico Ltd

Charis Papacharalambous, CIPA

Elena Michael, Mintha Holding Ltd Ioannis Charilaou, ICPAC

Marios Tsiakkis, CCCI & Liu Xinsheng, Ambassador of the Peopleâ&#x20AC;&#x2122;s Republic of China

Dinos Lefkaritis, Petrolina Holdings

George Papanastasiou, VTT Vasiliko & Pambos Lambrou, BP Eastern Mediterranean Ltd

Christina Violari & Elisa Kasiouli, IMH

Voulla Nicolaou, IMH

Alexis Tsielepis, Costas Tsielepis & Co

Marios Tsiakkis, CCCI

Bert Pijls, Hellenic Bank

Pambos Papageorgiou, MP & Christos Mavrellis, CIPA

Thomas Kazakos, Cyprus Shipping Chamber

Svetlana Kalogera, RCB Bank Ltd

Capt. Eberhard Koch of Reederei Austria Eberhard Koch (Cyprus) Limited , Despina Theodosiou, Satlink ( Maritime Services) Ltd & Julia Anastasiou, OSM Group

George Michail, IMH & Nicos Anastasiades

Yiannis Misirlis, Imperio Properties

Constantinos Ekkeshis, Ekkeshis + Ierodiakonou

Nicolas Theocharides, CIPA

GOLD

Costas Galatariotis, Galatariotis Group & Myria Constantinidou

Othon Theodoulou, EAC & Glafkos Mavros, AS Expobank Nicholas Hadjiyiannis, Cooperative Central Bank & Irena Georgiadou, Hellenic Bank

Christodoulos Angastiniotis, CIPA Frixos Savvides, CIBA & Mehran Eftekhar, Nest Investments (Holdings) Ltd

xxxx

Michalis Papadopoulos, Cyta & Alexis Nicolaou, Dias Publishing House

xxxx

Alexia Petrou, Anna Theodosiou, Stephanie Andreou & Artemis Constantinides, IMH

George Papanastasiou, VTT Vasiliko Ltd

Phidias Pilides, CCCI

Eleni Vassiliadou, DEFA

Haris Hambakis, Eurobank Cyprus & Takis Phidia, CNP Cyprialife Ltd

Rohit Tandon, Sunil Kapoor, Rena Tsangari, Deva, Niraj Gupta & Raphael Ryckx, FML Ship Management Ltd

Constantinos Taliotis, PwC Cyprus & Ambas sador Andrew Jacovid es

Androulla Pittas, PwC Cyprus

Panayiotis Loizides, RCB Bank & Othon Theodoulou, EAC

Demosthenes Mavrellis, Chrysses Demetriades & Co. LLC, Christodoulos Angastiniotis, CIPA & President Nicos Anastasiades

7+(

7+ /,0$662/

)2580

| COVER STORY |

THIERRY NOYER General Manager, Carrefour Cyprus (Marinopoulos SA)

MAXIM SAFONOV Head of Global Markets, Managing Director, Sberbank CIB

GENE KORNEGAY Country Manager, Noble Energy International Ltd

CIPA 4TH

INTERNATIONAL

INVESTMENT

AWARDS

Celebrating International Investment in Cyprus By John Vickers | Photography by Harris Kyprianou

48 | GOLD | The Business Magazine of Cyprus

ROMAN NIKITIN Representative, Emerald Coast Properties Ltd

JAFFAR AGHA-JAFFAR Managing Director, Prime Licensing and Group Executive, TSYS

BJĂ&#x2DC;RN TORE LARSEN Founder, OSM Group SUNIL KAPOOR Director & General Manager, FML Ship Management Ltd

CHRYSSES DEMETRIADES Partner, Chrysses Demetriades & Co. LLC.

www.goldnews.com.cy | GOLD | 49

| COVER STORY |

ince 2012, when the Cyprus Investment Promotion Agency and Gold magazine joined forces to create the annual CIPA International Investment Awards, a total of 36 awards have been given to companies, organisations and individuals as a tribute and a “thank you” for their contribution to the country’s economy. They include organisations that have invested directly in Cyprus and those that have established operations and provided employment here, as well as locally-based providers of services to international investors who have helped attract further foreign investment. On 1 July, for the fourth time, business leaders from Cyprus and abroad gathered to pay tribute to the following eight international investors and one outstanding individual (the late Chrysses Demetriades), in acknowledgement of their contribution to Cyprus and its past, present and future prosperity. Noble Energy International Ltd

oble Energy’s history began in 1932. Since then, the company has succeeded where others would not venture – applying global experience to safely and responsibly move from discovery to the efficient execution of large-scale development projects across the globe in the Eastern Mediterranean, West Africa, Gulf of Mexico, and onshore United States. Noble Energy began exploring the Eastern Mediterranean in 1998. To date, the company has drilled 11successful wells and discovered more than 40 trillion cubic feet of natural gas resources in the 50 | GOLD | The Business Magazine of Cyprus

Levant Basin. This includes the first ever natural gas discovery in Cyprus in 2011. The discovery in Block 12 of the Cyprus Exclusive Economic Zone is the third-largest in the Eastern Mediterranean. This was followed by an appraisal well in 2013 that confirmed substantial recoverable natural gas resources and high reservoir deliverability. Noble Energy and its partners filed a Declaration of Commerciality for development of the Aphrodite field and submitted a field development plan to the government that provides the next step toward a Final Investment Decision. Noble Energy looks forward to continued work with the government and people of Cyprus to help the country and the region realize the economic benefits and energy security the country’s natural gas resources can provide.

FML Ship Management Ltd

ML Ship Management Ltd, located in Nicosia, has grown from having a handful of ships in 2007 to more than 35 today, making it one of the fastest growing ship management companies on the island. With its head office in Hong Kong, FML is one of the Top 4 third party ship managers in the world, with more than 350 ships being managed through its strategically located offices across the globe. Cyprus’ location at the crossroads of Europe, Africa and the Middle East is ideal and enables FML to cater to diversified

market of ship owners. The company strongly believes that the growth of the shipping sector in Cyprus will be reflected in the economic growth of the entire country. FML’s aim is to manage more than 50 ships in Cyprus within the next couple of years. It is now part of the Caravel Group and being part of a truly global business entity will further boost the company’s growth in shipping and other maritime activities in Cyprus. The company has shown that it believes Cyprus is a destination worth investing in, one that combines the international competitive business environment with a pleasurable and balanced way of life.

OSM Group

SM provides full service solutions to the Offshore and Maritime Industry, which provide a single point of contact and a one-stop shop for Ship Management, Crew Management, Offshore Management, and New Build Management. OSM has over 25 years of experience in the Maritime Industry, approximately 10,000 employees, 27 office locations and 500 vessels under management. Cyprus has a long history of providing optimal infrastructure for Global Crew Management and Shipping Companies and the knowledge base of highly talented shipping professionals, combined with an effective legal framework, are all key for OSM. The company focuses on sustainable growth and developing its core business further. In Cyprus, OSM has decided to base the Global Crew Management of all its conventional vessels in Cyprus, as well as building up strategic and key management functions such as Managing Director/CEO, CFO, Crew Directors and Legal Council on the island. With a global footprint combined with local content, OSM offers flexibility and opportunities to its clients to expand their presence to new regions, giving them the peace of mind that comes with

efficient and transparent management systems, regulation compliance, reduced overhead expenses and back office support to allow them to focus on their growth.

Emerald Coast Properties Ltd

merald Coast Properties Ltd was formed in 2006 by prominent Russian investors attracted by Cyprus’ appeal and potential in the international business services arena. Doing business on the island came as a natural progression to the company’s international business activities, and investments via Cyprus quickly became investments in Cyprus. Emerald’s involvement in Cyprus culminated with the purchase of the Le Meridien Limassol Spa & Resort in 2013 and its ongoing complete renovation and brand revamp. Emerald went ahead with its biggest investment in Cyprus to date at a time when the Cyprus economy was on the verge of a meltdown and the island’s credibility was being hammered by all sides. The man representing the company’s interests in Cyprus, Roman Nikitin, was unfazed by the developments of 2013. Not only did he not think twice before proceeding with investing here, but even made the island his home, moving to Limassol permanently with his family. He believes in Cyprus and its potential. In Limassol, Emerald is now creating a unique jewel of the Mediterranean and this is only the beginning. The company says that many more votes of confidence in Cyprus lie in store for the future.

Marinopoulos S.A.

arinopoulos Group is a leading food retailer in Greece, Cyprus and the Balkans through Marinopoulos S.A., the exclusive franchisee

of Carrefour in these countries, while through the Marinopoulos Coffee Company, it has brought the Starbucks quality and unique retailing model to south-eastern Europe. This year, Carrefour is celebrating its 10th anniversary in Cyprus, having grown into the biggest retail chain in the country, operating 18 stores with over 1,170 employees, making it one of the biggest employers in the country. Some 90% of the food products it sells come from local producers and suppliers. Carrefour places great emphasis on issues of Corporate Social Responsibility and, since February 2013, through its “Breakfast” programme, it has provided daily breakfast to over 3,000 schoolchildren in schools in Limassol, Paphos and Larnaca. Cyprus is a country with a strong coffee culture and great passion for coffee and Starbucks wanted to be part of the local coffee tradition. Through the Marinopoulos Coffee Company, Starbucks opened its first Cyprus store in December 2003 in Nicosia. Over the past 11 years, it has opened 9 stores, serving over 30,000 customers a week. In the last 12 months alone, Marinopoulos Coffee Company has further invested in the Starbucks network by completely renovating five stores.

SIB (Cyprus) Ltd

roika Dialog Investment Ltd was established in August 2001 and was licensed by the Cyprus Securities and Exchange Commission to carry out investment and ancillary services in June 2006. Following the acquisition of the Troika Dialog Group by Sberbank, an event that signalled the creation of the largest universal banking institution in Russia, the Cyprus company was re-named SIB (Cyprus) Limited and became part of the Corporate and Investment Banking division of Sberbank Group, known as Sberbank CIB. SIB plays an important role within Sberbank CIB in providing Investment www.goldnews.com.cy | GOLD | 51

| COVER STORY |

Banking and Financial Markets services to a wide range of entities, including corporations, financial institutions and government entities. Its ability to operate in Cyprus through SIB provides Sberbank CIB with significant benefits, including access to the EU regulatory regime, a stable and pleasant business environment accompanied by simple administrative procedures, low setup and operating costs, a broad range of high quality of financial, tax, legal, accounting, investment and brokerage services, and the ability to work under a legal system based on English Law. SIB will continue to play an important role for Sberbank CIB in providing access to the international markets and in servicing clients.

Third Point LLC

hird Point LLC is an SECregistered investment advisor based in New York. Founded in 1995 by CEO Daniel S. Loeb, Third Point pursues an event-driven, value-oriented approach to investing, which it applies opportunistically across asset classes and strategies including special situation equities, corporate credit, asset backed securities, and macro investments. Shaped by insights into the global macroeconomic environment, the Firm’s flexible and nimble approach allows Third Point to excel in varied market conditions. The Firm manages approximately $18 billion in assets for corporate and public pensions, sovereign wealth funds, endowments, foundations, funds of funds, and High Net Worth Individuals, including a significant amount of permanent capital via a closed-end feeder fund, a Bermuda-based reinsurance affiliate, and employee capital. In April 2013, Third Point launched the Third Point Hellenic Recovery Fund, a private equity vehicle formed to invest in Greek and Cypriot opportunities

52 | GOLD | The Business Magazine of Cyprus

born from the macroeconomic environment at the time. In Q4 2013, the Third Point Hellenic Recovery Fund acquired a significant stake in Hellenic Bank, the Fund’s only investment in the banking sector. Third Point is the largest shareholder of Hellenic Bank, currently holding 27% of outstanding shares, and is represented on the Bank’s Board of Directors by David Bonanno, Managing Director.

TSYS

UK-based payments software company called Card Tech Limited, or CTL, established roots in Cyprus in 1989, more than 25 years ago. The company continued to grow and, in 2006, it was acquired by TSYS, a New York Stock Exchange-listed company and a leading global payments processor. At the time, it was considered one of the largest foreign investments to have taken place on the island. Since then, TSYS has continued to evolve and expand its solutions and services, growing its local Cyprus team to around 250 members today. As a leading global payment solutions provider, supporting financial institutions, businesses and governments with a broad range of issuer- and acquirerprocessing technologies, TSYS provides both third party processing services and licensed solutions that enable and support the payment transaction process, helping to move money effectively and securely between buyers and sellers around the world. Cyprus has proved to be a good location for TSYS, which recently invested in new offices in Nicosia. The country’s supporting infrastructure, and in particular its high level of educated and professionally skilled people with client-facing communication and busi-

ness skills, project management and IT expertise, is a perfect match for the company’s own people-centred culture

Chrysses Demetriades

hrysses Demetriades was born in Limassol in 1924. In 1948 he was admitted to the Honourable Society of the Middle Temple and became a barrister-at-law. In 1948, Demetriades set up his own legal practice. He excelled as a lawyer and focused on his vision of promoting Cyprus as a shipping and international business centre and of expanding his firm into these areas. In the early 1970’s, he became a leading advisor to the local and international shipping industry, attracting the first ship management companies to establish a base on the island. Such was the foresight of Chrysses Demetriades that, since then, Limassol has become one of the largest ship management centres in the world. As president of the Limassol Bar Association, he was a pioneer in the development of the legal practice in Cyprus, putting forward innovative ideas for the reform of legislation in the areas of company law, shipping, taxation, banking and other fields, promoting In his eulogy, spoken at Chrysses Demetriades’ funeral in 1992, Loukis Papaphilippou, then President of the Cyprus Bar Association, referred to Chrysses as the “Christopher Columbus of the modern Cyprus legal practice”. At the CIPA International Investment Awards on 1 July, President Anastasiades Chrysses Demetriades’ death at the age of 68 as “a great loss to the legal world of Cyprus, to Limassol and to the country as a whole”.

Sponsors PLATINUM SPONSOR

PWC CYPRUS

“The CIPA International Investment Awards provide an opportunity to thank and to celebrate the contribution of people and organisations that have demonstrated their trust by investing in Cyprus, and to mark at the highest level the importance of foreign investment in generating economic activity and in creating jobs. At PwC we are proud to present tonight’s event. This is in line with our firm’s long history of being at the forefront of the development of Cyprus as a business centre and an investment destination. As the leading professional services firm, we are committed to supporting initiatives that promote Cyprus as a place to do business and to invest. Foreign investment leads to financial activity, job creation, social cohesion and it is important that the state recognizes the contribution of those who have invested in the country. It goes without saying that we support events and institutions that strengthen the efforts to attract foreign investment to the island.” Evgenios C. Evgeniou, CEO, PwC Cyprus

GOLD SPONSOR

EUROBANK CYPRUS “We are very proud to be one of the major sponsors of the CIPA International Investment Awards. We consider it our duty to support every initiative aimed at growth which promotes Cyprus as an important services centre with all the advantages that this has for the country’s economy.” Michalis Louis, CEO, Eurobank Cyprus

SILVER SPONSOR

TFI MARKETS “The fact that major foreign companies have chosen Cyprus as their base of operations carries great significance. I believe that, in the long term, the course of the economy will depend to a great extent on our ability to

become an international services centre. Institutions like the CIPA International Investment Awards, which TFI Markets has supported consistently over the years, contribute to the constant effort to attract foreign investment.” Loucas Marangos, CEO, TFI Markets

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CHIVAS REGAL EXTRA “It is important to honour foreign investors believe that it is worth investing in Cyprus and take a risk by doing so. We are proud for Chivas Regal Extra, the latest expression of the Chivas family and the most premium version that it has produced in recent years, to support the CIPA International Investment Awards, which are similarly the most premium business awards in Cyprus.” Vasilis Petrides, CEO. Laiko Cosmos Trading

ORGANISER CYPRUS

INVESTMENT PROMOTION AGENCY (CIPA) “Initiatives intended to reward investment, innovation, entrepreneurship and commitment to Cyprus are of great significance, particularly when they recognise it in the operations of the most esteemed companies and individuals doing business on the island. I t is very important that we honour those who are giving a vote of confidence to the Cyprus economy; they are the lifeblood of the economy and give hope for a better future for our country. These awards serve as an acknowledgement and a gesture of appreciation to businesses that have shown faith in the potential of the Cyprus economy, have retained their trust in its prospects and hence continue to invest in it. The CIPA International Investment Awards are a special tribute to companies that have added value to the economy of Cyprus by placing it at the heart of their operations and helping create employment opportunities.”

Christodoulos Angastiniotis, Chairman, Cyprus Investment Promotion Agency

www.goldnews.com.cy | GOLD | 53

| ENERGY REVENUES |

Taxation of Upstream Oil & Gas Activities By Olga Chervinskaya

pstream oil & gas activities in Cyprus are governed by the Hydrocarbon (Prospecting, Exploration and Exploitation) Law No. 4 (I) of 2007, as amended (‘Hydrocarbon Law’) which was adopted by the Cyprus Parliament for the purpose of harmonization with Directive 94/22/EC of the European Parliament and of the Council of 30 May 1994 on the conditions for granting and using authorizations for the prospection, exploration and production

54 | GOLD | The Business Magazine of Cyprus

of hydrocarbons. According to Section 30 of the Hydrocarbon Law the Cyprus Council of Ministers may make Regulations for the better carrying into effect of the provisions of the Hydrocarbon Law. This power was exercised by the Council of Ministers in 2007 and in 2009 by way of issuing the Hydrocarbon (Prospection, Exploration and Exploitation) Regulations (‘Hydrocarbon Regulations’). Regulation 5 of the Hydrocarbon Regula-

tions explicitly states that a model Contract, that may be issued by the Minister of Commerce, Industry and Tourism (‘the Minister’), “may be a production sharing contract or a concession agreement or both or such other form as customarily used in the international petroleum industry”. Under both first (2007) and second (2012) licensing rounds for Cyprus offshore, a production sharing contract (‘PSC’) form was chosen. However, Regulation 5 gives the Minister an option of choosing any other form of contract or a combination of forms in the following licensing rounds. A PSC (or any other hydrocarbon contract) can be concluded with the Cypriot government based on a Model PSC (or other contract) to be issued by the Minister in accordance with Regulation 5 of the Hydrocarbon Regulations. According to the Model PSC a Contractor shall pay the Republic of Cyprus the following in return for the exclusive right to conduct hydrocarbon operations: • (Corporate) Income Tax (‘CIT’): 12.5% (deemed to be included into the Republic’s profit gas/oil) • Production Sharing: profit gas/oil based on R-factor • Bonuses (signature and production) • Surface (rental) fees The standard rate of CIT in Cyprus is currently 12.5% (as of 1 January 2013). This rate of CIT applies to corporate taxpayers engaged in any kind of business activity notwithstanding the industry. Under Article 29.1 of the Model PSC the Contractor and its subcontractors shall comply with the applicable taxation laws and regulations of Cyprus as well as with any European Union tax rules applicable from time to time in the Republic. This means, amongst others, that the Contractor and its subcontractors are

subject to Cypriot CIT at an applicable rate. As per the Request for Clarifications Period ended on the 17 April 2012 (‘Clarifications’) a new provision will be included in the final Contract, which ill be signed between the Republic of Cyprus and the successful applicant, as Article 29.3. This new provision will state that the applicable corporate tax shall be deemed to be included in the Republic´s share of profit oil and profit gas. Therefore, the portion of the available hydrocarbons, which a Contractor is entitled to pursuant to the provisions of Article 8.1 of the Model PSC, shall be net of corporate

If and when a special petroleum tax is introduced to the Cypriot oil and gas tax system, existing contractors (and their subcontractors) should, in principle, be liable to pay it tax. This means that effectively a Contractor will not pay any CIT which it is formally subject to under Article 29.1 of the Model PSC. This feature of the Cypriot Model PSC makes it possible for the Contractors to be secure from possible changes in the CIT rate (the most recent change from 10% to 12.5% occurred in April 2013 with an effect as of 1 January 2013) and from any other corporate tax that may be introduced in future. Cyprus does not (yet) have a special petroleum tax in its fiscal system for

hydrocarbon operations. An interesting question is whether, in case of introduction of a special petroleum tax in future, the Contractors that have already signed the PSCs with the Cyprus government will be liable to pay this tax on their profits (once realised). For example, if Cyprus were to introduce a special petroleum tax as of 1 January 2017, those Contractors that started their business activities in Cyprus before this date would potentially be liable to pay this tax as of the tax year 2017 unless they have provisions in their PSCs that would provide for the opposite. As explained above, under Article 29.1 of the Model PSC the Contractor and its subcontractors have to comply with the applicable Cypriot taxation laws and regulations as well as with any EU tax rules applicable from time to time in Cyprus. This confirms that, if and when a special petroleum tax is introduced to the Cypriot oil and gas tax system, existing contractors (and their subcontractors) should, in principle, be liable to pay it. However, according to Article 29.3 of the Model PSC, the applicable corporate tax is deemed to be included in the Republic´s share of profit oil and profit gas. It is remarkable that it is the term ‘corporate tax’ which is used and not the term ‘(corporate) income tax’, which is the name of existing CIT in Cyprus. The Model PSC and the Clarifications do not contain a definition of ‘corporate tax’. Assuming that ‘corporate tax’ has a wider rather than narrow meaning and represents any tax that is paid by a corporate taxpayer, then a Contractor, being a corporate taxpayer, should effectively not be liable to pay a special petroleum tax or any other tax which other corporate taxpayers may be subject to in future (since it is deemed to be included in the Republic´s share of profit oil and profit gas). Info: Olga Chervinslaya is Senior Manager, Tax Services, at EY Cyprus. The views and opinions expressed this article are those of the author and under no circumstances is Ernst & Young Cyprus Limited responsible for the content or such views.

www.goldnews.com.cy | GOLD | 55

Opinion

NO CLASS ACT VAROUFAKIS MAY HAVE RESIGNED BUT THE IMF, THE ECB AND THE EUROPEAN COMMISSION STILL HAVE TO DEAL WITH ALEXIS TSIPRAS AND SYRIZA By Savvas Savouri

hat was chance of a Greek ‘departure’, some this to me, is exaggerated. After result all, the authorities (IMF, ECB in the and EU) have still to deal with Greek A Alexis Tsipras and his SYRIZA referenparty which called the unprecedum. It dented – and to them extremeis remily unwelcome –referendum. niscent of what happened when In the event that Greece is the Icelandic people ‘rejected’ expelled from the eurozone the idea they should repay Britand, in effect, from the EU, I ish and Dutch taxpayers who can only see contagion worktook responsibility for savers ing from the Balkans upwards; caught in the collapse of Icevvery nasty indeed, as deflation land’s banks. sweeps outwards from Greece So what now? Well, if Greece and so to people. After all, is allowed to set its own school those Greeks who voted Yes – rules, the teachers will quite most of whom will have been simply ‘lose’ their classrooms. young urban professionals – will Those well-behaved pupils such now vote with their feet and as Finland will see their eduleave their country, as many cation suffering as the teachers have already done. Some will focus their energies on pandering to their ill-dislook to the UK, and that will only serve to bolster Info: Dr. Savvas Savouri is a ciplined classmates. Remember that the Finns its property market but, at the same time, their dePartner and Chief Economist are paying pupils whilst the Greeks are, as it parture will act to undermine still further the Greek of Toscafund. were, on free lunches. As for others in the class economy and its own property sector, while sending who have thus far had their bad behaviour kept ripples outwards to other markets. A UK rate rise in check by teacher discipline, they will lose respect for all soon? No. the rules. But suppose there is compromise. Well, just watch as the As analogies go this is as good as I can come up with. And Finns and other hard euro-nations see their politics turn as as I see it, the only possible sharply towards the right solution for the head teacher as those looking to imitate THOSE GREEKS WHO VOTED Greece’s lurch to the Left (most is to expel Greece since the alternative is that he will have YES – MOST OF WHOM WILL notably Podemos in Spain, no school to be the head of. where elections are due in DeHAVE BEEN YOUNG URBAN Greece, quite simply, has PROFESSIONALS – WILL NOW cember). to be punished. As for the I have no doubt that, within a VOTE WITH THEIR FEET AND short while, we will see that the expectation that the deparLEAVE THEIR COUNTRY, AS ture of Yanis Varoufakis has result of the Referendum was significantly lowered the MANY HAVE ALREADY DONE no Class Act for the Greeks.

56 | GOLD | The Business Magazine of Cyprus

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Don’t PANIC! DIGITAL DISRUPTION IS HERE BUT, SAYS IAN COX, IT DEPARTMENTS SHOULD NOT FEAR IT. IT IS ACTUALLY A FORCE FOR GOOD. BY JOHN VICKERS

58 | GOLD | The Business Magazine of Cyprus

MTN Business recently held a conference entitled Integration of Telecoms with IT: Enabling and Inspiring Growth, at which the keynote presentation was given by Ian Cox, the author of the bestseller Disrupt IT, who specialises in helping businesses create a vision and strategy for growth and defining and driving transformation programmes. He spoke to Gold about many of the themes of his book and explained how tomorrowâ&#x20AC;&#x2122;s successful organisations are those that are transforming themselves through their use of digital technology today. Gold: How much of a revolution has the Cloud brought to business? Ian Cox: Cloud technology offers many benefits to businesses. These include reduced cost, increased flexibility and scalability without the need for capital investment or long lead times. The ability to quickly scale up (and down) has enabled companies such as Netflix, Uber and AirBnb to create new types of services and business models that would not have been possible without the Cloud. The Cloud is also enabling start-ups to seriously challenge established businesses that used to be able to rely on their scale and resources as protection against disruption. With Cloud technology, smaller players can enter a market far more quickly and without significant investment in infrastructure. And they can also increase their capacity to meet a surge demand in a matter of days or even hours which enables them to stay ahead of their larger competitors. There are also benefits for the CIO and the IT function in using the Cloud as it enables them to free up resources that would otherwise be allocated to maintaining and supporting the organisationâ&#x20AC;&#x2122;s existing systems and infrastructure. Moving to the Cloud allows IT staff to focus on working alongside the rest of the organisation, helping to solve business problems and identifying opportunities to use technology to create value, grow revenue and create

competitive advantage. This repositioning of the IT function and indeed the CIO role is key to ensuring that both can play a leading role in shaping and leading their organisations in the digital age. Gold: You were a CIO before the advent of Cloud computing. Back then, how were companies balancing the need to stay in touch with the latest technology with the need to keep an eye on costs? I.C.: It was a lot harder to keep up to date, as companies had invested large amounts in their existing infrastructure and systems. This investment stayed on the balance sheet for many years and prevented organisations from being able to replace or upgrade their systems to stay current. In addition, the cost and effort required to change internal systems often made creating a business case for implementing new technology difficult. For many companies the need to control cost was always the priority and, as a result, their technology platforms had become a constraint on their ability to grow and adapt to digital. But for those that saw IT as way of creating value and competitive advantage, the business case for investment in new technology was easier to make. This is where I focused as a CIO and, as a result, I was able use technology to help grow the businesses for which I worked.

With the right vision, leadership, culture and technology, there is no reason why an established business cannot compete with a start-up

Gold: In your book k Disrupt IT, you write that CIOs and d IT functions are struggling to cope with the latest developments and changes. Why is this? Is there some kind of inbuilt fear of outsourcing urcing their IT needs? I.C.: For some CIOs it is a lack of awareness of the need to change, whilst for others it is a fear of the change itself. Many CIOs have a technical background and are more comfortable talking about the detail of technology and how it works, as opposed to how it can be used to create a new revenue stream, increase profit or enhance the customer experience. Some IT departments see outsourcing as a loss of control or a diminishing of the role of IT and they prefer to keep as much as possible in-house and to only use partners for specific services or needs. The digital business has to be agile; it needs to be able to respond quickly to changing market conditions, customer preferences or competitor activity. But the traditional IT function is not set up to be agile; it is weighed down by the baggage it has collected over the past 20-30 years when technologies such as social, mobile and Cloud did not even exist and when the rest of the business had different needs and expectations of its IT team. And this is why we need a new model for IT. Gold: How much of an advantage does a start-up have over an established enterprise today, given that the newcomer is not burdened by an IT system that may be out-of-date and expensive? I.C.: Unlike established businesses, start-ups are not constrained by existing systems and infrastructure. They can also change systems more easily as they are unlikely to have made capital investments in their platform as most, if not all, of their systems can be sourced from the Cloud. This enables them to respond quickly to changing customer needs and certainly gives them an advantage over established businesses that cannot change quickly. But with the right vision, leadership, culture and technology, there is no www.goldnews.com.cy | GOLD | 59

technology leaders, consultants and industry commentators throughout the world and it has repeatedly been top of Amazon’s bestseller list. Where there has been some debate about the content of the book it has primarily been about specific details – such as how technical, or not, the CIO needs to be – as opposed to any fundamental disagreement about, or objection to, the new model or the general thrust of the seven principles. Certainly, no-one has disputed the fact that the CIO role and the IT function need to change.

Digital disruption will come to every industry at some stage; it is not a question of if but when reason why an established business cannot compete with a start-up. Technology is only part of the solution. It is about reinventing the organisation, looking at the business from the customer’s perspective and building an operating model, capabilities, processes and systems that are driven by customer needs. This is what start-ups do and this is where their real advantage lies. Established businesses that can reinvent themselves to focus on customer needs can compete with startups. Gold: Would you say that some people are intimidated by the mere use of words such as “disruptive” to describe digital technology? They suggest processes that may be dangerous or destructive. I.C.: In some respects, I hope they are intimidated by the word – the threat of disruption is very real and businesses need to act to avoid becoming the next victim. Digital disruption will come to every industry at some stage; it is not a question of if but when. And that disruption could happen at any time. If executives find the word “disruptive” intimidating or frightening, then they should face up to their fears now. It is not something you can ignore. It is worth pointing out, though, that the technologies themselves are not necessarily disruptive. It is how they are being applied to enable new business models, create new products and services, improve decisionmaking and efficiency, and enhance the customer experience that is disruptive. Creative people and agile organisations are disruptive – they just use whatever tools they have at their disposal to enable the disruption. Gold: You state in your foreword that the book’s target audience is CIOs and senior IT managers. What kind of feedback/reaction have you had from them? I.C.: The book has been well received by 60 | GOLD | The Business Magazine of Cyprus

Gold: You note that we are “in the midst of a digital revolution”, which we can all see in our daily lives thanks to smartphones, tablets and the Internet. And yet it would appear that, in some way, businesses are being left behind. Is this a correct reading of the situation? I.C.: Certainly some businesses are in danger of being left behind and we have already seen some big names go out of business because they could not – or would not – change to digital. Transforming into a digital business is not easy, nor is it something that can be done quickly.Digital is not an add-on to the business; it spans the entire organisation and beyond. It is about the devices, applications, tools, communication channels and data being used by the business and its employees, and by its customers, suppliers and partners. The transformation, therefore, has to start with a vision of the type of business needed to thrive in the digital age. Many businesses do not have this vision – in many cases this is because their Boards do not understand what it means to be a digital business. And these are the businesses that will struggle to compete in the digital age. Gold: The subtitle of your book is A New Model for IT in the Digital Age. How would you describe this new model? I.C.: The traditional service provider model for IT focused on building, supporting and maintaining infrastructure, databases and systems. The IT function

no longer needs to be a service provider; the digital business needs IT to be a partner that provides and manages its access to external services. And instead of reacting to requests from the rest of the business, the CIO and IT function need to be working alongside the rest of the business, as a proactive partner looking for opportunities to use technology to create new business models, products and services and enhance the customer experience. In this new model, rather than being the gatekeeper of the technology budget and the provider of all technology used by the business, the new type of CIO and IT function act as brokers, providing advice, guidance and access to the technology required by the rest of the business. It is a far more important and valuable role but it requires a different type of CIO and a different type of IT function. Gold: You will be the first to admit that today’s new model is tomorrow’s old one. So where do you think enterprises will be moving next, once the Cloud is well established and they are accustomed to leasing software, etc. rather than purchasing and owning it? I.C.: Firstly, whilst cloud adoption is steadily growing we are still a long way off from it being the norm for all businesses. Secondly, given the rate of change we have seen to date, making predictions about the future of technology is a dangerous thing! But that’s what makes being in IT so exciting at the moment; the potential is huge and we are really only just at the beginning of the journey. Gold: So you’ll soon have to write another book! I.C.: I have some ideas on this!

Digital is not an add-on to the business; it spans the entire organisation and beyond.

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The banking sector in Cyprus, comprising local banks, subsidiaries and branches of foreign banks, is regulated, supervised and monitored by the Central Bank of Cyprus (CBC).

y law, the Central Bank’s main objectives are to preserve stability in the financial sector, maintain price stability, foster economic growth, minimize systemic risk and protect depositors. In its supervisory role, the Central Bank has always been guided by the recommendations of the Basel Committee on Banking Supervision and it implements the EU’s Directives on banking regulation. THE MAIN FUNCTIONS OF THE CBC ARE: • The possession and management of reserves in euros in cooperation with the European Central Bank • The possession and management of foreign exchange

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II. 18 COOPERATIVE CREDIT INSTITUTIONS AFFILIATED TO THE CENTRAL BODY

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A. SUBSIDIARIES OF FOREIGN CREDIT INSTITUTIONS I. SUBSIDIARIES OF FOREIGN CREDIT INSTITUTIONS FROM EU MEMBER STATES Piraeus Bank (Cyprus) Ltd

Eurobank Cyprus Ltd National Bank of Greece (Cyprus) Ltd

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BANKING IN CYPRUS

NCR (CYPRUS) LTD

With its view of more than 485 million transactions around CR (Cyprus) Ltd was established the world each day, NCR is helping its customers respond to on April 1, 1955, as a subsidiary the demand for fast, easy and convenient transactions with of the parent company, NCR intuitive self-service and assisted-service options. Corporation. This year NCR But what we do goes beyond niche technologies or markets; Cyprus celebrates 60 years of our solutions run the everyday transactions that make life easier business in Cyprus! and help businesses around the world increase revenue, build NCRâ&#x20AC;&#x2122;s office in Cyprus, based loyalty, reach new customers and lower their operating costs. in Nicosia, is also the NCR By continually learning about, and thereafter pioneering headquarters for the Asia, Middle means of how the world interacts and transacts, we help East, and Africa Region (AMEA), companies not only reach their goals, but also change the way managing the business of NCR directly or through authorized all of us shop, eat, travel, bank and connect. While the NCR resellers in more than 70 countries in the region. hardware that enables millions of consumer transactions each It is truly a large, multi-cultural region, with diverse living day is the most visible part of our portfolio, the company standards and technological infrastructure in each and every also provides much of the software that powers consumer country and is manned with qualified and highly trained interaction with businesses around the globe. The NCR professionals.Over the past decades, NCR in Cyprus has solution portfolio is very wide and each solution is vertical to managed to play a leading role in developing the infrastructure the industry it is intended for. Beyond ATMs, NCRâ&#x20AC;&#x2122;s software in these countries, based primarily on the everlasting virtues of portfolio in the financial services industry enables consumers determination and innovation. to bank online or with their mobile phone, deposit cheques Our office in Cyprus is also an extension of our Global R&D from their mobile device, and interact with a department, developing NCR software that is sold live teller via video on a self-service machine, as globally in all the markets in which we do business. CONTACT well as helping banks and credit card companies NCR has been and continues to be a significant INFORMATION guard against fraud and better connect with their investor in, and contributor to, the Cyprus economy. NCR customers. NCR Corporation (NYSR:NCR) is the global (CYPRUS) LTD NCR has expanded its portfolio to address leader in consumer transaction technologies, turning a wider space of the needs of our customers. everyday interactions with businesses into exceptional Address: Across banking, retail and hospitality, NCR is experiences. It is headquartered in Duluth, Georgia 80 Limassol avenue, 2014 Nicosia expanding in the areas of cash management, with approximately 29,000 employees and does Tel: 22423388 mobile solutions for banking and other business in 180 countries. Fax: 22425750 industries, self-checkout forretail stores, With its software, hardware, and portfolio of e-mail: outsourcing and managed services, cloudservices, NCR enables more than 485 million kyriakos.kyriakou based solutions, payments, and other solution transactions daily across retail, financial, travel, @ncr.com Website: portfolios with new innovations either through hospitality, telecom and technology, and small www.ncr.com R&D or acquisitions. business.

64 | GOLD | The Business Magazine of Cyprus

PUT THE HUMAN TOUCH BACK INTO BANKING WITH NCR

That is exactly what NCR Interactive Services is all about Fantastic, flexible and consistently delivered experiences retain and attract bank customers, while efficiencies, cost savings and targeted assistance result in higher sales and increased profit. NCR is putting the human touch back into banking to offer you greater branch efficiency, smarter staff deployment and an amazing experience for your customers.

To learn more please visit ncr.com/financial or email financial@ncr.com www.goldnews.com.cy | GOLD | 65

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BANKING IN CYPRUS

ALPHA BANK CYPRUS LTD

Alpha Bank Cyprus Ltd is a Cypriot Bank, operating in Cyprus since 1998. The Bank is regulated by the Central Bank of Cyprus and its operations are thus subject to all the laws and regulations of the Republic of Cyprus. It is a fully owned subsidiary of Alpha Bank, one of the leading financial institutions in Greece, which also has a strong presence in South Eastern Europe. The Group offers a wide range of high-quality financial products and services, including retail banking, SMEs and corporate banking, asset management and private banking, the distribution of insurance products, investment banking, brokerage and real estate management.

of Cyprus, supplemented by the alternative electronic channels of Alpha Web Banking, Alpha PC Banking, Alpha Mobile Banking, Alpha SMS Banking and Alpha ATM Banking, the Bank provides competitive products and flexible solutions that cover the entire banking field. Reliability, integrity, professionalism and quality service are an integral part of Alpha Bank Cyprus Ltd’s retail strategy, which focuses on the provision of banking services and products that offer added value to its customers and help them reach their goals. With regard to its international customers, the Bank maintains a strong relationship with prominent banks and financial institutions around the world, while its specialized International Banking Services Units are staffed with experienced and well-qualified executives, ensuring the provision of high quality and efficient service. Evidence of this is the fact that the Bank has received several Quality Recognition Awards from international financial institutions for its excellent service in processing international payments. Alpha Bank Cyprus Ltd is not only a reliable banking asRecent important milestones in the long and successful course sociate but also a responsible and sensitive social citizen. With of the Group are: total respect for society and the environment it operates in, • The completion of Citibank’s Greek Retail Banking Operathe Bank is particularly active in the area of Corporate Social tions Acquisition on 30.9.2014. Responsibility, regularly organising and supervising local • The successful completion of a €1.2 Billion Capital Increase community initiatives, which support society, culture and of the Bank on 31.3.2014 and the redemption of the environment. Within the framework of its the total amount of the Hellenic Republic’s Prefersocial contribution, it makes human values its CONTACT INFORMATION ence Shares by the Bank on 17.4.2014. highest priority, ensuring social well-being, en• The completion of the legal merger through the vironmental protection and social and cultural Alpha Bank absorption of Emporiki Bank on 28.6.2013. improvement, through actions that offer further Cyprus Ltd Alpha Bank Cyprus Ltd operates a highly successvalue to its customers, its staff and society at /LHK 6ɉJL! ful business model, covering a wide range of banklarge. 3, Limassol Avenue, ing services including retail, SMEs, corporate, and Today, the Bank’s efforts are focused on facP.O.Box 21661 international banking. The Bank’s aim since the ing the challenges created by the wider financial 1596 Nicosia, Cyprus beginning of its operations has been to support its environment, by utilising its long experience Tel: (+357) 22888888 retail and business clientele, to satisfy their needs, to and the Alpha Bank Group’s specialized knowlFax: (+357) 22773788 provide high quality services with consistency and edge, as well as the possibilities offered by new Website: credibility and to create products which correspond technologies, to constantly improve its services www.alphabank.com.cy e-mail: to their financial needs. and continue on its course despite the current marketing@alphabank. Through a modern Branch Network in all cities difficult economic climate. com.cy

66 | GOLD | The Business Magazine of Cyprus

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BANKING IN CYPRUS

BANK OF CYPRUS

ounded in 1899 and Common Equity Tier 1 ratio totalled 15.4% (on a transitional headquartered in Nicosia, Bank basis) as at 30 September 2014. of Cyprus is the leading banking As of 20 November 2014, the Bank has a new, world-class and financial services group in board including Dr. Josef Ackermann as Chairman and WilCyprus, with significant market bur Ross as Vice Chairmen. The new Board brings a wealth of shares across all businesses. banking and broader corporate experience and skills that will The Group provides a wide be of significant value to Bank of Cyprus, as it continues its range of financial products and progress in restoring its financial strength. services, which includes retail and As the leading banking and financial services group in Cycommercial banking, finance, prus, the Bank will contribute to and benefit significantly from factoring, investment banking, the accelerated economic recovery in Cyprus. brokerage, fund management, private banking, life and general insurance. The Group has 259 branches, of which 130 are in Cyprus, 123 in Russia, 1 in Romania, 4 in the United Kingdom and 1 in the Channel Islands. Bank of Cyprus also has representative During the first quarter of 2015, Bank of Cyprus reduced offices in Russia, Ukraine and China. ELA by €500 million to €6.9 billion compared to a high of Following the Eurogroup’s decision on the Bank’s recap€11.4 billion in April 2013. Post 31 March 2015, ELA has italisation in March 2013, the Group quickly proceeded to been further reduced to a current level of €5.9 billion. The implement its restructuring plan, aiming to become a safer, Bank continues to stabilise its deposit base, while the Bank stronger, more Cyprus-focused institution, capable of supportremains appropriately capitalised. Customer deposits totalled ing the recovery of the Cypriot economy. One of the key pillars €13.611 million as at 31 March 2015 and accounted for 51% of this strategy was the enhancement of capital adequacy, by of Group total assets. The loan to deposits ratio improved to deleveraging and disposing of non-core assets. As 138%, partly because of the continuation of part of the Bank’s strategy of deleveraging through positive customer flows, which is evidence of the the disposal of non-core operations, the Bank sold CONTACT increasing trust and confidence of customers in INFORMATION its Ukrainian business and its investment in the Bank of Cyprus. The Bank remains appropriately Romanian Banca Transilvania. It has also disposed Bank capitalised, with CET1 ratio (transitional basis) of its largest single corporate exposure in Serbia, a of Cyprus at 13.9% as at 31 March 2015. Furthermore, the significant amount of assets in Romania and a sigimprovement in the Bank’s core performance /LHK 6ɉJL! nificant part of its UK loan portfolio. continued, with profit after tax from continuing 51 Stasinos Street, A major turning point was the Bank’s €1 billion Ayia Paraskevi operations totalling €57 million. 1599 Nicosia share capital increase, completed in September 90+ DPD have stabilized at less than €13 2014, which involved high-quality institutional inbillion and are fully covered by provisions and Tel: +357 22122100 vestors such as EBRD and WL Ross. This signifiFax: +357 22378111 tangible collateral. The adoption of the foreclocantly strengthened the Bank’s capital position and Webside: sure legislation and insolvency framework is a www.bankofcyprus. ensured that the Bank passed the ECB’s Compresignificant step in enabling the Bank to tackle its com hensive Assessment in October 2014. The Bank’s delinquent loans and improve its asset quality.

68 | GOLD | The Business Magazine of Cyprus

On Track, Strong and Profitable

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BANKING IN CYPRUS

cdbbank cdbbank: The Reliable Option Providing innovative banking solutions to corporate clients in Cyprus and abroad

he Cyprus Development Bank (cdbbank) has been one of the island’s most reputable financial institutions since its establishment in 1963. It provides a wide range of banking services and products to satisfy the needs of its clientele which comprises corporate and international clients, professionals and personal depositors. The Bank played a leading role in restoring the devastated to enhance its technological foundations, and to commit itself to Cyprus economy after 1974, financing a broad range of providing a fast and reliable service. productive sectors and actively supporting viable small, medium The main pillar of cdbbank’s strategy is to provide a wide range and large -scale manufacturing and other businesses, contributing of banking products and services and reliable solutions to its to setting the foundations for future growth. clientele by propping up their efforts to deal with the challenges The Bank’s privatisation was successfully concluded in 2008. of competition and ride out the adverse financial climate. Following a short period of restructuring, cdbbank, As a result of its prudent lending policy, small and flexible by choice, has managed to further cdbbank has low exposure to non-performing establish its presence as a niche financial services CONTACT loans and remains focused on the realistic INFORMATION institution with a commercial orientation, offering evaluation of business proposals. Furthermore, excellent quality service in a direct, personal and JKIIHUR cdbbank is in a position to offer high-quality friendly manner to the domestic and international /LHK 6ɉJL! services to its international clients, professionals business community. Alpha House, 50, and depositors. In the wake of the Eurogroup decisions of March Archbishop Makarios The Bank’s comprehensive line of innovative 2013, cdbbank actively contributed to the collective III Ave.,1065 Nicosia, deposit products, designed to fulfil the needs of effort to restart the Cyprus economy and restore Cyprus institutional and private clients, has quadrupled the Postal Address: trust in the banking sector. Key priorities of cdbbank P.O. Box 21415, 1508 number of its depositors over the last four years. were the maintenance of a healthy loan portfolio Nicosia, Cyprus Its new 18-month deposit product has a fixed through restructurings and the preservation of its Tel: (+357) 22846500 interest rate of 2.20% and is possibly the most international relationships. Fax: (+357) 22846600 attractive saving scheme currently available in the Acting in a responsible and decisive manner, the e-mail: info@cdb.com.cy market. The depositor has the option of quarterly Bank promptly and effectively set in motion all the Website: withdrawals of up to a total of 55% of the original measures necessary to strengthen its capital base, www.cyprusdevelopdeposit capital. with the participation of new institutional investors, mentbank.com

72 | GOLD | The Business Magazine of Cyprus

Deposit with fixed interest rate

2,20%

CYPRUS DEVELOPMENT BANK

New 18-month, flexible deposit product Ideal for individuals, companies, provident funds Tenor: 18 months h .JOJNVN JOJUJBM EFQPTJU BNPVOU â&#x201A;¬5.000 h .BYJNVN EFQPTJU BNPVOU QFS DMJFOU â&#x201A;¬500.000 h *OUFSFTU SBUF 2,20% h 8JUIESBXBMT - At the end of each quarter, without cost "CJMJUZ UP XJUIESBX VQ UP 55% of the initial deposit amount 2VBSUFS

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BANKING IN CYPRUS

EUROBANK CYPRUS

urobank Cyprus was established in 2007 with the opening of its first banking centre in Nicosia and currently operates a network of eight banking centres in all major cities of the island. The Bank focuses on International Business Banking, Corporate and Investment Banking, Private Banking and Asset Management, offering a wide range of products and services to both retail and institutional clients. Within these eight years of operation, the Bank

74 | GOLD | The Business Magazine of Cyprus

CONTACT INFORMATION

Eurobank Cyprus

Headquarters: Eurobank Cyprus Ltd, 41, Archbishop III Makarios Avenue, 1065 Nicosia, Cyprus Postal Address: P.O. Box 27236, 1643 Nicosia, Cyprus Tel: (+357) 22208022 Fax: (+357) 22875405 e-mail: www.eurobank.com.cy Website: info@eurobank.com.cy

has grown at an impressive pace, demonstrating at the same time a very healthy profitability, a solid capital base and strong liquidity. The touchstone of Eurobank Cyprus’ success is its firm commitment to relationship management, offering high quality services, innovative products and a culture of professionalism, trustworthiness and discretion. Τhe bank’s strong capital base, substantial liquidity and solid financial results enable its dynamic growth and ongoing support of the Cyprus economy. Eurobank Cyprus Ltd is a Cyprus-registered company. It operates autonomously and is subject to all the laws and regulations of the Republic of Cyprus.

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BANKING IN CYPRUS

HELLENIC BANK Strategically positioned to serve you!

ince ancient times, Cyprus has served the world from its strategic location at the crossroads of three continents. The Hellenic Bank Group, strategically positioned in Cyprus since its establishment in 1976, has been steadily developing its local and international clientele, becoming the second largest commercial bank in Cyprus. Operating through a network of 60 branches, four International Business Centres and the first Shipping Business Centre in Cyprus, four Representative Offices in South Africa, Russia and Ukraine, the Group employs over 1,400 people, offering a full spectrum of banking and insurance products and services. Focusing on upholding its core values, Hellenic Bank looks to the future with renewed energy and optimism. With an enhanced shareholder base and a renewed Board of Directors and Executive Management, Hellenic Bank is leading the way in the fast-recovering economy of Cyprus as a key agent of growth. Leveraging on its excellent reputation, exemplary service and high levels of liquidity, over the coming years the Hellenic Bank Group aims to actively support the continuous growth and internationalisation of Cyprus and fulfil its strategic aim of increasing profitability and growing its customer base.

Hellenic Bank International Business Division - Shipping Business Centre

The International Business Division of Hellenic Bank is considered a major pillar of the Group’s success. It was back in the ‘80s when the offshore department of Hellenic Bank was first established in Limassol, with clients of the shipping industry at its core. At the time, nobody could really have predicted the significance of the role it would play in the future development and prosperity of the organisation. By 1990, the Bank had established the first International Business Centre (IBC) of its kind by integrating that offshore department within its operations. The rest is history.

76 | GOLD | The Business Magazine of Cyprus

Today, Hellenic’s International Business Division is rightfully considered a major pillar of the Group’s success. The four IBCs (two in Nicosia, one in Limassol and one in Larnaca), along with the Shipping Business Centre in Limassol and Representative Offices in Moscow, Saint Petersburg, Kiev and Johannesburg, all staffed by highly experienced professionals, spearhead the Group’s commitment to this lucrative and highly successful line of business.

Cyprus as a shipping centre

Throughout the years, Cyprus has gained international recognition as a reputable shipping centre. With close to 1,000 ships registered under the Cyprus flag, the country maintains the third largest merchant fleet in Europe and the tenth largest in the world. More than 130 shipping-related companies operate out of Cyprus, controlling a fleet of 2,300 ships worldwide. The significant benefits of the new Shipping Tonnage Tax System (revised and approved by the European Union in 2010) are expected to further boost the country as one of the leading shipping centres in the world. In summary, some of Cyprus’ key benefits in shipping are: The country’s strategic position at the crossroads of Europe, the Middle East and Africa.

Dedicated to exclusively serving the Shipping Business Community!

a new level of experience to this select group of clients. The flexibility that the “Open Registry” provides to non-Cypriot As a member of the Cyprus Shipping Chamber, the Shipping citizens to register ships under the Cyprus flag. No income tax, capital gains tax and estate duty for ships registered Business Centre is also a keen supporter of the focal purpose of the organization, which is the promotion of the interests of Cyprus under the Cyprus flag. Shipping and the advancement of the reputation of the Cyprus Advanced maritime infrastructure and services. flag. Low registration fees for ships. No stamp duty on documents or mortgage deeds. The Hellenic Bank Shipping Business Anonymity of beneficial owners through trustee CONTACT INFORMATION: Center, located in Limassol, serves shareholders and nominees. shipping, ship management and other Hellenic Bank related shipping services companies with a Public Co Ltd wide range of banking services including: Current accounts and multicurrency Address: P.O.Box 24747, 1394 The shipping sector had been successfully served Nicosia, Cyprus accounts in all freely convertible currencies. by Hellenic Bank years before the inception of Tel: (+357) 22500500 / 8000 International and local payments using 9999 the International Business Centre. Since then, a advanced electronic payment systems for (from Cyprus) sizeable portfolio of reputable customers from the handling payments to suppliers, insurance Fax: (+357) 22500083 shipping industry has been developed. e-mail: companies, utility payments, standing orders, serviceline@hellenicbank.com This customer portfolio consists of some of the local staff salary payments, as well as salary Website: best-known companies in the business, with payments to crew members. www.hellenicbank.com activities ranging from ship owning and ship Cash Management services, working capital management to chartering, bunkering, marine International Business management, short-term fixed and overnight Division insurance and others. deposits. Address: 131, Archbishop Dedicated to exclusively serving the shipping Spot and forward foreign exchange Makarios III Ave. & Ioanni Polemi business community of the island and capitalising Ave., 5th Floor, 3021 Limassol transactions, hedging positions in currencies Tel: (+357) 25502411 on the Bank’s longstanding affiliation with the and interest rates. Fax: (+357) 25502484 shipping industry sector, the Hellenic Bank Corporate and personal Debit & Credit e-mail: Shipping Business Centre, established in 2013, Cards. a.charitou@hellenicbank.com was the first of its kind in Cyprus. Finance to shipping companies for working Shipping Business Centre All the know-how and expertise accumulated capital, credit facilities against blocked funds, Corner of Gladstone St. & 1, throughout the years is now available under shipping finance through syndicated loans Evangelistrias St, Agathangelou a single roof. Through a mixture of core and )\ZPULZZ *LU[YL Z[ ÅVVY with international banks and others. customised services, combined with a highly Limassol Trade finance and letter of guarantees Tel: (+357) 25502700 experienced team of professionals, the Hellenic services. Fax: (+357) 25345430 Bank Shipping Business Centre can now provide e-mail: sbc@hellenicbank.com

The Shipping Business Centre

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BANKING IN CYPRUS

NATIONAL BANK OF GREECE

vised and regulated by the Central Bank of Cyprus. NBG (Cyprus) Ltd. offers a complete range of banking, financial, and investment services to Individuals, SMEs, Corporates, Institutionals, Governmental Entities, and International Clients. NBG Cyprus Ltd. enjoys the privileges and advantages of being a member of the NBG Group. Besides the advantage of having the Group’s sound support, the Bank also enjoys the reputation and recognition of NBG internationally and exploits the know-how, experience and support provided by the parent company for any type of compounded or international banking business in Cyprus. The range of banking, financial and investment services offered, includes, among others, Corporate-Investment Banking, Project Finance, Real Estate Finance, Trade Finance, International Banking Services, Advisory Services for Projects and Investments, as well as Retail and Professional Banking services, such as Consumer Credit, Mortgages, Credit Cards, Professional Loans, Documentary Credits, Working Capital Facilities and an extensive range of services CONTACT through Internet Banking. INFORMATION Special emphasis has been placed lately on the National Bank business development of International Bankof Greece ing, servicing international clients, mostly from /LHK 6ɉJL! countries outside the EU (Russia, Ukraine, Ka15, Archbishop Makazakhstan, Arabian Gulf) in various activities upon rios III Avenue, 1065 request, such as Effects Conversions, Money Nicosia P.O. Box 21191, 1597 Transfers, Documentary Credits, Investment and Nicosia, Cyprus Trade Finance Loans, Multicurrency Cash Management, Multicurrency Time Deposits, DerivaTel: (+357) 22840000 tives in Currencies, Interest rates, Commodities, Fax: (+357) 22840010 e-mail: etc. info@nbg.com.cy In addition to the above banking-financial acWebsite: tivities, through local subsidiaries NBG Group www.nbg.com.cy

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

NBG Group Facts:

• It is one of the best-established banks in Balkans. • Its international and local network comprises 70 banking entities and Related Financial Sector’s Subsidiaries. • It currently operates 1,800 branches, with 30,000 employees, who are servicing more than 10 million customers. • The Group has a presence and operations in 14 countries. • It has been listed on the Athens Stock Exchange (ASE) since 1880 and on the New York Stock Exchange (NYSE) since 1999. NBG was established in Cyprus in 1910 and was a pioneer in setting up a sound banking industry on the Island. In 1994 the Group established a subsidiary – National Bank of Greece (Cyprus) Ltd. – which is registered as a Cypriot Bank and is super78 | GOLD | The Business Magazine of Cyprus

operates, two other financial-investment activities in Cyprus: Insurance Packages and Services and also Securities Brokerage-Asset Managemen-Private Banking. NBG Insurance Cyprus Ltd. has operated successfully for more than a century, covering all types of insurance, having acquired a good reputation and the respect of local society. NBG Securities SA, has recently established a full branch,

staffed with specialists, who can provide brokerage services (from CSE, ASE, LSE, NYSE, etc), as well as offering Asset-Wealth Management and Private Banking services and products to High Net Worth Individuals, Private Funds, Special Institutions and Provident Funds. It will soon be providing custodian services, mainly to institutional clients (Provident Funds, Private Funds, etc). www.goldnews.com.cy | GOLD | 79

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BANKING IN CYPRUS

RCB BANK RCB Bank: Your trustworthy bank in Cyprus!

leading, private, Cypriot Bank, From everyday banking for corporate and individual clients to investment management, RCB’s approach focuses on building RCB Bank is offering a wide long-lasting relationships with its clientele, both domestically as range of banking products well as internationally. The Bank is currently further enhancand services to individual and ing its operations in the Cyprus market and intends to increase corporate clients from around significantly its network of branches and its business volumes in 50 countries. Founded in the country. 1995, RCB has evolved from Through the provision of truly enticing deposit schemes with a then small international competitive interest rates, RCB Bank provides Cypriots with the banking unit into Cyprus’ opportunity to enjoy the comfort of a financially strong bank second largest bank by asset and a wide range of options, suited to each depositor’s needs. All size. RCB is also a significant deposit schemes enable depositors to see their savings grow with EU bank, a member of the Single Supervisory Mechanism (SSM) and under the direct supervision of the European Central a flexibility that caters to their specific needs. RCB Bank has been actively supporting the Cyprus economy, Bank. During the latest ECB stress tests, RCB Bank even during the last few crisis years, with the achieved the best results among all the participating CONTACT provision of tailored-made lending solutions to Cypriot banks. The stress tests showed that the INFORMATION businesses. Through its team of specialists, a full Bank’s Common Equity Tier 1 ratio (CET1) in the RCB BANK spectrum of lending and banking services and a adverse scenario is more than twice the minimum fast and flexible decision-taking process, RCB requirements. As of March 31, 2015, its assets /LHK 6ɉJL! 2, Amathountos Street Bank is constructively helping Cypriot businesses amounted to over €11 billion and its own equity P.O. Box 56868 gain access to the support they need in order to to €500 million. Headquartered in Limassol, RCB 3310 Limassol – materialize their plans. Bank maintains branches in Nicosia, Limassol, CYPRUS Luxembourg, as well as representative offices in Trust, Responsibility and Excellence constitute Moscow and London. the core values of RCB Bank and are guiding its RCB Telephone Banking: business and corporate culture. In choosing RCB After 20 years of successful operation and history, +800 00722, as their bank, clients are not simply choosing a RCB Bank has established itself as a leading, reli+357 25 355722 chequebook and an attractive bank card, but in able and trustworthy provider of financial services. www.rcbcy.com 80 | GOLD | The Business Magazine of Cyprus

essence they are choosing a partner. A partner who will offer advice, help them find the right financial solution and not only preserve what they have but most importantly, make it grow. Over the past two decades RCB Bank has proceeded with substantial and long-term investments in Cyprus and was awarded a prestigious CIPA International Investment Award. RCB Bank Ltd is socially responsible and cares for the Cypriot society. The Bank has for many years adopted a multifaceted CSR policy that provides solid support to those in need in Cyprus and substantially assists in the promotion of culture. RCB Bankâ&#x20AC;&#x2122;s focus remains on Cyprus, its people and their well-being. Through the further expansion of its local business, the extension of its branch network and a leading team of Cypriot bankers and professionals, RCB Bank further solidifies its leading position in the country and actively supports Cyprus in resuming its rightful position as a credible EU partner with a growing economy. www.goldnews.com.cy | GOLD | 81

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BANKING IN CYPRUS

USB BANK

SB Bank started in 1925 as one of the first companies registered in Cyprus (the 10th), to evolve in 2009 into USB Bank Plc and, in 2011, to become a member of the International BLC BankFRANSABANK Group. The new ownership structure has given new impetus to USB Bank, which is focusing on growing its business locally and internationally. By exploiting new opportunities of collaboration, thanks to its high level of expertise and know-how, its international network of clients, and the support of BLC Bank and FRANSABANK, USB Bank has expanded the range of customer services and increased its turnover. Investing in know-how and human capital potential, the Bank aims to increase its effectiveness and productivity for the benefit of its clients. USB Bank’s main objectives include the strengthening of its capital base, and maintaining strong liquidity. BLC Bank, was established in Lebanon in 1950 and has been a member of the International financial Group FRANSABANK, since 2007. In recent years, it has exhibited continuous and significant growth, as a result of its clear vision and strategic direction. USB Bank, contemporary and reliable, supports its customers The Bank’s main strategic goal is its geographic expansion and with integrity, professionalism and transparency, offering innovative the strengthening of its position in the Eastern Mediterranean. Its and flexible solutions tailored to newly emerged marfinancial results since 2007 have been exemplary. On ket needs, with efficient products and services. The October 31, 2014 , total Assets on the consolidated Bank aims to build long-lasting, mutually beneficial CONTACT balance sheet of BLC Group (BLC Bank SAL + USB relationships with the clients, in order to effectively INFORMATION Bank PLC) amounted to US$5,344 billion, total Cussupport both their personal and business requireUSB BANK tomer Deposits were US$4,206 billion, total Loans ments. and Advances amounted to US$1,944 billion, the /LHK 6ɉJL! USB Bank offers a wide range of financial prod83, Dighenis Akritas consolidated Net Profit was US$36,27 million, while ucts and services for Retail, Corporate and InterAvenue, 1070 Nicosia, Total Equity stood at US$469,82 million. national clients through a network of 14 branches Cyprus FRANSABANK Group was established in 1924 and all over Cyprus, its Corporate Division Units in all Postal Address: is today the fourth largest banking Group in Lebanon major cities and via the 2 specialized International P.O. Box 28510, 2080 with the biggest branch network. It maintains a uniNicosia, Cyprus Business Units in Nicosia and Limassol, as well as Tel: (+357) 22883333 fied presence in 10 countries (Lebanon, France, Cya Representative Office in Moscow.Daily services Fax: (+357) 22875899 prus, Algeria, Syria, Belarus, Libya, Sudan, UAE (Abu are also provided through the Customer Teleservice e-mail: Dhabi) and Iraq) and has been able to consolidate its Centre on 8000 2323 and for easy and fast banking usbmail@usbbank. leading position both in Lebanon and in the countries service, clients have access to 24-hour service via18 com.cy where it is expanding, providing leading financial serCustomer Teleservice Automated Teller Machines (ATMs) throughout Centre: 80002323 vices to its customers and always placing them at the the island and via the Electronic Banking-ibank and Website: heart of its activities. Mobile Banking services. www.usbbank.com.cy 82 | GOLD | The Business Magazine of Cyprus

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15 | CORPORATE SERVICES |

Years

On T

he Jordans Group brings together unique teams of lawyers, accountants, trust managers, tax advisers, data specialists, p , company p y formation specialists, property search specialists and publishers. The Group comprises four companies â&#x20AC;&#x201C; Jordans Limited, Jordans Corporate Law, Jordans Trust Company and Jordan Publishing â&#x20AC;&#x201C; and, since 1999, Jordans Trust Company (Cyprus) Limited has operated in Nicosia. Gold d spoke to Richard Melton, Managing Director of the Cyprus off fice. Gold: What is Jordans? Richard Melton: Jordans was established in 1863 and is the UKâ&#x20AC;&#x2122;s leading corporate services provider. The company provides corporate, trust, legal and tax advisory services on an international basis. We have offices in BVI, Hong Kong, Seychelles, UK (our head office), Jersey and, of course, Cyprus.

Gold: What made the company decide to set up a Cyprus office? R.M.: Cyprus is a geographical hub and a hive of high-level expertise in international taxation and corporate structuring. Our Cyprus office, which opened in 1999, specialises in the provision of non-Cyprus companies, trusts and foundations. This strategy fits perfectly with the core business of local firms â&#x20AC;&#x201C; many of whom are our partners. It is a natural synergy. Gold: What do you think of the current business environment in Cyprus? R.M.: Challengingâ&#x20AC;Śbut with such challenges comes opportunity. We have found many of our partners looking beyond our core products in the BVI and Seychelles. For example, there is a keen interest in our Hong Kong operation, as well as our UK corporate, legal and tax advisory services. Gold: Where do you think your business will head in the future in Cyprus? R.M.: We anticipate corporate structuring becoming more complex and a greater need for bespoke corporate vehicles, such as foundations and partnerships. Increasing complexity leads to an empha-

sis on thought leadership. This is actively supported by people in our trust company who are authors in their own right on international tax planning matters, and who regularly contribute to journals and other publications. Gold: Do you think that Cyprus has a future? R.M.: Definitely. How could it not? Cyprus serves as an important geographical and fiscal gateway into the European Union, which is becoming increasingly relevant in light of Asian outbound investment. This is supported by appealing incentives such as the economic immigration programme and a favorable local tax regime. Cyprus has demonstrated considerable tenacity in its management of the banking crisIs and offers a stable environment within a broader area of some considerable economic turmoil. Gold: How would you describe your first two years at Jordans Trust Company (Cyprus)? R.M.: A great learning curve â&#x20AC;&#x201C; working with Jordans means there is a need to attaina greater level of expertise in international tax, trusts and corporate matters, as well as to maintain substantial multi-jurisdictional knowledge. Gold: What are your aspirations for the Cyprus office, both short- and long-term? R.M.: Itâ&#x20AC;&#x2122;s really a matter of continuityâ&#x20AC;Ś and to provide our friends and partners in Cyprus with excellent support and services in the areas where we cooperate. For more information:

Contact: Richard Melton, Managing Director, Jordans Trust Company (Cyprus) Limited Address: 41-43, Klimentos Street, 2SPTLU[VZ ;V^LY UK -SVVY 6É&#x2030;JL 5PJVZPH *`WY\Z Tel: Mobile: e-mail: r.melton@jordans.com.cy Website: www.jordanstrustcompany.com

Cyprus has demonstrated considerable tenacity in its management of the banking crisIs 84 | GOLD | T The hee Bu Business B usiness sin si sin iness eesssss Magazine Ma M ag ga gaz azzin a iine nee o n off Cy C Cyprus ypr pru p rru us

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| PROFILE |

C of

Legal Partners (Orphanides, Christofides & Co LLC) was founded in 2010, evolving from a previous partnership established in 1999. The firm provides a wide range of legal services covering most aspects of law through two main departments - Business & Corporate and Litigation & Dispute Resolution - from its offices in Nicosia and Larnaca. Gold spoke to one of the firm's three partners, George Christofides. By John Vickers | Photograph by Jo Michaelides 44 | GOLD | The Business Magazine of Cyprus

ne might reasonably have expected that George Christofides would become a career politician, given that his grandfather was George Christodoulides, twice elected Mayor of Larnaca (1953-1962 and 19861991), his uncle Doros Christodoulides was an MP and his father, Titos Christofides, was Under-Secretary to President Demetris Christofias. In fact, from his high school years, the young George knew that he wanted to study law. “I pictureed myself doing a job in which I was standing up for people’s rights,” he says, “and it seemed to me that, in this sense, there were similarities between the legal profession and politics. We know that the two often go together in Cyprus, though it is not the only country where we see this!” The link between the two subjects continued when he first obtained his LLM from Lancaster University and then an MSc in European Politics from the London School of Economics. Had he not been concerned that, in the 1990s, the widely held view was that there were too many lawyers in Cyprus? “I was told that by a few people but it didn’t put me off at all,” he says, noting that even more graduates are entering the legal profession today than when he did in 1997. He recognises, however, that working as a lawyer is not as easy as many people think. “The way the legal profession works here is more complex than in many other countries,” he explains. “You have to build a relationship of trust with each client, you need to have a good name which stems from your ability to communicate and connect with people, as well as from your results in court or in your corporate dealings. The additional fact that there are plenty of law firms as competition obviously makes it more difficult.” That said, the part of the job that has always appealed to George Christofides is precisely the way in which lawyer-client relationships are built in Cyprus. He notes that his firm’s aim is to build solid relationships with clients, to have good communication with them, to keep them informed of their rights and to do its best for them, in court and elsewhere. “We advise clients to act pre-emptively so that they don’t come to us only when they have a problem,” he tells Gold. “It is preferable to avoid complexities and legal issues in advance, and to ensure

that business affairs are organised in a prudent way so that life is easier for everyone. It’s a bit like having a regular check-up with a doctor, as opposed to going to see him only when you have a problem.” Unlike many law firms in Cyprus, Legal Partners offers services in other jurisdictions too. Is this just a matter of being realistic and recognising that Cyprus doesn’t offer certain things? “We do this because we want to be in a position to offer our clients the best possible solution, “ Christofides explains, “and that may take the form of, for example, alternative corporate and tax structures that are not available in Cyprus. For this reason, we have formed partnerships with law firms in other countries and we maintain our relationships with them so that we are always kept up to date and remain aware of the best possible solutions available, wherever that may be.” Since 2013, the firm’s workload has increased considerably as the partners deal with a range of clients’ issues, including financial problems with bank loans, the results of the bail-in, Swiss franc mortgages, evictions from shops, houses and offices, as well as various family problems. Ironically, however, a heavier workload has not led to increased revenues. “One of the effects of the financial crisis and economic stagnation has been that companies and individuals have difficulty in paying for our services. This is something that many of our colleagues are seeing too,” Christofides explains. In addition to its corporate work, Legal Partners is also involved in litigation and dispute resolution. Some people have questioned whether the Cypriot judicial system is fit for purpose but George Christofides is not one of them. “I believe that it is certainly fit for purpose,” he states firmly before going on to clarify that “What are not fit for purpose are the complex procedures which delay cases and, consequently, delay justice. If we are talking about judges and lawyers, I would say they do their work well but we probably need to employ more judges, which is something that has been happening lately. Ten new judges have been appointed recently and they will start work in September, and that’s a step in the right direction.” More important than increasing the number of judges, however, is the need to change and update the procedural

rules, which date back to the British colonial era: “We definitely need to find solutions in this regard,” says Christofides, “and we also need to educate lawyers about the need for change. Everyone has to be more flexible and make an effort to adjust to a possible new environment. Sometimes, as a profession, we think too conservatively and are afraid of anything new.” George Christofides describes himself as optimistic, as far as Cyprus and its future is concerned. “We are wiser than we were in the past,” he says. “We are now facing the possibility of seeing the country reunited after half a century and this is something that will mean new cooperation, new business relationships, and new people, products and services in the market. I believe that we will all have a great deal to learn from the new situation and we will all be able to provide our own expertise in order to contribute to it.” As Legal Partners marks the fifth anniversary of its founding, George Christofides expects to be providing an even greater range of services to the firm’s clientele. “This is not the time to talk about expanding beyond Cyprus,” he says, “but it could happen.” On a personal level, he is enthusiastic about his new sideline as a university lecturer and his work as an arbitrator in a dispute resolution chamber, specialising in international sports cases. “I believe that at the end of this three-year period I’ll have gained a great deal of expertise and experience of such issues,” he says, and reflects on why he still enjoys the profession that he dreamed of as a student: “The magic of this business lies in the people you meet, the way you form personal and professional relationships, and the fact that you face new challenges every day. This is our life now. Just imagine how the reunification of Cyprus will open up so many possibilities for everyone. I think I can safely say that there are exciting times ahead.”

I pictured myself doing a job in which I was standing up for people's rights www.goldnews.com.cy | GOLD | 87

| PROFILE |

QUORUM NEEDED!

nfoScreen, creator of the Quorum entity management and company secretarial software solution, celebrates its 20th anniversary this year. /H]PUN PUÅ\LUJLK WYVTPULU[ T\S[PUH[PVUHS I\ZPULZZLZ MHY HUK ^PKL 0UMV:JYLLU PZ YLZWVUZPISL MVY SLHKPUN [OL ^H` [V JVTWYLOLUZP]L VɉJL H\[VTH[PVU HUK HSSV^PUN its clients – in some 23 countries – to ascend to the pinnacle of their professions. 0U HU L_JS\ZP]L PU[LY]PL^ ^P[O Gold, Tony Ellinas, Founder and Managing Director, YL]LHSZ OV^ HM[LY [^V KLJHKLZ VM Z\JJLZZ 0UMV:JYLLU JVU[PU\LZ [V VɈLY H NH[Lway to a thriving professional services operation for major corporations the world over. By Effy Pafitis

Gold: Let’s start with the basics: what is InfoScreen? What products does the company provide? Tony Ellinas: InfoScreen is a specialist software development company based in Cyprus, with additional offices in Hong Kong and Serbia. Quorum, its flagship product, is an entity management and company secretarial software solution used by leading audit, legal and fiduciary organisations that provide corporate services in 23 countries in the Americas, EMEA and Asia. Quorum covers the full spectrum of professional service operations with the capability to connect with other software. Users can manage entities, clients and contacts, store and manage documents and workflows, manage bank account information and use an optimum reporting and billing system. We can truly say

that, through this product, we facilitate the effective completion of daily tasks for thousands of people working in top businesses around the world.

“The Manager”, as we called our first dedicated solution for Corporate Service Providers, which gradually evolved into our flagship product Quorum.

Gold: What was the impetus behind the inception of this flagship product? T.E.: You might say that I suddenly found a problem that really bothered me, so I felt the need to find a solution to solve it! In 1995, I visited a large law firm in Limassol to set up InfoScreen. The company’s first project was the development of an advanced electronic map system for Limassol. Sitting there in my lawyer’s office, I noticed that everything was being done manually. When I left, I couldn’t get over how much time was being lost each day due to this inefficient and costly work process so I decided to do something about it. A few months later, we released

Gold: 2015 marks the firm’s 20th anniversary. What do you see as the main highlights of the firm’s operations over the last two decades? T.E.: Well, my initial aspiration was to facilitate daily tasking for a specific industry and we managed not only to do that very well but also to move

88 | GOLD | The Business Magazine of Cyprus

beyond our initial scope. Throughout this journey, I have experienced many memorable moments with my team, such as acquiring our first-ever international client in 2009, our expansion abroad which led to opening our offices in Belgrade and then in Hong Kong, the launch of the Fiduciary Future conference brand, as well as acknowledgements and awards including the Investors in People Accreditation in 2012 as the first ICT company in Cyprus and the National Champion title in

THERE IS NO DOUBT THAT A HEALTHY SMALL BUSINESS SECTOR IS ESSENTIAL TO ANY PROSPEROUS ECONOMY

the European Business Awards 2014. Gold: InfoScreen possesses an impressive 70% market share in Cyprus. What was your strategy for establishing the company and making it a market leader on the island? T.E.: We are constantly striving to listen to the market and understand its needs. We are continuously upgrading the product, adding new features and optimizing user experience. We research and enhance our knowledge to ensure that we remain in line with the latest technology. Our aim was – and will always be – to offer a state-of-theart technological tool that will facilitate the workflow of professionals, resulting in more productive and profitable businesses. Gold: What can you tell us about the firm’s operations in Serbia and Hong Kong? T.E.: The office in Serbia was established in 2012 and serves primarily as a back office for the software development department. It was our first office abroad and it gave us easier access to the region and encouraged further growth for the company. Setting up an office in Hong Kong, meanwhile, was a strategic decision taken to create a base for our expansion in the Pacific. It was established in 2013 and it serves as a regional sales and support office. Gold: I understand that the company is now considering further expansion into Russia and the UAE. T.E.: Yes, we are steadily moving in that direction. Within this framework we have translated Quorum into three more languages (Russian, Chinese and Greek) and researched markets abroad to identify opportunities

and potential for growth. Furthermore, InfoScreen often participates in international conferences and expos; these events are crucial for us as they are attended by major business executives who could potentially become part of our clientele. Recently, for example, we visited

how will it contribute to the collective efforts to revive the local economy? T.E.: We are a medium-sized enterprise that has managed to develop an innovative ICT product, establishing a whole new industry in Cyprus. Through our work, we

YOUNG ENTREPRENEURS ARE IN NEED OF HEALTHY AND REALISTIC ROLE MODELS Dubai and Mauritius where we managed to gain the trust of some very important clients. In the near future, we are planning trips to Thailand and Shenzhen, China, where we anticipate further positive results. Gold: You have previously stated that InfoScreen wishes to help position Cyprus as a serious competitor in the international ICT market. How are you attempting to fulfil this objective, and

introduced office automation to the island’s professionals; however, we didn’t stop there. We have continued to evolve and grow as a company, by constantly improving and upgrading our product. As a result, we have managed to position the product successfully against international competition. At the moment, Quorum is a well-recognized and successful product among industry professionals around the world. All this proves how

much SMEs can achieve. These business entities play a very important role in local economies and societies and there is no doubt that a healthy small business sector is essential to any prosperous economy. It is my belief that the benefits derived from SMEs make them the backbone of any economy. We are hopeful that our company can set an example for other Cypriot businesses to dare and surpass local borders. Gold: You were recently recognized as a Digital Icon for Cyprus by the European Commission’s Watify Initiative. How significant are such initiatives in the development of entrepreneurship? T.E.: They are incredibly significant! Young entrepreneurs are in need of healthy and realistic role models. They need to look up to people who have done it before them and succeeded. Initiatives like Watify promote entrepreneurship as an attractive career by showcasing the achievements of real people who started from scratch just like them and letting others learn from their many experiences. Let’s not forget that inspiration is a very important element of a successful career path. In that sense, with proper guidance, we can push the role models of tomorrow a step closer to their goals. Gold: Finally, what does the future hold for InfoScreen? T.E.: Currently we are focusing on further expansion and the general growth of the company. There are many ideas on the table for future plans but we maintain a “slow and steady” strategy while evaluating each and every step thoroughly. When the time is right and we feel 100% confident about our idea, we will take the next step towards production. All in good time! www.goldnews.com.cy | GOLD | 89

| INVESTMENT |

or well- diversified investors, the reasonably sharp selloff in emerging markets (the “Big Five” being Brazil, Russia, India, China and South Africa) and the oil selloff last year was more than offset by rising stock market values in the developed world and growth in the amount of outstanding public debt helping to fuel developed market economic activity, according to the latest global market survey published by Deutsche Bank. In an attempt to map the scale of the world’s financial market, the bank put the value of the world’s total financial assets at $294 trillion at the start of 2015, up from $285 trillion the previous year. An increase in global stock market capitalisation to $68.7 trillion, largely driven by growth in funds targeting Japan, US and western European equity markets, and a rise in holdings of US, German and Swiss bonds, offset the decline in assets in emerging markets during 2014 – a trend that has continued, although it has shown signs

90 | GOLD | The Business Magazine of Cyprus

of stabilization this year. However, the increase in the stock of global financial assets has not helped the volume of turnover in equity and bond markets, which remains below the 2011 peak. This means that there is still some concern on the part of investors and this is largely driven by a view that equities in developed markets are starting to look too top-heavy. Investors have been quitting emerging markets in droves over the last two years as growth rates faltered and developed market prospects markedly improved as easier monetary policies began to have the desired effect. Over the past twelve months, the percentage of assets, including ETFs, held by equity funds in Latin American stocks declined by 17%, while assets of Japanese equity funds grew by 7%. Assets held by bond funds in Asia (excluding Japanese debt) fell by 13% in the same period as assets held by German bond funds grew by 15%. This is all evidence of a switch of confidence by investors over the last 18-24 months from the emerging markets to assets much closer to home. In all, the amount of net private capital inflows (the amount of money being invested by private individuals) into emerging market economies last year dropped to its lowest level since 2009. By the start of 2015, the total net assets of the mutual fund industry reached $31.3 trillion, up from $30 trillion in 2013 with nearly 50% of the total invested in the US, while hedge fund assets extended their strong growth since the onset of the financial crisis,

THERE IS MORE TO INVESTING IN EMERGING MARKETS THAN LOOKING AT THE BIG FIVE By Andrew Lumley-Holmes witnessing further gains over the last 12 months. Oil rich countries continue to dominate the rankings of sovereign wealth funds, which control about $7 trillion of investments in total. Norway’s Government Pension Fund remains the world’s largest and the China Investment Corporate (CIC) is now the world’s fourth largest sovereign fund. I like to take a more diversified approach to building a portfolio and this sometimes means taking a contrarian approach to investing (buying sectors or stocks that are “unpopular” or not “on trend”) so I encourage clients to keep a balanced exposure to several markets. As an example, roughly 90% of companies represented in the MSCI Emerging Markets Index pay dividends. The average dividend yield of the MSCI Emerging Markets Index at the start of 2015 was 2.95%, greater than that of Standard & Poor’s 500Composite Index(American Stocks) and the MSCI World Index. In fact, more than onethird of emerging market stocks had a dividend yield greater than 3%. These dividends have been an important contributor to total returns for emerging market companies and funds investing into them. Dividends have reduced the impact of share price

INVESTING IN DIVIDEND-PAYING COMPANIES IS LIKE INVESTING WITH A CONSTANT TAILWIND

AND AND Unloved Unloved

INFO: ANDREW LUMLEYHOLMES IS AN INDEPENDENT FINANCIAL ADVISER WITH FINSBURY PRIVATE WEALTH MANAGEMENT. E-MAIL: ANDREW. HOLMES@ FINSBURYGROUP.COM OR (+357) 96418652.

declines in emergingg markets and this is one of the key reasons I generally like assets that produce income. For the 15 years ended December 31, 2014, the MSCI Emerging Markets Index had returned 240%, 49 percentage points of which came from dividends. That’s a fifth of the total returns received from dividend income received. As emerging market companies continue to mature, we expect the capital structure to mature along with them and we expect dividends to play a more prominent role in total returns as more companies come of age, reduce internal investment and begin to distribute profit to shareholders. More important, perhaps, is the role that dividends have played recently in dampening volatility and reducing the impact of market weakness.Ignoring dividend yield is like having two piles

of money on the table and deliberately taking just the growth. All other things being equal – where there is good management, good profit margins and cash-flow generation – we find that investing in dividend-paying companies is like investing with a constant tailwind. You have predictable returns that provide the icing on the cake during good times and reduce the impact of the rocky times. While heads are being turned recently in the direction of larger economies on the continent such as India and China, for whom cheap oil is just one of several factors fuelling economic growth, we are more excited by the countries that often slip under the radar of investors in Asia. We are starting to increase our interest

markets such as the in Asia’s emerging ma Philippines, Malaysia and South Korea as they seem to have been massively overlooked and unloved for a while now. Demographically, Asia represents over 60% of the world’s population with six of the world’s 10 most populated countries being in the region yet the issued share capital of public listed companies from there makes up only 21% of the global share capital. The region offers excellent long-term growth prospects and with China beginning to exert its influence on financial systems, the dominance of America as the world’s largest economy and its status as world super power seems to be beginning the end of its lifespan. In summary, Asia still provides us with huge investment opportunities going forward – sometimes it’s good to buy unpopular ideas, as long as the price is right! www.goldnews.com.cy | GOLD | 91

| ACCOUNTANCY |

Elena Odysseos

Pambina Odysseos

7+,57< <($56 $)7(5 2'<66($6 2'<66(26 )250(' +,6 2:1 &203$1< 2) &+$57(5(' &(57,),(' $&&2817$176 +( ,6 35(3$5,1* 72 +$1' ,7 29(5 72 7+( 1(;7 *(1(5$7,21 +( 7(//6 *2/' $%287 +2: 7+( 352)(66,21 +$6 &+$1*(' 29(5 7+( 3$67 <($56 $1' :+< +( ,6 237,0,67,& $%287 7+( )8785( 2) +,6 )$0,/< ),50 $1' 7+( 35263(&76 )25 &<3586 By John Vickers

Stelios Odysseos

Odysseas Odysseos

Myria Odysseos

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EXCELLENCE 92 | GOLD | The Business Magazine of Cyprus

Gold: How were the things in the 1980s when you founded the company? Odysseas Odysseos: I must admit that they were a lot different back then, both in terms of the macro and micro economy. As far as Cyprus was concerned, it was the time when the country was starting to look outwards and the provision of services to international clients was becoming the focus of attention. Over the years, thousands of companies with foreign interests have chosen Cyprus as their base, and this has largely been the result of the serious and consistent efforts made by the excellent accounting and legal professionals in Cyprus. In my opinion, the quality of work offered in the country today is better than ever before. I am pleased to say that we grasped the concept of servicing foreign clients from the very beginning. As far as the profession in general is concerned, things were a lot simpler then, both in terms of rules and regulations and also regarding how dynamic the business environment was, compared to today. Of course, all new business endeavours are challenging. I had been a manager with a Big Four audit firm before setting up my own company. At first, leaving the relative safety of a large organisation to run my own practice posed numerous challenges but I must say that, looking back, I don’t regret my decision since it turned out to be the right one. Gold: What made you decide to become an accountant in the first place? O.O.: Well, back in the mid-1970s when I was about to choose what I wanted to do for living, I was travelling a lot, especially to the UK and Greece. Knowing that I had always been fascinated by data analysis and I liked extracting results from different scenarios involving financial data, some of my friends in both countries encouraged me to follow that route. That’s how I

THE COMBINATION OF “OLD SCHOOL” KNOWLEDGE AND METHODS WITH INNOVATIVE AND FRESH WAYS OF DOING BUSINESS AND PERCEIVING THINGS IS A BLEND FOR SUCCESS

started developing the idea of becoming an accountant, which was a relatively unknown profession in Cyprus at the time. So, I went to University in Greece, where I completed my business studies before moving to the UK to pursue the ACCA qualification, where I got the chance to work for a large audit firm in London. Gold: If I understood correctly, Odysseos Chartered Certified Accountants is very much a family business? O.O.: As far as the management of the company is concerned, yes, it is. All four of my children are UK University graduates and ACCA members and are managers of the various departments of the organisation. In the beginning, it was just me with a handful of support and administrative staff. Over its 30-year history, however, the firm has expanded significantly and now includes qualified accountants, auditors, tax consultants, business advisors and support staff, working in four main departments: Audit, Tax, Accounting and Business Advisory. I am very proud of our staff. Our organisation is an ACCA

Approved Employer and we are pleased to employ some remarkable professionals with impressive qualifications from top UK universities and great zeal for work. Our people are definitely our greatest asset. Gold: Did your children take much persuading to enter the profession? O.O.: You would receive a more objective answer if you asked them in person! I never exerted pressure on my children to oblige them to follow in my footsteps and, since my wife works in a totally different profession, I cannot say that our home discussions revolved around my business. However, through their frequent visits to my office during the school holidays, my children got to know more or less what the profession is about. When the time came for them to decide what they wanted to do for living, they consciously chose my profession. I can’t pretend that their choice didn’t make me very happy! But I was confident that they would excel at whatever they chose to do and I was right. All of them came first in Cyprus and worldwide in various exams for the ACCA qualification. Of course, every parent feels proud to see his/her children expand their knowledge and enjoy what they do in life but I believe that integrity and conscientiousness are what matter most. I have tried to convey a specific set of ethics to my children and to integrate it into our organisation’s culture as a whole. Gold: Presumably, you’re planning to hand over the organisation to the next generation? O.O.: Well, as I always say, nobody is getting any younger. Handing the company over to my children has been in my thoughts for quite some time now. The necessary procedures for a smooth transition from one generation to the next are already in place and the process is under way. I think that the www.goldnews.com.cy | GOLD | 93

| ACCOUNTANCY |

combination of “old school” knowledge and methods with the innovative and fresh ways of doing business and perceiving things is a blend for success, and I strongly believe that we should capitalise on this. Since I am still intrigued by this profession, I don’t think that I will be able to give it up completely but I am sure that the new generation will manage to keep up with the level of professionalism and passion for work that has characterized us as a firm for so many years. I am actually very confident that they will do even better! Gold: What is the ACCA Quality Checked Award? O.O.: The ACCA Quality Checked Award is one of the greatest honours and distinctions that our firm has received. This hard-earned award is only given to audit firms that comply with the rules and regulations set out by the ACCA and ICPAC, and are pioneers in the profession. The award, as well as other local and international honours, represents recognition of the business excellence and utmost professionalism that we are continuously seeking to demonstrate. Gold: Are your clients mainly Cypriot firms or do you also deal with International companies? O.O.: From the establishment of the firm, I had embraced the trend towards providing services to international clients. The challenges, experience and know-how gained while dealing with such clients has always intrigued me. Eventually, we proceeded to set up an International Business Unit within the firm, which is responsible for providing services to our international clients. While we remain close to Cypriot society and we have a strong local client base of remarkable and innovative companies, at the same time we maintain close ties and solid cooperation with our foreign and local business associates. This close business cooperation helps us retain cutting-edge knowledge and expertise regarding international issues

94 | GOLD | The Business Magazine of Cyprus

OUR COMMITMENT TO EXCELLENT QUALITY OF SERVICES AND FOCUS ON THE CLIENT HAS NEVER LET US DOWN and it also helps retain our strong and carefully selected International client base. Gold: I understand that you also been involved in company restructuring since 2013. O.O.: Although company restructuring has always been a familiar concept to our firm, since we have been appointed to handle cases of company restructuring, it is a fact that in recent months this term has gained much more atten-

CYPRUS HAS THE NECESSARY BACKGROUND TO HELP IT EMERGE FIGHTING FIT FROM THE DARK DAYS OF RECESSION tion following the setting of the criteria for Licensing Insolvency Consultants. Members of our firm are in the process of obtaining the relevant Insolvency Consultant license so that we can seamlessly offer this service when necessary.

Gold: How did the recession affect your work? O.O.: The effect of the recession on our profession has been double-edged: Firstly, our work has become much more complicated, due to the dynamic environment that now exists in terms of rule setting. The level of paperwork that needs to be in place has grown and even though we were already implementing most of these processes, carrying out this work has become much more time-consuming. The second challenge has been to maintain our growth and expansion rate. Thanks to our client-focused approach and the excellent quality services we provide, we have managed to retain and expand our client base throughout the recent period, in terms of both local and International companies, thus keeping up with our own performance indicators. Of course, nothing comes easy. Commitment to excellence is the key to success. Gold: How optimistic are you about Cyprus, in both the short and long term, and what are your company’s plans for the future? O.O.: The challenges for Cyprus still exist and I think they will be around for quite some time to come. If I may comment specifically about our industry, we face direct competition for our services from a number of countries. However, I think that Cyprus has the necessary background to help it emerge fighting fit from the dark days of recession and ready to play a leading role in the region’s economic recovery. Undoubtedly, our profession has a key role in this process. Challenges do exist but opportunities also exist for those who can identify and grasp them. As we embark on our fourth decade in business, our clients are maturing, becoming increasingly sophisticated and wealthy. In response, we will be further concentrating on what has been – and still is – the driving force behind all our activities and actions: professionalism and specialisation. I am very confident and optimistic about our organisation. Our commitment to excellent quality of services and focus on the client has never let us down.

BOOK SHELF

HOLIDAY reading 1

SPORT The most remarkable rivalry and friendship between two golf legends

THE SECRET OF GOLF: THE STORY OF TOM WATSON AND JACK NICKLAUS By Joe Posnanski (Simon & Schuster, 2015) R.R.P. £17.83 (£16.99 FROM AMAZON.CO.UK)

This is the intimate account of the most remarkable rivalry and (eventual) friendship in modern golf, between golf legends Tom Watson and Jack Nicklaus, combined winners of twenty-six major championships, whose sparring matches defined the sport for more than a decade. Informed by extensive interviews with both players over many years, it is a great read for any golf lover.

LITERATURE Written before To Kill a Mockingbird and lost for 50 years

SUSPENSE The thrilling sequel to Stephen .LQJ·V Mr. Mercedes

HISTORY A serious yet always entertaining portrait of the great leader

BUSINESS How to succeed in business, by one who GHÀQLWHO\ knows

The most eagerly-awaited literary fiction title of the year was written before Harper Lee’s only published novel, the Pulitzer Prize-winning To Kill a Mockingbird (1960). She set this book aside when her editor suggested that she write another novel from the young Scout Finch’s perspective. The manuscript was only discovered last year. The story features many of the characters from To Kill a Mockingbird twenty years later. Essential reading.

King returns to the same trio of unlikely and winning heroes introduced in Mr Mercedes for this story is about a vengeful reader who is so angry that author John Rothstein hasn’t published a book for decades that he kills him, only to discover notebooks containing at least one more novel. Not since Misery has King played with the notion of a reader whose obsession with a writer gets dangerous.

Yes, it’s that Boris Johnson and here he explores, with characteristic wit and passion, what makes up the ‘Churchill Factor’ – the singular brilliance of one of the most important leaders of the twentieth century. He portrays a man of multiple contradictions, contagious bravery, breath-taking eloquence, matchless strategizing, and deep humanity. To be read by anyone who wants to know what makes a great leader.

In this paperback edition of the 2014 title, the iconic entrepreneur shares the secrets of leadership that he has learned over 40 years. Featuring anecdotes from his own business dealings, as well as his observations of others – politicians, business leaders, explorers, scientists and philanthropists – who have inspired him, Branson reflects on the qualities he feels are essential for success in today’s world.

GO SET A WATCHMAN By Harper Lee (William Heinemann, 2015) R.R.P. £18.99 (£9.00 FROM AMAZON.CO.UK)

FINDERS KEEPERS By Stephen King (Hodder & Stoughton, 2015) R.R.P. £20.00 (£9.00 FROM AMAZON.CO.UK)

THE CHURCHILL FACTOR: HOW ONE MAN MADE HISTORY By Boris Johnson (Hodder Paperbacks, 2015) R.R.P. £9.99 (£6.99 FROM AMAZON.CO.UK)

THE VIRGIN WAY: HOW TO LISTEN, LEARN, LAUGH AND LEAD By Sir Richard Branson (Virgin Books, 2015) R.R.P. £8.99 (£8.09 FROM AMAZON.CO.UK)

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IN GOOD COMPANY

SETTING THE RIGHT COURSE 1$9,*$7,1* 7+( /,)( 2) (03/2<((6 $7 ,17(516+,3 1$9,*$7,21 By Effy Pafitis, Photos Emma Louise Charalambous

,19(67,1* ,1 3(23/( ,6 7+( .(< 72 0$,17$,1,1* $ &203(7,7,9( $'9$17$*( $1' (1685,1* 6867$,1$%/( *52:7+

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ompanies often choose to define themselves in terms of the services they offer to clients. They may focus on aspects such as turnover, profits or market dominance to prove their superiority within a specific sector. Indeed, it is decidedly rare that companies choose, instead, to be known for and invest in their offering to their own employees. According to Dieter Rohdenburg, CEO of Intership Navigation, investing in people is the key to maintaining a competitive advantage and ensuring sustainable growth. “At Intership, we consider our employees to be our most important asset,” Rohdenburg tells Gold. “As such we have tried to establish a culture to reflect this by listening to our employees and providing the benefits and conveniences which they have indicated are most important to them.” The firm was established in 1988 by the Germany-based Hartmann Group. Primarily a ship owning company, Intership also offers ship and crew management services to selected clients across Europe, America and Asia. With some 144 employees in Cyprus, where its entire operations are based, impeccable staff satisfaction has been essential to the establishment of the company’s reputation as an industry leader. To ensure employee contentment, Intership offers a comprehensive medical insurance scheme which includes full dental benefits – offered to employees and their family members with a small contribution by staff members – and an attractive Provident Fund scheme. In fact, its prominent premises in Limassol have been designed with staff preferences in mind, offering employees free access to a fully equipped in-house

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IN GOOD COMPANY

gym and games room. A large cafeteria, meanwhile, offers a subsidized lunch. “We aim to promote a healthy and well-balanced lifestyle and, at the same time, encourage social interaction among employees thorough tournaments and other social activities,” Rohdenburg explains. A social committee is responsible for arranging a variety of events throughout the year, from sports activities and tournaments to social gatherings, as well as charity and community projects. These events serve to promote interaction and strengthen bonds between employees. Additionally, should the firm’s inhouse advantages not meet staff requirements, a company-issued privilege card offers employees discounts at selected local businesses for services, as well as food and beverages and other purchases. As regards future plans, Rohdenburg reveals that a nomination scheme – soon to be implemented – will allow employees to nominate fellow employees for Best Practices.“We aim to listen to our employees. The management of Intership operates an open door policy, meaning that employees are encouraged to offer suggestions for improvements in the workplace. Winning suggestions are implemented and the employee responsible wins a prize.” Intership has long focused on offering its people flexible working, allowing them to better balance their work and private lives. The company recently opened a Day Care Centre to care for employees’ young children and it has also implemented an “early Friday” scheme, by which staff may leave the office earlier than usual on the last day of the week. Annual appraisals address the issue of training needs and, as much as possible, mentoring and training are provided to encourage employees to develop professionally. Intership employees also benefit from the Group’s e-learning platform, an initiative by Intership but offered to all members of the Group. The e-learning platform offers over 120 short courses. Though there is much to be said of the unique benefits that Intership Nagivation offers its employees, the figures speak for themselves: the company enjoys an impressive staff retention rate of some 98%. “As part of a larger Group, Intership

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offers stability, competitive benefits and working conditions and career prospects. This, in addition to fostering a pleasant working environment and offering facilities which may compare with the amenities of a 5-star hotel, makes Intership Navigation an employer of choice in Cyprus,” Rohdenburg says proudly. It is evident that the company’s employees agree with him.

Lunc Lunch with AVEROF NEOPHYTOU

THE CHAIRMAN OF THE DEMOCRATIC RALLY (DISY) TALKS ABOUT THE DIFFICULTY OF BEING A POLITICIAN IN TODAY’S CYPRUS, SOLVING THE ISLAND’S LONGSTANDING DIVISION, AND BEING A FATHER.

Gold

A 100 | GOLD | The Business Magazine of Cyprus

s I make my way along the nar-row streets of old Nicosia, I am growing increasingly concerned d that I may be late for my lunch date with Averof Neophytou. He has chosen the Balthazar restaurant at the Centre of Visual Arts & Research (CVAR) but, despite being given seemingly simple instructions, I have twice stopped to ask people if I’m on the right road and no-one seems to have heard of the place. To my surprise, I suddenly find myself outside the restaurant and I am somewhat relieved to see the Chairman of the Democratic Rally (DISY), pacing up

By John Vickers

URANT AR RESTA eet, BALTHAZ Str 5, Ermou CVAR, 28 Nicosia

D €7.00 PLE SALA GREEN AP €6.00 LENTILS €15.00 SALMON €4.90 2 BEERS €5.50 HALVAS €5.50 TIRAMISU €43.90 TOTAL:

and down the entrance hall, seemingly engrossed in a phone call rather than waiting for the Chief Editor of Gold to show up. Although it is not done to arrive late for a meeting with a party leader in Cyprus, I am confident that Neophytou is not going to chide me for a few minutes’ delay, not least because we have had a passing acquaintance for more than 30 years. I don’t need to remind him that when we first met, he was working as a waiter at the

CTO’s Baths of Aphrodite restaurant at Latchi. Over the years, it has always been the first thing he mentions on the few occasions when we have found ourselves together, and today is no exception. “Thirty years ago I was serving you cold beers!” he says, still amused by the idea, and he explains that his brother ran the restaurant there and, every summer when he was back from New York, where he was studying Economics and Accounting, he would help out as a waiter. Since 1991, when he was elected Mayor of Polis Chrysochous, he has grown used to having others wait on him but I have always liked the fact that he has never tried to deny his roots or anything that he has done in the past, especially since becoming a politician. We order a green apple salad to share. My guest chooses the dish of the day, which is lentils, while I go for nut-crusted salmon with celeriac mash and vegetable rice. Two beers will cool us down. “Politics is a difficult business, John,” he says in an almost confiding tone.“And at times it is a truly dramatic one. People are justifiably angry; they’ve suffered a lot and we politicians have certainly played our part in making the system the way it is but now, unfortunately, there is a widely held view that every one of us is on the make, we’ve all been feathering our nests and every decision we take is based on self-interest.” This is clearly a subject he

feels strongly about. “When some MPs have decided not to work outside the House of Representatives, so as to avoid being accused of conflict of interest, they are then subject to questioning in the vein of ‘What do they live on?’, ‘Who is giving them kickbacks?’ and so on. When people hear that an MP has money in the bank,” he says, “the standard reaction today is ‘Where did he steal it from?’ “We hear that people want change but when we support an important change such as privatisation, we’re accused of only be-

ing in favour of it so that one of our friends can get richer,“ he continues, with an obvious note of frustration. “I have been described as a slave to capitalism! Well, all I can say is that my father is 94 years old and he is still a shepherd! I am from the rural working class!” The project to construct two new airports in Cyprus came about during Neophytou’s term as Minister

of Communications & Works and he compares the BOT method that was agreed on at the time to the current proposals for today’s privatisation of semi-government organisations. “We introduced privatisation 15 years ago,” he says, “and you won’t find anyone complaining that it was not for the benefit of the country. I’m proud of what we did. We would be a third-world country if we hadn’t built the new airports and yet whenever someone wants to make a change for the good of all, the critics will immediately say that it’s for their personal gain. The only way to avoid being attacked in this way is never to suggest changing anything.” So how does Averof Neophytou deal with the constant criticism? “It drives me and makes me more determined to make an effort to change things,” he says. “I have learnt to ignore it.” He knows, though, that every party has a hard-core membership that expects its leaders to come across as aggressive, loud and uncompromising in all their dealings. “These people believe that being dynamic means being confrontational but, in the case of DISY, the members who share that view are clearly not aware that my aim is not to receive applause from inside the party but to do

MY FATHER IS 94 YEARS OLD AND HE IS STILL A SHEPHERD! I AM FROM THE RURAL WORKING CLASS! www.goldnews.com.cy | GOLD | 101

| LUNCH WITH GOLD |

what is best for the country.” He reminds me that DISY does not have a parliamentary majority and he therefore considers it his role to forge alliances, to cooperate with others and to create the necessary majority to vote through legislation. “I believe that this is the type of party leader that the country needs, not the type who is fighting all the time with his counterparts in the other parties,” he says.“I have to behave in a way that will benefit my country. If I serve my country and it survives the financial crisis, this will benefit the party as well. But if my only criterion is the party, I will not only harm the country but I will ultimately destroy the party too.” This is why, rather than complaining that the opposition wasted five months by refusing to pass the foreclosures legislation this year, he chooses to see the glass half full, noting that, even with a five-month delay, the bill was finally approved. And when I suggest that, in other countries, if joint action was required on a serious issue, the political parties would put aside their differences he laughs and tells me, “We are not Germans and we are not British!” before adding, “and right now we are not like the Greeks, either!” On the crucial issue of resolving the Cyprus Problem, Averof Neophytou considers it the Government’s top priority, especially now that there is what he calls “a very positive momentum”. “Our region is characterised by instability – Syria, Egypt, Libya, the Palestinian issue, bad relations between Turkey and Israel, the situation in Lebanon – so the international community wants a pillar of stability in the region. This can be Cyprus, especially now that we have two leaders in Akinci and Anastasiades who are pro-solution.” He does not agree with the view that ‘Turkey decides everything’. “Akinci is not Eroglu,” he says, “and we must not underestimate the fact that the Turkish Cypriot community voted for a pro-solution candidate in their elections. We now have someone with whom we can work to create a better future for the country.” Neophytou tells me that he has been

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talking with the grass roots of the party, two thirds of which, it should be remembered, voted against the Annan Plan in 2004. “There was a lot of negativity before the referendum,” he recalls, saying that the former spirit of negativity does not exist today. “What I have found is that everyone supports the effort to reach a solution. This doesn’t mean that they will necessarily support the eventual solution – we will all have to see what it is – but people are ready and willing to accept a viable solution.” He clarifies that an essential element of the settlement must be that, afterwards, people’s daily lives will remain the same as they are now. “People want to see a new era beginning,” he says, “and they know that a solution will boost the economy and help resolve the present difficulties too,

I counter, a statement with which he agrees, noting that things are even more difficult now that he has a five year old son, especially when parliamentary sessions may go on until 2 in the morning. He apologises for interrupting our conversation to talk to his wife who is now in Polis with their son for the summer. Young Pericles has been asking his mum when Daddy is going to join them. He proudly shows me the photo of his son on his smartphone. “Thank God he has his mother’s looks!” he jokes, before telling me that he has missed a great deal of the boy’s growing up and he feels “very guilty” about it. His lack of free time also means that he doesn’t get to see the satirical presentations of himself on popular TV comedy sketch programmes like “Patates Antinaktes”. “Unfortunately I don’t have time to watch TV but I would love to see

IN CYPRUS, WE HAVE SUCCEEDED IN ASSOCIATING THE IDEA OF COLLABORATION AND COOPERATION WITH SOMETHING BAD but they need to feel that they will continue to live as they do now. If they are afraid that some enormous change will take place, it will be difficult to convince them to accept any solution.” Mayor, minister or party leader? Which post was best? Without hesitation, Neophytou replies that being the Mayor of Polis was the most satisfying, “because, as Mayor, you can carry out your vision for the town more easily; you have the authority to do so. Even the Party Chairman can’t do such a thing, especially without a majority inparliament”. He says he thrives on pressure. “I’m a fighter and I don’t leave the battle” he says with false bravado. “But fighters need to rest to regain their strength,”

how they present ‘Foulis’ [his nickname] on the show!” After our dessert – halvas for him, tiramisu for me – it’s time to get back to work. “My lunch was delicious,” he says as we get up to leave. “I owe you one. It’s about time I served you again after all this time!” On reaching the door, we discover that our identical jackets have been hung next to each other. “This must be mine,” says Averof Neophytou, “since I am a political leader and there is a wallet full of money in the pocket!” Of course, we both know that he is actually holding my jacket… A politician with a self-deprecating sense of humour! Whatever next!

BUSINESS CLASS

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

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

I was deeply fascinated by both Moscow and St. Petersburg (Leningrad at the time) when I visited them on a school trip in April 1983. Even now as an adult, both cities never cease to amaze me when I visit them for business – which I have done so quite frequently over the past decade.

I usually travel once a month for business and four times a year for pleasure. Though the durations of these trips varies, overall I spend roughly a quarter of the year outside Cyprus.

Christos Michael The Managing Director of First Names Group in Cyprus talks to Gold about his love for the City of London, how Cyprus compares to the British capital, and the sheer superiority of Emirates. By Effy Pafitis Briti What is your favourite international destination and why?

It’s London, a truly international JP[` HUK H ZPNUPÄJHU[ ÄUHUJPHS JLUtre. Maybe I love it because I lived there for a while and continue to visit very often – whatever whateve the reason, it iss certainly my favourite stination n.. destination.

What is the most ostt impressive hotel you have ever stayed at and why?

The Ritz Carlton in Moscow. The hotel enjoys an excellent location with the best view of the Red Square, where you can enjoy njoy a relaxing time in the spaciouss rooms or the lobby area which are nicely decorated, or the bar VU [OL [VW ÅVVY ^OLYL `V\ JHU LUQV` ÅVVY ^OLYL `V\ JHU LUQV` the view. It is a truly luxurious hotel in every respect.

What is your favourite airline, and why?

For me this is Emirates – the airline is truly in a class of its own! I particularly enjoy the attention to detail and genuine RPUKULZZ VM [OL Z[HɈ HUK T\Z[ say that it is always my airline of choice, both for business and pleasure.

How does Cyprus compare?

Cyprus has a narrow perspective on almost everything, which limits the development p of opportunities pp in a U\TILY VM KPɈLYLU[ HYLHZ MVY [OL MHTPS` U\TILY VM KPɈLYLU[ HYL and the business. If I could c live with my family in London and work there but be w in Cyprus for the week weekend (without the hours door-to-door) need to travel for 8 ho tha at w ould be the idea that would ideal combination of pleasure! work and ple

Tell us about your best corporate travel experience.

Dining on London Bridge in 2014 on the sidelines of a business dinner organised by our group for business associates was an excellent experience. I could feel that the town around us was full of life; there was – indeed always is – a mass of tourists enjoying their tour of the city, locals sightseeing or dining, as well as white-collar professionals hard at work in w HUK HYV\UK [OL S\_\YPV\Z VɉJLZ along the river.

If you could travel anywhere tomorrow, where would you go?

I haven’t been to Australia and Japan so I would like to visit one – or both – of these countries.

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WHAT’S

THINGS

to do Cyprus Rialto World Music Festival

TWO SAVINA YANNATOU & FREE CONCERTS! PRIMAVERA EN FRIDAY JULY 17, HEROES SQUARE, LIMASSOL, 8.30PM

SALONICO Performing the new album, Songs of Thessaloniki, a dazzling evocation of the band’s hometown.

TUESDAY, JULY 21, HEROES SQUARE, LIMASSOL, 8.30PM

songs, under the direction of Vassiliki Anastasiou, while Rumba Attack have a diverse repertoire of genres, including World, Ethnic, Latin, Jazz, Flamenco, Blues and, of course, Rumba.

AMALGAMATION CHOIR & RUMBA ATTACK Amalgamation Choir perform traditional compositions and re-arrangements of traditional

WEDNESDAY, WE W EDN DNE ESD SDAY AY, AY JULY L 29 & THURSDAY, JULY 30, MUNICIPAL GARDEN THEATRE, LIMASSOL, 8PM FRIDAY, JULY 31, PATTICHION MUNICIPAL AMPHITHEATRE, LARNACA, 8PM

Celtic Legends

100% live traditional Irish dance, music and song.

Eleonora Zouganeli GREEK MUSIC

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he singer begins her summer tour with three concerts in Cyprus. Thursday, July 16, Municipal Garden Theatre, Limassol, 9pm Friday, July 17, Skali Aglandjias, Nicosia, 9pm Saturday, July 18, Municipal Amphitheatre, Paralimni, 9pm

International Festival of Ancient Greek Drama

HIPPOLYTUS, BASED ON EURIPIDES INDUO TEATRO PRODUCCIONES (SPAIN)

erformances of three more plays conclude the 19th International Festival of Ancient Greek Drama. English surtitles enable you to follow the action. of which is on display at the musuem. Caaterina terin Cornaro, the last queen of Cyprus, us, reigned from 26 August 1474 to 266 February F 1489.

THURSDAY, JULY 16 & 17, ANCIENT CURIUM, LIMASSOL, 9PM SUNDAY, JULY 19, ANCIENT ODEON, PAPHOS, 9PM TUESDAY, JULY 21, SKALI AGLANDJIAS, NICOSIA, 9PM

ELECTRA BY SOPHOCLES THE CAMERI THEATRE OF TEL AVIV (ISRAEL)

PEACE BY ARISTOPHANES YIOLANTA CHRISTODOULOU THEATRE GROUP (CYPRUS)

THURSDAY, JULY 16 & FRIDAY, JULY 17, SKALI AGLANDJIAS, NICOSIA, 9PM TUESDAY JULY 21, ANCIENT ODEON, PAPHOS, 9PM

TUESDAY JULY 14, ANCIENT ODEON, PAPHOS, 9PM THURSDAY JULY 16, SKALI AGLANDJIAS, NICOSIA, 9PM

Friday, July 24 & Saturday July 25, Municipal Garden Theatre, Limassol, 8.30pm

Ballet National de Marseille

ounded in 1972 by Roland Petit, the Ballet National de Marseille is a leading, internationally renowned dance company, now run by Frédéric Flamand, which transcends the traditional distinctions between classical and contemporary dance.

Vasilis Papakonstantinou & Christos Thiveos VETERAN GREEK ROCKER Vasilis Papaconstantinou and longtime musical Tuesday partner Christos ThiJuly 28, Municipal veos join forces for Garden Theatre, Limassol, 9pm two shows.

Snoop Dogg as Dj Snoopadelic

Chris Brown

TUESDAY, JULY 28, MAKRONISSOS BEACH CLUB, AGIA NAPA, FROM 7PM

nternational superstar Chris Brown performs in Cyprus for the first time, supported by A.M. SNiPER, DJ Tim Westwood and rapper KSIOlajideBT.

noop Dogg, whose latest album Bush came out in May, performs a DJ set as DJ Snoopadelic. c.

August 9, Makronissos Beach Club, Agia Napa, from 5pm

Giorgos Dalaras Eleni Vitali - Glykeria

Tuesday, July 21, Municipal Garden Theatre, Limassol, 8pm Wednesday, July 22, Pattichion Municipal Amphitheatre, Larnaca, 8pm

Three of Greece’s best-known singers come together.

Wednesday, July 29, Mackenzie Beach, Larnaca, 9pm

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A DAY IN THE LIFE

Barbara Lillikas

“I live in Nicosia with my husband and our son Orpheas who is just starting his national service. I usually get up around 7am having gone to bed well after midnight since that’s the only time I seem to have to talk to Giorgos. My working day is quite varied and this may be why I love my job. I studied in New York, where I obtained my BA in Economics and Political Science, followed by an MBA and then continued with a Ph.D in Strategic Planning and Entrepreneurship. When I came back to Cyprus I eventually joined Universal Life as a Marketing Director and I developed the Unimaster insurance package there. I still meet people who tell

me that they studied thanks to Unimaster and such comments make me feel that I have done something good in my life. While there, I realised that there were very good advertising and PR agencies in Cyprus but I felt that something was lacking: the connection between strategy and all the tools for implementing it. So I started Marketway as an integrated marketing services bureau, and our particular philosophy of starting with strategy enabled us to capture a substantial market share from the outset. Up to the age of 17 I wanted to study astronomy and archaeology but then my Mum told me, “Imagine spending your life

The founder and CEO of Marketway on her favourite period in history, what she enjoys about her work and why she is not an astronomer. in a lab. You’re an extrovert, you like people. How are you going to cope with that?” and I thought that maybe she was right and I changed course. Now I believe that we should actually follow our initial dream and not choose something else out of fear because now I find myself saying that, when I retire, I am going to spend time focusing on the historical period that fascinates me. If we’re at home, the TV will be on but I prefer to read. I love history and especially the period from the 11th-13th century, which was very important for Cyprus as well – the time of the Crusades and the Knights Templar to whom I think lawyers, accountants, diplomats or politicians owe a great deal. They were the fathers of what these professions are today and they deserve much more attention. I am also very interested in the Kennedy era and a fascinating book that I read recently is Killing Kennedy: The End of Camelot by Bill O’Reilly and Martin Dugard. The conspiracy theorists will love it, of course, but it’s a very plausible story! I do watch television but for some reason I’ve taken to watching old movies like Grease and TV series such as Poirot, Murder She Wrote, and M.A.S.H. Maybe it’s old age or escapism!

I listen to all sorts of music, mainly English. One of my all-time favouAn all-time rites is Nights favourite in White Satin single by the Moody Blues. I like travelling and I make a point of going to New I still love this York once a movie year to keep my sanity and put things in perspective. Once I set foot there I feel that I can conquer the world, even Possibly untrue now! Otherbut very wise, our fam- convincing! ily travel takes us to distant Paphos! It’s where Giorgos feels he can relax best and Orpheas loves it for wakeboarding and sailing. I don’t regret leaving New York when I did, though I do sometimes wonder what would have happened if I had stayed but then everything would have been different. In any case, I have my doubts about whether we can change our destiny so I guess I was meant to be here and I’m glad I am.”

I BELIEVE THAT WE SHOULD ACTUALLY FOLLOW OUR INITIAL DREAM AND NOT CHOOSE SOMETHING ELSE

OUT OF FEAR

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We foster entrepreneurship We can do it together! We foster entrepreneurship by helping start ups bring their passionate vision to life. We stand by them, offering our knowledge and expertise, helping them overcome the challenges at each stage of their development. www.pwc.com.cy/foster-entrepreneurship