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Cyprus Mail: News Articles in English, 03-02-05Cyprus Mail: News Articles in English Directory - Previous Article - Next ArticleFrom: The Cyprus Mail at <http://www.cyprus-mail.com/>Wednesday, February 5, 2003<OBJECT classid="clsid:D27CDB6E-AE6D-11cf-96B8-444553540000" codebase="http://download.macromedia.com/pub/shockwave/cabs/flash/swflash.cab#version=6, 0,0,0" WIDTH="215" HEIGHT="70" id="e_savings" ALIGN=""> <EMBED src="esavings.swf" quality=high bgcolor=#FFFFFF WIDTH="215" HEIGHT="70" NAME="esavings" ALIGN="" TYPE="application/x-shockwave-flash" PLUGINSPAGE="http://www.macromedia.com/go/getflashplayer">CONTENTS
[01] Stark warning on heroin: four deaths so far and overdoses on the riseBy Alexia SaoulliTHE NUMBER of heroin addicts in Cyprus is increasing by the day, with frequent cases of overdose and four official drug deaths recorded to date, anti-addiction activists warned yesterday. "It is becoming common for addicts to be taken to hospital after overdosing on heroin," said Dr. Kyriakos Veresies, scientific director for the Centre for Education about Drugs and Treatment of Drug Addicted Persons (KENTHEA). "The reason is because more people are using and so there are more emergency incidences." The number of unofficial drug-related deaths was much higher, he said; but because police only recorded overdoses as drug deaths and did not, for example, register drug users' suicides when on a trip, the numbers remained low. Veresies said the problem was that a lot of addicts were not injecting pure heroin. "Dealers rarely sell pure heroin. Instead, only 30 per cent of the drug is actually heroin. The remaining 70 per cent could be anything from powder to traces of coffee, which naturally ends up poisoning them, sometimes leading to death, when it enters their blood system," he said. Overdose victims were rushed to hospital for treatment and discharged, he said. They were not committed for detoxification or given compulsory psychological support. Once they received treatment, they were back on the streets to continue abusing, he said. "I have been trying to highlight this problem for over 10 years," he said. "In 1991, we (KENTHEA) carried out a study and found that 17 per cent of students were vulnerable to drug addiction. At the time, we tried to implement prevention methods before the problem got out of hand, but it was not publicised enough. Now, instead of fighting for prevention, we're forced to struggle with treatment methods because the problem is on our very doorstep." Drug addiction was a social problem and had developed over the years, he said. Low self-esteem, family problems and living in a material society contributed to the increase in the number of addicts. "People want easy solutions to their problems and no longer have any real values. They think drugs will be the answer," said Veresies. Although the consequences on society as a whole were not yet apparent, they would soon affect us all, he warned. "A large portion of tomorrow's workforce will not be able to hold down a job because of their addiction. Crime rates will increase as users try to find money to support their habit." Police were trying to crack down on the problem, he said, but only managed to seize a few grams of heroin from users at a time. Major suppliers were too slippery to get caught, he said. "Police are trying to reduce supply, but we - as a society - should be reducing demand. If there is no demand, then there will be no need for supply," he said. Copyright Cyprus Mail 2003 <OBJECT classid="clsid:D27CDB6E-AE6D-11cf-96B8-444553540000" codebase="http://download.macromedia.com/pub/shockwave/cabs/flash/swflash.cab#version=6, 0,0,0" WIDTH="215" HEIGHT="70" id="e_savings" ALIGN=""> <EMBED src="esavings.swf" quality=high bgcolor=#FFFFFF WIDTH="215" HEIGHT="70" NAME="esavings" ALIGN="" TYPE="application/x-shockwave-flash" PLUGINSPAGE="http://www.macromedia.com/go/getflashplayer"> [02] Massive boat tax will 'empty the marinas'By Stefanos EvripidouBOAT owners are ready to leave Cyprus in their droves and set sail for cheaper shores since the government slapped a 38 per cent tax on pleasure crafts, according to a number of shocked yacht owners. Owners of duty-free yachts and people wishing to import yachts or buy them locally will now be subject to a 20 per cent luxury tax plus 15 per cent VAT on total cost plus duty. In effect, boat owners who are in the country for more than 185 days and therefore considered Cypriot residents will have to fork out 38 per cent of the cost of the boat to keep it in Cyprus. Haris Kyriakides, president of the Cyprus Marine Commerce and Industry Association (CMCIA), says the new taxes have already wiped away demand for local and imported pleasure boats while threatening to drive away owners of duty-free boats that so far enjoyed annual tax exemption forms. The law has been drafted so that even if a company is registered abroad, it takes only one shareholder to be a Cypriot resident for the company to be taxed on a boat it owns in Cyprus, Kyriakides said. In effect, a boat worth £3 million would cost the owner £1 million in taxes under the fiscal reforms. "Many of these people own offshore companies that had originally decided to stay on after EU accession. But most boat owners, some of whom own boats in their millions, will rather leave than pay such a high tax," said Kyriakides. "We appreciate that we have to change the law to harmonise with Europe but we should also respect our citizens; not make things harder for them by basically telling them to go spend their money elsewhere. Every other country in the EU charges VAT only on pleasure crafts. We are the only ones adding excise duty to that," he said. Kyriakides added that EU residents could take their boat to any EU country instead and pay only VAT there. "As long as they keep the boat there for the first six months, after that they can take their boat anywhere in the EU tax-free." One boat owner who runs an offshore shipping company in Limassol was shocked to hear that he would have to pay a third of the cost of his yacht once his tax exemption form expired. "I am shocked and find it unacceptable. If they go through with this, the marina will be emptied to a great extent," said Klaus Oldendorff, who plans to move his yacht to Greece if forced to pay the full tax. Another boat owner who has been living as a temporary resident in Cyprus for 18 years was quite willing to pay the VAT on the boat as in other EU countries, but found it unthinkable to pay the full 38 per cent levy. "This tax means I could never market the boat internationally. It would be way above the market price, and the local market is too small to sell it here," said Brian Tollafield, head of an offshore consultancy firm. "Our objective is to run the company from a place which is most convenient to us, and as such we fully subscribe to paying our taxes. But this boat tax is commercially unsound. No one is willing to pay more than the money's worth," he said, adding: "This is negative taxation." "If I was able to pay the level of VAT required, I would pay it straight away. But at this rate, I will be forced to take the yacht elsewhere, and there are a number of new or beautiful marinas available in Beirut, Greece, Turkey or Syria," said Tollafield. Asked whether this would not only affect nautical tourism but also the island's appeal to offshore companies, Tollafield replied that a number of offshore companies were in the process of closing or had already closed. "This is a fantastic country. It has done a great job in harmonising with the EU and is streets ahead of its fellow candidates. But they have got to view taxation rationally. Tax has to be constructive for the country, for the marina industry and to the concept of yachting development. This tax is destructive," he said. Commenting on efforts by Commerce Minister Nicos Rolandis to promote nautical tourism in Cyprus, with plans under way to build four new marinas in Limassol, Paphos, Ayia Napa and Protaras while extending Larnaca marina, Tollafield said the tax reform spelt financial suicide. "With a 38 per cent tax, who would come to these marinas?" he asks. Rolandis told the Cyprus Mail yesterday that his ministry agreed with boat owners' demands to scrap the excise duty and impose VAT only. "We are looking into the matter closely, given that we hope to develop six marinas in Cyprus and make 4,100 new places available," he said. The Commerce Ministry is not responsible for taxes, however, and has written to the Finance Ministry on the matter. "We have to wait and see what the response of the ministry responsible will be before we take further action," said the minister. Copyright Cyprus Mail 2003 <OBJECT classid="clsid:D27CDB6E-AE6D-11cf-96B8-444553540000" codebase="http://download.macromedia.com/pub/shockwave/cabs/flash/swflash.cab#version=6, 0,0,0" WIDTH="215" HEIGHT="70" id="e_savings" ALIGN=""> <EMBED src="esavings.swf" quality=high bgcolor=#FFFFFF WIDTH="215" HEIGHT="70" NAME="esavings" ALIGN="" TYPE="application/x-shockwave-flash" PLUGINSPAGE="http://www.macromedia.com/go/getflashplayer"> [03] Greek and Turkish Cypriots join hands for New York peace demoGREEK Cypriot and Turkish Cypriot students in New York gathered near the United Nations on Monday to press their demand for the reunification of Cyprus and the peaceful coexistence of the island's two communities."We want to express our support for the UN initiative to solve the problem and submit our demands to improve the UN peace plan," Turgut Durduran, a Turkish Cypriot teaching at a university in the Philadelphia area and member of the newly-formed grassroots organisation 'Cyprus Action Network' (CAN) said. Greek Cypriot Christos Georgiou, a student at Columbia University, said Monday's rally was a protest against Turkish Cypriot leader Rauf Denktash and his assertion that Greek Cypriots and Turkish Cypriots cannot live together. Georgiou said CAN wanted to see a federal solution that would satisfy the common and competing interests of all Cypriots, with the demands of Turkish Cypriot NGOs represented in the negotiations. The group also calls for a comprehensive population census in northern Cyprus to establish the citizenship of those living in these areas. CAN wishes Cyprus to be fully demilitarized as part of the solution plan, including the withdrawal of all Turkish and Greek armies and the dissolution of Greek Cypriot and Turkish Cypriot military forces. Durduran called on Denktash to resign and said it would be difficult to find a political settlement as long as he remained the leader of the Turkish Cypriot community. CAN is a group of activists outside Cyprus working together to encourage a settlement and to improve human rights conditions on the island. Copyright Cyprus Mail 2003 <OBJECT classid="clsid:D27CDB6E-AE6D-11cf-96B8-444553540000" codebase="http://download.macromedia.com/pub/shockwave/cabs/flash/swflash.cab#version=6, 0,0,0" WIDTH="215" HEIGHT="70" id="e_savings" ALIGN=""> <EMBED src="esavings.swf" quality=high bgcolor=#FFFFFF WIDTH="215" HEIGHT="70" NAME="esavings" ALIGN="" TYPE="application/x-shockwave-flash" PLUGINSPAGE="http://www.macromedia.com/go/getflashplayer"> [04] Police plan double penalty points for new driversBy George PsyllidesNEW drivers could get double penalty points for traffic violations, once a new bill designed to upgrade road safety is passed. Police told the Cyprus Mail yesterday that, according to the proposed bill, new drivers would receive double penalty points for traffic violations. The 'special treatment' would be in effect for two years from the day new drivers received their licence, police said. The measure aims to send a message to new drivers to be extra careful, as they are more likely to cause accidents through their inexperience. Police said they had studies that showed that new -- usually younger -- drivers were more inclined to cause accidents. Twenty per cent of traffic accident victims were new drivers, police said. The same bill stipulates that drivers who collect 12 penalty points will automatically lose their licence and have to pass a driving test again in order to be reinstated. Eighteen-year-old moped owners risk losing their vehicle if they get caught driving illegally, while the legal owners of mopeds up to 100cc could be penalised if their vehicle is found in the possession of an underage driver. The moped could be seized, police warned, as a way of punishing the owner for failing to keep his vehicle safe. The bill is currently being processed by the legal service and will soon be forwarded to the Cabinet for approval. Copyright Cyprus Mail 2003 <OBJECT classid="clsid:D27CDB6E-AE6D-11cf-96B8-444553540000" codebase="http://download.macromedia.com/pub/shockwave/cabs/flash/swflash.cab#version=6, 0,0,0" WIDTH="215" HEIGHT="70" id="e_savings" ALIGN=""> <EMBED src="esavings.swf" quality=high bgcolor=#FFFFFF WIDTH="215" HEIGHT="70" NAME="esavings" ALIGN="" TYPE="application/x-shockwave-flash" PLUGINSPAGE="http://www.macromedia.com/go/getflashplayer"> [05] Detailed talks on territory to begin todayINDEPTH discussions on the issue of territory are due to begin today at the ongoing talks between President Glafcos Clerides and Turkish Cypriot leader Rauf Denktash.Government spokesman Michalis Papapetrou said that so far Denktash had not linked the issue of territory with his claims for separate sovereignty but he did not rule out that this could happen in the future. Papapetrou welcomed increased activity on the part of the international community to push for a solution and said that for the first time Europe and the US were telling Turkey that Cyprus was its door to the European Union. ''Denktash has made some suggestions, he listened to our views on the proposed map in the proposal, we asked for improvements on the map that would benefit the Greek Cypriot side and Denktash asked for improvements for the benefit of the Turkish Cypriot side. My understanding is that at the meeting we shall have a detailed discussion on the basis of these suggestions,'' Papapetrou said. ''Foreign officials are doing now what we have always wanted them to do, exert actual pressure on Turkey,'' the spokesman said. Papapetrou said that Clerides was ready for a solution not only by the target date the UN had set (February 28) but earlier if Turkey showed "the necessary political will". Copyright Cyprus Mail 2003 <OBJECT classid="clsid:D27CDB6E-AE6D-11cf-96B8-444553540000" codebase="http://download.macromedia.com/pub/shockwave/cabs/flash/swflash.cab#version=6, 0,0,0" WIDTH="215" HEIGHT="70" id="e_savings" ALIGN=""> <EMBED src="esavings.swf" quality=high bgcolor=#FFFFFF WIDTH="215" HEIGHT="70" NAME="esavings" ALIGN="" TYPE="application/x-shockwave-flash" PLUGINSPAGE="http://www.macromedia.com/go/getflashplayer"> [06] Come clean on refugees, government challenges opponentsBy George PsyllidesTHE Government Spokesman yesterday challenged anyone who thought refugees should not own the houses they were living in to say so openly. Michalis Papapetrou was replying to opposition criticism of President Glafcos Clerides' pledge to give ownership titles to all refugees living in refugee estates around Cyprus. Papapetrou challenged anyone who thought refugees should not own the homes they lived in now -- even if they returned to their properties in case of a solution - to say as much to the Cypriot people. The opposition has dismissed Clerides' pledge as electioneering. Papapetrou said Clerides had begun handing titles in the past, but was stopped by Parliament, which passed special legislation prohibiting him from continuing. "President Clerides clearly said that the least we could do for these people -- and not only Clerides but all of us - was to consider these houses to be theirs', irrespective of whether they return to their homes (in the occupied areas)," Papapetrou said. "It is one of the President's commitments so that refugees know that when they go home after a solution, they won't lose the houses they live in today." But AKEL leader Demetris Christofias said the government only remembered the issue at election time. "Every five years or whenever there are elections they suddenly remember to give out title deeds," Christofias said. He said this should concern both those receiving titles and those who could not get them because their refugee homes were built on Turkish Cypriot property. "Unless of course the policy of this government is that there should be property exchange at the end," Christofias suggested. KISOS chairman Yiannakis Omirou described the move as sacrilege. "To exploit the refugee problem on the eve of the elections is sacrilege," Omirou said. "To give out title deeds just a few days before the elections degrades our political ethics and injures our people's dignity." New Horizons leader Nicos Koutsou said Clerides' declaration looked like an election ploy and wondered why the President only took a stance on title deeds and not on the refugee problem in general. "It's an old problem that had to be resolved a long time ago. "From the moment titles are given to some refugees, I believe it is not fair to have some with titles and others without," Koutsou said. And he added it should be made clear that refugees' right to free movement and settlement in a settlement should be guaranteed -- titles or no titles. He too criticised Clerides for his decision to raise the issue now, when he had had plenty of time in the last five years to deal with Parliament's decision to halt the issue of titles. DISY chief Nicos Anastassiades suggested that issuing ownership titles to refugees was merely a continuation of the policy which began in 1997 and had been halted by the opposition. Copyright Cyprus Mail 2003 <OBJECT classid="clsid:D27CDB6E-AE6D-11cf-96B8-444553540000" codebase="http://download.macromedia.com/pub/shockwave/cabs/flash/swflash.cab#version=6, 0,0,0" WIDTH="215" HEIGHT="70" id="e_savings" ALIGN=""> <EMBED src="esavings.swf" quality=high bgcolor=#FFFFFF WIDTH="215" HEIGHT="70" NAME="esavings" ALIGN="" TYPE="application/x-shockwave-flash" PLUGINSPAGE="http://www.macromedia.com/go/getflashplayer"> [07] Broadcasting watchdog probing poll irregularitiesBy George PsyllidesTHE BROADCASTING Authority yesterday revealed it was looking into several potential infringements of the law governing the broadcast of opinion poll results by television stations. The issue of polls has grown in prominence with the presidential election campaign entering its final fortnight; dozens of surveys are published every week. Broadcasting Authority Director Neophytos Epaminondas told state radio yesterday that the authority was looking into more than one possible violations of the law on survey broadcasting. The potential violations concerned stations' alleged failure to submit vital data on the survey to the Broadcasting Authority before the results were aired. The information channels have to submit to the Broadcasting Authority includes the methodology and identity of the survey as well as the size of the sample. Epaminondas said there was an ongoing investigation into a number of cases where it appeared the necessary information had not been submitted. But all the facts had to be examined before an official report could be drawn up, in order to ensure the case could not be disputed at the Supreme Court, Epaminondas said. He did not disclose the exact number of cases, adding that they concerned more than one station. Epaminondas stressed, however, that the Broadcasting Authority was not there to dispute the results of a survey -- even if the necessary information had not been submitted. "If we have a specific complaint that the results of a particular survey have been altered, that is a different issue," he said. The broadcasting chief added: "The essence is that from the moment a station broadcasts an opinion poll, its data should have been submitted to the authority first." Deputy Attorney-general Petros Clerides said the state's legal services had received no complaints about opinion polls. But he warned that channels had to make sure they complied with the law before airing the results of a poll. Clerides said it looked like the Broadcasting Authority had evidence that several infringements had taken place and that he expected the results of the investigations to be forwarded to him. "Where there is a violation, the legal service has no choice but to prosecute," Clerides said. Copyright Cyprus Mail 2003 <OBJECT classid="clsid:D27CDB6E-AE6D-11cf-96B8-444553540000" codebase="http://download.macromedia.com/pub/shockwave/cabs/flash/swflash.cab#version=6, 0,0,0" WIDTH="215" HEIGHT="70" id="e_savings" ALIGN=""> <EMBED src="esavings.swf" quality=high bgcolor=#FFFFFF WIDTH="215" HEIGHT="70" NAME="esavings" ALIGN="" TYPE="application/x-shockwave-flash" PLUGINSPAGE="http://www.macromedia.com/go/getflashplayer"> [08] DIKO blasts government's economic recordTHE CHAIRMAN of the House Finance Committee, DIKO's Marcos Kyprianou, yesterday accused the government of having no policy for the economy and tourism.Kyprianou claimed that the government's financial policy had failed, and said economic indicators were there to prove the point. He said several indicators, which were currently just within the EU's Maastricht criteria, could at any moment fall out because of the government's policy mistakes. Kyprianou said growth rates had dropped from 9.4 per cent in 1992 to two per cent in 2002, while unemployment had gone up to 3.5 per cent from 1.8 per cent in 1992. The number of unemployed had risen from 5,187 in 1992 to 11,020 10 years later, Kyprianou said. According to the opposition deputy, the public debt hit the £6.4 billion mark last year, while in 1992 it stood at just £2.7 billion. The per capita share of public debt in 1992 was £3,250, while it currently stands at £10,250, with the government forking over £1 million in interest every day, Kyprianou said. The DIKO deputy said many people in Cyprus lived below the poverty line and urged the government to talk to the ordinary people who had problems making ends meet, instead of hiding behind statistics. Concerning tourism, Kyprianou accused the government of having no plans to tackle the imminent crisis due to the looming war in Iraq, as well as industry's inability to face global recession problems. Copyright Cyprus Mail 2003 <OBJECT classid="clsid:D27CDB6E-AE6D-11cf-96B8-444553540000" codebase="http://download.macromedia.com/pub/shockwave/cabs/flash/swflash.cab#version=6, 0,0,0" WIDTH="215" HEIGHT="70" id="e_savings" ALIGN=""> <EMBED src="esavings.swf" quality=high bgcolor=#FFFFFF WIDTH="215" HEIGHT="70" NAME="esavings" ALIGN="" TYPE="application/x-shockwave-flash" PLUGINSPAGE="http://www.macromedia.com/go/getflashplayer"> [09] Authorities admit impotence over illegal private lessonsBy Sofia KannasGOVERNMENT teachers can give private lessons outside school hours legally if given permission by the Education Ministry, the minister said yesterday, but authorities admitted there was little way to control the spiralling problem of unlicensed tuition. Education Minister Ouranios Ioannides told the Cyprus Mail that giving private lessons was not necessarily illegal for teachers. "Legislation dating from the 1960s allows the Education Ministry to give any teacher -- whether from a state school, institution or University in Cyprus --permission to teach outside classroom hours. "However, they can only teach a maximum of six extra hours a week. "And this permission is only given to a limited number of teachers," he added. Permanent Secretary for Education Petros Kareklas would not disclose the number of state teachers allowed to teach privately but acknowledged "there are not many". "We have given approval to some teachers to teach up to six hours extra a week, so long as we judge this wont interfere with their normal classes. "We register these teachers and inform the income tax department accordingly," he added. Asked how many teachers operated without such permission, Kareklas said, "it's difficult to say because we don't have figures". "However we do investigate allegations regarding illegal lessons. The problem is that people are not always willing to testify against illegal teaching. "After all, why would parents want to report a private teacher operating illegally if he or she is helping their son or daughter to pass exams? "Sometimes we get anonymous letters reporting individuals but by law we need concrete testimonies to prove their illegal actions. "If testimonies are given, the Educational Service Commission judges the cases reported. But we cannot play the role of the police and follow teachers after school hours." Kareklas said few teachers were given permission by the Ministry to give extra lessons in their own homes. "Most are given licence to give extra tuition in state institutes. The number of teachers allowed to teach from home is limited." Education Committee Chairman Prodromos Prodromou said yesterday that it was difficult to estimate how many children in Cyprus attended extra lessons because most were given illegally. "Private lessons are widespread here. The extent of the problem is very well known. Almost every pupil in Cyprus at Lyceum level takes private lessons to prepare for University in Greece or Cyprus. "Of course, we wonder whether teachers are doing their best in our classrooms given that they can profit from giving extra tuition. "Certainly the truth is that extra lessons are not needed to the extent they are given. Even at private schools we see the private lesson phenomenon. "It's perhaps because in Cyprus there is a strong link between education and social status. Cypriot families on average spend a lot on educating their children." Asked if anything new ought to be done to crackdown on the problem Prodromou said: "We have tried to involve the police, but this has proved inefficient. "There isn't a single solution to the problem. "What we really need is a package of measures, including measures to try and motivate our teachers and make them believe their work is worthwhile. The system of teacher evaluation for example, needs changing. "Another solution is to double the number of places available to students in universities. If we had a few more universities in Cyprus, the fierce competition for places both here and abroad would be reduced -- there would be less pressure on both candidates and their families. "But the hardest thing is to convince people their children don't need extra lessons. You can't easily change a person's perception of what his child needs to get into university." Copyright Cyprus Mail 2003 <OBJECT classid="clsid:D27CDB6E-AE6D-11cf-96B8-444553540000" codebase="http://download.macromedia.com/pub/shockwave/cabs/flash/swflash.cab#version=6, 0,0,0" WIDTH="215" HEIGHT="70" id="e_savings" ALIGN=""> <EMBED src="esavings.swf" quality=high bgcolor=#FFFFFF WIDTH="215" HEIGHT="70" NAME="esavings" ALIGN="" TYPE="application/x-shockwave-flash" PLUGINSPAGE="http://www.macromedia.com/go/getflashplayer"> [10] BOC rating downgraded in New YorkBy Jean ChristouFITCH RATINGS, the international rating agency, yesterday downgraded Bank of Cyprus' (BOC) long-term rating to 'A-' from 'A', together with its short- term rating, to 'F2' from 'F1', and its Individual rating to 'C/D' from 'C'. BOC's support rating was affirmed at '2'. The long-term, short-term and individual ratings have been removed from Rating Watch Negative and a Stable Outlook is in place, Fitch's statement said. A statement from Bank of Cyprus said the group does not expect negative consequences as a result of Fitch's decision to downgrade its rating. "The Bank of Cyprus Group's revised A- and F2 ratings are still the highest among Greek and Cypriot banks that have recently been rated by Fitch," the announcement said. "The outlook on both the long and short-term ratings is stable. It is noted that due to the international economic slowdown, the credit ratings of a lot of banks and financial institutions have recently been downgraded." The rating action reflects concerns over BOC's high costs, its asset quality indicators and loan loss reserve coverage levels as well as uncertainty regarding the economic outlook. Fitch expects BOC to report reduced net income in 2002 due to a combination of the economic slowdown in Cyprus, further falls in the domestic stock market, and a narrowing of margins following the interest rate cuts in 2001. Loan loss provisions are also likely to rise, as the bank looks to strengthen its weak loan loss reserve coverage of non-performing loans. At end-June 2002, BOC's gross non-performing loans represented a substantial 7.3 per cent of total lending as reported to the Central Bank of Cyprus. "BOC's Cypriot operations are heavily unionised and wages are indexed to a cost of living adjustment, which, together with the costs of expanding in Greece, creates pressure for the bank to maintain strong revenue growth," Fitch said. "BOC is confident it can achieve future revenue growth targets by expanding its loan book and increasing mark-up spreads and thus its net interest margin. It also intends to boost productivity by upgrading its IT systems, transferring staff within the group and implementing a hiring freeze in Cyprus. However, because tourism and financial services are the main drivers of its economic growth the Cypriot economy is sensitive to external factors and it is therefore likely that BOC's profitability will continue to be subdued in 2003." This would make it more difficult for the bank to build up its loan loss reserve coverage, which is substantially lower than international best practice, despite the collateral backing, Fitch added. It said that BOC's Greek operations had performed well to date and, despite bearing the additional costs of several new branch openings, was expected to contribute around a third of the group's pre-provision operating profit in 2002. "The bank has sound risk management controls in place, although Fitch notes that the young loan portfolio in Greece has yet to be tested in an economic downturn," it said. "The fall in the Cyprus Stock Exchange following its peak in late 1999 has caused BOC's fee income to stagnate, resulting in realised and unrealised losses on its securities portfolio. The bank also has a large shortfall in its defined benefit company pension scheme of EUR60m at end-June 2002, the cost of which Fitch understands will be spread over 20 years. BOC has some sensitivity to a fall in interest." ends Copyright Cyprus Mail 2003 <OBJECT classid="clsid:D27CDB6E-AE6D-11cf-96B8-444553540000" codebase="http://download.macromedia.com/pub/shockwave/cabs/flash/swflash.cab#version=6, 0,0,0" WIDTH="215" HEIGHT="70" id="e_savings" ALIGN=""> <EMBED src="esavings.swf" quality=high bgcolor=#FFFFFF WIDTH="215" HEIGHT="70" NAME="esavings" ALIGN="" TYPE="application/x-shockwave-flash" PLUGINSPAGE="http://www.macromedia.com/go/getflashplayer"> [11] CY's Hellas Jet ready to take off in JuneBy Jean ChristouHellas Jet, the subsidiary that Cyprus Airways (CY) has set up in Greece, is due to commence flights from June, the national carrier confirmed yesterday. Hellas Jet will also operate in the domestic air transport market in partnership with another airline company, probably Aegean Airlines, reports from Greece said yesterday. CY spokesman Tassos Angelis said Hellas would begin by linking Athens to five European destinations, London Heathrow, Brussels, Paris, Amsterdam, and either Frankfurt or Munich. He said the airline had already leased three Airbus A320s. Angelis said passengers from Cyprus would be able to use the new airline, although the national carrier already has direct flights to the slated routes, except Munich. But Angelis said CY only operated two flights per week from Cyprus to Brussels. "So passengers from here can go to Brussels via Athens," he said, adding that he doubted it would be a more expensive option. Angelis said every aspect of Hellas Jet's operation was already in place, including staff, livery design and uniforms, but he said CY was keeping it all under wraps until the official launch of the airline. He could not say when that would be. He said that most of the airline's staff were Greek and that they had received 200 applications from pilots. Several small Greek airlines collapsed after the September 11 terrorist attack in 2001, which devastated the global air transport industry. CY decided to set up Hellas Jet following its decision to pull out of a bid for ailing Greek carrier Olympic only days before September 11. CY's main rival in the bid for Olympic was Greek carrier Axon, which subsequently went bust. Hellas Jet is 49 per cent owned by Cyprus Airways. Greece's Alpha Bank owns a 26 per cent stake, while the remaining 25 per cent is held by Omega Bank of Greece. The partners in the airline established Hellas Jet to capture a share of the expected increase in traffic during the 2004 Athens Olympic Games. Copyright Cyprus Mail 2003 <OBJECT classid="clsid:D27CDB6E-AE6D-11cf-96B8-444553540000" codebase="http://download.macromedia.com/pub/shockwave/cabs/flash/swflash.cab#version=6, 0,0,0" WIDTH="215" HEIGHT="70" id="e_savings" ALIGN=""> <EMBED src="esavings.swf" quality=high bgcolor=#FFFFFF WIDTH="215" HEIGHT="70" NAME="esavings" ALIGN="" TYPE="application/x-shockwave-flash" PLUGINSPAGE="http://www.macromedia.com/go/getflashplayer"> [12] Supermarkets blast all-night kiosks for 'poaching trade'By Sofia KannasSUPERMARKET owners claim yesterday protested their stores were losing business to kiosks, bakeries and grocery shops, who had turned their premises into all-night mini-markets. The President of the Supermarket Owners' Association and owner of Orphanides Supermarkets, Christos Orphanides, told the Cyprus Mail yesterday that kiosks, bakeries and grocers were taking custom away from supermarkets and acting as 24-hour supermarkets themselves. "It's a well known problem and we want justice. Supermarkets are constantly asked to stick to the rules concerning opening hours, so these stores ought to stick to selling the products they are entitled to sell. "We are not asking for them to close at the same time as us. We don't have a problem with a bakery being open 24 hours, selling bread. But if they are going to sell other products, which they are not by law supposed to sell, then something has to be done. "If they want to sell supermarket products they should become a supermarket themselves," he added. Asked what the Supermarket Owners' Association expected to be done about the problem, Orphanides said: "We ask the government and the police and any other responsible authorities to enforce the law properly. "It doesn't matter if the amount of revenue we lose to these shops is small or large -- the fact is that we are losing business unfairly. If a person knows they can go and buy whisky at their local kiosk at midnight then they will do, since the opportunity is there. "It's time something was done about this." The President of the Small Shopkeepers' Association, Melios Georgiou, said the enforcement of the law concerning the range of products sold at kiosks and bakeries was the government's responsibility. "The government should implement the laws that exist. Bakeries for example, are entitled to sell fresh milk in addition to bread and cakes, but they usually sell much more. And kiosks shouldn't really sell yogurt and cheese." But Georgiou played down reports that up to 30 per cent of supermarket trade custom was being poached by smaller shops. "I doubt the figure is that high. But the law should be enforced nonetheless." A Nicosia Kiosk owner was angry at claims kiosks should only be allowed to sell newspapers and cigarettes. "Is it fair that supermarkets should monopolise the market and deprive people of the choice of purchase items they need urgently elsewhere? "In any case, kiosks are necessary in today's world. How can a working man or woman find the time to go to a big supermarket for the odd item or two. Kiosks are there to provide a different service -- one of convenience. Why shouldn't a person be able to go and buy a bottle of fabric softener after 6pm if they need it?" Asked whether there were laws governing what products kiosks could sell, the kiosk owner said: "I am aware of an ancient piece of legislation relating to the kiosks on Eleftheria Square, but I don't see why we should not be allowed to sell vital items. I'm sure that in Europe people are not restricted to buying goods from large supermarkets." President of the Consumer's Association Petros Markou called on the government to regulate the problem. "It's up to the State to regulate these things. Not all shops are allowed to sell food items, they have to get a licence. "But I don't think the threat to supermarkets is that great. Most consumers would not go and do a big weekly shop at a kiosk -- it would cost them double the price of shopping at a supermarket." No one at the Labour Department was available for comment. Copyright Cyprus Mail 2003 Cyprus Mail: News Articles in English Directory - Previous Article - Next Article |
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