Cyprus Bank revises offer for Ukraine unit

Bank of Cyprus says it is looking "positively" at a revised offer to sell its loss-making PJSC Ukrainian unit to Russia's Alfa Group as part of a restructuring drive.

In January, Bank of Cyprus (BoC), the island's largest lender, said it had agreed to sell its 99.77 per cent stake in the subsidiary to ABH Ukraine, which is part of Alfa Group, for 225 million euros ($A334.10 million).

But Cypriot media reported the Russians had offered 10 per cent less than the original figure due to the worsening political and economic crisis in Ukraine.

Moscow annexed Ukraine's Crimea Peninsula last month, and Western powers accuse the Kremlin of fomenting further unrest in the country's mainly Russian-speaking east.

"Bank of Cyprus announces that a revised consideration has been offered by the Alfa Group that is viewed positively by the board of the directors," BoC said on Monday.

The sale is part of the liquidity-strapped group's strategy of focusing on core businesses and markets, and disposing of other operations.

The Cypriot bank acquired PJSC Bank of Cyprus in 2008.

It operates a network of 42 branches, focusing both on individuals and businesses in Ukraine.

As at September 30, 2013, the bank had total assets of about 245 million euros and equity of 70 million euros ($A103.94 million).

Cyprus agreed in March to a 10-billion-euro rescue package with the European Commission, European Central Bank and International Monetary Fund to bail out its troubled economy and oversized banking system.

Many of those large BoC depositors were Russian and in return received shares in the lender with six Russians now represented on the 15-member board.

Nicosia today in randabut oxi

https://www.youtube.com/watch?v=jORARcHTysI&feature=youtube_gdata_player

ΚΕ: "Δεν είπε κανείς ότι θα γίνουν"

Την εκτίμηση ότι πρέπει να είμαστε πολύ προσεκτικοί και αποτελεσματικοί αλλά και δίκαιοι σε ότι κινήσεις κάνουμε, εξέφρασε ο Κυβερνητικός Εκπρόσωπος Χρήστος Στυλιανίδης, ερωτηθείς σχετικά για το νομοσχέδιο της πρώτης κατοικίας.


Μιλώντας στο Ράδιο Πρώτο στην εκπομπή «έχουμε θέμα» ο κ. Στυλιανίδης, επεσήμανε ότι η κοινωνία μας, είναι ώριμη και η Κυβέρνηση το εισπράττει ως εύσημο σε οποιαδήποτε συνάντηση της στο εξωτερικό και όχι μόνο από τους δανειστές μας αλλά και από όλο το ευρωπαϊκό πολιτικό φάσμα, από τεχνοκράτες ή ακόμη και από συντεχνιακούς Ευρωπαίους ηγέτες.

«Η ωριμότητα που επέδειξε ο λαός και το σύστημα, είναι η βάση της επιτυχίας ότι αυτός ο τόπος στέκει στα πόδια του και έχει ελπίδες και προοπτική»

Το θέμα πρώτης κατοικίας, ανέφερε ο Κυβερνητικός Εκπρόσωπος, είναι εξαιρετικά σημαντικό, τόσο από άποψης δικαιοσύνης όσο και από οικονομικής άποψης.

Το νομοσχέδιο είπε, θα πρέπει να τύχει ενδελεχούς μελέτης και η παρότρυνση της κ. Γιωρκάτζη, ανέφερε, δεν μπορεί να παραγνωριστεί, αντιθέτως πρέπει να ληφθεί σοβαρά υπόψην το αίτημά της.

Ο κ. Στυλιανίδης, εξέφρασε την άποψη ότι μπορούν να αναμένουν οι τράπεζες, λέγοντας οτι "δεν είπε κανείς ότι θα γίνουν εκποιήσεις".

Εξέφρασε την πεποίθηση ότι τα κόμματα θα κάνουν δεύτερες σκέψεις και θα στηρίξουν το νομοθέτημα με τέτοιο τρόπο ώστε να είναι προς όφελος της 1ης κατοικίας αλλά και την εξασφάλιση της οικονομίας στο δρόμο της σταθερότητας.

Ερωτηθείς αν υπάρχει περίπτωση ο Πρόεδρος να αναπέμψει το νόμο, ο κ. Στυλιανίδης προέτρεπε να μην προκαταλαμβάνουμε γεγονότα. «Έχουμε μέρες ακόμη για να εξαντληθεί το θέμα, πιστεύω στο τέλος θα προκύψει νομοσχέδιο με βάσει το δίκαιο αναγκών και του κοινού δημοσίου συμφέροντος. Όταν είναι αστόχευτα τα όποια μέτρα λαμβάνονται, είναι εις βάρος όλων των φορολογουμένων».

Cyprus's outgoing central bank chief hits back as replacement is named

Panicos Demetriades dismisses government accusations that he failed to take adequate steps ahead of island's banking collapse




Cyprus's outgoing central bank chief, Panicos Demetriades, has hit back after the government accused him of mishandling the island's near economic collapse, as the Cypriot president, Nikos Anastasiades, wasted no time in appointing a replacement.

The centre-right leader, who had been openly at war with the bank chief, said he would install auditor-general Chrystalla Georghadji to the post just 15 hours after Demetriades resigned.

As it emerged that he had received a €250,000 payoff, Demetriades issued a statement that cited "personal and family reasons" for his resignation and rejected claims he had failed to take adequate steps before the island's banking collapse last spring.

"It was a privilege to serve as governor of the CBC. During my tenure my actions were always aimed at ensuring confidence and stability in our financial system and I always acted in the best interests of our country," he said.

His replacement, Georghadji, is a seasoned technocrat educated in the US and UK who has gained a reputation as a no-nonsense figure at the head of an anti-corruption watchdog that regularly reports on misuse of public funds.

She has advocated scaling back the island's public sector and pressing ahead with the overhaul of its near-defunct banking system, which is likely to please mission chiefs representing the bailed-out country's lenders at the EU, European Central Bank and International Monetary Fund. The 58-year-old will officially assume the role on 11 April, a day after Demetriades leaves the post. The presidential palace said ECB head, Mario Draghi, who had previously expressed disquiet over Anastastiades' handling of CBC governor , had been informed of the appointment.

Demetriades was appointed by Anastasiades's communist predecessor Demetris Christofias, also widely blamed for his handling of the crisis.

Ο πατριώτης του 2014. Του Παναγιώτη Σεντώνα

Η επετειακή επιστροφή μας στις ξεχωριστές σελίδες της εθνικής μας ιστορίας, δεν έχει νόημα ούτε και δικαιώνεται, εάν με την επάνοδό μας στο παρόν δεν είμαστε διατεθειμένοι να στοχαστούμε για το ποιος είναι ο δικός μας ρόλος, πως εμείς υπηρετούμε την πατρίδα μας σήμερα.
Τι πράττουμε σήμερα για τον τόπο μας; Τι σημαίνει σήμερα να είσαι πατριώτης; Πώς οι επόμενες γενιές θα κρίνουν τον πατριωτισμό μας;

Για χρόνια τιμούμε τους ήρωες μας εγκωμιάζοντας με θέρμη την πίστη τους σε υψηλά ιδανικά, χωρίς όμως να παραδειγματιζόμαστε από το ψυχικό τους μεγαλείο. Καταθέτουμε δάφνινα στεφάνια εκφράζοντας θαυμασμό για τη φιλοπατρία τους, αλλά αδυνατούμε να δούμε τις αρετές τους ως φάρο και να αγαπήσουμε και να υπηρετήσουμε με σημερινούς όρους την πατρίδα μας.

Διότι, η διαφθορά που εκθρέψαμε δεν είναι φιλοπατρία.

Η επιμονή στο ατομικό συμφέρον που επιδείξαμε δεν είναι φιλοπατρία.

Η κατάχρηση δημοσίου χρήματος και αξιωμάτων δεν είναι φιλοπατρία.

Το οικονομικό ναυάγιο στο οποίο οδηγήσαμε τη χώρα δεν είναι φιλοπατρία.

Ποιος είναι ο πατριώτης του σήμερα;

Αυτό είναι το ερώτημα που πρέπει να μας απασχολήσει. Αν θέλουμε να τιμήσουμε τους ήρωες μας σ’ αυτό το ερώτημα είναι που πρέπει να δώσουμε απάντηση.

Πατριώτης σήμερα είναι αυτός που υπηρετεί την αξιοκρατία.

Πατριώτης είναι αυτός που συλλαμβάνει το ιδιωτικό, αλλά και το δημόσιο καλό.

Πατριώτης είναι αυτός που αγωνίζεται για να υπάρξει στη χώρα ένα αξιακό πλαίσιο που θα τη βοηθήσει να σταθεί ξανά περήφανη στα πόδια της.

Πατριώτης είναι αυτός που δεν του ταιριάζει το βόλεμα, η απάθεια και ο υποκινούμενος από συμφέρον εφησυχασμός.

Πατριώτης είναι αυτός που πιστεύει ολόψυχα στην επανένωση της πατρίδας και στην έλλογη υπεράσπιση του δικαίου.

Πατριώτης είναι αυτός που αγωνίζεται για να υπάρξουν εκείνες οι συνθήκες που θα επιτρέψουν την ανθοφορία των ικανοτήτων και των ταλέντων της νέας γενιάς, της γενιάς που κρατά στα χέρια της την ελπίδα.
Y
Η μεγαλύτερη τιμή στους ήρωες μας είναι να βρούμε την έξοδο από τους φαύλους κύκλους που για χρόνια βολευόμαστε εντός τους και να κάνουμε βίωμα και πράξη τις αρετές τους.

Cyprus on track with adjustment, risks include Ukraine: IMF (updated)

Long queues for ATMs as the banks remained closed for nearly two weeks
By a staff reporter
TACKLING the increasing problem of non-performing loans (NPL) is a key challenge facing Cyprus’ banks, the International Monetary Fund (IMF) said in a report published yesterday as it urged the speeding up of a “strong legal framework to facilitate foreclosures”.
The IMF report said the banks need to focus on dealing with the high level of NPLs, further normalising payment flows, maintaining fiscal prudence, and stepping up the implementation of the ambitious fiscal structural reform agenda.
It said the banking sector was showing signs of stabilisation but the outlook remained challenging, with rising unemployment and falling credit, and particularly the upward spiral in non-performing loans.
Non-performing loans (NPLs) in the island’s banking sector, including co-ops, rose to €27.5b in January, compared with €26.9b the previous month, Central Bank data showed last month. NPLs in commercial banks reached 41.7 per cent, or €21.2b, compared with €20.8b in December 2013. The respective figure for co-ops was 47.5 per cent, or €6.4b, compared with €6.04b at the end of the year.
“Risks to programme implementation remain significant, including due to remaining financial sector vulnerabilities and diminished political support following the breakup of the governing coalition,” the IMF report said.
To enhance confidence in the financial sector it said the authorities should promote further measures on governance of banks and strengthen supervision, including close monitoring of progress in implementation of the restructuring plans.
It said the authorities had implemented a code of conduct and an overall framework for managing arrears, and banks and co-ops had created specialised units for dealing with problem loans.
“Ensuring that financial institutions have adequate policies and operational ability to halt and reverse the trend of deterioration of their assets are critical to successful restructuring and long-term viability,” said the report. “It is equally important to apply as soon as possible a strong legal framework to facilitate foreclosures,” it added.
Parliament is currently debating the issue with a view to protecting first-home owners but it is believed that thousands of foreclosures are already underway.
Yesterday’s report, which followed an IMF review of the island’s economy after last year’s bailout, said that while deep, the recession in 2013 was not as severe as anticipated.
Growth projections remain unchanged, with a deep contraction expected in 2014 and a modest and credit-less recovery taking hold in mid-2015, the IMF said.
Cyprus received a €10 billion bailout from the European Commission, the European Central Bank and the IMF, known as the troika, and has been subjected to three evaluations so far by its lenders.
The IMF said the programme was on track and fiscal targets were met with considerable margins – delays in the implementation of structural reforms have recently been overcome.
Growth projections for 2014 and beyond remain unchanged, and given limited new data for this year, the 2014 growth projection was maintained at – 4.8 per cent.
“This is consistent with a slowing rate of output decline during this year, as the uncertainty and immediate effects of the crisis are wearing off, domestic payment restrictions are gradually lifted , and the negative fiscal impulse declines relative to last year.”
The IMF said both private consumption and investment were expected to continue to contract, albeit at a lower rate than last year, with the contribution of the foreign balance moderating.
The modest recovery, projected to take hold by mid-2015, is expected to be credit-less, led by tourism and other service sectors, which are relatively less indebted, exhibit lower NPLs, and are likely to finance activity and exports through generation of positive cash flow.
As regards unemployment and inflation it is noted that they were revised down modestly.
In 2014, the average unemployment rate was revised down to 19.2 per cent from 19.8 per cent to account for the 2013 outturn and for the deceleration in the rate of increase in recent months.
The IMF suggested that a change in depositor sentiment, in the context of important relaxations of payment restrictions underway, could risk destabilising the system and exacerbating the recession.
The Ukraine crisis could also weigh in on the economy through a flight in capital from non-resident depositors of foreign banks in Cyprus, which may affect the business service sector.
On the upside, if trends of economic activity observed in the second half of 2013 continue, growth in 2014 and beyond could be better than anticipated, the IMF said.

ESM approves €150 mln for Cyprus

The Board of Directors of the European Stability Mechanism (ESM) has approved the disbursement of €150 million to Cyprus, following the positive assessment of the third quarterly review of the island’s macroeconomic adjustment programme.

“This disbursement marks another successful completion of the review and the authorities’ commitment to the programme. It is important to maintain the reform momentum as many challenges still lay ahead,”ESM Managing Director Klaus Regling said.

The current disbursement will bring the total amount of ESM financial assistance for Cyprus to €4.75 billion.

The remaining portion of the approximately €9 billion committed to Cyprus by the ESM is scheduled to be paid in quarterly disbursements until 2016.

Cyprus and the so-called troika of international lenders — European Commission, International Monetary Fund and the ECB — agreed last year on €10 billion bailout to cover the island’s financing needs and to recapitalise the banking sector.