InvestinCyprus.com Developers Blog

First internationally recognised property price index for Cyprus is published

2010-02-12T11:38:00.001Z

The Royal Institution of Chartered Surveyors has launched a property price index for Cyprus which is aimed at making the real estate market more transparent.

It will track property and rental prices across all districts and monitor changes in residential properties, offices, high street retail and warehouses and be published quarterly.

The first one just published will provide a base index on which all future changes in price and rental levels will be benchmarked.

The highest prices for high street retail, offices, and warehouses are recorded in the bigger urban centres of Nicosia and Limassol. Warehouses are 18% more expensive in Limassol, probably due to it having the island’s main commercial port.

House and apartment prices are spread evenly across the island, with an average price of €1,865 per square meter for apartments and of €2,001 for houses. The low standard deviation across all cities of only 9% and 10% respectively shows that, excluding tourist areas and areas of special value, the vast majority of homes for locals are evenly priced.

‘These low yields may show that rents are being kept artificially low by the tendency of companies to occupy properties with alternative uses, mainly residential, in order to minimise their costs. An alternative explanation is that property prices are too high due to the lack of land supply and the price boom of the past few years,’ the report adds.

The RICS Cyprus Property Price Index monitors the urban centres of Nicosia, Limassol, Larnaca, Paphos and Paralimni-Famagusta. The Index only tracks prices in Republic of Cyprus’ government controlled area and not in the occupied North.

Cyprus at number seven in Top of the Props

2009-09-03T10:13:00.002+01:00

The popularity of Cyprus as a destination for overseas property investment has increased according to the July Top of the Props chart published by themovechannel.com and a second survey published by homesoverseas.com

CYPRUS has moved up three places from number 10 to number 7 in the July 2009 Top of the Props chart published by themovechannel.com

The most popular investment destination for British overseas property buyers was the USA, which pushed last month’s number 1, Spain, into second place. These were followed by France and Portugal, in third and fourth places.

Turkey sneaked into fifth place, followed by Italy and Cyprus at six and seven. Rounding off July’s Top of the Props chart was Bulgaria in eighth place, followed by the UAE. Egypt took the final place in the lineup, coming in tenth.

IN A SEPARATE survey, Cyprus has moved up one place to number 8.

Property in Spain has replaced property in Portugal, as the most searched for destination to buy a home abroad based on country page views, and property views, on their website over the past month.

Elsewhere, Greece property has risen from fourth to third, Italy property has fallen a position to fourth, French property is up a place to fifth, Turkey property is down a place to sixth, USA property has gone up from eighth to seventh, Cyprus property is up a place to eighth, Thailand property is down from seventh to ninth, while Egypt property retains tenth spot.

Source: Cyprus Property Buyers

Contract signed for Wind Park in Cyprus

2009-07-24T12:59:00.000+01:00

Cyprus is to get its first wind park, one of the biggest in the Eastern Mediterranean, which is expected to be completed by the end of 2010.

The operation of the wind park is a step towards meeting EU objectives relating to energy production from renewable energy sources amounting to 13% by 2020, an official announcement said here today.

The contract for the connection of the first Wind Park, of a total power of 82MW, with the electricity transmission network in Cyprus was signed on July 19 between the transmission system operator of Cyprus and the producer (D.K. Windsupply Ltd), it added.

The wind park will be built by a Danish company in Orites region, in Paphos district, on the west, and will consist of 41 wind turbines of 2,0 MW each.

The European Investment Bank will contribute to the construction with 65 million euro, in addition to a partnership of other international banking institutions.

The announcement noted that the involvement of such major investors and their interest in financing this project demonstrates that the use of wind energy in Cyprus is possible and profitable.

The energy produced by the wind park will be channeled into the transmission network in accordance with the Grant Project of the Ministry of Commerce, Industry and Tourism and will be bought by the Electricity Authority of Cyprus at a price determined in the plan.

Source: Xak.com

Etihad expands services in Cyprus

2009-07-03T18:20:00.000+01:00

MIDDLE-EASTERN airline Etihad is expanding in Cyprus by singing a code share agreement with Cyprus Airways.

The company now has three flights a week between Cyprus and the United Arabic Emirates. The airline operates a two-class Airbus A320, carrying around 140 passengers, with availability of 20 business seats and 120 seats in economy class.

Peter Baumgartner, chief commercial officer of Eithad Airways signed the code share MOU with commercial manager of Cyprus Airways Christos Agapiou yesterday in Nicosia during an official ceremony.

The agreement provides the opportunity to Cyprus Airways to use the CY code on Etihad flights between Larnaca and Abu Dhabi. The aim of the code share is to introduce Etihad Airways to the Cypriot market and to increase its presence with cooperation of the island’s national airline.

Source: Cyprus Mail

Cyprus has historic chance to heal the division

2009-06-25T17:59:00.000+01:00

The European Commission urged estranged Cypriots Thursday to seize a "historic chance" to reunite their island, split by a conflict spanning decades and troubling Turkey's bid to join the EU.

"The time is now. Do not allow a situation where the younger generation will simply accept the status quo," EU Commission President Jose Manuel Barroso said.

"There is a historic chance now to end this conflict once and for all," he told journalists on a whistle-stop visit to the island, a member of the European Union since 2004.

Cyprus, divided between its ethnic Greek and Turkish Cypriot communities, is a key obstacle in Turkey's chances of joining the European Union.

The Mediterranean island was effectively partitioned in a Turkish invasion in 1974 in response to a brief Greek-inspired coup. Its government-controlled south represents Cyprus in the EU, with the north a breakaway Turkish Cypriot state recognized only by Ankara.

Cyprus's internationally recognized Greek Cypriots say they will never allow Turkey to join the bloc as long as the island is partitioned. Ankara's EU membership talks, which started in October 2005, have been partially frozen because of the situation on the island.

Turkey's progress in membership talks will be assessed later this year.

Greek and Turkish Cypriot community leaders launched peace talks last year, but progress has been slow.

Barroso said the EU Commission was ready to help and support a deal on Cyprus, but said: "We cannot make the deal...it is up to the Cypriots themselves to find a solution.

Cyprus has said it will support Barroso's re-election bid for a second five-year term for the EU Commission presidency.

Source:Reuters

Cyprus To Have Highest Growth Rate In Europe

2009-04-24T14:14:00.002+01:00

Minister of Finance Charilaos Stavrakis said on Friday that Cyprus is expected to have the highest and only positive growth rate in Europe in the year 2009. Commenting the latest projections of the International Monetary Fund (IMF) that Cyprus' growth rate is expected to be 0.3% in the year 2009, Stavrakis said that according to calculations of the Ministry aduring the first quarter of 2009 Cyprus' growth rate will be ''quite satisfactory and close to 2%.''

He furthermore said that ''2010 will be a difficult year'' and assured that the government would be making sure to deal with current financial conditions in order to minimise the cost on the taxpayers and the economy in the years to come.

Speaking after a meeting at the Ministry to brief the private sector on the initialing of an agreement between Cyprus and Russia for the avoidance of double taxation and to discuss the action plan for 2009 for attracting foreign investments, Stavrakis said it was positive that, according to IMF figures, ''Cyprus is expected to have the best performance in the whole of Europe.''

This reaffirms the government's position that the fiscal policy it has been following is the right one, which secures the highest possible growth rate in very adverse external conditions,'' he added. Asked if the slower growth rate increases the state's costs, Stavrakis said ''it creates upward pressure on unemployment and possibly a great deterioration of public finances.''

'This is why we are handling public finances in a very conservative and cautious manner, in an effort to restrict ourselves to focused expenditure,'' he added. Stavrakis said ''2010 will be a difficult year and thus we need to maintain several fiscal ammunition in order to support the real economy,'' adding that ''any expenditure that is not a dire necessity at this moment to support the economy is expenditure that the taxpayer and the citizens will bear in the coming years.''

Source: Financial Mirror

Cyprus Airways Increases Flights To Dubai

2009-04-14T14:30:00.002+01:00

Cyprus Airways announced that in summer they would fly to Dubai more frequently, namely three times a week.

Cyprus Airways will connect Larnaca Airport with Dubai with direct flights every Tuesday, Thursday and Saturday. The company also announced that for this air route it offers special low-priced fares starting from 260 euros including all taxes except service fee.

Cyprus Airways is the national airline of Cyprus. It operates scheduled services to over 30 destinations in Europe, the Middle and Near East and the Gulf. The company is listed in the Cyprus Stock Exchange (CSE). The Cyprus government is the majority shareholder.

Cyprus Industrial Turnover Up 8.7% In December 2008

2009-03-20T13:49:00.003Z

Industrial turnover was strong in December according to the latest figures from the Statistical Service. The industrial turnover index reached 165.7 (base 2000=100), recording an increase of 8.7% compared with December 2007. Industrial production in the same period rose by only 1.9%, however.

For the period January-December 2008 turnover rose by 12.8% compared to the same period of the previous year, while production rose by 2.6%. The index comprises mining and quarrying, manufacturing, electricity, gas and water supply. For manufacturing, the index for December 2008 reached 158.1, recording an increase of 5.3% compared with December 2007.

Source: Financial Mirror

Etihad will fly from Abu Dhabi to Larnaca in Cyprus from June

2009-03-05T15:49:00.001Z

Good news for travellers, Etihad will be flying to Cyprus three days a week from June.

James Hogan, Etihad Airways’ chief executive, said: “The launch of flights to Larnaca illustrates Etihad’s ambitions to strengthen our European network and we anticipate strong demand for flights which will help open up new commercial and cultural ties between the UAE and Cyprus.”

He added: “The new route also offers excellent connecting opportunities in Abu Dhabi, helping to link Larnaca with Cypriot communities worldwide and our new service this month to Melbourne will benefit greatly with the start-up in June of flights from Cyprus.”

The flights, scheduled to for Wednesday, Friday and Sunday, will also appeal to the UAE community who will be able to visit the attractive island for short weekend breaks.

Source: Time Out Dubai 2 March 2009

PRESS RELEASE: The Grove Spa Resort, Mazotos, Cyprus – Appointment of High Profile Prime Contractor

2009-02-10T16:06:00.000Z

The Grove Spa Resort, Cyprus – Appointment of General Constructions Company Ltd (GCC) as Prime Contractor

InvestinCyprus.com Developers has appointed the General Constructions Company (GCC) as the prime contractor for its landmark 5 Star mixed-use scheme, The Grove Spa Resort in Mazotos, Cyprus.

GCC was founded in 1947 and is one of the leading construction companies in Cyprus with its head office in Nicosia.

GCC has constructed many prestigious projects in Cyprus, including: The Annabelle 5 Star Hotel in Paphos, Ayia Napa Water Park, IKEA, and The Embassy of The People’s Republic of China to name a few. The company has also undertaken large projects for the Cyprus government and UK Ministry of Defence. Further, the company has successfully operated in Saudi Arabia for over 30 years and is now establishing a strong presence in Bahrain.

The motto of GCC is “Quality First” and the company this week celebrates its 62^nd year of delivering quality construction projects.

Commenting on the appointment of GCC, Stephanie Fairhurst, Managing Director of InvestinCyprus.com Developers said,

“ The appointment of GCC as our main contractor shows our commitment to delivering a top quality resort by employing only the very best professionals for this outstanding project. GCC has a strong reputation for excellence and professionalism and we are delighted to be working together.”

Phase 1 of the build of The Grove Spa Resort was completed at Christmas before the purchase of an additional plot of land to add further facilities to the scheme. The revised plans have now been approved by the authorities and Phase 2 of the construction begins this week.

InvestinCyprus.com Developers Director Dominic Farrell says:

“We couldn’t refuse the opportunity to purchase an additional plot of land adjacent to the scheme and buyers have been extremely pleased with the extra value the enhanced facilities have provided.”

Mr Farrell continues, “Testament to the appeal of The Grove Spa Resort is that, even in the present climate, we still have strong interest from buyers and continue to make sales, despite having sold 80% of the scheme before we started construction.”

The Grove Spa Resort, Cyprus is due for completion in 2010.

Notes for Editors:

The Grove Spa Resort in Mazotos, Cyprus is a 5 star mixed-use scheme due for completion in 2010.
In addition to 128 residential units, there is a restaurant, supermarket, on-site rental and resale office, concierge service, health spa, gymnasium, dance studio, hydrotherapy pool, 3 outdoor pools, tennis court, sports TV room, children’s play area and secure underground parking and storage units.

There has been worldwide interest in this project with buyers from UK, Ireland, Cyprus, Hong Kong, Poland, Malaysia, Dubai, Bahrain, Sweden, Italy, India, South Africa, Singapore and Azerbaijan.

For further information and interviews please contact Dominic Farrell on +44 (0) 151 244 5432

14 New Golf Courses For Cyprus: It's Official

2009-02-09T16:06:00.005Z

The Cyprus government has finally approved the creation of 14 new golf courses, which will bring the total number on the island to 17. The decision was finalised at a cabinet meeting last Thursday (5th February 2009).

Government Spokesman Stefanos Stefanou said the actual decision had been taken by the previous government.

“It was taken for the purpose of strengthening the tourism product in Cyprus and boosting economic activity,” he said.

Dominic Farrell, director of InvestinCyprus.com Developers, the company behind the much acclaimed Grove Spa Resort in Mazotos says:

“This is excellent news for homebuyers and investors alike and will provide a substantial boost to rental demand, re-sales and economic activity in general. Additionally, seasonality will be reduced in areas surrounding courses as the winter months in Cyprus are ideal for playing golf. Combined with the increase in low cost flights from airlines such as easyJet, we will see a sharp increase in visitors to the island. Owners of high quality properties with all-year-round facilities will benefit most.”

For an article by Jet-to-Let Magazine on the benefits of investing near golf courses click here

"Putt" Your Trust In Cyprus

2009-02-06T16:05:00.000Z

Cyprus has long been an island that has offered Britons everything they like to get from a holiday destination - sandy beaches, blue seas, a long and hot summertime, friendly locals who can speak English and of course, plentiful golf courses.

And it seems that the former British colony may soon have more of the latter to offer, with the news that plans to build 14 new golf courses have been proposed. The effect such development will have on tourists is clear as it is unlikely that any keen golfer will not enjoy being tested by a fresh set of holes, but how could such a move impact upon the decisions of property developers?

According to Paul Collins, the property editor at BuyAssociation.co.uk, an increase in golfing opportunities should provide a boost to the property market in the area. "Whenever leisure facilities like golf courses go in, it does tend to give a bit of fresh impetus to the property market. There have always been golf courses in Cyprus and it has always been a popular reason for people going over there," he said. Mr Collins added that some of the courses on offer are "of a very high standard".

Furthermore, it is not just property developments in the locality of the proposed golf courses that will see the positive effect of their arrival, Mr Collins noted. He stated that due to the size of the island, it is probable that the new leisure facilities will profit the entire community.

"The whole island will probably benefit from this. It's not a massive island and it is quite easy to get around, so there are plenty of places that can benefit from this. People don't necessarily want to live right next door to the attractions," he commented.

And if this news is not enough to tempt overseas property buyers to investigate the options in Cyprus, hard data from Statistical Office of the European Communities might do the trick. It released figures last year that suggest population growth in Cyprus will be the strongest over the next half a century, compared to the other 25 countries in the European Union. It said that the number of people living on the island will swell by 66 per cent, growing to 1.12 million by 2035 and to 1.32 million in 2060. This is despite the fact that the overall population of the EU will gradually decline over the same period by 2.1 per cent.

Overseas property investors who 'putt' their trust in Cyprus now, may well find they land on a small patch of green surrounded by the rough.

Source: Assetz News

Dominic Farrell

Cyprus Inflation Falls to 1.1 Per Cent

2009-02-05T16:03:00.000Z

NICOSIA, Feb 5 (Reuters) - Cyprus's consumer price inflation eased to 1.1 percent year on year in January from 2.1 percent in December, the statistics department said on Thursday.

On a monthly basis, the consumer price index (CPI) decreased by 2.34 percent to 107.76 units. The fall was primarily due to decreases in the prices of clothing and footwear, and a reduction in the cost of fuel and electricity bills.

Source: Reuters

Dominic Farrell

Bank of Cyprus Profits Increase by 4% in 2008

2009-02-03T16:02:00.000Z

Bank of Cyprus Group profit after tax for 2008 increased by 4% to EUR506 mln compared to EUR485 mln in 2007, beating analyst expectations ranging from EUR 460 to 506 mln, but short of its target of EUR 540 mln. The results, which correspond to a very satisfactory return on equity (25%) include gains of about EUR90 mln which primarily represent profit from transactions for hedging foreign exchange risk.

The Group’s total loans for 2008 reached EUR 25.1 bln, recording an increase of 29% compared to 2007. The Group’s total loans in Cyprus and Greece recorded annual increases of 25% and 22% respectively.

The Group’s total deposits reached EUR 27.9 bln compared to EUR 25.2 bln in 2007, recording an increase of 11%. The Group’s total deposits in Cyprus and Greece recorded annual increases of 1% and 19% respectively.

The strong liquidity of the Group, with a loans to deposits ratio of 90%, and its minimal reliance on wholesale funding (13%) provide a strong competitive advantage for the Group, particularly under the current adverse conditions prevailing in global money markets.

Despite the dynamic expansion of the Group’s operations the quality of the loan portfolio continued to improve, with the non performing loans ratio decreasing to 3.7% compared to 3.8% at 31 December 2007.
The provision charge was contained at 0.4% (2007: 0.3%) of total loans, reflecting both the good quality of the loan portfolio of the Group and the very satisfactory level of accumulated provisions which include an accumulated collective provision amounting to 1% of total loans.

The Group’s capital adequacy ratio as per Basel II requirements is estimated at 11.3% and the tier 1 ratio at 7.3%.

Uniastrum Bank

On 31 October 2008 Bank of Cyprus completed the acquisition of an 80% interest in Uniastrum Bank in Russia. Uniastrum Bank is accounted for as a subsidiary from the date of acquisition.

Uniastrum’s net profit for the year 2008 reached EUR 16 mln (RUB602 mln) and its contribution to the total profits of the Group for 2008 amounted to EUR 5 mln, as only the last two months of its 2008 profits were consolidated. At the end of the year Uniastrum’s loans reached EUR 875 mln (RUB 36,1 bln), recording an annual increase of 2%. At the end of 2008, Uniastrum’s capital adequacy ratio stood at 17% in accordance with the rules of the Central Bank of Russia, which can support the immediate expansion of the loan portfolio.

Particularly encouraging is the development of Uniastrum’s liquidity, with its deposits reaching EUR 890 mln (RUB 36.8bln), at 31 December 2008, recording a decrease of 4% from 31 December 2007. Compared to 31 October 2008, deposits recorded an increase of 9%, highlighting the increasing confidence of Uniastrum’s customers since its acquisition by Bank of Cyprus. Uniastrum’s loan to deposits ratio stands at 98%.

2009 forecast

Bank of Cyprus forecast that 2009 net profit will range between EUR 300 mln to EUR 400 mln, with the Group having made an adjustment for higher provisions. The Group expects a positive contribution from all the new markets where it operates with the profit of Uniastrum Bank for the year 2009 expected to reach about EUR25 mln.

Source: Financial Mirror

Dominic Farrell

The Grove Spa Resort, Cyprus - Meet The Team

2009-01-30T16:01:00.001Z

In a series of "Meet the Team" blog postings, we intend to introduce you to the professional team behind the InvestInCyprus.com Developers' 5 star scheme, The Grove Spa Resort in Mazotos.

We have assembled the best possible professional advisers who are the leaders in their field. As all buyers know the developers, Dominic Farrell and Stephanie Fairhurst, you will not necessarily meet the team during the construction. So here we are:

First up is the Architect and Civil Engineer seen here on site. Further information about these two key professionals will be posted tomorrow.

Dominic Farrell

TheMoveChannel Investigates Disneyland In Larnaca

2009-01-30T16:01:00.000Z

Disneyland of the Mediterranean (in Larnaca)

Last week, it was announced that Russian investors have applied for planning permission to build a brand new Disney resort in Cyprus, which would be the largest ever single investment made on the island -

TheMoveChannel investigates what this would mean for the tourism and property markets in the country...

Who would have thought that Mickey and Minnie would ever make an appearance in Cyprus?

Following the Russian based Boema Group's announcement that it wishes to develop the leased state land near the UN buffer zone around the Larnaca - Famagusta border, this could become a reality.

The conglomerate had originally chosen Serbia as the ideal location for some Disney magic but Cyprus was eventually decided upon after its political stability, EU membership and year round sunshine were highlighted.

The state owned land lies between Turkish and Cypriot lines and the Russian Government are hoping that building the resort there will help to merge the Turkish and Cypriot communities.

"This £754 million project will be the largest investment in our country to be made with foreign investment capital," said Cypriot Minister of Finance, Mr. Charilaos Stavrakis.

The park is seeking to gain the reputation of being the ‘EuroDisney of the Mediterranean' and the rides in the theme park will be inspired by Greek mythology and Cypriot history, such as a daily performance of the naval Battle of Salamis.

A reconstruction of the ancient Kourion Amphitheatre, the Penatadaktylos mountain range and the Baths of Aphrodite will also be wowing visitors. If the park does go ahead, its gates are due to open in 2012, when Cyprus will receive the six-month presidency of the European Union.

What does it mean for tourism and investors?

Anything Disney related is bound to create a lot of hype and a project of this scale on an island like Cyprus cannot fail to have a large impact on both the tourism and investment sectors.

The island's economy relies heavily on tourism and the Cypriot Government thus takes the job of boosting visitor numbers very seriously. Millions of pounds have already been ploughed into improving infrastructure and transport to make access easier and make the island more appealing to overseas visitors.

Larnaca International Airport has been upgraded and future developments of the marina and port are also in the pipeline.

The Government has also recently announced plans to increase the number of golf courses on the island from three to fourteen in an effort to boost numbers.

It is estimated that the new Disney resort will create 3,000 new jobs and become an extremely valuable tourist attraction, drawing attention from holidaymakers and investors who had not previously considered Cyprus.

The resort also aims to attract more than half million tourists per year with high buying power from Russia and other countries of the former Eastern block.

If you own a property in the area or are considering investing in one, the capital growth for the future looks strong and the massively increased tourist numbers should have a positive effect on rental income.

Source: TheMoveChannel

Dominic Farrell

Cyprus Reunification Would Genrate Euro 9 Billion In Investment Expenditure

2009-01-29T16:00:00.000Z

NICOSIA (AFP)--A reunited Cyprus would cost EUR9 billion, with international donors having to plug a EUR1-billion shortfall to fund a settlement, according to a study released Thursday.

In the independent report published by the local branch of the International Peace Research Institute in Oslo, three Cyprus-based economists focus on the investment needed to implement any peace deal.

"If you look at it rationally, there are ways of financing a solution without the country going bust," said Fiona Mullen co-author of "Reconstructing a Reunited Cyprus."

"Cyprus has lots of sources of finance. It's in the euro zone and has a stable economy. Even in the current global environment, there are plenty of sources to finance a solution," she added.

The report calculates that Cyprus could also receive an additional EUR600 million euros in non-refundable grants from Brussels if re-defined as two statistical regions.

This amount is not included in the estimated total borrowing requirement of EUR9 billion.

Public and private investment is put at around EUR7.2 billion for new housing, renovation and infrastructure projects in moves to unify the road, electricity and communication networks.

The report includes a rough estimate on property compensation based on paying back interest on bonds, although much will depend on any final settlement.

Most of the refinancing would come from Greek, Turkish and Cyprus banks as well as the European Investment Bank, but the shortfall would depend on the "willingness of the international community," the report says.

Source: Dow Jones Newswires

Dominic Farrell

Closer Ties between Cyprus And City Of London

2009-01-28T16:00:00.000Z

IAN LUDER, Lord Mayor of the City of London yesterday described his visit to Cyprus as “as a tremendous success.”

During his three-day stay on the island, Luder will be meeting with leading local businessmen, financiers and regulators, in a bid to strengthen economic ties between the City and Cyprus.

The UK is Cyprus’ main trading partner and until not so long ago the island’s main source of tourists.

Luder is accompanied by a high-powered delegation, including people from Lloyd’s, the Chartered Standard Bank, Maritime London, HSBC (Maritime Division) and Partnerships UK, specialising in partnerships between the public and private sectors.

The Lord Mayor is the head of the City of London, one of the world’s leading international finance centres. As head of the City of London Corporation, which provides business and local government services to the City, the Lord Mayor of London's principal role is ambassador for all UK-based financial and professional services.

“We are very pleased with how the visit has gone,” Luder told the Cyprus Mail yesterday after a busy day of meetings with the President, the Finance Minister, top Cypriot bankers, chartered accountants and the head of the stock exchange, among others.

Luder said he had a “very productive” discussion with the Cyprus Stock Exchange where they explored the possibility of bolstering links between the CSE and the London bourse.

One such idea is the dual listing of Cypriot companies on the CSE and the LSE, a move that is felt will boost both the liquidity and outlook of Cypriot entrepreneurs.

Cypriot companies, which are generally small and have restricted liquidity, stood to benefit both in terms of greater liquidity and capital if they also traded on the LSE, Luder said.

They could be listed either on the main LSE market or on alternative markets.

“We are acting as facilitators…to forge closer links between the two countries’ business communities,” added Luder.

A hot item on Luder’s agenda was seeing “how we can deal with the economic crisis together” following concerns that Britons may stop visits to the island or stop buying homes here due to the falling sterling.

“In particular, we talked about the tourist industry. As you know, consumer demand has been weakened by the exchange rate movements. Now Cyprus may have to look at its pricing, as well as how it markets itself abroad,” Luder said.

Other issues discussed include public and private finance of infrastructure projects, regulatory issues, and education and training.

The Lord Mayor will be in Limassol today for contacts with the merchant marine and legal communities.

“We have extended an invitation to Finance Minister Charilaos Stavrakis to visit London. Naturally, business contacts between the City and Cyprus will continue in the interim,” he said.

The Grove Spa Resort, Cyprus, Construction Update

2009-01-27T15:58:00.000Z

We are progressing well with The Grove Spa Resort, Cyprus construction.

Phase 1, which was the excavation of the land and preparation of the basement and foundation, is completed. The addition to the scheme of a further plot of land (that we purchased before Christmas in order to considerably enhance the development) has been approved by the planning authorities and is now being excavated for the basement and foundations.

The extra space the land has provided will allows us to make significant improvements and a lot of buyers are really delighted with the extra facilities we are adding.

Details of the additional plot at The Grove Spa Resort can be found in the previous blog.

Phase 2 begins very shortly and I will post progress on this in due course.

In the meantime the interior architect has been finalising the interior look of the Spa and reception facilities. Watch this space for more news on this soon.

Dominic Farrell

www.thegrovesparesort.blogspot.com

UAE And Cyprus Explore Trade

2009-01-27T15:57:00.000Z

The UAE-Cyprus Business Forum explored strategies aimed at enhancing bilateral trade, investment and tourism between the two countries.

The event was organised by the Sharjah Chamber of Commerce and Industry (SCCI) in coordination with the Cyprus Chamber of Commerce and Industry, the Cyprus Ministry of Trade, Industry and Tourism, and the Cyprus Trade Center in Dubai.

Delegates discussed the business and investment opportunities opened up by Cyprus’ liberal business and trade environments. The country allows foreign investors to acquire an equity share of up to 100 per cent in any domestic enterprise, does not require a minimum level of capital investment, and offers tax incentives that support maximum profit, said an official spokesman.

The forum also examined ways to further take advantage of Cyrpus’ strategic geographic location, which is close to vital shipping and air routes linking Europe with Middle and Far East countries.

“Cyprus serves as an important link between Europe and the Middle East. Its position at the crossroads of three continents in effect makes it Europe’s south-easternmost trading post. The significant gains the country has made in domestic economic and regulatory infrastructure, banking, and international finance in particular make it an essential part of the UAE’s foreign trade agenda,” said chairman, SCCI, Ahmad Mohammad Al Midfaa.

Cyprus, the third largest island in the Mediterranean Sea, lies at the intersection of the European, African and Asian continents.

It became an official member of the European Union (EU) in 2004, which significantly enhanced its economic and investment prospects. Its increasing role as a major regional and international commercial and business partner and the emergence of local economic growth areas such as telecommunications and tourism mirror the UAE’s own development as a business and travel hub of the Middle East.

The UAE has been highly supportive of initiatives to boost its bilateral relations with Cyprus and between the Gulf and the EU in general.

“Our countries have been able to overcome the challenges posed by today’s difficult economic conditions due to our diversification into lucrative industries, our wise management of our resources, and our good relations with our trade partners. Through this Forum, we hope to further strengthen our ties and together strive to attain our shared goal of sustained prosperity and peace,” said commercial and industrial officer, Cyprus Ministry of Commerce Industry and Tourism Charalambos Orphanides.

The Sharjah Chamber of Commerce and Industry has been hosting several meetings with its regional partners in support of the domestic business community and for the development of its members. –

TradeArabia News Service

Cyprus to receive up to 300 million euro from European Investment Bank

2009-01-26T15:56:00.000Z

The European Investment Bank (EIB) will finance Cyprus with up to 300 million euro for infrastructure projects, the use of renewable sources and for supporting small and medium-sized enterprises, through Cypriot commercial banks, thus boosting the island’s economy and social coherence.

This was stated Thursday by EIB Vice-chairman Ploutarhos Sakelaris after a meeting he held in Nicosia with Finance Minister Charilaos Stavrakis.

In statements to the press after the meeting, Sakelaris expressed the EIB’s confidence in the Cypriot economy and the measures taken by the government, adding that the economy of Cyprus ''will continue to develop” despite the world economic crisis.

He said that in 2009, Cyprus would receive double financing compared to the amount it received in the past ten years.

''Our cooperation with the Cypriot authorities is very good, but through effort we could increase our activities in Cyprus and double it this year and next year. With effort and the proper development projects the financing for Cyprus could reach 200 to 300 million euro”, he said.

During the meeting, the Cypriot Minister and the EIB delegation, headed by Sakelaris, discussed ways of cooperation to the benefit of the Cypriot economy.

According to EIB data, during the last 12 years, Cyprus received EIB financing reaching 1.5 billion euro, half of which was granted after Cyprus’ EU accession in 2004.

Sakelaris expressed the view that during the first semester of 2009 contracts would be signed with the Cypriot commercial banks for granting loans to the Cypriot small and medium sized enterprises.

In his statements, the Cypriot Minister of Finance said that the main areas of cooperation with the EIB are “the financing of great government projects, projects of the local authorities, the semi-governmental organizations, under attractive conditions”.

He expressed the view that “the most important is the financing of small and medium –sized enterprises with competitive interest rates through the Cypriot banks”.

The Minister said that Friday a meeting would be held with representatives of the Cypriot banks to discuss in detail “how this liquidity could be granted” and expressed the conviction that very soon there would be positive results.

''This possible cooperation is in line with our development policy, the great public projects, the support towards the small and medium-sized enterprises and the enhancement of the liquidity in the market”, he said, adding, “this contributes to our ambitious goals to achieve an even higher growth rate”

Source: Financial Mirror

Dominic Farrell

The Grove Spa Resort, Cyprus - New Land, New Facilities

2009-01-23T15:56:00.000Z

I have just got back from Cyprus where I spent the week working with Constantinos the architect and the whole consultancy team to finalise the changes to the plans for The Grove Spa Resort.

Back in November 2008, we bought a new piece of land adjacent to The Grove Spa Resort that recently became available. We felt this offered a fantastic opportunity to improve the overall layout of the scheme and add in extra facilities.

The purchase of the extra 780m2 of land has enabled us to do several things to considerably enhance the Resort:

We have created a much larger central space between Blocks D & E and added a further pool for children with a beach-style entry and waterfalls plus more gardens and sunbathing space around this new pool.

We have also been able to extend the shops. The size of the supermarket has increased from 95m2 to 150m2 which means we can now offer an on-site bakery and off-licence in addition to general groceries and fresh food.

The second shop has been increased from 53m2 to 90m2 to allow an extra retail facility in addition to the on-site re-sales, lettings and management office.

And finally we have added three new 1 bedroom apartments plus two 2-bedroom apartments to the second floor of Block C.

Please see the attached site map to see the new scheme layout. I think you will agree that the overall design of the scheme is significantly enhanced and that the additional pool, gardens and shops provide increased amenity at no extra cost, thereby enhancing your investment and offering even better value for money.

Stephanie Fairhurst

InvestinCyprus.com Developers

http://thegrovesparesort.blogspot.com/

Larnaca Facelift On The Way

2009-01-22T15:55:00.000Z

BRAND new walkways, parking spaces and three town squares are part of the planned projects for the transformation of the centre of Larnaca, which is expected to be completed by summer

A fountain will be built at Ermou Square as well as a specially designed roof-covered space to host various events, Larnaca Mayor Andreas Moiseos told the Cyprus Mail yesterday.

He said the municipality intended to build two new roads in order to relieve the congestion in the centre of the town and change the direction of the existing ones.

“The new traffic arrangements mainly concern Ermou and Ayios Lazaros squares….the completion of the renovation works of the Ermou, Medieval Castle and Ayios Lazaros squares in conjunction with the new traffic arrangements are expected to bring a breath of fresh air to the market,” he said.

“People just pass with their cars but no one actually gets down for shopping. They avoid it because of the chaotic situation such as congestion and lack of parking, these new measures will end this.”

Moiseos said three separate studies had been conducted to carry out these projects and they all more or less come to the same conclusion regards what has to change and how it will change.

Based on the main findings of the three studies, 70 per cent of the traffic is just passing through to get from the east to the west of the city and vice versa. Another important finding of the study is that the existing parking is not sufficient so two new multi-levelled parking places will be built in cooperation with private investors, he said.

According to Moiseos, all work will be completed by the end of July, beginning of August. The transformation will include paving, benches, new lighting and special columns that will seal off cars from the paved walk paths.

“The part that will be paved at Zenonos Avenue will only be open to traffic at certain times and mostly for commercial cars. It will be closed for cars on weekends”, the Larnaca mayor said.

“We have distributed a special pamphlet informing the residents over the new traffic arrangements, and we will also hold meetings where they can express their views and their questions”, Moiseos said.

Cyprus Preparing For Natural Gas Talks With Israel

2009-01-22T15:54:00.000Z

IN ONE YEAR Cyprus should know whether there are worthwhile reserves of natural gas off its southern coast, a government official said yesterday.

Solon Kassinis, head of the Commerce Ministry’s Energy Department, was referring to Israel’s discovery of large amounts of hydrocarbons in its territorial waters this week.

A US-Israeli exploration group led by Noble Energy said on Sunday it had found more than 88 billion cubic meters of natural gas 90 kilometres from the port of Haifa in northern Israel.

According to Reuters, the group plans to carry out production tests and additional verification drills in the next few months before making a final decision on whether to go ahead with an investment expected to reach $1.5 to $2 billion. The natural gas is estimated to be worth a total of $15- billion to $16 billion over a 15-year period starting in 2013.

The Israeli site is close to one of the exploration blocks earmarked for possible drilling by the Cyprus government and known as ‘Block 12.’ The government is said to have reached a preliminary deal with Noble Energy on this block, which appears to be the most promising.

Noble Energy is an independent energy company engaged in the exploration, development, production and marketing of crude oil and natural gas. It has operations in the Gulf of Mexico, West Africa, the North Sea and Israel.

Nicosia and Tel Aviv now need to thrash out an agreement fixing their respective Exclusive Economic Zones (EEZ) so there is no overlap.

Kassinis said the government was preparing for talks with Israel. A high-level visit to the neighboring country was on the cards.

He foresaw no major obstacles in concluding an agreement.

“I don’t think there will be problems…although there are some vague points to be clarified,” he told newsmen, without elaborating.

Kassinis gave a ballpark figure of three to five years when asked one might expect actual drilling to commence in Cypriot waters.

“But no sooner than that,” he added.

He also denied press reports that some oil corporations had lost interest in the other blocks and jumped ship because the blocks did not appear to contain enough natural gas to make drilling profitable.

But Kassinis said no company had bailed out; rather, he said, the government had decided that these corporations did not meet the criteria spelled out in the bids.

Dominic Farrell

Breaking News: Gas Found Near Cyprus Reports Israeli Media

2009-01-19T15:53:00.000Z

Reports from Israel suggest that a US based drilling has company has discovered a massive reserve of gas between Israel and Cyprus.

Israeli Infrastructures Minister Binyamin Ben-Eliezer said that the find was of “historic proportions,” and that it could change the face of Israel’s economy.

Arutz 7 Radio reports that the Houston-based Noble Energy company, drilling for Israel’s Delek fuel company, announced that it has discovered a huge deposit of natural gas under the Mediterranean Sea near Haifa.

If verified, the news will come as a welcome surprise to the government in Nicosia, which last year announced their own data indicated that there are oil and gas deposits in a sea area separating the island from Egypt to its south and Lebanon to its east.

According to Arutz 7, 87 billion cubic meters, or nearly 3.1 trillion cubic feet, of high-quality gas are estimated to be in three deposits in the Tamar Drilling site.

The gas is located 90 kilometers west of Haifa, between Israel and Cyprus, but the rights to the Cypriot drilling sites are also owned by an Israeli company.

The depth of the water above the find is 1.7 kilometers, over a mile, and the gas is located another 4.9 kilometers deep in an area 140 meters wide.

The Cyprus government signed agreements with Egypt in 2005 and Lebanon in early January this year delineating their sea boundaries in the eastern Mediterranean to facilitate future underwater oil and gas exploration.

In November the government accused Turkey of harassing two Panamanian-flagged oil research vessels in international waters.

The dispute came as little surprise to many political commentators, some of whom have long predicted that oil and gas exploration by either side would stoke tensions in the region.

Turkish Cypriots have strongly objected to any exploration by the Greek Cypriots and said that any natural reserves discovered belong to both sides.

Some studies suggest that there could be undersea reserves of up to eight billion barrels of crude oil off Cyprus.

Dominic Farrell

Cyprus Annual Inflation Down to 1.8% In December 2008

2009-01-16T15:53:00.000Z

Cyprus annual inflation was 1.8% in December 2008 , down from 3.1 in November 2008.

According to a Eurostat news release issued here Thursday, said that Euro area annual inflation was 1.6% in December 2008, down from 2.1% in November. A year earlier the rate was 3.1%. Monthly inflation was -0.1% in December 2008.

EU annual inflation was 2.2% in December 2008, down from 2.8% in November. A year earlier the rate was 3.2%. Monthly inflation was -0.1% in December 2008.

In December 2008, the lowest annual rates were observed in Luxembourg (0.7%), Portugal (0.8%) and Germany (1.1%), and the highest in Latvia (10.4%), Lithuania (8.5%) and Estonia (7.5%). Compared with November 2008, annual inflation fell in twenty-four member states and rose in one.

The lowest 12-month averages up to December 2008 were registered in the Netherlands (2.2%), Portugal (2.7%) and Germany (2.8%), and the highest in Latvia (15.3%), Bulgaria (12.0%) and Lithuania (11.1%).
The main components with the highest annual rates in December 2008 were housing (3.6%), alcohol and tobacco (3.5%) and hotels and restaurants (3.3%), while the lowest annual rates were observed for transport (-2.5%), communications (-1.8%) and recreation & culture (0.3%).

Concerning the detailed sub-indices, gas (+0.28 percentage points), restaurants and cafes (+0.16), bread and cereals and electricity (+0.11 each) had the largest upward impacts on the headline rate, while fuels for transport (-0.81), heating oil (-0.20) and telecommunications (-0.12) had the biggest downward impacts.

The main components with the highest monthly rates were recreation and culture (2.0%), hotels and restaurants (1.0%) and food (0.2%), and the lowest were transport (-1.9%), clothing (-0.8%) and housing (-0.7%). In particular, package holidays (+0.20 percentage points) and accommodation services (+0.08) had the largest upward impacts, while fuels for transport (-0.34) and heating oil (-0.14) had the biggest downward impacts.

Source: Financial Mirror

Record Passenger Traffic At Cyprus Airports

2009-01-13T15:52:00.000Z

Hermes Airports Ltd announced a new record for passenger traffic at both Cyprus International Airports. According to the latest findings, throughout 2008 over 7,238,000 passengers passed through the country’s International Airports, which translates to an increase of 3.26% and overturns the previous record last year of 7.009.803 passengers.

Approximately 5.5 million passengers passed through Larnaka International Airport during 2008, an increase of 4% in relation to 2007. An increase in passenger traffic was also recorded at Pafos International Airport where about 1,760,000 passengers used Cyprus’ second International Airport in 2008.

In December of 2008 alone, both airports served over 320,000 passengers who travelled to and from Cyprus during the Christmas period. The greatest traffic, however, was observed during the month of August when over 1,020,000 passengers used the country’s two airports.

In a statement, Hermes Airports Ltd Public Relations and Communications Manager, Adamos Aspris said: «We are happy with the new record for passenger traffic at both our country’s airports in 2008. The past year signified the beginning of a new era for air transport in Cyprus as the new Pafos Airport began its operations. Even though 2009 is expected to be affected by the global economic downturn, Cyprus’ airports are welcoming the New Year with an encouraging and optimistic message, which is none other than the opening of the new contemporary Larnaka International Airport in 2009. We are confident that despite any possible downturn in the market, we are going to see a successful opening of our new terminal».

With the two new International Airports in operation, Hermes Airports aims to provide not only a higher standard of service to travellers coming to and from Cyprus but also to strengthen the country’s economy, particularly the tourism industry.

Source: Financial Mirror

"Disneyland" Of The Mediterranean in Larnaca

2009-01-12T15:52:00.000Z

This is the translation from Greek to English I promised in the last posting.

RUSSIANS WISH TO INVEST 800 MILLION EUROS AND BRING HALF MILLION TOURISTS TO CYPRUS

“DISNEYLAND OF THE MEDITERRANEAN” IN PYLA

Russian investors wish to build a theme park in Pyla in a land of over 600 donums. The project is estimated at a cost of 800 million Euros and if the plan materialises, will be the largest investment ever made in Cyprus, made with foreign investment capital, said Minister of Finance, Mr. Charilaos Stavrakis. According to the advisors of the investor group, the materialisation of this grand plan will have multiple benefits for Cyprus. To start, it will create 3,000 new jobs, but most importantly will attract a half million tourists per year with high buying power from Russia and other countries of the former Eastern block.

The Russian government is informed of the plans of the 4 investors and supports the plan as it will assume a bi-communal nature, and will also indirectly allow it to exert increased influence in the politics of the island. This is assumed by the selection of an area inside the “no man's land” (buffer zone between the area controlled by the Republic of Cyprus and that controlled by the Turkish military) in the area of Pyla village. If the Cyprus government, currently reviewing the application of Boema Group which represents the interests of the Russian investors consents to the leasing of state land in no man's land, the bi-communal nature of the theme park will be defined by two main entrances, one from each side, and by the inclusion of Turkish-themed attractions as well. According to the Minister of the Interior, the leasing of state land is very difficult but not impossible and was not the reason for the rejection of the first application of the consortium. In addition, in the construction and operation of the theme park, Turkish Cypriots will participate as well. The Russian government has received complaints from the Turkish Cypriot community leaders for not investing in the northern part of Cyprus and with this project is likely to satisfy them.

Christodoulos Papadopoulos, the Director of Boema in Cyprus, in an interview with Politis Daily, gave us a “tour” of the theme park and went over the status of the efforts of the group to secure state land for the project. The project was originally scheduled to be made in Serbia, where state land was offered, until Cypriot advisors engaged in the process suggesting Cyprus. The disadvantages for Serbia included political instability whereas the advantages of Cyprus, which include the better weather and climate and the potential to secure European Union funds in the areas of culture and renewable energy resources, helped change the plans in favour of Cyprus.

The two minister committee which is considering the leasing of state land, under the auspices of Minister of the Interior Mr. Neoklis Silikiotis, has already dealt with a previous plan requesting 1,000 donums of state land, which was rejected, on grounds of the size of the project. The committee is convening again in the coming week to examine the application anew, this time for 650 donums of state land. In case the leasing of state land is granted, the issue will be presented to the Council of Ministers for final approval. However, according to Mr. Silikiotis, the application faces difficulties due to the plan's enormous size as well as the fact that it is located in “No Man's Land”. Two more ministers, Charilaos Stavrakis and Antonis Pashalides (Minister of Commerce and tourism) agree with this position, stating that it is premature to talk definitively about this project.

However, according to Mr. Papadopoulos, whose office started working with the Group of investors a year and a half ago, things are on a good path. Contacts are already made with the government of Cyprus, the two mayors of Pyla, the United Nations via the Foreign Ministry of the Republic of Cyprus, and any obstacles can be overcome. In case the leasing of state land is not possible, the interest of the Russian investors is still there, as there is a plan B for the construction of the project in state land at another location.

According to Mr. Papadopoulos, the viability of the project is a given, as the investors have secured assurances and have signed tentative agreements with tour operators who move 15 million Russian tourists a year, for the transport of half a million tourists a year to Cyprus. At the same time, the overall development in the Larnaca area with the new airport, the marina and the upgrading of the port to accept cruise ships, opens new prospects for the success of the theme park. The investors seek the permits for the project soon so that it may be operational by 2012, when Cyprus will receive the 6-month presidency of the European Union. In case the lease of state land is approved, the plans for the theme park will be submitted without delay to the Planning Authority. On the question of the identity of the Russian investors, Mr. Papadopoulos stated that they are Russian businessmen investing in Moscow as well as in European countries, in the fields of restaurants, night clubs, etc, while this period they are constructing a shopping mall in Moscow. The General Manager of Boema Group in Cyprus is Mr. Theofanis Pantelides. The construction company will be Chinese, with experience in the Olympic Games, while the co-operation with Cypriot architects and constructors is a given.

The theme park will include a 1,000-bed five-star hotel. The hotel will have such a shape that all rooms will have a garden view and will be next to the theme park, water park, cinema, theaters, amphitheaters, a ski slope, water falls, adventure park, shops, spas, museum, etc. The rides in the theme park, and the general theme will be inspired by Greek mythology and Cyprus history. Big parts of the park will be covered to be used in the winter as well. The name of the park, “Pygmalion and Galateia” will be taken from Cyprus history. Tourists visiting Cyprus are interested to know our history and culture. In one of the pools, which will have a mechanism for the creation of waves, there will be a daily show with the Battle of Salamis, with actors and possibly with the inclusion of some of the audience. The amphitheatre will be based on the ancient Kourion Amphitheatre, and with elements from Herodion amphitheatre. The Penatadaktylos mountain range will also be there and visitors will be able to climb it. Another pool will be themed after the Baths of Aphrodite.

The theme park will be open to all and will provide free transportation from all major cities in Cyprus.

Article taken from Politis (newspaper) 11-1-09 and translated into English
Article code 846092

Dominic Farrell

Breaking News: €800million "Disneyland" Style Project For Cyprus

2009-01-12T15:51:00.000Z

"This is great news and is a further major infrastructure project for the Larnaca and Famagusta districts. Combined with the recent announcement concerning the construction of golf courses in the area, the medium to long-term outlook for property prices and rentals is sound. This complex is only a 20 minute drive from The Grove Spa Resort, Mazotos." Dominic Farrell

"Russian investors have announced their intention to construct the world’s largest children's entertainment facility in the mixed village of Pyla.

The new Disneyland-type project is expected to cost €800million and be the biggest entertainment complex in Cyprus.

It is also estimated that it would create up to three thousand jobs.

According to Politis, the Russian government is in favour of the building of the facility in the buffer zone so that it would play a supporting role among the two communities."

Few other details about the project are available. - Copyright © Famagusta Gazette 2009

Cyprus GDP grew by 0.6 in Q3 '08 despite financial crisis

2009-01-09T15:50:00.001Z

Cyprus Gross Domestic Growth (GDP) grew by 0.6% in the third quarter of 2008, confirming the Cypriot economy's strong resistance to the global financial crisis, according to figures released today by Eurostat, the European Union's Statistical Service.

Cyprus' GDP for Q3 2008 increased to 3.5%, recording a 0.6% growth compared to Q2, which constitutes one of the best performances in the Euroarea, which entered a technical recession recording a 0.2% decline both in Q3 and Q2.

The whole EU27 did not enter technical recession because the GDP declined by 0.2% in Q3 but recorded a zero growth in Q2.

On a yearly basis, Cyprus' GDP reached 3.5% the same as 2007 second quarter, while the Euroarea average grew by 0.6% compared to Q3 2007.

Source: Financial Mirror

Cyprus November '08 unemployment third best in the EU

2009-01-09T15:50:00.000Z

The Seasonally adjusted unemployment in Cyprus reached 3.9% in November 2008, recording the third best unemployment rate in the EU after the Netherlands (3.7%) and Austria (3.8%), according to figures released today by Eurostat, the EU's statistical service.

Compared to November 2007, Cyprus unemployment in November recorded a minor increase by 0.1% to 3.9%, a figure unchanged compared to October 2008.

Women's Unemployment in November was 4.4%, compared to 4.5% in October, while Men's unemployment rose by 0.1% to 3.4% compared to October 2008. Unemployment in youth (under 25 years) stood at 9.6% (September ‘08 figures).

According to Eurostat, average unemployment in the Euroarea increased by 0.1% to 7.8 compared to 7.7% in October 2008 while in the EU 27 unemployment reached 7.2% compared to 7.1%.

In absolute numbers, the November total number of unemployment in the EU was 17.4 million people, of which 12.2 million people are from states of the Euro area. Compared to August 2008, total unemployment rose by 1.13 million, of which 1.05 comes from the Euroarea.

Source: Financial Mirror

Cyprus Golf Courses to total 14

2009-01-08T15:49:00.000Z

Over the Christmas break, the Financial Mirror in Cyprus reported,

“Cyprus government plans to increase its golf courses to 14 in a bid to enrich its tourist product, Cypriot Minister of Commerce, Industry and Tourism Antonis Paschalides said. Paschalides met with Cypriot businesspeople to discuss the government decision to increase the number of golf courses to 14.

''The proposal stipulates that there will be up to 14 golf courses in Cyprus'', he said, adding that three already operate on the island. He added that government desires development, adding however that there should be a balance between development and the environment.

Paschalides said that he will examine the concerns expressed by the businesspeople and will discuss them with the other Ministers composing the Ministerial Committee dealing with the issue.
He added that after a consultation there will be a balanced proposal so everybody concerned will be satisfied.

''Golf courses certainly reinvigorate effectively the tourist industry,'' he said.
Paschalides called for a ''geographical balance,'' adding that the golf courses will be constructed in Larnaca, Famagusta and Paphos.”

Those of us who know Cyprus well understand that things don’t happen overnight. But the government’s direction is clear and will have a profound positive effect on the island in years to come.

Source: Financial Mirror

Dominic Farrell

Financial Times Top 10 Investment Locations For 2009

2009-01-07T15:48:00.000Z

The Financial Times recently published (27/28 December 2008) its Top 10 property investment locations for 2009. The Top 10 were: London, Paris, New York, Montenegro, Majorca, Austrian Alps, Southern Cyprus, Costa Rica, Turkey and Cambridge (UK).

I would agree with the majority of the Top 10.

It's great seeing Cyprus recommended as the country is very close to my heart and I have also made substantial profits on the properties and land I have invested in since 2003.

I must admit to looking forward to my next trip and getting away from the UK winter blues.

Dominic Farrell

Cypriot banks are robust, Central Bank assures

2008-11-07T15:47:00.000Z

All banks operating in Cyprus, including the subsidiaries of Greek banks, are robust and secure, Central Bank of Cyprus has announced, commenting on the possible impact of the financial crisis the world is facing and worries over the strength of Cypriot financial institutions.

In response to media questions, CBC issued today an announcement in which it reaffirms that all banks and Greek banks subsidiaries operating in Cyprus “are robust and secure.”

“Cypriot banks do not face any problems and their liquidity remains very satisfactory,” Central Bank notes.

Source: Financial Mirror

Fitch affirms Greece's Alpha Bank at 'A-'

2008-09-19T15:45:00.000+01:00

Fitch Ratings has today affirmed Alpha Bank's ratings at Long-term Issuer Default (IDR) 'A-' (A minus) with a Stable Outlook, Short-term IDR 'F2', Individual 'B/C' and Support '2'. The Support Rating Floor is affirmed at 'BBB'. The Long- and Short-term IDR and Individual rating reflect Alpha Bank's strengthened position in the Greek banking system, good, resilient operating profitability and cost efficiency, satisfactory capital and improved asset quality. They also consider potential pressure on asset quality from rapid lending growth in the relatively untested Greek retail market and risks associated with rapid expansion in south-east Europe (SEE).

The Stable Outlook reflects Fitch's expectations that Alpha Bank's sound fundamentals will enable it to continue to perform well and expand its business despite the current difficult global capital market conditions. The preservation of Alpha's sound profitability, asset quality and good management of its rapid expansion in SEE could influence its ratings positively. Downside rating risk could be triggered by asset quality problems arising from rapid loan growth in Greece and SEE, notably Romania, or a marked deterioration in its financial ratios or capital due to the bank's aggressive branch expansion plan.

Alpha Bank's 2007-2010 business plan aims to strengthen its retail banking business in Greece and expand its presence in SEE to take advantage of an under-banked region with still high growth potential. It plans to have 1,010 branches in SEE by 2010 and increase the region's contribution to group profits to 25% (16.4% at end-H108) which, in Fitch's view, is ambitious.

Alpha Bank continues to benefit from resilient GDP growth and credit demand in Greece and the parts of the SEE region where the bank operates. In H108, Alpha Bank was able to maintain its good operating profitability, with an operating average return on equity of 30.5%, thanks to increased contribution to profitability of its banking operations in SEE, a strong and stable cost/income ratio in Greece, and improving cost efficiency in SEE. At end-H108, Alpha Bank's credit risk was satisfactory, with a gross impaired loans/total gross loans ratio of 3.59%, almost in line with top domestic peers.

The considerable improvement of its asset quality since 2006 relates to the bank's strong loan growth, which Fitch sees as a major risk - and increased efforts on collection and significant write-offs. The agency views positively the bank's efforts to centralise and improve credit risk management. Alpha Bank's market risk appetite is moderate, with limited interest rate risk. Liquidity is sound, supported by growing customer deposits, relatively diversified funding sources and improved liquidity risk management. Capital is satisfactory and maintaining it at the current level is a prerequisite, given strong and rapid lending growth in Greece and SEE and the risk of a downturn in the credit cycle.

Source: Interactive Investor

Greece interested in Cyprus’ oil and natural gas reserves

2008-09-08T15:44:00.000+01:00

Cyprus’ Commerce Minister Antonis Paschalidis announced there have been informal Greek business interests towards participation in the second run for licenses concerning the exploration of crude oil and natural gas reserves in the coastal area of Cyprus.

The Cypriot government has also confirmed its plans for partnerships with countries willing to supply natural gas to the country.

Source: FOCUS Information Agency

Cyprus exports increase by 16%

2008-09-05T15:43:00.000+01:00

Imports from Greece have reached 1.1 billion euros, marking a 16% increase, said Commerce, Industry and Tourism Minister Antonis Paschalides.

Speaking at a press conference on Thursday on the sidelines of the 73rd Thessaloniki International Fair (TIF), Paschalides said that the balance of trade between Cyprus and Greece leans against Cyprus since in 2007, the total commercial transactions rose to 1.3 billion euros, marking an increase of 18%, compared to 2006 when it was 1.1 billion euros.

Cyprus exports reached 214.8 m. euros while exports to Greece amounted to 58.2 m. euros, registering a 16.0% increase compared to 50.1 m. in 2006.

Despite the imbalance, said Paschalides, numbers indicate that the Cyprus market prefers Greek products, putting Greece at the top on imports to Cyprus, while Cypriot products rank second in exports to Greece. “We can say that these figures are at a very good level with good prospects for the immediate future”, the Minister added.

Source: Cyprus News Agency

The Cyprus Re-Connection

2008-09-04T15:43:00.000+01:00

Cyprus is finally growing closer to unification. For 34 years it has been divided, following a Turkish military invasion in 1974, which split the country in two. But on Wednesday morning, Cyprus President Demetris Christofias arrived at a compound in Nicosia to meet Turkist Cypriot leader Mehmet Ali Talat, in the hope of finding a resolution to the island’s division.

Christofias and Talat will want to concentrate on the larger economic picture in continued discussions over the coming weeks. Unification of the island would likely give rise to a flood of foreign investment, and also provide a big boost to Turkey’s hopes of joining the European Union. It may even reignite last year’s oil and gas study by the Greek Cypriot Government of untapped resources in the Eastern Mediterranean. A 70,000 square kilometer sea area south and south-west of the island could contain reserves of between 6 and 8 billion barrels of crude.

This is the fifth time the two leaders have met in 2008, and the outcome is looking positive for peace. The two moderate figureheads are backed by a pro-unification consensus from all the key international organizations and governments. "All the stars: the United Nations, EU, United States, Turkey, Cyprus and the United Kingdom, are aligned for the first time," said David Lee of specialist risk consultancy, Control Risks.

But challenges will lie ahead as discussions, continuing on Sept 11, turn to the economy. Economic issues caused the termination of talks in 2004, with the Greek-Cypriots unable to see the benefits of unification at that time; many of the Greeks who lost their homes in the North at the time of the division, would not have got them back. Businesses in Cyprus are struggling too--a report in the Cypriot Financial Mirror’s showed this week that profits for companies listed on the Cyprus Stock Exchange tumbled 47.0% year-on-year, to 465.5 million ($669.4 million) in the first six months of 2008.

And the two sides of the island are still economically unmatched. The Greek-Cypriot South is a prosperous, popular holiday destination, which sees over three million tourists per year, and has been on the International Monetary Fund list of the 32 "Advanced Economies of the World" since 2001. The Turkish-Cypriot North, by contrast, is heavily dependent on agriculture and government service, and has a gross domestic product approximately a third the size of the South. The North has suffered from an international trade embargo and little foreign investment as many have been wary of its de facto administration that is recognized by just one country, Turkey.

Lee says that the most important issue for unification is not the economic disparity between the two sides at present, but the "technical issues" central to the country’s reform, the most pressing of which is how a unified government would run on a day-to-day basis. The potentially explosive issue of housing rights also remains. Many families, especially Greeks who lived in the North, are still not convinced they will reclaim their lost homes.

Source: Forbes.com

Cyprus Tourism Organisation announces the opening of a new air connection

2008-08-22T15:42:00.000+01:00

The Cyprus Tourism Organisation (CTO) has announced the opening of a new air connection between Larnaca airport and the Birmingham International Airport by the “Monarch Airlines”, next spring.

According to an announcement, issued here today by the CTO, from March 29, the “Monarch Airlines” will begin operating the new connection twice a week, on Wednesday and Sunday.

The CTO pointed out that the new air connection consists a significant development to improve the Cyprus accessibility.

So far, the “Monarch airlines” operate flights to Larnaca from the airports of Gatwick, Luton and Manchester.

The Cyprus Tourism Organisation also noted that a number of airlines, like Easyjet, Sky-Europe, Flyglobespan, Jazeera, Lufthansa and Emirates, have either initiated air connections with Cyprus, or expanded their routes to Cyprus.

“The CTO will soon announce a strategic plan for developing new air connections between Cyprus and other international airports”, added in the announcement.

Source: Financial Mirror

Cyprus passenger traffic up at Larnaca airport

2008-08-13T15:42:00.000+01:00

Passenger traffic at Larnaca airport has reached a new high for the year but not an all-time record, as a total 529 flights over the next three days will carry 76,000 travelers to and from Cyprus.

In all, 35,000 passengers were expected to travel on Wednesday, 16,000 on Thursday and 25,000 on Friday, the most popular public holiday after Easter, the operator Hermes Airports announced.
Thassos Katsourides, General Secretary of the Asdsociation of Cyprus Travel Agents (ACTA) said that more Cypriots are traveling this year than ever before, probably because the public holiday falls on a Friday and many people are combining their vacations over a long weekend or have opted to take the whole week off.

“Cypriots are traveling to Greece, which accounts for more than half going by air or sea, while Britain remains the second choice, primarily due to the expatriate community there,” Katsourides told CyBC recently.

“Eastern Europe is still a strong attraction for holidaymakers, while Cypriots are seen going even to the most exotic of destinations, such as the Far East, but in much smaller numbers than any other national group,” he said.

News reports from the airport said that services seemed to be operating calmly, unlike the chaos that existed a month ago with check-ins being delayed or baggage lost and flights losing their departure slots. The two ground handling companies, Louis subsidiary LGS and Swissport-Vassilopoulos, have been fined a total of EUR 112,000 as they were blamed for the problems, while LGS has appealed the decision saying that the government ignored the inefficiencies of the present terminal buildings.

Paphos should move into a totally refurbished terminal building in November, while Larnaca’s new terminal building will be ready in November 2009

Source: Financial Mirror

Cyprus retail volumes up provision 11.6% in Jan-May

2008-08-04T15:41:00.000+01:00

According to provisional estimates the turnover volume index of retail trade increased by 9.9 or 7.0% to 151.0 in May 2008, compared with141.1 in April 2008.

For the period January-May 2008 the index is provisionally estimated to have increased by 11.6% compared with the corresponding period of 2007.

Final figures for April show that the turnover volume index of retail trade increased by 6.9 or 5.1% to 141.1, compared with 134.2 in March 2008.

For the period January-April 2008 the index recorded an increase of 11.1% compared with the corresponding period of 2007.

Meanwhile, turnover by value rose by a provisional 15.2% compared with the corresponding period of 2007 in January-May 2008.

Final figures show that for the period January-April 2008 the index recorded an increase of 14.5% over the corresponding period of 2007.

Source: Financial Mirror

Cyprus economy to grow by 3.5% in 2008

2008-06-26T15:40:00.000+01:00

The Cyprus economy is expected to grow between 3.5% to 3.7% in 2008, Charilaos Stavrakis, Minister of Finance, has said. “Under the current circumstances, the rate of economic growth is considered satisfactory, consistently above the EU27 average,” he added.

Speaking at an event organised by the Cyprus Branch of the Institute of Directors, Stavrakis noted that despite international economic challenges, the local economy is a robust economy with satisfactory growth rates, almost full employment, controlled inflation, low interest rates and healthy public finances.

However, Stavrakis admitted that “the rising oil and food prices will eventually affect the economy of Cyprus”.

The inflation rate, said Stavrakis, is expected to range between 4% and 4.5%, compared to 2.5% in 2007, and the unemployment rate for the current year is expected to remain at the same levels as in 2007, when it fell to 3.9% of the economically active population.
The Cypriot Minister also noted that public finances remain at a good level and the fiscal balance is expected to remain in surplus, around 0.5% of the Gross Domestic Product. In addition, public debt is projected to fall to 48% of the GDP in 2008.

Stavrakis pointed out that the decrease in the rate of growth in the construction and banking sectors leads to a smaller increase of the government revenue and puts incremental pressure on the fiscal balance.

“The number of foreign investments in Cyprus continues to grow significantly, according to the data of the Department of the Registrar of Companies and Official Receiver, with Russia becoming the most important economic partner of Cyprus,” Stavrakis noted and added: “Russia is a country with very good economic potential.”

Regarding inflation, Stavrakis stressed that its rising trend needs attention, because any price increase affects Cyprus to a greater extent than other competitive to Cyprus countries. “As a result, Cyprus becomes less competitive”, he added.

Source: Financial Mirror

Property Investors Unfazed By the Credit Crunch & Still Buying Property Abroad

2008-06-23T15:39:00.000+01:00

Experienced investors aren’t fazed by the credit crunch and still intend to buy property, especially in foreign markets, the Jet-to-Let Magazine Annual Conference survey has revealed.

The Jet-to-Let Magazine 2008 Annual Conference recently took place at The Hilton Metropole in London. The conference was attended by a wide range of experienced investors - some with experience dating back four decades – and delegates were surveyed about their property purchases and views on the current investment outlook. The results, which provide an up-to-date snapshot of investor sentiment, show that 77% of respondents felt the credit crunch has not impacted on their desire to invest in property.

Eighty-five per cent of people viewed overseas jet-to-let properties as currently offering better opportunities than the UK housing market and are planning to invest in 17 different countries in the coming year, including Cyprus (39.7%), Morocco (19.4%), France (13.3%), Germany (5.1%) and Italy (4%).

They already had investments in 27 different countries outside of the UK, including Cyprus, France, Dubai, Brazil, Turkey and Spain. The combined property holdings of the investors totalled many hundreds of millions of pounds.

Despite the bleak picture portrayed recently by the media about UK property, 92% of attendees said they already have investments in the UK and 54% said they’re planning on investing this year. In addition, 72% have confidence in the UK property market bearing fruits over the next five years, whilst this rises to 89% over the next 10 years.

“The results clearly show that educated investors understand the long-term nature of property investment,” commented Dominic Farrell, editor of Jet-to-Let magazine and author of the bestselling property investment book, The Jet to Let Bible. “They realise there are currently better opportunities overseas, but still have medium to long-term confidence in UK property.”

Where reasons for investing are concerned, 98% cited property as being a sound long-term pension plan. Foreign currency mortgages were favoured by 98% of people and 78% said they used a specialist foreign currency broker.

Finally, when asked what the best form of long-term investment was, and with a choice of cash, stocks or property, an overwhelming 100% of people declared it to be property.

Notes for Editors

Jet-to-Let magazine is a free quarterly subscription publication aimed at investors and homebuyers seeking superior returns in domestic and overseas property markets. It’s currently delivered to subscribers located in 61 countries worldwide.

Jet-to-Let magazine is edited by Dominic Farrell, author of the bestselling property investment book, The Jet to Let Bible. The groundbreaking magazine is a must-have source of quality investment advice for both novice and experienced investors alike and brings together the views of respected professional investors, developers, financiers and journalists. For more details, or to set up a free subscription, see www.jet-to-let-magazine.com

For more details or interview requests with Dominic Farrell, contact: 0151 482 5543

Cyprus targets 0.1-0.6% budget surplus

2008-06-16T15:41:00.000+01:00

Cypriot Finance Minister Charilaos Stavrakis remains adamant that despite the decline in tax revenue, the country will still manage to report a 0.1-0.6% of GDP budget surplus for 2008, or in numerical terms, a surplus of EUR 20 mln to EUR 100 mln.

Public debt meanwhile, is set to drop substantially to 48.5% of GDP in 20008 from 59.7% in 2007 and compared to the EU 27 average of 65.2%, with Stavrakis explaining to the Financial Mirror that the impressive improvement is due to the accounting treatment of sinking funds, as well as the fact that the country is running a budget surplus.

Stavrakis however is worried at the health of state finances, since on the one hand, tax revenue from capital gains taxes is sharply lower as a result of the decline in property prices and activity, while on the other hand, revenue from VAT is up 17%, indicating strong consumer driven activity.

“Consumer consumption cannot keep up at the current pace, which is why I expect that VAT receipts will go back to their ‘normal’ average increase of 7-8%, which is why we need to boost revenue from other sources,” said Stavrakis.

E-government

Stavrakis says one way to improve state finances is to make the economy more competitive, reduce civil servant hiring and place more emphasis on e-government, which improves the level of service, increases efficiency and at the same time is more cost effective.

“80% of state expenditure goes to civil servants pay, which is rising 7-8% annually due to COLA and pay agreements, while 13% goes on the development budget costing the government EUR 1 bln and 7% on operational expenses costing the state some EUR 0.5 bln annually,” says Stavrakis, adding that there is a lot of room for improvement

Source: Financial Mirror

Cyprus to host 2009 European small states’ games

2008-06-08T16:19:00.000+01:00

Cyprus will play host to the 13th Games of Small States in Europe (GSSE) on 1-7 June 2009.

The file of the games was presented yesterday by Kikis Lazarides, President of the Cyprus Olympic Committee, in Monaco, where the 12th CSSE start today.

Eight European states participate in the Monaco games, namely Cyprus, Iceland, Luxembourg, Monaco, San Marino, Malta, Liechtenstein and Andorra. Montenegro will be added in the 2009 Games in Cyprus.

Lazarides will be the President of the Organising Committee of the Cyprus games.

Luxembourg will host the 2013 GSSE while Iceland will organise the 2015 GSSE.

Source: Financial Mirror

Cyprus house prices up 9.1% year on year in May

2008-06-08T16:18:00.000+01:00

Residential property prices in Cyprus continued to rise for a fifth consecutive month in May 2007, recording a monthly increase of 1.8%, according to the BuySell Home Price Index prepared by Dr. Stelios Platis and Marios Nerouppos of MFC S. Platis.

The index reached 124.58 in May, compared with 122.44 in April, marking an increase of 9.1% increase over May 2006.

The BuySell Home Price Index, which adjusts for factors such as increases in quality, is the only house price index produced for Cyprus.

According to Financial Mirror calculations, the BuySell Home Price Index has risen on average by 9.3% year on year so far this year, compared with 5.9% for the whole of 2006. House-price growth is therefore accelerating.

BuySell reported that the “Average Home Price” in Cyprus according to the BuySell index was CYP 97,064 (EUR 166,610) in May.

The BuySell Home Price Index was created and is updated monthly on behalf of BuySell Cyprus Real Estate by MFC S. Platis. The Index is announced during the second week of each month and depicts the movement of prices at which residential properties are sold in Cyprus, based on the extensive BuySell Cyprus Real Estate database.

Source: Financial Mirror

Swing-time in Cyprus

2008-06-07T15:39:00.000+01:00

Virtually year-round sunshine and a stable economy have long made Cyprus a popular choice for those buying a first or second home in the Mediterranean. Recently cited as a bright spot in the international property market, it was described in the Euro Housing Review by the UK’s Royal Institution of Chartered Surveyors’ as “a rare case of a country shrugging off the gloom”.

Source: FT.com

Demand for expat investment services will grow

2008-06-06T16:17:00.000+01:00

A representative sample of 1,321, surveyed by GfK Financial between 24th and 30th April 2007, were asked where they would most like to live in the world. Australia was voted the most popular overseas destination by Britons at 10%, while the most popular European destination was France at 6%.

Of those who would like to live in Australia, 59% were under the age of 45 with just 16% over the age of 65 years. In contrast, of those Britons who would like most like to live in France, 76% were over the age of 45 with just 3% under the age of 25 years.

In total, 42% of respondents had considered moving or buying a home abroad and 44% of these were below the age of 45. Almost two fifths (39%) were aged between 45 and 64 years of age.

The survey, commissioned by Bank of Scotland International, found that 4% of people surveyed already owned a home abroad and two fifths of these were under the age of 45 years (40%). One in five people (19%) with a home abroad were over the age of 65.

"It is the younger generation that continues to be attracted to moving abroad and Australia and France are clearly popular destinations,” said Tony Wilcox, managing director at Bank of Scotland International.

Opportunity for IFAs

Attracted to long term business from young buyers planning for their retirement, an increasing number of IFAs are providing overseas related property advice. IFA Promotions, a non-profit organization with 9,000 IFA members, offers consumers a dedicated expat investment service – with 294 individual advisers listing this in its top eight services (out of 23) and 355 listing overseas mortgages as one of their top seven products.

As a specialized area, however, IFAP chief executive David Elms believes that retirement planning requires a ‘whole of market’ service in terms of product and an understanding of the risk and reward elements of this kind of property investment. “Most IFAs would say, holistically, is this the right thing to be doing and is it part of the right balance of investments,” he explains. “IFAs have to be able to offer more than mere mortgage advice as this is about investment.”

Source: OPP

EU finance ministers back Cyprus’ accession to Eurozone

2008-06-05T16:17:00.000+01:00

Eurogroup Finance Ministers decided unanimously in Luxembourg on Monday to suggest to ECOFIN the accession of Cyprus and Malta to the Eurozone as of January 1, 2008. Chairman of Eurogroup and Luxembourg’s Prime Minister Jean-Claude Juncker, told reporters after the meeting which preceded the ECOFIN session that ministers decided to propose Cyprus and Malta’s accession to the eurozone.

He said he had no doubt that European leaders will accept the suggestion for the two countries’ accession on 1st of January 2008, adding that Cyprus and Malta will be invited to take part in the Eurozone ministers’ meeting in September.

On his part, EU Commissioner for economic and monetary affairs Joaquin Almunia described the decision as “very easy” because, as he said, both countries fulfilled the criteria and had a positive suggestion by the European Commission and the European Central Bank.

The Eurogroup ministers’ decision will take an official form today at the Council of the European Union – Economic and Financial Affairs (ECOFIN) meeting which, in turn, will make a suggestion to the European Council meeting of June 21-22 to take the political decision. In July, ECOFIN’s Council of Ministers will ratify the accession of the two countries in the Eurozone, simultaneously locking Cyprus and Malta’s currency against the Euro.

Source: Financial Mirror

Cyprus unemployment 4th lowest in EU

2008-06-04T16:16:00.000+01:00

Cyprus has the fourth-lowest unemployment rate in the EU, according to Eurostat. Figures for April show the rate at 4.4% whereas in the Eurozone, average unemployment stood at 7.1%.

The lowest rate was in the Netherlands with 3.3%, followed by Denmark with 3.4%, Ireland 4% and Cyprus 4.4%.

The highest levels were recorded in Poland with 11.2%, Slovakia 10.5%, France 8.6% and Greece 8.6%.
In Cyprus, the unemployment rate for men in April 2007 was 3.7%, women 5.3% and persons under 25 years of age 9.1%.

Eurostat estimates that 16.7 million men and women in the EU27, of which 10.6 million were in the euro area, were unemployed in April 2007. In April 2006, 18.7 million men and women in the EU27, of which 11.8 million were in the euro area, were unemployed.

Source: Eurostat

President pledges support to boost Tourism in Cyprus

2008-05-29T16:16:00.000+01:00

The government pledged continued support to Cyprus’ vital tourism industry promising to upgrade the tourism product for the benefit of all, said President of the Republic of Cyprus Tassos Papadopoulos.

He assured that the government will implement measures it has already announced.

In his address at the opening ceremony of the Hoteliers’ Pancyprian Association General Assembly held in Nicosia, President Papadopoulos said that “our firm position is that Cyprus’ reply to competition is offering quality and a special tourist experience to the visitors of the island”.

“I know and recognize the efforts by the Hoteliers’ association to upgrade Cyprus internationally as a high level tourism destination”, he added.

“The government, evaluating correctly the decisive significance of tourism to the economic development of the island and the people’s welfare, maintains in its priority, interests and aims, the continued upgrading of this key sector”, the President added.

He said the increasing competition from overseas “constitutes a challenge” which can only be handled with “upgrading and adjusting to new conditions and facts which demand the quality of tourism product to secure the quantity of the tourist flow”.

Source: The Financial Mirror

Cyprus keeps rates unchanged

2008-05-25T16:12:00.000+01:00

The Cypriot Central Bank has kept interest rates low by announcing it is holding the base rate at 4.5 per cent. The Monetary Policy Committee (MPC) of the Central Bank’s Board of Directors decided to keep interest base rates unchanged. Newly appointed Governor of the Central Bank Athanasios Orphanides thus maintained the current 75 basis point spread between the Cyprus pound and euro key refinancing rates.

The MPC, took into account the recent Convergence Reports issued by the European Commission and the European Central Bank and concluded that the local economy is growing at a satisfactory rate, inflation is kept at low levels (decrease to 1.77 % in April 2007 vs. to 2.96 % in April 2006), and that the economy enjoys a high degree of convergence with the euro zone countries and thus is in good shape to adopt the euro by January 2008.

Cyprus, along with Malta, are expected to adopt the euro on January 1, 2008. Both countries must by then phase out the differential with European Central Bank rates.

Despite the deceleration of inflation, however, the MPC is concerned with the expansion in the money supply and increased bank credit to private sector. As far as bank credit is concerned, the MPC stresses the exchange and interest rate risks involved in foreign currency lending, as well as the negative impact from the widening of the Trade Balance from increased private lending.

"There is no need to be hasty in narrowing the gap [with euro zone rates] earlier than what is required," Orphanides said.

The refinancing rate was last changed in September 2006.

The Central Bank kept its two other rates unchanged. The overnight deposit facility was left at 2.75% and the Lombard rate at 4.75%. The decision was unanimous among the monetary policy committee members, Orphanides said.

He also added that there is no issue of devaluation of the pound ahead of the final fixing in July or when the country adopts the euro.

The Cyprus is poised to be locked against the euro on July 10. The pound has spent two years in the European Union's ERM-2 currency system, trading within plus or minus 2.25% around a central parity rate of 0.585274 pounds to the euro.

Domestic credit growth was running at an annual 18.6% in March. M2 money supply also expanded by 17.0% in March from an annualised 14.0% in February, according to the May issue of the monetary policy report.

Orphanides would not be drawn into discussing the correct value of share or property prices. “Compared to 20 years ago, property prices have risen. As for current prices, only time will show whether prices are over-valued or correctly valued. There are many factors and considerations to be taken into account,” said Orpahnides, adding that banks were not over-extended to the property sector.

Source: Financial Mirror

President ‘certain’ Cyprus will join Eurozone in January 2008

2008-05-24T16:13:00.000+01:00

Cyprus will be able to adopt the Euro as scheduled in January next year, President Tassos Papadopoulos believes, as he said in his address at the Annual General Meeting of the Employers and Industrialists Federation (OEB), pointing out that prices are set to drop with the introduction of the Euro and adding that the country has good prospects to overcome practical difficulties which other states have faced when they adopted the Euro.

The President paid tribute to employers and employees for their contribution to the effort to meet European Union criteria in order to be eligible to join the Euro area and told the consumers that they are the most effective guardian of any attempt to quick profit and price hikes.

Papadopoulos stressed that as soon as Cyprus gets the official green light to adopt the Euro from EU finance ministers in early July, a large scale and serious effort will get underway to inform the public at large about the use of the Euro and its fallout.

He reiterated that the social state will not be sacrificed for the sake of the Euro, pointing out that economic growth has allowed the country to achieve both goals, maintain social benefits and join the Euro area in 2008.

“This year’s AGM assumes special significance as it meets with the expectation, I believe the certainty, that very soon the decision for the introduction of the Euro in Cyprus in January 2008 will be taken,” he said.

He said once this is done a campaign will begin to inform and protect consumers from attempts to raise prices and added “the government believes that prices must be rounded up downwards as Cyprus has all the prerequisites to have a 1 per cent or even bigger drop in prices.”

The Cyprus pound, he explained, is stronger than the Euro according to Cypriot and European experts and locking the pound to the Euro on 10 July should lead to rounding up prices downwards.

He urged consumers to be vigilant and report any attempts to make a profit using the change of the currency as an excuse to put up the prices.

The President said Cyprus has managed to achieve two important goals, accession to the euro area and extension of social benefits to those most in need.

“We shall have tangible benefits for the economy when we adopt the Euro and OEB has made a significant contribution to this,” he said, adding that the government promotes sectors that strengthen new investment.

In his speech at the AGM OEB President Andreas Pittas described the adoption of the euro and the accession to the EU as “a historic political, economic and social success”, noting that important socio-economic changes are taking place and local business has shown adaptability and responsibility.

“The European framework offers us safeguards for continuous economic growth, fiscal discipline and political stability,” he said and called on everybody to continue working for a favourable climate to maintain a high level of competitiveness.

On the social security fund, he said all parties concerned must work very hard to address difficulties and implement in good time the necessary policy no matter how painful that may be.

Minister of Labour and Social Insurance Antonis Vasiliou assured the meeting that the government is taking all necessary measures to secure the viability of the social insurance fund.

He said OEB has contributed in a constructive manner and has worked with flexibility and inventiveness and urged the federation to continue investing in new technologies, IT, research and human resources.

The minister said employing workers from other countries is a necessity for Cyprus, which must secure equal treatment and must be controlled.

Source - Financial Mirror

Over two fifths of Brits plan to move overseas

2008-05-23T16:12:00.000+01:00

Research undertaken by GfK financial for Bank of Scotland International, from a representative sample of 1,321 surveyed between 24th and 30th April 2007, found that 42% are interested in buying property abroad or moving abroad.

When asked where they would most like to live in the world, Britons ranked Australia in the top spot with 10%, followed by New Zealand at 9%. America and Canada were joint third with 7% each. France topped the European destinations with 6% of people wanting to move there, followed by Spain at 5%.

Out of the 42% of people who would like to own property abroad, the largest proportion were based in the South East (18%), followed by the North West and London (10%). However, only 4% of respondents surveyed already owned property abroad, with 28% of these based in the South East.

Source: OPP

Top 10 Property Investment Countries for 2008 Revealed in Jet-to-Let Survey

2008-05-19T15:38:00.000+01:00

The top 10 countries of most interest to foreign property investors in 2008 have been revealed in a survey conducted by property investment magazine, Jet-to-Let.

In order to provide an up-to-date snapshot of investor intentions in 2008, Jet-to-Let magazine surveyed 1000 new readers who recently subscribed to their free quarterly investment magazine. The results, which provide an interesting comparison with a similar survey conducted last year, show that investor interest is continuing to shift away from the UK buy-to-let market and towards foreign investment opportunities.

Over 50% of investors said they wish to invest in foreign property in the next 24 months, with 35.8% keen to invest in the next 12 months. The number one country for investors was found to be Cyprus, which is unchanged from 2007, with France and Spain ranked second and third. There were three new entrants this year – Italy, ranked at seven, the United Arab Emirates at eight and Brazil, which came in at tenth place.

Dominic Farrell, editor of Jet-to-Let magazine and author of the bestselling property investment book, The Jet to Let Bible, says he’s not surprised that Cyprus scored the top slot in the survey. “The adoption of the Euro on 1st January 2008, the interest rate cut, oil and gas finds offshore and low taxes continue to make Cyprus very attractive for investors and homebuyers alike,” he says.

“France and Spain will always be in the top three for UK and Irish buyers, but the relegation of Spain to number three reflects the change in market conditions and an erosion of confidence following the recent property market scandals, principally in Marbella,” Dominic explains.

Bulgaria, Poland and Portugal all notably dropped out of the 2008 top 10 league, after being featured in last year’s ratings. According to Dominic, “This reflects the ongoing changes in their respective property markets and the perception by investors that there are better opportunities elsewhere.”

Overall, the survey highlights the fact that interest in foreign investment opportunities is still going strong, helped in part by the inflated housing market in the UK and the small returns on offer here, compared to good returns in other countries.

Summing up the current choices of property investors, Dominic says, “We have seen a significant increase in investing in overseas property since the beginning of 2008, which reflects an ongoing ‘substitution’ away from UK, Irish and US property, as well as equities and other financial products. A well-selected, cashflow-positive property in a country with a sound legal framework and economy will always beat alternative investments hands down.”

The Jet-to-Let 2008 top 10 survey results are:

1.Cyprus
2.France
3.Spain
4.Germany
5.USA
6.Morocco
7.Italy
8.United Arab Emirates
9.Turkey
10.Brazil

The top 10 in 2007 were:

1.Cyprus
2.Spain
3.France
4.Morocco
5.Portugal
6.Bulgaria
7.USA
8.Germany
9.Turkey
10.Poland

Cyprus and Malta get euro boost

2008-05-16T16:11:00.001+01:00

Cyprus and Malta may soon swap their currencies for the euro. Cyprus and Malta look set to be the next EU members to adopt the euro after their applications cleared the first major hurdle.

Their bids to join the single currency next year were backed by the European Commission and European Central Bank.

They will become the 14th and 15th members of the eurozone on 1 January 2008 if EU leaders and finance ministers give their approval.

Both have been members of the European Union since May 2004.

Good progress

If all goes to plan, EU finance ministers will fix the euro exchange rates for the Cyprus pound and the Maltese lira during a two-day meeting on 9 and 10 July.

Voluntary dual pricing in the national currency unit and the euro is already widespread in Malta, particularly in tourist shops, analysts say.

It also currently applies in Cyprus on receipts in big department stores and in tourist resorts.

The last country to adopt the single currency was Slovenia, which joined the EU at the same time as Malta and Cyprus.

The European Central Bank said both would-be eurozone members were making good progress in meeting the necessary economic performance criteria, as set out in the Maastricht Treaty.

These cover government debt, currency stability and interest rates.

However, the ECB added that further efforts were still needed, particularly in curbing their high debt ratios.

Source BBC News

“Flash estimate” Cyprus GDP at 3.7% in first quarter

2008-05-16T16:11:00.000+01:00

According to the “flash estimate” produced by the Cyprus Statistical Service, CYSTAT on Tuesday, GDP growth rose in real terms in the first quarter of 2007 by 3.7% compared with the first quarter of 2006.

Flash estimates are common practice in the EU but this is the first “flash estimate” produced by Cyprus.

Flash estimates are not accompanied by the usual quarter-on-quarter GDP figures or revisions to previous quarters. This means that it is not possible to know at this stage whether a 3.7% growth rate constitutes an acceleration or a deceleration in growth.

However, based on our own calculations, either growth of economic activity accelerated in the first quarter or GDP growth was higher than previously reported in earlier quarters.

Looking at the indicative indices mentioned by Cystat, a case could be made either way.

On the one had, tourist arrivals (Jan-Mar) fell by 3.9% year on year and tourism revenue (Jan-Feb) by 4.5%. Electricity output (Jan-Mar) fell by 2.0% and exports of goods in the same period by 11.4%.

At the same time, manufacturing (up 0.5%) and building permits (up 3.1%) and telecommunications output (up 3.9%) rose fairly modestly in Jan-Feb and imports of goods rose by just 3.4% in the first quarter.

On the other hand, retail trade (Jan-Mar) rose by a strong 8%, air transport (Jan-Feb) by a stronger 9.3% (despite the drop in tourism) and financial intermediation services (banking) by an astonishing 25% in the first quarter.

Although tourism remains the single most important sector in Cyprus, it seems that domestic demand, driven by an awful lot of bank credit, is driving growth.

Source: Financial Mirror

Bank of Cyprus says unscathed by global crunch

2008-05-16T15:37:00.000+01:00

Bank of Cyprus said on Wednesday it was unscathed by the global credit crunch, but said it had no immediate plans to expand into new markets.

The Bank, Cyprus's largest lender, posted a 55 percent increase in its 2007 group net profit to 485 million euros and restated its profit guidance for 2008 to 540 million euros, an 11 percent increase over 2007. It is scheduled to release its first-quarter results on May 28.

After a year which saw it launch full banking activities in Russia and clinch a deal to acquire a bank in Ukraine, the bank told shareholders on Wednesday expansion into additional new markets was not foreseen in the near future.

"We expect 2008 to be a year of entrenchment in (existing) new markets, further expansion of our network in Greece and an increase in market shares in Greece and Cyprus," outgoing chairman Eleftherios Ioannou said.

"Although expansion into new markets is not among our immediate plans we are looking at conditions in countries of an interest to us through the presence of representative offices so when we decide to proceed we know the conditions on the ground," he told shareholders at its annual general meeting.

Chief Executive Andreas Eliades said the bank was not exposed to risks from the American sub prime crisis, which has had a domino effect throughout the global financial sector.

"The Bank possibly has the most robust liquidity in the Greek and Cypriot markets because the main source of finance are its client deposits, which are increasing," Eliades said.

Board members elected local real estate businessman Theodoros Aristodemou as its new chairman. Ioannou stepped down after reaching retirement age.

Source: Reuters

Cyprus to become business and investment hub

2008-05-14T16:10:00.000+01:00

The Cypriot government aims to turn Cyprus into a regional business and investment hub. The Commerce, Industry and Tourism Minister Antonis Michaelides commented “In the past three years, Cyprus has achieved high rate of growth in satisfactory conditions of employment and low unemployment”.

The government, Michaelides went on to add, is making every effort to promote business through the technological upgrading, the modernization and the expansion of existing industries and encouragement for export trade as well as improved plans and programmes for government grants.

On the energy front, he said the country has to secure its energy needs and bringing into the country natural gas for electricity purposes.

Speaking about tourism, Michaelides said the goal is to modernize and enrich the local tourist product, in line with the strategic development plan for 2003-2010.

Source: Financial Mirror

Registered unemployed drops 2.6% in Jan-Apr

2008-05-14T16:09:00.000+01:00

The number of registered unemployed reached 11,419 in April 2006, compared with 12,986 people in March 2007.

The Statistical Service reported that the decrease was mainly recorded in the sectors of hotels and restaurants, transport and trade.

For the first four months as a whole, unemployment fell by 2.6% compared with the same four months of 2006 to 13,566.

Source: Financial Mirror

New marina planned in Famagusta

2008-05-11T16:08:00.000+01:00

Southern Cyprus planning authorities have announced plans for the development of a new marina in the Famagusta region of the country.

The marina will be built in the Golden Coast Fishing Harbour region, near to the Avgeniros Gardens and Kalliope Villas. A fishing shelter will be built at Aiya Tirada beach.

A range of new facilities will also be built on the development, including restaurants, cafés, pubs and a museum.

The regeneration of the area will result in an increase in capital growth for Cyprus – great news for investors who have purchased property to let, as interest in the region will amplify when a completion date is set.

Cyprus passes final Maastricht test

2008-05-10T16:07:00.000+01:00

Cyprus appears to have passed the final Maastricht test in what could be the last inflation report before the country’s European partners consider whether Cyprus has met all the Maastricht criteria for adopting the euro.

The EU-harmonised consumer price index in April rose by 1.6% compared with April 2006, slightly higher than the 1.3% recorded in March.

However, the all-important 12-month rate fell slightly, to 1.9% compared with 2.0% in March.

In order to meet the Maastricht inflation criterion, the 12-month harmonised inflation rate in Cyprus must be no more than 1.5 percentage points above the average 12-month harmonised inflation rates in the EU countries with the lowest inflation figures.

In March (latest available data), these were Finland at 1.2%, Poland at 1.5% and Sweden and the Netherlands, both with 1.6%. This yields an average of 1.4% and thus a Maastricht target of 1.4% + 1.5% = 2.9%.

If the 12-month EU rates for April are the same as in March, Cyprus will have met the criterion with a full 1% of leg room.

On May 2nd Cyprus passed its two-year anniversary within the Exchange Rate Mechanism (ERM2). Eurozone member states as well as the Commission and the European Central Bank will now consider whether Cyprus has fulfilled all four Maastricht criteria on inflation, exchange rates, fiscal performance and interest rates.

A country must spend at least two years within ERM2 without devaluation or serious currency fluctuation in order to meet the criterion on exchange rates.

This requirement has already been met. The maximum shift in the rate of the Cyprus pound against its central parity rate within the euro (0.585284 per euro) since 2005 has been 2% but even then, the pound was stronger than the central parity rate. Today the pound is much closer, at just 0.4% above the central parity rate.

The two other criteria relate to fiscal performance and interest rates. The budget criterion was met in 2006 with a general government deficit of only 1.5% of GDP (the threshold is 3%) and the public debt criterion will probably be deemed to have been met because the debt/GDP fell from 69.2% of GDP to 65.3%, even if it was not below the ideal 60% threshold.

Long-term interest rates have long been within range. So that leaves only the nagging Greek Cypriot worry that someone out there will use the decades-old Cyprus problem as an excuse to veto Cyprus.

The Cyprus problem complicates EU business in all kinds of unrelated areas and Greek Cypriots currently take most of the blame for lack of progress in solving the problem.

Germany quashed rumours last month that it would veto Cyprus by confirming that Cyprus would be judged in accordance with the treaty rules. But rumours popped up again that a veto could come from another quarter.

Source: Financial Mirror

Expats in Cyprus

2008-05-03T15:36:00.000+01:00

According to Gulf Weekly thousands of expatriates are enjoying the financial benefits afforded to foreign nationals who take up permanent residence in Cyprus. Lower costs of living, favourable tax regime and a warm, sunny climate have all contributed to the island’s success story.

The publication also highlighted that housing costs are playing a powerful role in helping UK nationals to decide where to relocate. The price of a house in Cyprus is much lower than that of a comparable property in a place such as Spain or France and the island is currently benefiting from a prospering economy.

The report concluded that “Cyprus [is] firmly in the top slot for Britons seeking a more attractive destination in retirement”.

The Telegraph also recently highlighted the appeal that Cyprus has for foreign nationals and property investors, citing the recent change from pounds to euros, favourable interest rates and rising house prices.

Cyprus property prices record strong first quarter rise in 2008

2008-05-01T15:35:00.000+01:00

Property prices in Cyprus have recorded a 3.3% increase in the first quarter of 2008, according to the BuySell Home Price Index. This takes the year-on-year increase to 18.6%.

Symbolic Cyprus crossing reopens

2008-04-04T15:35:00.000+01:00

Greek and Turkish Cypriots have reopened a major crossing in the divided Cypriot capital of Nicosia.

Ledra Street, which had come to symbolise the partition of the island, was declared open by local officials.

It was then closed again for a couple of hours by the Greek Cypriots, after what they called an illegal Turkish Cypriot police patrol.

The crossing was finally re-opened later on Thursday evening after mediation by UN officials.

Protesters had gathered on both sides of the barrier, chanting "Cyprus belongs to its people", after the street had been closed again.

"After consultations with the UN, we have been given assurances that this will not happen again," Kypros Michailidis, Nicosia's Greek Cypriot police chief, told the Associated Press news agency.

Ledra Street was divided in 1964, during a flare in violence between the ethnic Greek and Turkish communities.

New Cypriot President Demetris Christofias and Turkish Cypriot leader Mehmet Ali Talat had agreed to reopen the busy shopping street last month.

The two leaders have also agreed to resume talks on reunifying the island.

Earlier, as the street reopened, an aide to Mr Talat, Osdil Nami said: "We are living a historic day today. We are witnessing one of the obstacles to a solution come down."

EU Enlargement Commissioner Olli Rehn also welcomed the reopening, saying it showed that the two sides were "ready to put aside the difficulties of the past".

Greek and Turkish Cypriots have been divided since 1974, when Turkey deployed troops after a coup by Greek Cypriots who wanted union with Greece.

Ledra Street had been at the centre of the island's leading shopping district before it was blocked in the middle, with military posts either side of the dividing line.

Cyprus' government demolished a wall and military checkpoint on Ledra Street last year.

But plans to reopen the street were rejected by President Christofias' predecessor, Tassos Papadopoulos.

"We still have a long way to go," said the mayor of Nicosia, Eleni Mavrou. "This is the first step. We hope many more will follow."

Source: BBC

Peace talks on Cyprus to restart

2008-03-21T14:34:00.000Z

The Cypriot president and the Turkish Cypriot leader have agreed to resume talks on reunifying the island.

The deal was struck at a meeting between Demetris Christofias and Mehmet Ali Talat in Nicosia - the first such high-profile talks since 2006.

The two men also agreed to reopen a key crossing in the divided capital.

Greek and Turkish Cypriots have been divided since 1974, when Turkey deployed troops after a coup by Greek Cypriots who wanted union with Greece.

"This is a new era we are starting for the solution of the Cyprus problem," Mr Talat said after the meeting in a UN buffer zone near the abandoned Nicosia airport.

"We shall try our utmost in order to come to an agreed solution for the interest of the Cypriot people, both communities, as soon as possible," President Christofias said.

In a joint statement, the leaders said they agreed that advisers from both sides would meet next week to set up groups to work out detailed agendas for the peace talks.

Mr Christofias and Mr Talat said they would meet in three months' time to "review the work of the working groups and technical committees and using their results to start fully fledged negotiations".

The talks would be held under the UN auspices, the statement added.

Mr Talat said that the Nicosia talks "didn't mention anything about the basis or the parameters of the [Cyprus] solution".

Crossing re-opening

Peace talks have been stalled since 2004, when Greek Cypriots rejected a UN peace plan that was backed by Turkish Cypriots.

Mr Talat favours the plan that proposed making Cyprus a federation of two states with a loose central government.

Mr Christofias, who was elected last month, prefers discussions to build on an agreement reached in July 2006.

This focused on individual confidence-building measures and practical areas where progress could be made.

In Nicosia, the two leaders also agreed to reopen the crossing at Ledra street, a pedestrian thoroughfare that runs along Nicosia's dividing line.

The street has come to symbolise the partition of the island.

The island's partition has long stood as an obstacle to Turkey's bid to join the EU.

The Greek Cypriot south, which joined the EU in 2004, holds veto rights over Turkey's accession.

Source: BBC

Cyprus labour force rises by 5.1% in 2007

2008-03-12T14:31:00.000Z

The labour force in Cyprus rose by 5.1% in the whole of 2007 to 393,377 people, according to the results of the quarterly Labour Force Survey.

Despite the rapid growth, all of the increase in the labour force was absorbed, as total employment rose by an even higher 5.8% to reach 377,948.

The number of people unemployed fell by 1.6% to 15,428, yielding an unemployment rate of 3.9%, compared with 4.5% in 2006.

In the fourth quarter alone, the labour force rose by 5.5% compared with the same quarter of 2006 to 398,903; employment rose by 6.3% to 384,852 and the number of unemployed fell by 0.4% to 14,051, yielding an unemployment rate of 3.5%.

The unemployment rate for young persons aged 15-24 was 10.2% in the fourth quarter compared with 10.5% in the corresponding quarter of 2006.

Source: Financial Mirror

Of the total unemployed, 62% had searched for a job for a period of less than 6 months; 16.3% for a period of 6-11 months, while 21.7% had searched for a job for one year and over.

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2008-03-02T16:19:00.000Z

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Eurobank to start Cyprus banking in June

2008-03-02T16:11:00.000Z

The Greek banking giant EFG Eurobank is ready to start full banking operations in Cyprus as early as next month, with corporations and high-net worth individuals among the first to be targeted in the ‘wholesale banking’ offensive that will avoid the opening of retail branches in the initial stage.

Michalis Louis, Eurobank Cyprus CEO, told the Financial Mirror that the Nicosia office, situated on the busy Makarios III Ave., will open for business in June while the Group’s second office in Limassol will start in the first half of 2008.

The recruitment drive is proceeding according to plan with Eurobank Cyprus reaching its first target of 30 staff by the end of May. With the opening of the Limassol office, the number will rise to 40.

“We are building a fantastic team of experienced, highly educated, talented and young bankers,” said Louis.

The top management team now in the making includes Haris Hambakis as General Manager Wealth Management and Antonis Antoniou as Manager Private Banking, both of whom used to work in the top two positions of Laiki Private Banking and were part of the team that earned Laiki’s top Private Banking awards. The Eurobank Private Banking team in Cyprus is further strengthened by the arrival of Tasos Anastasis, formerly with Hellenic Bank Private Banking.

Eurobank’s Wealth Management back office will be headed by Constantia Constantinou, formerly with Marfin Popular Bank, who brings with her vast experience in the area of Custodial and Private Banking Back Office operations.

Stephanos Kassianides will head International Lending bringing his years of experience working with Laiki in Cyprus and the UK, while Andreas Pitsillos, formerly with Laiki eBank and Laiki Hellas and Demetris Eliades have also bolstered the ranks of Eurobank Cyprus. Demetris Shiakkalis, former CFO of USB will become the Eurobank Cyprus CFO and COO, bringing Nikoleta Michaelidou with him. Finally, Katerina Charalambous, formerly with EFG in Greece, will be heading Eurobank’s Business Development.

Top Service

Louis said Eurobank will offer all banking services in Cyprus, without opening a retail branch network, with emphasis placed on corporate and investment banking, private banking and asset management.

“We shall have retail products for our clients, with Eurobank also targeting M&As, corporate restructuring, bridge loans and all sorts of sophisticated deals that our clients may require,” said Louis, adding that Cyprus will enjoy the full range of products now on offer from Eurobank Greece.

Eurobank is renowned for its aggressive and fast decision-making approach, something which Louis and his team intend to implement fully in Cyprus.

The fact that Eurobank expanded to Serbia, Bulgaria, Romania, Ukraine, Poland, the UK and recently to Turkey means that there is a centralized and effective team in Greece with the right mechanism providing support.

The key ingredient to success and the reason why Cyprus corporations and high net worth individuals will be heading to Eurobank Cyprus, according to Louis, will be because of the bank’s competitive pricing, effective and personalized service, the security and experience of Eurobank Greece and also because of the personal connections, know-how and broad understanding of the needs of the Cyprus market.

Source - Financial Mirror

Cyprus unemployment falls sharply y/y in January

2008-02-12T16:38:00.000Z

The number of registered unemployed fell by more than 1,000 in January 2008 compared with January 2007 thanks to a decrease across several key sectors.

The number of unemployed registered at the District Labour Offices on the last day of January 2008, reached 13,571 compared with 15,041 in January 2007.

Falls of around 200 to 300 or more were recorded in the sectors of manufacturing, retail and wholesale trade, transport, restaurants and hotels, and construction.

For seasonal reasons the number of unemployed was 783 higher than in December 2007. A registered unemployment is not published but according to the most recent Labour Force Survey the unemployment rate was 4% in the third quarter of 2007.

Source: Financial Mirror

Bank of Cyprus profits 'sustainable'

2008-01-22T16:37:00.000Z

Bank of Cyprus profits are sustainable based on core banking operations and excellent relations built with clients in Cyprus and abroad, said Bank of Cyprus Group CEO Andreas Eliades responding to the global equity meltdown.

“I will not comment on the level of share prices, but I can assure you that Bank of Cyprus and Greek banks in general are well placed to ride out the current storm affecting all markets since they are not exposed to the US sub-prime risks and boast adequate liquidity to cover their funding needs,” said Eliades.

He was speaking at the inauguration of the Bank of Cyprus floor at the Head Quarters building of the Cyprus Chamber of Commerce & Industry (KEVE).

Eliades told the Financial Mirror at the KEVE event that Bank of Cyprus expansion and business development plans are proceeding on schedule and more details about the Strategic Growth plan for 2008-2010 will be released in February.

KEVE Chairman Manoths Mavromatis expressed his confidence that global markets will be able to ride out the crisis hitting equities because “many areas continue to register satisfactory growth, unaffected by the slowdown in the US.”

Bank of Cyprus has sponsored the 6th floor in the KEVE building as part of its efforts to help the island’s business community.

Source: Financial Mirror

Cyprus property 'in continuous demand'

2008-01-16T16:37:00.000Z

Investors in Cyprus could benefit from continuous demand for rental accommodation, according to an expert.

Property writer Mark Dale stated that since the Mediterranean island was hot and sunny for 12 months of the year, it was consistently popular with tourists.

He commented: “Since holidaymakers travel to the region during all four seasons, investors could potentially earn higher rental income than in other markets.

"An all-year-round rental season is a huge bonus, especially with more and more holidaymakers looking for winter sun. Cyprus is also easily accessible, as it is serviced by a number of budget airlines. This meant that the Island is likely to attract more people in the next few years”.

Source: The Move Channel

Investors flock to ‘record breaking’ Cyprus

2008-01-15T16:36:00.000Z

Residential property prices in Cyprus broke another record in November as prices rose by 21% year on year, according to the BuySell Home Price Index. This is the highest year-on-year increase recorded by the index, which began in 2004.

The BuySell Home Price Index rose for an eleventh consecutive month to 141.69, recording a significant monthly increase of 2.5%, compared with a month-on-month increase of 3.7% in October. In the year to date, prices were up by 21.5%, compared with a more modest increase of 5.9% in 2006. The increase brought the Average Home Price in Cyprus to CYP 110,390 (EUR 188,613).

Source: Cyprus Mail

Flymonarch.com launches flights from Larnaka to London Gatwick

2008-01-11T16:36:00.000Z

Award winning low fares airline flymonarch.com is to launch scheduled flights from Larnaka to London Gatwick this March with up to four schedule flights a week.

According to a press release issued by Hermes Airports Ltd, the company which has taken over Larnaka and Pafos airports, the new service from Larnaka to London Gatwick will commence on Wednesday 19 March 2008 with direct flights operating up to four times per week on Mondays, Wednesdays, Thursdays and Saturdays. Fares starting from EUR75 one way excluding taxes and charges (EUR150 return).

Commenting on the introduction of this new service, managing director of monarch.co.uk, Liz Savage said that “following on from the announcement to launch flights to Manchester last month we are delighted to be adding flights from Cyprus to London Gatwick as well, meaning we will operate up to 30 flights a week between Cyprus and the UK this summer with 130,000 seats available.”

Bob Manning, CEO of Hermes Airports Ltd said that “we are delighted to welcome this new service by Flymonarch.com. These new flights will offer an additional choice for British independent travellers to fly to Cyprus, and for Cypriot business travellers, tourists and students for their direct flights to London and onward connections.”

Just one month ago the low fares airline flymonarch.com announced its decision to launch flights from Cyprus to Manchester .

Source: Financial Mirror

Eurozone rates kept at 4% by ECB

2008-01-10T16:35:00.000Z

The European Central Bank (ECB) has left interest rates unchanged at 4%.

High oil prices and an increase in the cost of food have buoyed inflation in the eurozone at a time when economic growth is seen slowing.

The ECB has said inflation remains a problem, noting that December's annual rate of 3.1% was above its 2% target.

It is not alone in having to balance growth and inflation problems. The Bank of England also left its main interest rate unchanged on Thursday.

The Bank left its main UK borrowing rate at 5.5%, despite calls from retailers and many business leaders for a cut to boost economic growth.

One analyst predicted that it would be a long wait for a change in eurozone rates.

"After the ECB raised interest rates to a roughly neutral 4.0% in June, the strong euro and the lingering turmoil in money and credit markets will likely keep the central bank on hold until September 2008," said Holger Schmieding at Bank of America.

There were strong comments from ECB President Jean-Claude Trichet at a news conference to explain the rate decision.

He warned eurozone employers not to allow wages to spiral.

"We call upon them to behave properly," he said.

"We will not tolerate that you will engage in a spiralling (of inflation)."

Mr Trichet appeared to be warning that employers need to control wages or there would be an immediate rise in interest rates.

"I think that the ECB feels that inflation expectations have not picked up sufficiently to warrant a rate hike today and they're just sending out the message to make sure the expectations don't pick up," said Mark Miller at Bank of Scotland Treasury Services.

Source: BBC

Cyprus embraces new currency at fast pace

2008-01-08T16:34:00.000Z

THE EURO changeover has proved to be a success in Cyprus and Malta in the first week of January. The changeover of all cash and non-cash transactions to the euro appears to be going swiftly and without noteworthy problems. After only a few days, the euro had already largely replaced the Cyprus pound and the Maltese lira in people's wallets and purses.

Less than week after adopting the euro, nearly three quarters of all cash payments were made in the new currency in Cyprus, the EU Commission said yesterday.

A statement from the Commission said that on January 5, some 72 per cent of all cash payments were made in euro and that 74 per cent of Cypriots had only or mostly euros in their pockets.

“The adoption of the euro in Cyprus and Malta is proceeding very swiftly. This is testimony to the good preparations beforehand for which all involved in the two countries, starting with their respective governments, must be congratulated,” said Joaquín Almunia, European Commissioner for Economic and Monetary Affairs.

“It is now crucial that both countries continue to implement sound fiscal and budgetary policies so that they can fully benefit from economic and monetary union,” the Commissioner said in a statement yesterday.

The latest survey, the second since euro adoption, found that the ratio of euro cash payments in shops increased quickly during the first week.

Retailers gave change exclusively in euros in virtually all cash transactions where change was given. In Cyprus the figure was up to 97 per cent by last Saturday.

As people appeared to be eager to exchange their national cash holdings into euro and to withdraw euro cash, there were still some queues at banks but the situation seemed to be getting back to normal, the Commission said.

In Cyprus, some 179,000 over-the-counter exchanges and withdrawals were made between January 1-4, involving some €253 million. In Malta, approximately 132 000 over-the-counter withdrawals took place between January 1 and 5, for a total amount of around €88 million. Some 105,000 ATM withdrawals had been made in Cyprus by January 4, and 202,000 in Malta up to and including January 6.

With respect to the conversion of prices into euro, so far only a few incidents of undue price increases have been reported in both countries, said the Commission citing parking fees, cinema tickets and doctors' fees.

“The authorities are investigating all these cases and are asking those responsible to revert to the former prices where necessary,” the Commission said.

“Consumers are encouraged to remain vigilant and to report any cases of unfair pricing to the authorities or consumer associations.”

In Cyprus, Central Bank officials said yesterday that by yesterday around €285 million euros were in circulation and that the Bank had collected up around £120 million.

Source: Cyprus Mail

Euro area unemployment stable at 7.2%

2008-01-07T16:34:00.000Z

The euro area (EA13) seasonally-adjusted unemployment rate stood at 7.2% in November 2007, unchanged compared with October. It was 7.9% in November 2006. The EU27 unemployment rate was 6.9% in November 2007, the same as in October. It was 7.7% in November 2006.

In November 2007, the lowest rates were registered in the Netherlands (2.9%) and Denmark (3.2%), and the highest in Slovakia (11.0%) and Poland (8.5%).

These figures are published by Eurostat, the Statistical Office of the European Communities.

Over the last year, twenty-three Member States recorded a fall in their unemployment rate, two an increase, and Luxembourg and Romania remained stable. The largest relative falls were observed in Poland (12.2% to 8.5%) and Bulgaria (8.2% to 5.8%). Increases were registered in Portugal (7.9% to 8.2%) and Ireland (4.2% to 4.3%).

The unemployment rate for males fell from 7.0% to 6.5% between November 2006 and November 2007 in the euro area and from 7.2% to 6.4% in the EU27. The female unemployment rate declined from 9.0% to 8.0% in the euro area and from 8.4% to 7.4% in the EU27.

In November 2007, the unemployment rate for under-25s was 14.2% in the euro area and 14.9% in the EU27. In November 2006 it was 15.8% and 16.5% respectively. The lowest rates for under-25s were observed in the Netherlands (5.0%), Ireland (8.1%) and Austria (8.3%), and the highest in Greece (22.6% in the third quarter 2007), Romania (21.6%) and Italy (20.2% in the third quarter).

Eurostat estimates that 16.4 million men and women in the EU27, of which 11.0 million were in the euro area, were unemployed in November 2007. In November 2006, 18.3 million men and women in the EU27, of which

12.0 million were in the euro area, were unemployed.

In November 2007, the unemployment rate was 4.7% in the USA and 3.8% in Japan.

Source: Eurostat

Cyprus euro transition smooth

2008-01-07T16:33:00.000Z

Cyprus joined the euro-zone on New Years day becoming the 14th European Union member state to adopt the common currency, with most of the conversion going well despite minor difficulties in some shops and smaller bank branches running out of new notes and coins.

The introduction of the euro was a landmark in the history of Cyprus, with feelings muted as some people saw benefits of joining the eurozone, while others were sceptical that they had lost the power of a strong Cyprus pound, just as the French gave up the franc and Germans abandoned the mark.

The Central Bank of Cyprus too has relinquished its exchange and interest rate setting authority, decisions that will now be taken jointly at the European Central Bank in Frankfurt.

Finance Minister Michalis Sarris said at a public celebration moments after midnight that joining the eurozone was an indication of the island’s healthy economy and that “it was a tough ride getting here”. He also congratulated his Maltese counterpart and read out a letter sent to Malta’s president from Tassos Papadopoulos, as the smaller Mediterranean island state also adopted the euro an hour after Cyprus, raising the eurozone members to 15.

Sarris said later on Tuesday that the whole operation went smoothly and that most of the Cyprus pound notes and coins will have been collected by mid-January, with some people holding on to samples of bygone days as memorabilia.

Few cases were reported of kiosk owners and foreign staff at some bakeries not coping with the new currency and mixed change, or running out of euros and giving change in CYP coins. Pharmacies and fast-food outlets working on Tuesday seemed to have adjusted well with their cash tellers showing both currencies in receipt as well as change.

But some people also had some simple questions that remained unanswered, possibly due to the delay in the information media campaign and the absence of practical examples for people to identify with.

When Cyprus applied to join the Exchange Rate Mechanism (ERM2) and subsequently headed towards adopting the European single currency as its own, the conspiracy theories of this generally pessimistic nation took a quantum leap with everything that went wrong being blamed on the euro in the run up to the January 1, 2008 date of adoption.

Spiraling fuel prices, a drop in tourism, rising property prices and more expensive tomatoes in the traditional salad were all blamed on the anticipated use of the euro, a negative attitude reflected in all recent Eurobarometer surveys that showed low levels of confidence in the euro and the Eurozone club.

Source: Financial Mirror

Cyprus tipped for Euro boom

2007-12-17T16:33:00.000Z

History was made this week in Cyprus when the central bank met to set interest rates.

Not because it was for the first time, but because it was for the last. For the record, governor Athanasios Orphanides said the three rates set, the key refinancing rate, the Lombard rate and the overnight deposit facility, would all stay as they were, the Cyprus Mail reports.

Mr Orphanides said any changes would have "no marked difference" and the monetary policy committee backed this view. Thus the curtain starts to fall on the Cypriot Pound.

New Year's Day will be a momentous one. It often is somewhere in the European Union, with 2007 seeing Bulgaria and Romania expanding the club to 27 members. 2008 will see the number of eurozone members in the union climb to 15, with Cyprus joining fellow Mediterranean island nation Malta.

The Cypriot central bank is on record as stating that this event is as momentous as it gets, saying: "Cyprus is preparing for one of the most important changes in its history." This is undoubtedly true in economic terms at least, for the central bank statement went on to add that this brought the country into an economic zone which is home to 310 million people.

While Mr Orphanides and his colleagues seek new employment, property investors should be very busy in the country, according to worldwide real estate firm Property Abroad. Director Les Calvert said that the country was already hugely popular, stating: "Cyprus has been increasing in popularity over the last year and more people are now making specific enquiries for property in Cyprus."

Part of this, he noted, was because of a financial situation which was in fact about to change: "There are still a few properties around that are free of VAT out there so people are jumping on and trying to snap up properties where they can."

Yet Mr Calvert was convinced that the country's property scene would benefit from the euro, predicting: "When the euro comes in it will make the property market a lot more open and I expect the market to rise quite healthily."

He advised that investors would be able to make good use of "excellent" foreign currency mortgages provided by Swiss and other banks, though these were "more advantageous" for those living or at least gaining income from overseas.

Cyprus will await the new year with interest, preparing for an economic and political future tied into the heart of Europe. For investors looking to sink their capital into property in the eurozone, a new opportunity awaits.

Source: The Move Channel

EU leaders sign EU reform treaty

2007-12-04T16:32:00.000Z

Cypriot President Tassos Papadopoulos signed the Treaty of Lisbon, on behalf of the Republic of Cyprus. Foreign Minister Erato Kozakou Marcoullis also signed the Treaty. The signing ceremony of the Treaty of Lisbon takes place at the Jeronimos Monastery in Lisbon.

It began with addresses from the President of the European Commission, Jose Manuel Barroso, the President of the European Parliament, Hans-Gert Pottering and the President of the European Council, Jose Socrates.

After the ceremony, European leaders will meet for the traditional family photo and then sit at a lunch at Museu dos Coches, hosted by the Portuguese President.

This marks a new phase in providing the Union with a new treaty to respond to the challenges of the 21st century. The Commission believes that the new treaty provides significant new benefits for citizens and will settle the institutional debate for the foreseeable future. In line with the Barroso Commission's twin track approach this will allow for a greater emphasis on the issues of concern to citizens such as jobs and growth, energy and climate change and migration. The Commission calls on Member States to ratify the treaty in good time for its entry into force on 1 January 2009. The Commission has today launched a website on the Treaty that explains in an easy to read way the policy innovations and institutional reforms contained in the new Treaty

President of the European Commission, José Manuel Barroso said, "This treaty marks a watershed in the history of European integration. The Treaty of Lisbon puts citizens at the centre of the European project. After six long years of negotiation we can put institutional issues aside and concentrate all our energy on delivering policy achievements for our citizens. I call on the Member States to honour their commitments and seek to ratify the treaty in good time for its entry into force on 1 January 2009".

"This new Treaty is good for European citizens", said Commission Vice-President Margot Wallström, responsible for Institutional Relations and Communication Strategy. It will enhance efficiency and give the Union a single voice in external relations. People will have a greater say in European policies through the reinforced powers of their directly elected representatives in the European Parliament and the enhanced role of National parliaments. The new "Citizens' initiative" will allow a million citizens to ask the Commission to present a proposal. More democracy is fundamental for a Union based on citizens' consent and will help to restore confidence and trust in the European integration process".

The Treaty of Lisbon amends the current EU and EC treaties, without replacing them. It will provide the Union with the legal framework and tools necessary to meet future challenges and to respond to citizens' demands.

The Treaty of Lisbon will bring many benefits: the new treaty will ensure European citizens have their say in European affairs and see their fundamental rights set out in a charter. The EU will be better equipped to meet expectations in the fields of energy, clime change, cross-border crime and immigration. It will also be able to speak with one voice on the international scene.

Among key planned improvements are:

a more democratic and open and accountable Union – both citizens and national parliaments will see decisions taken first hand as lawmaking discussions open up to public scrutiny. Europeans will be given the opportunity to influence proposed EU laws.

a more effective Union – through effective and streamlined institutions. Including swifter, more consistent decision-making on law and order issues, giving the EU greater ability to combat crime, terrorism and human trafficking.

more rights for Europeans – the EU's values and goals will be set down more clearly than ever before. And the charter of fundamental rights will be given the same legal status as the EU treaties themselves.

a more prominent global actor – the EU will seek more coherence between the different strands of its external policy, such as diplomacy, security, trade and humanitarian aid. And the bloc will be given a single legal personality to strengthen its negotiating power.

These improvements give the Union the capacity to deliver change, to make Europeans more secure and prosperous and to open up their opportunities to shape globalisation.

The Treaty of Lisbon, drawn up by the 2007 Intergovernmental Conference (IGC), was approved at the informal European Council on 18-19 October and will be signed by the Member States on 13 December 2007. The signature of the Treaty will be followed by the ratification process in all 27 countries. It is hoped that the new Treaty will come into force on 1 January 2009.

he new website provides user friendly and easy-to-read information in all 23 official EU languages. On its pages, readers can discover how the new Treaty will enable the EU to tackle the challenges of today's world and to promote more efficiency, democracy and transparency within its institutions. Answers to the most frequently asked questions are also available, accompanied by fact sheets explaining theme-by-theme the main changes brought about by the Treaty.

Source: Financial Mirror

Greek banks race to start Cyprus operations

2007-09-08T16:30:00.000+01:00

Greek banks are racing ahead with plans to strengthen their presence in Cyprus with Eurobank and Piraeus already having secured Central Bank permits to start local operations, while Aspis Bank may also be interested if its holding group decides to dispose of its stake in Universal Bank.

Other Greek banks may also decide to follow in order to take advantage of Cyprus’ low taxation and double taxation treaties, as well as the presence of a significant number of multinational corporations on the island.

Such plans are expected to accelerate if a Greek-led consortium of investors wins the bid for the government’s majority stake in the Cyprus Development Bank.

The government wants to sell its 88.01% stake and the European Investment Bank the remaining 11.99% stake. The deadline for expressions of interest expired on July 17.

Alpha Bank, National Bank of Greece and Emporiki Bank already have a direct presence in Cyprus. With the arrival of Eurobank, Piraeus and Aspis Bank, the number of Greek banks will double to six and exceed the number of local banks, one of which, Marfin Popular is already controlled by Greek investors.

Eurobank expansion

The Greek banking giant EGF Eurobank opened its first branch in Nicosia on Monday, heralding the launch of full-scale banking operations with the aim of providing top level service and innovative products to corporations and high-net worth individuals.

Michalis Louis, Eurobank Cyprus CEO, told the Financial Mirror following the opening of the office on the busy Makarios III Ave., that the bank will open its second office in Limassol in the first half of 2008 and then expand to all the major towns through business centres.

Louis said Eurobank will offer all banking serviceswithout opening a retail branch network, with emphasis placed on corporate and investment banking, private banking and asset management.

“We shall have retail products for our clients, with Eurobank also targeting M&As, corporate restructuring, bridge loans and all sorts of sophisticated deals that our clients may require,” he said, adding that Cyprus will enjoy the full range of products now on offer from Eurobank Greece.

Eurobank has already recruited 30 specialised staff and will be hiring more for its expansion drive in the other major towns.

Piraeus recruitment

Piraeus Bank has continued with its intensive staff recruitment drive with the objective to hire a minimum of 130 people to be in a position to open in all towns.

Greece’s fourth largest bank is keen to attract top quality personnel in order to man its operations in Cyprus after its decision to dispose of a 8.19% stake in Bank of Cyprus to Marfin Popular Bank earlier in the year at a substantial profit.

Aspis and others

Aspis Bank may decide to expand to Cyprus directly if the Group proceeds to dispose its stake in Universal Bank (USB), in which it does not have management or board control.

Source: Financial Mirror.

Euro news fuels Cypriot property boom

2007-08-24T16:32:00.000+01:00

Increased interest in Cypriot property listed on TheMoveChannel.com has pushed the holiday hotspot up 3 places to break into the Top of the Props Top 5! Here we investigate just why there is so much interest in Cypriot property at present...

With its unique blend of climate, culture and clubbing, Cyprus is one of the most popular tourist destinations in the Mediterranean. From the stillness of Ruins of Salamis to the commotion of the Ayia Napa night clubs, the Mediterranean’s 3rd largest island throngs with visitors every year, drawn to its many varied attractions.

With Euro membership just around the corner and property prices rising month-on-month this year, foreign interest in Cypriot property is showing no signs of cooling, as reflected in the movements in this month’s Top of the Props chart. An increase in the number of enquiries about Cypriot properties listed on TheMoveChannel.com over the last month has given Cyprus a leg up 3 places to break into the exclusive Top the Props Top 5.

The Top of the Props chart reflects the share of overall monthly enquiries to TheMoveChannel.com each country receives.

Airline investment to bump up tourist numbers

With its wealth of heritage sites, perfect climate, blue flag beaches and buzzing nightlife, Cyprus attracts over 2.4 m tourists annually. This crucial industry brings in more than £1.3 billion a year, contributing around 15% of the island’s GDP.

The issue of air travel is critical for further tourist development in Cyprus. Panos Englezos, Chairman of the Cyprus Tourism Organisation (CTO), recently stated that new budget airline routes have resulted in a “significant increase of arrivals from Greece, Russia and Scandinavia.” Mr Englezos has affirmed his commitment to increasing the number of budget carriers operating routes to the island.

In June, Cypriot President Tassos Papadopoulos promised to back the further expansion of the country’s tourism industry. Speaking at the opening ceremony of the Hoteliers’ Pancyprian General Assembly in Nicosia, he said, “The government, evaluating correctly the decisive significance of tourism to the economic development of the island and the people’s welfare, maintains in its priority, interests and aims, the continued upgrading of this key sector.” The upgrading of Larnaca and Paphos airports is due to be completed by the end of 2009.

Euro announcement sparks investor interest

With English widely spoken, a legal system based on English law, a stable economy and low mortgage rates, Cyprus is a popular place for Britons to own homes abroad. According to the Cypriot Land Registry, 12,000 of us have already made the move and now own homes on island.

George Lacey of Lacey & Co. commented: "As prices have risen in Spain and other Mediterranean areas, Cyprus has become increasingly popular, especially with British buyers. Prices in Cyprus are still very reasonable in comparison to Spain and Portugal, with countryside restoration properties available from around £50.000. If you throw in the ideal climate, the fact that English is widely spoken and the country's excellent health care system, Cyprus is an ideal place for Brits to buy abroad."

Cyprus is in the middle of a housing boom at present. According to Financial Mirror calculations, the BuySell Home Price Index has risen on average by 9.3% year-on-year so far this year, compared with 5.9% for the whole of 2006, suggesting Cypriot house price growth is actually accelerating. Factors cited to explain this trend include July’s EU announcement that Cyprus will adopt the Euro in January 2008, a decrease in local interest rates, a lack of Cypriot housing supply and a rush by investors to beat the imposition of 15% VAT on land purchases from 1 January 2008.

Mark Bodega, Marketing Director at currency specialist HiFX, commented: “Since it was announced that Cyprus would adopt the Euro in January 08, we’ve seen interest in Cyprus almost double. Our figures show, that whilst the numbers of Brits buying holiday homes in Cyprus has remained relatively static, this increase is largely due to an increase in investors. It seems that whilst the Cypriot Pound has effectively been fixed against the Euro for the past two years or more, this recent announcement confirms the island’s economic maturity and the promise of a share in the spoils of the recently improved EU-wide growth story.”

However, Simon Tweddle of PropertySecrets.net urged caution, saying “I think over the next year or two we will see prices continue to rise at around 20% per annum, though investors must be careful that they only buy into quality developments and avoid areas that are in danger of becoming oversold, to protect their rental and resale strategy. Overall the long term prospects for property prices are healthy in Cyprus and the country makes an excellent location for second home buyers.”

Source: The Move Channel

Cyprus house prices up 1.8% in July, 9.7% y/y

2007-08-22T16:31:00.000+01:00

Residential house and apartment prices in Cyprus rose for the seventh consecutive month in July 2007, as the BuySell Home Price Index rose by 1.8% over the previous month to 129.05.

Compared with the same month of the previous year, home prices in Cyprus rose by 9.7%.

The average home price according was recorded as CYP 100,546 (EUR 171,793).

The BuySell Home Price Index was created and is updated monthly on behalf of BuySell Cyprus Real Estate by MFC S. Platis.

The Index is announced during the second week of each month and depicts the movement of prices at which residential properties are sold in Cyprus, based on the extensive BuySell Cyprus Real Estate database.

For more information on the methodology of the Index and on Hedonic Prices please refer to: The “Asking Price and Transaction–based Indices for the Cyprus Housing Market (Rebased)” by Dr. Stelios Platis and Marios Nerouppos of MFC S. Platis.

The BuySell Home Price Index constitutes the only valid gauge of the Cyprus housing market and is considered as an effective tool for home buyers, sellers and investors.

Source: Financial Mirror

Global housing boom shifts focus, Cyprus keeps up

2007-08-10T16:31:00.000+01:00

The global house price boom continues in 2007, albeit at a much slower pace and with different set of countries.

A dramatic slowdown has taken place in several countries in Europe, despite an evident rise in the rate of price changes in Cyprus.

House prices in Estonia, 2005 and 2006’s star performer, rose only 5.68% y-o-y to Q1 2007, dramatically lower than the 77.52% y-o-y increase to Q1 2006.

Higher interest rates and an overheating market were the main causes of the slowdown. The key interest rate of the European Central Bank (ECB) has been raised nine times to 4% in June 2007, from its historic low of 2% in Nov 2006.

Other European countries that experienced lower house price changes y-o-y to Q1 2007 than in 2006 included France, Sweden, Ireland, Spain, Greece, the Netherlands, Switzerland and Portugal.

Ireland’s annual house price growth slowed to 7.44% y-o-y to Q1 2007, a deceleration from 12.07% y-o-y to Q1 2006. Apart from the higher interest rate, the heating issue on Stamp Duty also contributed to the decline.

Cyprus, on the other hand, enjoyed a 1.33% rise in the annual change in house prices in the first quarter of 2006, a figure that jumped to a 9,87% rise in the first quarter of 2007.

The U.S. house price rise also slowed to 4.07% y-o-y to Q1 2007, down from 12.78% y-o-y to Q1 2006. The Federal Funds rate has risen sharply from its low of 1% in May 2004 to its current level of 5.25%. The Fed has kept the rate unchanged since June 2006. This rate increase has meant trouble for sub-prime borrowers, leading to delayed payments and foreclosures.

Source: The Financial Mirror

Cyprus inflation up at 2.4 pct. in July

2007-08-02T16:30:00.000+01:00

Consumer prices in Cyprus rose 2.4 percent on the year in July, up from a 1.9 percent annual rate in June, the national statistics service said Thursday.

The largest year-on-year increase came from sharply higher prices for health care costs, which were up 6.41 percent. Prices in the heavily weighted index for food and nonalcoholic beverages, were up 6.31 percent.

Education costs were also 4.87 percent higher on the year.

Source: Business Week

Cyprus and Malta in Euro boost

2007-08-02T16:29:00.000+01:00

The past week has been particularly good for Cyprus and Matla property investors…Perhaps the biggest news has been the announcement by the European Union that the island can enter the euro currency system from January next year.

Cyprus and Malta were chosen ahead of other contenders to enter the European single currency system, in what will surely prove a big boost for the island's economy.

According to financial analysts, the move "will all but eliminate the risk of a currency crisis" by putting the weight of the European Union's economy behind the island.

According to currency specialists HiFX, the Cypriot property market will see the benefits of adopting the Euro. The company believes that the strong economy will add to the lure of the good weather and local culture.

A spokesman said the EU decision "confirms an economic maturity and the promise of a share in the spoils of the recently improved EU-wide growth story".

Property markets will continue to grow

Mark Bodega, marketing director of HiFX, commented: "We predict the property market on both islands to continue to grow due thanks to a number of reasons. British purchasers like the legal system in Cyprus as it is easy to understand-being based on the English one”.

According to statistics collated by HiFX, the number of Britons that have made an enquiry about investing in a Cypriot property has more than doubled over the past 12 months. Perhaps the lure of the good weather is proving too much - it has certainly helped boost holiday bookings in this washout British summer.

London Greek News recently conducted a telephone survey of travel agents and tour operators in London. The newspaper wanted to determine if there had been any upturn in the number of holiday bookings being made to Greece and Cyprus in the past few weeks - and the answer was a resounding yes.

Mario Demetriou MD at EuroMed Travel said "I have seen a positive move up in bookings, people wanting to book anywhere hot especially Cyprus and Greece".

With the weather showing no signs of making any improvement in the near future, it is a safe bet that there will be even more Brits booking their place in the sun.

Source: Assetz press release

Cyprus Tourism Organisation unveils incentives plan to attract investment

2007-07-27T16:28:00.000+01:00

The Cyprus Tourism Organisation (CTO) unveiled a draft outline of its plan to attract investment in the tourist industry, to be funded jointly by the European Union and the CTO.

Speaking at a press conference CTO’s Director of Tourism Division Lefkos Filaktides said the incentives plan is part of the Strategy for Tourism Development which provides for reduction in hotel beds, and a change in accommodation patterns in order to render Cyprus a more competitive destination.

The draft plan, he explained, is expected to be finalized in October this year and by March next year the CTO will be ready to examine the first applications, with the initial funding expected to be allocated in the second half of 2008.

The coordinator of the plan Konstantinos Theos said that CTO will provide EUR 13 mln with a view to encourage investment initiatives from business, to improve infrastructure and services and upgrade the tourist product.

The plan also envisages the construction of golf courses, thematic parks, health tourism, conference centres, workshops and activities for the visitors, exhibition venues and sports facilities. It also includes investment plans to upgrade existing hotels and hotel apartments, from two to four star.

Source: Financial Mirror

Annual Property Investment Conference to be held in London

2007-07-20T16:28:00.000+01:00

Jet to Let Magazine’s Annual Property Investment Conference will be held on Saturday 8th September 2007, at The Hilton London Metropole.

Attendance to the inaugural conference is open to anyone, and is aimed at investors wanting to take advantage of the strong returns available from well-targeted overseas property investments. Whether you are a first time investor, or building on a portfolio of properties, you will find this the ideal opportunity to mix with property experts and like minded investors.

The conference is a must for anyone seeking to maximise their returns whilst minimising risk. Profit from the opportunity to learn from and question leading experts in the industry, and network afterwards with our expert speakers and conference attendees.

The conference programme for the day is:

- The power of leveraged finance: how to make 1000% Return on Investment over 2 years
- Overseas property investment strategies: how to best achieve your financial goals and targets
- Risks: how to control risk and limit the downside
- How to use the fluctuations in currencies to increase returns
- Property management and lettings strategy: the do’s and don’ts

- Around the world in 2 hours. A look at the property investment scene, latest areas and how to capitalise on opportunities

Your Personal Investment strategy

Additionally to these seminars, there will be an opportunity for networking and discussions with advisors, as well as the chance to book a FREE personal property investment consultation with a leading expert.

- The consultations will cover

- Raising finance for investing

- Personal property investment strategy

Tax minimisation strategies to reduce liabilities

These FREE, no obligation consultations must be pre-booked. Availability is limited, so please book early to avoid disappointment.

Special Offer

The price to attend Jet to Let Magazines Property Investment conference is just £97 (plus VAT) per person.

However in addition to this low price, we are also running a Special Offer: £149 (plus VAT) for 2 people, A saving of over £50.

To book your place at Jet-to-Let Magazine’s Annual Conference, please either:

Telephone: 08000 277 336

Email: conference@jet-to-let-magazine.com

Web: www.jet-to-let-magazine.com

IKEA Cyprus to open in September

2007-07-19T16:27:00.000+01:00

The budget furniture store IKEA will open its first outlet in Cyprus on September 5 within the busiest commercial square mile on the outskirts of Nicosia, where other store openings are expected the same month in what is probably going to be the biggest shopping mall on the island.

Vassilis Fourlis, president of the operator of the furniture franchise that already has two IKEA stores in Greece, will be in Cyprus for the inauguration of the 22,000 sq.m. store strategically located within the ‘Mall of Cyprus’ at the Shacolas Emporium Park that will include retail stores, clothing shops and food outlets.

Fourlis will also be here next week for a media event and to introduce the IKEA catalogue that will be distributed in the wider market.

Although IKEA products can no longer be placed in the ‘low cost’ category, they are known for their functionality, simple designs and affordable prices.

The Fourlis group officially announced in October 2005 that it was to build the first IKEA store in Cyprus, through its House Market subsidiary. It was initially expected to commence operations by June this year, but has been recruiting local staff for training since last year.

Fourlis’ flagship store with a floor space of 20,000 sq.m. opened in Thessaloniki, followed by a second 25,000 sq.m. IKEA store near Athens airport last year. A second Athens outlet is expected to open in September and the Group also plans to open a new IKEA outlet in Bulgaria in 2008.

The cost of establishing the Cyprus and Athens stores is estimated at EUR 40 mln, while the annual turnover of House Market following the full operation of all three stores is expected to top EUR 300 mln.

IKEA Cyprus is expected to generate annual sales of EUR 40-50 mln, Vassilis Fourlis told Reuters in an interview last October 2006, while the sale of a 20% stake in Kotsovolos to Dixons Group is estimated at contribute EUR 32 mln to Fourlis Group earnings.

The IKEA opening is regarded as a welcome move in Cyprus, after the IKEA-owned Habitat franchise in Nicosia closed unceremoniously last December due to troubles at the Greek franchise operations.

At the time of closure a Habitat statement read: “It is with deepest regret that we confirm Habitat’s franchise partner Franco Import has come into financial difficulties leading to the closure of four stores – three in Athens and one in Cyprus – on December 11. This situation has been triggered by an external supplier to Franco Import, not by Habitat.”

The statement went on to say that Franco Import and Habitat UK Limited have been partners for almost ten years and that the company was, “saddened that Franco is facing challenging circumstances.”

Though the companies are owned by the same conglomerate, the opening of two IKEA superstores in Athens and Thessaloniki is said to have hit Habitat hard in Greece, with an Athenian newspaper reporting that it was only a matter of time before Habitat got into trouble.

Habitat is owned by the Ikano Group and operates as an independent commercial legal entity from the IKEA Group.

The Habitat store in Nicosia reopened its doors to the public briefly in March in an attempt to get rid of its outstanding stock and satisfy previous orders.

The store has since been taken over by the TAG Designer clothing company that already operates a store on Zena Gunther road.

Source: Financial Mirror

Emerging markets investment 'surprise'

2007-07-17T16:26:00.000+01:00

New research from Holidaylettings.co.uk has revealed that emerging markets dominate the overseas property investment rankings…

With yet another interest rate rise in the bag for the banks, expect the British obsession with property investment to take another step towards the nearest airport and the newest investment hotspot.

Holidaylettings.co.uk has seen an abundance of holiday homes being advertised in new locations since the start of the year and now offers accommodation in 100 countries.

New countries on the holiday home map: Jan – June ‘07

1. Croatia

2. Hungary

3. Slovenia

4. Mexico

5. Argentina

Countries adding greatest volume of holiday homes June: ‘06 - June ‘07

1. Spain

2. France

3. Italy

4. Portugal

5. Cyprus

Argentina and Brazil come to the fore

New self-catering holiday offerings include eagerly awaited Eastern Europe entrants Poland, Estonia and Slovenia and a South American influx, most notably in México, Argentina and Brazil. Dubai has come into its own in the last 12 months with its offering of self catering accommodation as an alternative to hotels. With many new developments underway there the number of self catering options is expected to grow.

Traditional holiday home favourites France, Italy, Spain and Florida, where tourism and holiday property are already so well established are still attracting investors, a growing number of which cover their costs by letting them out to holidaymakers. Over 2,000 Spanish holiday properties have been added to the site in the first six months of 2007, compared to only 1,200 added in the same period last year.

For those seeking the laid back lifestyle and temperate climate found in Spain, but away from the over development of the Costas, Portugal has experienced the fiercest holiday home growth in Western Europe in the last year. The number of Portuguese holiday homes available to let through Holidaylettings.co.uk has increased from 300 to just under 1,000 in the last 12 months, an increase in excess of 300%.

Europe’s ongoing attraction

Another destination showing investment promise and working on attracting more holidaymakers is Cyprus. The number of holiday home rentals in Cyprus has more than doubled since June last year, supporting figures from the Cypriot Land Registry which reveal that 12,000 Britons now own homes in Cyprus.

“These figures demonstrate the ongoing attraction of Western Europe as an investment location and how, with the case of Portugal, with its easy access from the UK it still has property investment potential,” says Ross Elder, MD of Holidaylettings.co.uk. “With yet more investment in Eastern Europe and South America it will be interesting to monitor how these markets develop in the next couple of years.

“It is vital for investors that there is a sufficient tourism draw and affordable flights are available in order for holidaymakers to be drawn to these areas. No matter how many developments are built, renovations completed or holiday homes advertised there needs to be a demand from holidaymakers for self catering accommodation.”

Source: The Move Channel

Cyprus and Malta get go ahead to start using euro next year

2007-07-10T16:26:00.000+01:00

BRUSSELS, Belgium: The European Union on Tuesday gave Cyprus and Malta final approval to start using the euro next year, taking to 15 the number of nations sharing the currency.

Finance ministers voted to allow the two Mediterranean nations to join the currency zone on Jan. 1.

They also set an exchange rate of one euro to 0.585274 Cypriot pounds and 0.4293 Maltese lira when the two countries swap their existing coins and banknotes for the euro.

Cyprus and Malta will bring just over 1 million people to the 318 million who now use the euro. Their economies account for only 0.2 percent of euro-zone gross domestic product.

Both joined the EU in May 2004. Only one other country that joined the EU at the same time — Slovenia — has so far adopted the euro.

The largest of the EU newcomers — Poland, Hungary, the Czech Republic, Romania and Bulgaria — have yet to set a date for euro entry. Estonia had originally planned to join next year but will delay membership as its growing economy sees inflation surge, a problem that has also slowed Latvian and Lithuanian plans. Slovakia is scheduled to join in 2009.

Cyprus and Malta worked hard to meet the strict EU economic standards for euro nations, with Cypriot workers agreeing to lower wage demands that could boost inflation while Malta paid off debt to cut its budget deficit below the EU maximum of 3 percent of gross domestic product.

EU Economic and Monetary Affairs Commissioner Joaquin Almunia said he recognized the effort they had made to fulfil the entrance criteria.

To keep their shared currency stable, euro nations are also supposed to keep overall public debt below 60 percent of gross domestic product.

However, even the largest euro economies have had trouble with these rules and euro candidates can be accepted if they can show that they are on track to meet these limits.

Cyprus became part of the EU a month after Greek Cypriots voted against a United Nations plan that would have led to reunification with the breakaway Turkish Cypriot state in the north of the island. EU officials have warned Turkish Cypriots against starting to use the euro as their currency without approval.

Source: International Herald Tribune

July 8 agreement

2007-07-06T16:24:00.001+01:00

Government Spokesman Vassilis Palmas has said that the Greek Cypriot side has no indication that Turkey or the Turkish Cypriot side have any will to begin a dialogue to solve the Cyprus problem, noting that if Turkey believed that "at this or any future stage there should be no movement, then things will be difficult." Palmas said if there was "any political will on behalf of Turkey to create the conditions to move forward regarding the Cyprus problem, then there is a possibility to make progress through the 8 July 2006 agreement."

Replying to questions, Palmas said "we have repeatedly proven our intention and will to create circumstances and conditions for progress regarding the July 8 agreement." "From thereon, in order to create the conditions for improvement and progress regarding an agreement reached between the Greek Cypriot and the Turkish Cypriot side and the United Nations, the positive will of both sides is necessary," he pointed out.

Asked about the July 8 agreement in relation to the forthcoming elections in Turkey, Palmas said that "due to the fluid political situation in Turkey there is immobility regarding the July 8 agreement." "We, the government, have said many times that the key is in Ankara and in Turkey," the Spokesman added.

Source: Cyprus News Agency

Presidential elections

2007-07-06T16:24:00.000+01:00

The three parliamentary parties that support the government of President Tassos Papadopoulos have continued their separate discussions, as prospective candidates ponder on announcing their bid for Februarys presidential elections.

The main coalition government partner left wing AKEL voted Wednesday by an overwhelming majority to propose its General Secretary Demetris Christofias, President of the House of Representatives, to the party extraordinary congress on Sunday as its candidate for the presidency. The congress will take the party final decision on the matter.

The centre right Democratic Party (DIKO), formerly headed by Papadopoulos, decided unanimously on Wednesday to back Papadopoulos in his bid for re-election, which he is expected to announce sometime soon.

The other coalition partner, Social Democrats Movement EDEK, ratified on Wednesday a Central Committee decision to back Papadopoulos in February next year.

So far there are only two candidacies for the presidency. Former Foreign Minister Ioannis Kasoulides, who is backed by the main opposition party Democratic Rally, and former Agriculture Minister Costas Themistocleous.

However, it has become all but clear that Christofias and Papadopoulos are set to announce their respective candidacies in the days ahead.

AKEL Central Committee backed Christofias candidacy by 85 votes in favour, 12 against and three abstentions, party spokesman Andros Kyprianou said at midnight Wednesday, after an eight hour marathon Committee meeting.

He said the party Political Bureau recommendation to contest the elections with Christofias, on behalf of the three coalition partners, was presented to Wednesdays meeting, in addition to party grass roots decisions about the elections.

AKEL participates in the government with four ministers (foreign, interior, communications and health) who are widely expected to leave their posts, should Christofias announce his candidacy for the presidency.

DIKO President Marios Karoyian told the press last night after a Central Committee meeting that Papadopoulos candidacy on behalf of the three coalition partners would all but ensure only one round of elections, that would certainly result in a resounding victory of the tri-partite coalition.

EDEK spokesman Demetris Papadakis said that the party Political Bureau reviewed the outcome of local and district party meetings and ratified the Central Committee proposal to back Papadopoulos.

Source: Cyprus News Agency

Cyprus - Egypt - road agreement

2007-07-06T16:23:00.000+01:00

Cyprus and Egypt have signed an agreement on International Road Transport of Passengers and Goods, to further cement relations between the two countries and open the doors to foreign trade for both countries. The agreement was signed by Cypriot Minister of Communications and Works Harris Thrassou and Egyptian Minister of Transport Mohamed Loutfy Mansour.

Thrassou said the signing of this agreement “on road transport will strengthen furthermore these relations and promote the cooperation between the two countries. I am convinced that this is only part of a new era of fruitful cooperation between Egypt and Cyprus”. He also said that “Cyprus and Egypt have always been excellent neighbours since ancient times ever since our region was the center of the civilization” and during their discussions, they evaluated issues on Merchant Shipping, Road Transport and Ports and established a framework for developing our cooperation.

“Cyprus being a member of the European Union acts as a platform for nearby friendly nations such as Egypt to access the EU market in a more efficient and profitable manner”, he concluded. Mansour said “our purpose here is to further cement the relationship that we have between our two neighbouring and brotherly countries.

Source- Cyprus News Agency

Cyprus to maintain robust growth in 2007-2008

2007-06-27T16:22:00.000+01:00

PricewaterhouseCoopers’ latest economic analysis points to continued strength in the Cypriot economy during 2007 and 2008. The economy is expected to grow by 3.9% in 2007 and 3.8% in 2008, easily outperforming the Euroland average economic growth rates in both years.

Once again, the contribution of the domestic economy is expected to outweigh that of the export sector in both 2007 and 2008.

The PwC report argues that domestic demand is likely to continue to be the main driver of overall growth despite investment growth moderating somewhat in 2007. Consumer spending in particular is likely to perform well over the next two years owing to relatively low interest rates and favourable labour market conditions.

On the external sector, the report finds that Cyprus’ exports performance is likely to improve slightly in 2007, despite a slightly slowing pace of growth in Cyprus’ main export markets, namely the UK and Euroland.

The report suggests the Euroland economy achieved a healthy pace of growth in 2006, growing by its fastest pace since 2001. However, some moderation is anticipated in 2007 owing to the lagged effects of past European Central Bank interest rate rises, a further possible appreciation of the euro and tighter fiscal policy in a number of member states. The pace of economic growth in the Euroland is expected to average a reasonable 2.5% in 2007 before slowing to 2.2% in 2008.

Euroland inflation is expected to average 1.9% in 2007 and the ECB is likely to raise interest rates by a further 25-50 basis points before the end of the year, in order to contain price pressures and anchor inflation expectations.

Yael Selfin, Senior Economist at PricewaterhouseCoopers, said that, “the economic outlook for the Cypriot economy remains positive and the goal of adopting the euro in 2008 is looking increasingly attainable. However, inflation deserves vigilance over the rest of the year, given the upside risks from robust domestic demand, excess credit and the possibility of further oil price rises.”

Source: Financial Mirror

Orams case goes to European Court of Justice

2007-06-26T16:21:00.001+01:00

Following a ruling by the High Court in London last year, which was hailed as a victory for Linda and David Orams, the high profile Apostolides case has now been sent to the European Court of Justice.

The London judgment overturned a ruling from the Nicosia court in October 2004, which found for the Greek Cypriot former owner of the land (Meletios Apostolides), and ordered the Orams to pay compensation to Apostolides, to demolish their £160,000 villa and to return the land to him (which would have resulted in them losing their own home in the UK). Mr Justice Jack ruled that Article 10 of the EU Treaty of Accession of Cyprus to the EU meant that the Nicosia judgment was unenforceable in England and, furthermore, that the jurisdiction of the Republic of Cyprus does not extend to property located in the TRNC (in "de facto control" of the north).

While the judge gave Apostolides permission to appeal, he also ordered him to pay 75% of the Orams' £863,000 costs. London's Court of Appeal said that the European Court of Justice in Luxembourg must give guidance on the case before the UK can decide whether to enforce a demolition order, according to Bloomberg.

Nicholas Phillips, the UK's most senior judge, was quoted by the analyst as saying: “The principle issues of this case are of importance to some 14,000 people who claim to own homes in Northern Cyprus, and also to Greek Cypriots who lay rival claims to the ownership of those houses.”

TRNC solution ‘recognised’

While the so-called Turkish Republic of Northern Cyprus is not recognized by the EU, recent reports suggest that its solution to land dispute, the Immovable Property Commission (IPC), is about to be officially accepted by the European Court of Human Rights (ECHR). Hasan Erçakıca, a spokesman for the Turkish Cypriot president told the Turkish Daily News (TDN) that a landmark ruling, whereby an exchange formula was used to deal with Greek Cypriot complaint, “could enhance the international legitimacy of the property commission in the north”. He added that property disputes can only be settled “not through courts but through negotiations between the parties involved”.

Thus far, the commission is reported to have dealt with property claims ‘through compensation and restitution’ but Greek Cypriots have always opposed the exchange of land – a solution outlined in the rejected Annan plan. This plan has been updated to include the payment of a small proportion of the compensation in addition to the exchange of land.

With Ankara now awaiting the ECHR’s official recognition of this solution, TDN highlights a report in Greek Cypriot daily Politis which claims that the ECHR has sent letters to Turkey, a Greek Cypriot and the Greek Cypriot administration supporting the exchange formula solution; with official approval expected in ‘upcoming days’.

Source: OPP

Cyprus property market ‘booming’

2007-06-26T16:21:00.000+01:00

While some investors are concerned about Spain and other look to exotic and uncharted territory, those looking to invest in property on the island of Cyprus continue to do so in a booming market.

This year is certainly on course to be another property boom year. Cypriot newspaper the Financial Mirror has stated that 2007 is on course to see 20 per cent property value appreciation. Part of the trend is due to a rush to beat the imposition of a new 15 per cent VAT land tax on January 1st 2008, but the tend is a longer term one and some might observe that the imposition of a land tax indicates government recognition of this, suggesting it believes it can pick up some useful revenue without doing undue damage to the market.

Already, the paper notes, the government is making good money out of the property boom, with capital gains tax receipts amounting to the equivalent of $173 million in the first five months of 2007, compared with $62 in the same period in 2006 (Cyprus adopts the Euro in the new year).

However, the paper states, Solomon Kourouklides, Chairman of the Cyprus Real Estate Agents Association believes the increase is also due to high amounts of property buying from overseas investors in coastal areas.

Some might suggest that there is a negative element for native Cypriots, in which locals are priced out of the market by overseas speculators. What in fact is happening, according to an article in the Cyprus Mail at the weekend, is that the sector is helping the economy at a time when other aspects that involve foreigners - such as tourism - are in decline. Moreover, it points out, mortgage demand is rising and it is the capital Nicosia, not coastal towns such as Limassol and Paphos, which are seeing the greatest demand of all.

As the paper puts it: "This is good news, making the market less susceptible to the whims of foreign buyers, who can abandon Cyprus as easily as they came. It also means that local buyers - including first-time buyers - are finding a way to lock into the property ladder, securing a stake in a sector of the economy that is expected to see continued steady growth." In short, investors can certainly feel no guilt about buying into the market, or fear being resented for doing so.

Instead, the paper adds, the amendments that actually need to be made to ensure the market stays healthy are things like faster issuing of title deeds and better redress for builders if work is not up to standard.

Notwithstanding those concerns - not unique to any one country - Cyprus remains a country with further growth potential. Part of that lies in the continuing attraction of the country for its climate, history and culture, while the forthcoming adoption of the Euro could provide the greatest boost, by providing the kind of stability that will encourage investment and establishing the country in the eyes of Europe as part of the social, political and economic mainstream.

Source: Assetz

Eurozone “very significant” for Cyprus, says Papadopoulos

2007-06-20T16:20:00.000+01:00

President Tassos Papadopoulos has described as “very significant” the entry into the eurozone on January 1, 2008, saying that this confirms that the government’s fiscal policy has been a success and the local economy sound enough to meet EU criteria for the euro area.

“This is an important landmark for Cyprus and I believe that once we adopt the euro, prices will be rounded up downwards as opposed to upwards,” he said on departure for the European Council meeting which will deal with Cyprus’ and Malta’s accession to the euro area.

He reiterated that this was achieved with the concerted effort of all the social partners, adding that government services will monitor the change of currency to ensure that there is no exploitation of prices.

Papadopoulos recalled that the Cyprus pound will be locked to the euro in early July and the exchange rate will not be known before that.

Referring to the EU summit that starts Thursday, he said this was “very important” as it will review reforms in the European Treaties.

“We hope that it will be possible to reach an agreement that will facilitate the smoother running of the EU, which so far has been governed by the provisions of the Treaty of Nice,” he said.

Papadopoulos also said that the current trend among the 27 members seems to indicate that existing Treaties are set to be promoted but no new treaty is likely to be approved.

“There are several differences and everybody understands that if the current German EU presidency does not succeed in clinching such an agreement, then things will be more difficult in the future,” he concluded.

Earlier Wednesday the European Parliament approved by an overwhelming majority of 585 votes in favour, 14 against and 90 abstentions, a report by a German Euro MP which gives the green light to Cyprus’ entry into the euro area.

Speaking during the debate at the Parliament, German Minister of State for Europe Gunter Gloser and EU Commissioner for Economic and Monetary Affairs Joaquin Almunia welcomed Cyprus and Malta, saying both countries meet the criteria set out by the Union.

Source: Financial Mirror

EIU expects 3.4% growth for Cyprus in 2007

2007-06-11T16:20:00.000+01:00

The Economist Intelligence Unit (EIU) maintained its Cyprus GDP growth forecast at 3.4% and 3.6% for 2007 and 2008 respectively, according to the Sharelink Securities & Financial Services update.

Low growth in the tourism sector will be partly offset by continued strength in exports of business services such as accounting. Investment growth is likely to remain strong as a result of ongoing works to upgrade the two airports, while work to construct new marinas may get under way in 2008, if the government can speed up the tender round.

Government consumption growth is also expected to accelerate, driven by the forthcoming presidential election in February 2008. According to EIU, private consumption growth will be supported by continued strong credit expansion and a fall in commercial (as opposed to official) lending rates from 2008, as local banks respond to competition from other Euro area banks. Credit growth will also help to maintain demand in the construction and retail sectors. The British agency points out that the main risk to this forecast is a sudden fall in credit growth; However it says, this seems unlikely, given that banks are enjoying strong profit growth, commercial interest rates are expected to fall further, and overall lending as a share of GDP is probably lower than in countries such as the UK and Spain.

EIU’s central forecast about interest rates is that the European Central Bank (ECB) will raise rates twice more before the cycle comes to an end at 4.25%. Rises above 4.25% would only occur if growth were to continue as strong as in 2006 and show no sign of slowing by the end of 2007. However, EIU says, Cypriot commercial lending rates, which are higher than in the Euro area, should continue to fall from 2008. The final convergence of Cyprus and ECB rates will happen in the last two months before the adoption of the Euro.

The EIU says that the Cyprus pound is already approaching the central parity rate. Under the planned schedule the exchange rate with the Euro will be locked in July 2007; mandatory dual pricing in euros and Cyprus pounds will run from September 2007 until June 2008; and the Cyprus pound will cease to be legal tender in February 2008. According to EIU the Euro is forecast to strengthen against both the US dollar and sterling on average in 2007-08.

Source: The Financial Mirror

Cyprus house prices up 9.6% for year in April

2007-05-10T20:00:00.000+01:00

Residential house prices in Cyprus rose by 1.1% over the previous month in April, according to the BuySell Home Price Index, as the index reached 122.44 and brought the average home price in Cyprus to CYP 95,394 (EUR 196,680). Compared with the same month of 2006, prices rose by 9.6% in April, slightly lower than the 9.9% increase recorded in March. Data on building permits suggest that demand in Cyprus is being driven by residential customers and is being fuelled by both local and foreign buyers. The number of building permits authorised rose by 7.7% in 2006. The hedonic BuySell Home Price Index, which takes into account changes in the quality of housing, was created and is updated monthly on behalf of BuySell Cyprus Real Estate by MFC S. Platis. The index is announced during the second week of each month and depicts the movement of prices at which residential properties are sold in Cyprus, based on the extensive BuySell Cyprus Real Estate database. The BuySell Home Price Index was rebased in September 2005, in order to keep the Index updated with respect to the most recent quality characteristics of the housing market in Cyprus.

Source: Financial Mirror