finance

On This Day: Seven astronauts died when the space shuttle Challenger exploded after liftoff in 1986

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On This Day: Seven astronauts died when the space shuttle Challenger exploded after liftoff in 1986

On January 28, 1939, Irish poet and dramatist William Butler Yeats died. He won the Nobel Prize for Literature in 1923. On the same date in 1986, the space shuttle Challenger exploded, resulting in the death of seven astronauts. In 1997, police confessed to the murder of black civil rights leader Steve Biko at South Africa’s Truth Commission. Japan’s Finance Minister Hiroshi Mitsuzuka was forced to resign due to a bribery case in 1998. Astrid Lindgren, the Swedish children’s author and creator of Pippi Longstocking, passed away in 2002. A Boeing 727 belonging to Ecuadorean carrier TAME crashed into Colombia’s Cumbal volcano in 2002, killing all on board. Israeli Prime Minister Ariel Sharon’s right-wing Likud party won a general election in 2003. Archbishop Christodoulos, the head of Greece’s Orthodox Church, died in 2008. In 2009, President Raul Castro made the first visit to Russia by a Cuban leader since the end of the Cold War. Nelson Mandela returned home from the hospital in 2011. The World Health Organization announced an outbreak of the Zika Virus in 2016.

UK still undecided on digital cash as privacy concerns persist

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UK still undecided on digital cash as privacy concerns persist

British authorities will decide no earlier than next year on the potential implementation of a state-backed digital pound. The Bank of England and Britain’s finance ministry are continuing with the design phase after a public consultation that received 50,000 responses, with privacy concerns being a prominent issue. No final decision has been made to pursue a central bank digital currency (CBDC), and a decision on whether to proceed to the build phase is expected around the middle of the decade.

Prime Minister Rishi Sunak supported the idea when he was finance minister in 2021, but the digital pound would likely not be operational until near the end of the decade if approved. Proposals suggest that individuals could hold electronic pounds up to a limit of 10,000 to 20,000 pounds, without earning interest. Banks have advocated for a lower limit due to concerns over potential outflows from traditional bank accounts.

British lawmakers have not yet been convinced of the necessity for digital cash, and privacy issues are also a concern for other central banks, including the European Central Bank and the US Federal Reserve. The European Union’s progress on a digital euro has been hampered by similar concerns.

The UK government states that a digital pound would be private but not anonymous, allowing for the tracking of transactions suspected of involving money laundering or financing terrorism. However, it would not replace physical cash, ensuring continued access to an anonymous payment option. The government also plans to ensure privacy through legislation and further public consultations if the project advances. The digital currency would not be programmable to block specific transactions, addressing some privacy advocates’ concerns.

Government slashes sick leave for civil servants

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Government slashes sick leave for civil servants

The Cyprus government has decided to reduce sick leave days for civil servants from 42 days to 28 days. The period of absence without a medical certificate has also been reduced from eight days to six days. The government aims to boost productivity and modernize public services. The new regulations include three six-month periods of sick leave extensions for chronic patients, with varying levels of pay. The requirement for approval of sick leave extensions by a medical council has been eliminated. The government has also implemented other measures to reform public services, such as facilitating remote working and introducing flexible work hours. The government has sought assistance from the International Monetary Fund to rationalize the state payroll. The decision to reduce sick leave entitlement was made due to past cases of misuse and the observation that most civil servants do not fully utilize their entitled sick leave days. The government has also approved a policy framework for flexible forms of employment in the public service, including remote work and flexible working hours. Civil servants can work from home certain days of the week or for a continuous period during the year. They can also choose to work reduced hours if covered by the relevant legislation. The extension of flexible working hours from 1½ hours to 2 hours has also been implemented.

Bank deposits see increase

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Bank deposits see increase

In December, total deposits in the banking system increased by €346 million, reaching €52.2 billion. Total loans also increased by €284.2 million, reaching €24.8 billion. The system liquidity, which is the difference between deposits and loans, was set at €27.4 billion. Deposits from residents of Cyprus increased by €388 million, with household deposits increasing by €461 million. Deposits from domestic non-financial corporations decreased by €252 million. Deposits from other domestic sectors increased by €179 million. Loans to residents of Cyprus increased by €132.9 million, with loans to households increasing by €99 million and loans to non-financial corporations increasing by €54.5 million. Loans to other domestic sectors decreased by €20.6 million.

Makis Keravnos is in favor of ATA, "but there are data that must be weighed"

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Makis Keravnos is in favor of ATA, "but there are data that must be weighed"

The Minister of Finance, Makis Keravnos, expressed his support for the Automatic Tax Adjustment (ATA) institution, stating that it should continue to exist but also be constantly revised. He emphasized that the institution should be revised when there are different economic conditions for the benefit of society and those who benefit from ATA. The statements were made after a meeting with the new President of DEOK, Stelios Christodoulou, who stated that productivity and competitiveness are separate issues from ATA.

Finance Minister states his support for CoLA

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Finance Minister states his support for CoLA

The Minister of Finance has issued a statement in response to trade unions’ reactions to his statements on productivity and competitiveness in the Cypriot economy. He supports the cost-of-living allowance and clarifies that his previous statements were in favor of it. He emphasizes that he does not align himself with any side in the negotiation process for the allowance, but only with the interests of the Cypriot people and a healthy and competitive economy. He intends to encourage social partners to consider productivity, competitiveness, and income distribution in the economy.

Sick leaves in public sector to be reduced from 42 to 28

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Sick leaves in public sector to be reduced from 42 to 28

The Minister of Finance, Makis Keravnos, announced that sick leave days in the public sector will be reduced from 42 to 28. Non-certified sick leave days will be reduced from 8 to 6. Sick leave periods may be extended to three instead of two. Long-term sick leave will have different benefit levels. Approval for sick leave extensions will no longer require approval from the medical board, but instead a medical certificate and approval from the relevant supervisor. There have been cases of abuse of sick leave rights leading to these changes. The legislation governing sick leave needs to be modernized.