Economy

Foreign investors want more info on energy, relocation

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Foreign investors want more info on energy, relocation

Foreign investors active in Cyprus attended a “Foreign Investors Dialogue with the Government” event where they were informed about actions being implemented or planned by the government. The government aims to make Cyprus an attractive destination for living, working, and doing business. Some of the actions mentioned include new housing policies, the possibility of submitting electronic applications for renewable energy projects, the implementation of the Strategic Investments Law, and improvements in the education system for children of foreign workers. The government has also introduced measures to improve the business environment, support innovation and entrepreneurship, and streamline licensing procedures. The Company Facilitation Unit has registered almost 2,000 foreign companies since its establishment. The government is also addressing housing affordability and delays in the naturalization process. The labor market is being made more accessible for third country nationals studying in Cyprus.

Cyprus Business Now

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Cyprus Business Now

– The Cyprus Employers & Industrialists Federation (Oev) expressed satisfaction with the approval of the Grants Scheme for Energy Upgrade and Competitiveness Enhancement for Large Enterprises.
– The proposal was approved by the Cabinet after being put forward by the Minister of Energy, Commerce, and Industry.
– The Grants Scheme was initiated by Oev in 2020 to support large enterprises, particularly in the manufacturing sector, to enhance their competitiveness and contribute to the economy.
– The Ministry of Energy stated that the financial support will cover eligible expenses for energy-saving investments and transitioning to a circular business model.
– The total amount allocated for the scheme is €17 million, divided into two categories: up to €7 million for the manufacturing sector and €10 million for all eligible sectors.
– Large enterprises in the Manufacturing Sector can receive grants under the General Block Exemption Regulation and/or the De Minimis Regulation, with a maximum grant of €750,000 per enterprise.
– The Scheme Guide is available on the website of the Industrial Development Service.
– The Cyprus Shipping Chamber (CSC) announced that its Director General, Thomas Kazakos, is the first lobbyist registered in the Anti-Corruption Authority’s Lobbyists Registry.
– The CSC responded to the authority’s call for registry applications in November 2023.
– The CSC’s registration reflects its commitment to transparency and ethical standards in lobbying.
– The Cyprus Stock Exchange (CSE) reported profits on Wednesday, February 7.
– The general Cyprus Stock Market Index was at 139.71 points, a 0.41 per cent increase from the previous day.
– The FTSE / CySE 20 Index was at 84.85 points, a 0.43 per cent rise.
– The total value of transactions was €175,575.
– Sub-indexes for the main, alternative, investment firm, and hotel sectors grew by various percentages.
– Specific companies such as Vassiliko Cement Works Public Company, the Bank of Cyprus, the Cyprus Cement Company, Demetra Holdings, and Petrolina Holdings attracted significant investment interest.

Cyprus Business Now: weekly wrap-up

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Cyprus Business Now: weekly wrap-up

Here are the factual points extracted from the text:

1. The Cyprus Shipping Chamber (CSC) announced that it is marking 35 years of successful operation since its establishment on January 26, 1989.
2. The Cyprus real estate data analytics firm Ask Wire released a report outlining the ten most lucrative property transactions completed in Cyprus during 2023, with a focus on high-value deals in the district of Limassol.
3. The European Central Bank (ECB) kept interest rates unchanged at a record high on January 25 and did not indicate a shift towards policy easing.
4. Wargaming, an online game developer and publisher headquartered in Nicosia, announced opportunities for students and recent graduates in 2024, including six online gaming educational courses.
5. Cyprus’ Deputy Ministry of Tourism sees an opportunity for increasing tourist arrivals from Switzerland, estimating visits to reach 80,000 in 2023, up from 73,000 in 2022, marking a 20 percent increase.
6. The President of the Cyprus Institute, Stavros Malas, presented a proposal for the establishment of a Centre of Excellence for Smart and Sustainable Farming (SMARTFARM).
7. The Economic Sentiment Indicator (ESI) in Cyprus increased by 2.3 units in January 2024 compared to December 2023, primarily due to a stronger business environment in the services sector.
8. TechIsland and Adsterra launched an educational programme called “Advocate For Yourself” under the Women in Tech Cyprus initiative.
9. Mark Rachovides, chairman of Venus Minerals, explained that copper prices are expected to rise by approximately 75 percent over the next two years due to supply disruptions and increased demand.
10. Finance Minister Makis Keravnos and Cyprus Central Bank governor Constantinos Herodotou discussed a potential decrease in ECB interest rates during 2024, with an expectation that rates are likely to fall before the end of the year barring unforeseen events.
11. The Bank of Cyprus returned a total of €2.2 million to up-to-date mortgage borrowers as part of their ongoing reward plan.
12. A €6.6 million project to install solar panels in 405 schools has been completed, resulting in a 30 percent reduction in total energy consumption, and was funded under the national Recovery and Resilience plan.

Biden can, ’t beat the MAGA meme machine online, kingmaker Clyburn says

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Biden can, ’t beat the MAGA meme machine online, kingmaker Clyburn says

– U.S. Representative James Clyburn believes President Joe Biden’s reelection bid requires a strong ground campaign rather than relying on expensive ads or social media.
– Clyburn suggests that Biden’s campaign should combat disinformation and the “MAGA wall” of online content from Donald Trump’s supporters.
– Trump campaign spokesperson Steven Cheung criticized Biden’s tenure as president.
– Biden is expected to win the South Carolina primary election and potentially face Trump in a rematch of the 2020 election.
– Clyburn’s endorsement in 2020 was pivotal for Biden’s primary election victory in South Carolina.
– Clyburn is concerned about disinformation campaigns and believes Biden needs to effectively communicate his accomplishments.
– Clyburn, along with other influential Democrats like Barack Obama, is advising Biden to intensify his campaign efforts.
– Biden’s campaign has started to respond to this advice, with Biden mentioning Trump more frequently and staff changes to strengthen the campaign.
– Clyburn referenced former Philadelphia Mayor James Kenney’s successful campaign strategy, emphasizing the importance of direct voter engagement.
– At a recent dinner, Clyburn highlighted Biden’s achievements to supporters, and Biden acknowledged Clyburn’s effective advocacy on his behalf.

Taxpayers will pay the cost of LNG debacle

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Taxpayers will pay the cost of LNG debacle

The contract for the liquified natural gas (LNG) terminal in Vasiliko was signed with the China Petroleum Pipeline Engineering Company (CPP) in December 2019. The project has encountered significant issues, leading to potentially high costs for the taxpayer. The tender process was controversial, with two of the three bidding consortiums excluded for compliance reasons before technical and financial assessments. The estimated cost of the project was half a billion euros, with €289 million allocated for construction and €210 million for operation and maintenance over 20 years. However, the cost has risen to €542 million, with CPP demanding an additional €200 million. The terminal is only 45 to 50 percent complete, and the completion date has been pushed back multiple times, with the latest being July 2024. The consortium led by CPP lacked experience in such projects. Despite irregularities in the tender evaluation, former President Nicos Anastasiades decided to proceed with CPP. The European Investment Bank (EIB) raised concerns about the financials and legitimacy of the deal. The project’s cost was considered high compared to market rates. The European Commission had offered a €101 million grant, conditional on the EIB approving a €150 million loan. An alternative, more cost-effective solution was proposed by Norwegian company Hoegh but was not pursued due to ineligibility for EU grants. The final cost of the LNG Vasiliko terminal remains uncertain.

Interest rate cuts likely to take place in 2024, CBC governor says

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Interest rate cuts likely to take place in 2024, CBC governor says

– Finance Minister Makis Keravnos and Cyprus Central Bank Governor Constantinos Herodotou discussed a potential decrease in interest rates by the European Central Bank during 2024.
– They agreed that interest rates are likely to fall before the end of the year, barring unforeseen events.
– Herodotou mentioned the positive trajectory of the Cypriot economy, which was echoed by Keravnos.
– Inflation in Cyprus was at 8.1% in 2022, peaking at 10.6% in July, then falling to 1.9% in December 2023, with a minimal increase expected in January due to the base effect.
– The positive progress in inflation was attributed to monetary policy and targeted support measures.
– Increased uncertainty exists due to geopolitical developments, including attacks on the Suez Canal and the situation in the Middle East.
– Herodotou indicated that interest rate cuts are expected within 2024, but cautioned against reducing them too soon to avoid a resurgence of inflation.
– The majority of Cypriot consumer products are imported from European countries, but the economy is affected by issues such as cruise ship tourism due to regional instability.
– There has been a decrease in the prices of basic products, including fuel, in Cyprus.
– Despite interest rate hikes, a surge in non-performing loans (NPLs) has not occurred, partly due to measures ensuring banks consider borrowers’ repayment capacity and increased savings.
– A new framework for NPLs has seen a positive response from borrowers and includes a stable foreclosure framework with a safety net.
– Banks and credit acquisition companies have restructured £2.4 billion worth of loans in 2023.
– The CBC, in collaboration with the Ministry of Finance, is working on a plan to help smaller banks reduce their NPL ratios, which is currently in its second phase.

Cyprus Business Now

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Cyprus Business Now

– The Producer Price Index (PPI) in Cyprus’ industrial sector decreased by 4.5% in 2023 on an annual basis.
– The PPI for December 2023 was 138.5 units, with 2015 as the base year.
– The PPI in December 2023 increased by 0.2% compared to November 2023.
– The PPI in December 2023 decreased by 0.8% compared to December 2022.
– There were increases in the production of furniture, other processing activities, repair, installation of machinery and equipment (4.6%), non-metallic mineral products (4.5%), petroleum refining, chemicals, pharmaceuticals, and pharmaceutical preparations (4.1%), textile material production, clothing, and leather goods (2.2%), and the food and beverage industry (2.1%).
– There were declines in the production of basic metals and the construction of metal products (5.9%), paper and paper product manufacturing and printing (0.9%), production of rubber and plastic products (0.4%), and the manufacture of machinery and equipment, motor vehicles, and other transport equipment (0.2%).
– The Cyprus Statistical Service stated that the PPI can indicate inflationary pressures in the economy.
– The Deputy Ministry of Research, Innovation, and Digital Policy in Cyprus will hold an “Open Day” for the “ICT Re-Up Skilling” programme on February 02, 2024.
– The Cyprus Stock Exchange (CSE) ended with profits on Wednesday, January 31.
– The general Cyprus Stock Market Index was at 136.98 points, up by 0.56%.
– The FTSE/CySE 20 Index was at 83.13 points, up by 0.57%.
– The total value of transactions was €145,548.
– The main and alternative indexes rose by 0.56% and 0.42% respectively, while the investment firm index fell by 0.67%, and the hotel index remained unchanged.
– Investment interest was shown in the Bank of Cyprus, Hellenic Bank, Demetra Holdings, Logicom, and Petrolina.

The US economy is strengthening

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The US economy is strengthening

The US economy grew at a rate of 3.3% in the fourth quarter of 2023, surpassing initial predictions of 2%. The growth is attributed to support from consumer spending and government expenditure. Wage increases exceeded increases in goods and services, leading to high levels of consumption. However, there is a possibility that increased borrowing could lead to future problems for the population. The US economy has shown resilience despite the sharp increase in interest rates. In contrast, the European economy is showing signs of slowdown, particularly in Germany. China's economy is also expected to grow at a lower rate than anticipated. The final statistics on the GDP of major international economies, including Cyprus, are yet to be seen, but there is a slowdown in growth. The focus is on the magnitude of the slowdown and whether it could lead to a recession.

Timely pensions implemented for new retirees

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Timely pensions implemented for new retirees

The Ministry of Labor and Social Insurance has successfully implemented the government’s plan for timely payment of statutory pensions for new retirees. This plan ensures that retirees receive their pensions within one month of reaching retirement age or from the date they choose to receive their pension. The first installment of the statutory pension was paid in September 2023 and the process was completed in January 2024. This has positively impacted over 6000 new retirees annually and has put an end to previous delays. The Ministry of Labor and Social Insurance prioritizes the acceleration of payment for all benefits and allowances provided by the Social Insurance Services. This policy is part of the Governance Program and is being progressively implemented with specific results. Minister of Labor and Social Insurance, Mr. Yiannis Panayiotou, emphasizes that the timely payment of the statutory pension is a minimum appreciation that the state owes to workers who have consistently paid their contributions to the Social Insurance Fund. This human-centered government policy aims to improve the daily lives of citizens and address problems to enhance their quality of life.