Heather Barnes Overseas Channel

Eurozone Growth Forecast

Fri, 03 Sep 2010 09:56:00 GMT

ECB raises eurozone growth forecasts, extends support for banks

The European Central Bank raised its growth forecast for this year and next after a healthy second-quarter performance in the eurozone, but said the outlook remains uncertain and kept up its efforts to offer short-term loans to banks.

The ECB is now projecting growth this year of 1.4pc-1.8pc, with the midpoint of 1.6pc well up on the 1pc forecast in June. Photo: EPA

As expected, the ECB left its benchmark refinancing rate at a record low of 1pc for the 16th month in a row.

Jean-Claude Trichet, the president of central bank, said on Thursday that recent economic data from the eurozone had been stronger than expected.

The ECB is now projecting growth this year of 1.4pc-1.8pc, with the midpoint of 1.6pc well up on the 1pc forecast in June. For next year it forecasts growth of between 0.5pc and 2.3pc - a midpoint of 1.4pc against the previous 1.2pc.

Mr Trichet said the bank would stage three-month, fixed-rate tender operations in October, November and December — reflecting the ECB's desire to keep money flowing to the banking system in the aftermath of the government debt crisis.

Mr Trichet said economic indicators for the third quarter are mostly better than expected although they confirm expectations of "a moderation in the second half".

He reiterated his statement of last month that "we do not declare victory" — although he added: "I already said that the double dip (recession) was not in the cards in our own analysis".

There have been mounting concerns recently about the pace of the US recovery. Japan's economic outlook has darkened as the yen's rise pressures its exporters at a time when its economy is barely growing, and there also have been signs of cooling growth in China.

Europe's economic rebound has largely been fed by a recovery in global demand. Eurozone exports grew by 4.4pc in the second quarter.

Strong growth in traditionally export-led Germany helped the 16-nation eurozone's economy to grow 1pc in the second quarter over the previous three months.

Telegraph, September 2010

Russian Billionaire Awarded Cypriot Citizenship

Thu, 02 Sep 2010 12:53:00 GMT

Russian billionaire Abramov gets Cypriot citizenship

Cyprus becoming a millionaires’ playground Russian Foreign Minister on two-day visit Instant citizenship costs only €17 million.

Twenty five foreign businessmen have been given Cypriot citizenship, including the Russian billionaire Alexander Abramov, in exchange for their “services to the Republic of Cyprus.”

Most of the businessmen are Russian, like Abramov, 51, who co-founded and chairs the steel giant Evraz, and who is the world’s 121st richest person with a net worth of $6.1 billion.

Interior Minister Neoclis Sylikiotis announced the Russian businessman’s naturalisation to the council of ministers yesterday, saying “Mr Alexander Abramov has offered the highest level of service to the Republic of Cyprus, and considering his business activities, naturalisation is in the public interest.”

According to media reports, Abramov visited Cyprus for the first time in June 2002, and has since visited the island on several occasions. In March 2006, he received a Category F immigration Visa, which is open to independently wealthy aliens.

However, Interior Ministry permanent secretary, Lazaros Savvides, said yesterday that according to legislation introduced in 2007, the cabinet can grant Cypriot citizenship, at their discretion, to anybody who fulfilled certain criteria.

In addition to being at least 30 years old and having no criminal record, applicants must fulfil one of several financial conditions.

For example, applicants are eligible if they have an immediate investment in property or factories in Cyprus of €25.7 million or more. Alternatively, they can apply if they have set up a business on the island that has turned over more than (€85.7 million in the year preceding their application.

Non businessmen, and wealthy owners of smaller businesses in Cyprus are also eligible to apply if they have personal or company savings in Cyprus of more than €17.1 million or, if their direct investment, business activities and personal wealth are more than €25.7 million.

Finally, Savvides said, foreigners can become citizens if they have introduced large scale innovative technologies or founded a large scale research centre in Cyprus.

With €6.1 billion in the bank, Abramov is eligible to apply on the basis of his personal wealth; however, the Evraz company has also invested substantial investments in Cyprus. In 2008 the company announced its acquisition of a 51.4 per cent stake in the Cyprus based company, Palmrose for USD $1.06 billion (€0.83 billion), and as of June 2010 Evraz held minority stakes in two Cypriot scrap metal companies , EKV Invest (9.6 per cent) and RVK Invest (42.6 per cent). Evraz also has a 50 per cent stake in Cyprus based Streamcore Limited, which had net assets of $62 million in September 2009.

Abramov is a former graduate of Moscow institute of Physics and Technology and research physicist. He is also rumoured to have headed Vladimir Putin’s presidential campaign in 2002, and is married with three children. Evraz Holdings is one of the world’s largest vertically integrated steel producers.

Financial Mirror, September 2010

UK Ecomony Growth

Fri, 27 Aug 2010 09:51:00 GMT

UK economy grows at fastest pace in nine years

Britain's economy expanded at an even faster pace in the second quarter than previously thought as growth hit a nine year.

The Office for National Statistics (ONS) on Friday said gross domestic product grew at 1.2pc between April and June, unexpectedly upgrading its previous estimate of 1.1pc.

The advance - the strongest since the same figure was achieved in the first quarter of 2001 - was attributed to record-breaking gains in the construction sector, which helped lift the country's industrial production.

Recovery hopes were given a further boost this week from corporate Britain, as a slew of strong results from Britain's big companies appeared to contradict the gloomy outlook of many economists.

However, experts remained cautious on Friday, warning the second quarter would represent a peak in the rate of recovery and any further gains of this magnitude were unlikely.

"After such a large gain in Q2, and with the Government cancelling some spending on public infrastructure, it would be foolhardy to expect another large gain in the next quarter," Malcom Barr, economist with JP Morgan, told PA.

Philip Shaw, economist at Investec, said the revision made "little difference" to the conclusion that the economy expanded "very rapidly" over the quarter.

He added: "Recent indicators suggest the third quarter got off to a good start, so although the pace of expansion in the quarter as a whole seems highly unlikely to match that in Q2, it is possible nonetheless that the UK notches up a very respectable pace of output."

The pound fell more than 0.2pc against the dollar after the report, which showed slower services growth than previously estimated and a drop in fixed investment. The currency traded at $1.5508 as of 9:34am in London.

The yield on the benchmark two-year government bond was down 2 basis points on Friday at 0.618pc.

Telegraph,August 2010

Ryanair UK Flights to Cyprus Halted

Thu, 26 Aug 2010 12:07:00 GMT

Operator power grounds Ryanair’s Cyprus ambition

UK tour operators have fought off plans for Ryanair to offer subsidised flights to Cyprus from the UK as part of a cut-price deal on airport charges at Larnaca and Paphos.

The carrier has announced services from Charleroi (Belgium) to Larnaca and will add flights from Stockholm or Madrid shortly – but no UK services.

UK operators had threatened to pull out if the deal was extended to Britain, claiming additional capacity was not needed. Ryanair had wanted to fly from Stansted.

Sunvil Holidays managing director Noel Josephides said: “We tour operators said ‘If there is a UK route, there will be hardly any tour operator capacity to Cyprus’.

“Thank goodness the Cyprus Tourism Organisation (CTO) understood there is enough capacity already from the UK.”

Ryanair pledged to deliver 500,000 passengers to Cyprus over five years in return for a deal on top of an existing subsidy to airlines of 25% on landing charges and €4 (£3.30) per passenger.

A Ryanair spokesman confirmed the agreement, but declined to discuss the carrier’s expansion to Cyprus saying the issue was “very sensitive”.

CTO UK director Orestis Rossides said: “The UK tour operators were upset. We did not want anyone to cannibalise the market.

“This does not affect the UK for the time being.”

Alfred van der Meer, chief executive of Hermes Airports, which runs Larnaca and Paphos airports, told the Cyprus Mail: “We are giving Ryanair a discount on the passenger seats they don’t use, if they deliver on annual targets.”

Travel Weekly, August 2010

Ryanair Announce New Routes to Cyprus

Thu, 19 Aug 2010 09:10:00 GMT

Ryanair promises 500,000 arrivals in five years

Low-cost airline Ryanair’s two new routes to Cyprus from November will deliver 60,000 passengers a year to as part of an agreement that will increase tourist numbers by 500,000 over the next five years, the airline said yesterday.

Ryanair spokeswoman Laura McCormack said yesterday that the airline will commence flights between Brussels and Cyprus on November 3. “We have one route from Larnaca to Brussels (Charleroi) and a second route to be confirmed very shortly, which will provide visitors to Cyprus with really low fares for the first time. The two new Cyprus routes will deliver 60,000 passengers a year to Larnaca, and will create up to 60 jobs”, she said.

Tickets for the Brussels service, which will operate on Wednesdays and Saturdays, will initially cost from €34.99 including all taxes.

Hermes Airports CEO Alfred van der Meer said that “what Ryanair are offering to the market is fantastic price levels, and that is what will bring new people, new markets to Cyprus. They have committed to bring half a million tourists to the country over the next five years. When you consider that each tourist will spend €700, that’s €350 million added to the economy of Cyprus – that is what Ryanair is bringing us.”

Van der Meer said that the opening of the new Larnaca airport last November was a milestone, as “it fundamentally changed the product that Cyprus has to offer to visitors, tourists and the Cypriot people. But it didn’t change the market – it did not necessarily bring a lot of new people to the country. I think that with the introduction of Ryanair we will have more milestones, because we will see a fundamental change in the market. The product that Ryanair offers is a different product, which will open new markets. Young people who before maybe flew once a year will now fly three or four times a year for the same price.”

“Of course, they are not doing this because they like us so much, they are doing it to make money, and I think that if we work well together we can all make money”, he added.

After more than three years of on-off discussions, and several weeks of hard negotiating recently between Ryanair, Hermes Airports – which operates Larnaca and Paphos airports – the CTO and the government, the Dublin-based airline made its final decision on Monday evening

Cyprus Mail, August 2010

Cyprus Quarterly GDP Growth

Mon, 16 Aug 2010 09:41:00 GMT

Cyprus quarterly GDP growth inches up in Q2

Cyprus just clinged onto growth in the second quarter, with seasonally adjusted GDP growth rising in real terms by 0.4% over the previous quarter in April-June according to the Statistical Service’s ‘flash estimate’.

Cyprus clambered out of recession in the first quarter with a q/q growth rate of 0.3%.

The Statistical Service said that the apparent improvement was mainly seen in banking activities and the (other) services sector, as well as the improved performances for the rest of the economy.

Tourism and Trade showed “encouraging results” while it said that there were also signs of improvement for the first time in construction.

Growth is still negative when compared with the year earlier, however.

In the second quarter of 2010, real GDP growth on a seasonally adjusted basis declined by 0.2% compared with the same period of 2009.

Nevertheless, this was a milder decline than the 1.4% recorded in the first quarter.

Financial Mirror,August 2010

Tourism Revenue Increases

Thu, 05 Aug 2010 09:23:00 GMT

The Cyprus tourism revenue increased in June from the previous year.

The revenue from tourism increased 11.4% year-on-year in June, faster than a 4.2% growth in the previous month, the Statistical Service of the Republic of Cyprus said on Wednesday. The tourism revenue amounted to EUR 195.3 million, up from EUR 175.4 million last year.

For the January to June period, the tourism revenue increased 2.2% compared to the same period of the previous year. The tourism revenue totalled EUR 578.3 million.

Meanwhile, the tourist arrivals increased 5.5% on an annual basis in June, faster than a 4.7% growth in the previous month. For the first half of the year, tourist arrivals decreased 0.6% over a year ago

Daily Markets, August 2010

Further Interest in Cyprus Tourism Sector

Wed, 04 Aug 2010 11:54:00 GMT

Kuwait and China show interest in Cyprus

Kuwait and China have shown interest in investing in Cyprus tourism, real estate, container management and energy sectors according to the Minister of Commerce, Industry and Tourism Antonis Paschalides.

There are encouraging signs of interest from Kuwaiti investment funds in investing in Cyprus’ tourism and real estate sectors, Commerce and Tourism Minister Antonis Paschalides said yesterday.

We received information that there are investment funds in Kuwait that are interested, and then our Foreign Ministry also told us there was interest there”, he said.

Paschalides added that in view of this positive news, a trade mission to Kuwait that was programmed for 2011 has been brought forward to October-November this year, “so as not to miss this particular opportunity”.

The Commerce Minister will head up a sizeable delegation of business and government representatives. The plan is to allocate one day for a series of presentations to Kuwaiti officials and businessmen on the investment opportunities to be found in Cyprus, as well as having a number of separate meetings with interested parties.

Paschalides said that specific interest in the island’s tourism and real estate sectors has been indicated.

The Minister declined to give further details, saying “we have two or three things in mind, but we do not want to say any more, as our tactic is to be cautious until we close the deal”.

Paschalides said that there is also interest from China in a number of sectors of the island’s economy.

“Various state organisations and companies have come to take a look at us regarding specific sectors such as tourism, real estate, container shipment, but also energy”, he said.

He added that his Ministry and others are making a real effort to determine which particular organisations are involved, so that a formal visit to Cyprus by their representatives can be arranged.

Paschalides said that he had already invited “various very senior officials” to Cyprus regarding the tourism sector, and in a few weeks he will know exactly when they can be welcomed to our country.

Cyprus Property News, August 2010

Cyprus Attracts Russian Tourists

Thu, 29 Jul 2010 10:43:00 GMT

Number of Russian tourist coming to Cyprus increases

An increase number of tourists from Russia choose Cyprus for their holidays. According to the Russian Travel Agents Association (ATOP) tourism flow from Russia to Cyprus records a 40% increase.

The upward trend in tourist arrivals to Cyprus is confirmed by the data regarding June, which show an increase of 53% compared with June 2009, thus uplifting Russian contribution to Cyprus tourism to 9.7%. The island’s bigger tourism market remains Great Britain with 46.6% of total arrivals.

ATOP considers that the total of 86.000 Russian tourist that visited Cyprus constitutes an indication of the upward trend, since the increase reaches 28% compared with 2008, which is one of the best years for tourist exchange between Russia and Cyprus.

The demand of Russian tourist for holidays in Cyprus will increase approximately by 60% and this will be a new record, a tourist company’s manager projects.

Financial Mirror,July 2010

Investment into Cyprus Energy Demands

Fri, 23 Jul 2010 09:38:00 GMT

Vitol to Build Cyprus Oil Product Terminal For Over EUR100 Million

Vitol Tank Terminals International, a unit of global commodities trader Vitol Holding B.V., Thursday announced plans to build an oil product terminal in Vassiliko, Cyprus for more than EUR100 million.

The project is expected to be completed in 2012 and will have a capacity of around 340,000 cubic meters for storage of gasoline, diesel, jet fuel and fuel oil. VTTI will also operate the facility.

"The terminal will play an important part in supplying regional markets to meet growing energy demand, as well as supplying the local market in Cyprus," Ian Taylor, chief executive of the Vitol Group, said in a statement. "While global trading conditions remain challenging, a world-class terminal built and operated in a professional way, will provide jobs and potential for long-term investment."

Construction will begin in the next few months, Vitol said.

VTTI owns and operates oil product terminals located in more than 11 countries. Its terminals have a combined capacity of nearly 6 million cubic metres, and the company aims to expand capacity to almost 7 million cubic metres by 2013.

Automated Trader, July 2010

UK Economy Growth

Fri, 23 Jul 2010 13:47:00 GMT

The UK economy grew by a faster-than-expected 1.1% in the second quarter of the year, according to official data.

The figure - a preliminary estimate from the Office for National Statistics (ONS) - was almost double the 0.6% growth rate expected by economists.

It was the fastest quarterly expansion since 2006, and marked a sharp pick-up in pace from the 0.3% growth of the first three months of the year.

Much of the growth came from the key services sector.

Within the services sector, which accounts for about three-quarters of the UK economy, business and finance posted its strongest rise in almost three years, rising by 1.3% over the quarter.

There was a big contribution from the construction industry, which grew at its fastest pace since 1963, in part because bad weather at the start of the year meant builders were catching up on work that should have taken place then.

“There are going to be some big swings in the quarterly numbers before the true pace of the recovery becomes clear “Stephanie Flanders Economics editor, BBC News

The only sector to register a fall was transport and communications - down 0.7% on the quarter following the impact of Iceland's volcanic ash cloud in April.

The ONS said the last time the UK had growth of more 1.1% in any quarter was in 1999.

The Chancellor, George Osborne, said the figures proved his plan to cut the public sector was right.

He said: "In the Budget, I set out a plan to restore confidence in our economy by dealing with the deficit, starting this year, and to rebalance growth from the public to private sector.

"Today's figures show the private sector contributing all but 0.1% of the growth in the second quarter, and put beyond doubt that it was right to begin acting on the deficit now."

BBC News, July 2010

Cyprus in Top 5 Retirement Destinations

Mon, 19 Jul 2010 14:46:00 GMT

Revealed: Top 5 places to retire abroad

A list of the top 5 places to retire abroad for holiday home insurance customers has been revealed.

Deciding where to retire abroad is a tough decision but Shelter Offshore has offered its view on the top five destinations.

France, Turkey and Cyprus all feature, while Belize and New Zealand also made the list, which was based on criteria including cost and standard of living.

Rated highly for its quality of life and fine cuisine, France tops the list and the expatriate advice website also praised the country's climate.

The affordability of Turkey is cited as one of the main reasons to retire there, while the stability of the property market is another pull factor.

Both halves of the divided territory of Cyprus are recommended as offering low tax rates on pension income, in addition to "excellent healthcare, [and] a high standard of living."

Estate agents Knight Frank also included France and Cyprus in their list of the top ten places to live abroad, while Spain also made their list.

Intasure, July 2010

Wind Turbines Power Cyprus

Fri, 16 Jul 2010 12:46:00 GMT

Wind power comes to Paphos

Cyprus’ first independent green electrical power has been produced in Paphos, signalling the operation of a major contributor of clean energy in a fossil fuel-dependant island. The first of the planned 41 turbines at Orites wind farm was turned on for about an hour on Wednesday and produced the first independent renewable energy for Cyprus using the wind.

The electricity was then fed onto the main power grid. “It was a proud moment. I feel as if I’m dreaming,” Akis Ellinas, the managing director of Orites wind farm, said yesterday.

The 41 wind turbines of the farm - the first of its kind in Cyprus and the largest in the region - will soon be providing the island with 83MW of renewable energy.

Orites is regarded as a big project for the wider Eastern Mediterranean region, as in Greece and Spain 20 to 30 MW production is regarded as a huge amount. At its peak, the total power consumed island-wide is between 1,000 and 1,200MW. Environment commissioner Charalambos Theopemptou highlighted the importance of the project due to its large capacity. “That is why Orites is very important and we want it to operate successfully,” Theopemptou told the Cyprus Mail.

It is understood that three other smaller wind farms are on the cards for Larnaca. The electricity authority will buy energy from Orites to help Cyprus reach its longer-term EU renewable energy target of 13 per cent by 2020. By 2020 renewable energy should account for 20 per cent of the EU's final energy consumption. “This project will help to remove Cyprus from the relevent black list and cover the requirements of the European Union for renewable energy, and it was a big deal to switch on the first turbine,” said Ellinas. ”The whole of Europe is talking about it, not least because it usually takes about 18 to 20 months to erect a project of this size and it took us less than a year.”

The project has been a labour of love for the 49-year-old graduate of the London School of Economics. “Next week I will add another one or two turbines, and so on each week, until they are all operational.” Ellinas expects the park to be fully operational by the end of August and hopes President Christofias will be present to inaugurate it in September or October.

The European Investment Bank provided 50 per cent of the loan under a conventional project finance structure. Four other banks have also invested in the scheme. The first phase of the project alone cost €200 million, Ellinas said “I have always been concerned about climate change and when Cyprus joined the EU, I saw it as a perfect opportunity,” said Ellinas. “Part of the EU conventional agreement stipulated that we should have a six per cent renewable energy source by 2010. I am fascinated by green energy, and so six years ago I started developing this project.”

Ellinas estimates that wind capacity will eventually power 50,000 households as well as saving 100,000 tons of carbon emissions and produce 120,000 kilowatt-hours of energy annually. Cyprus doesn’t experience a lot of wind, but according to Ellinas approximately 1,600 hours is noted annually and the Vestas 2MW V90 turbines which were installed will all help. Orites will also benefit from the new 20-year fixed rate tariff recently approved by the government and the EU Commission.

Cyprus Mail, July 2010

Cyprus Arrivals Increase in July

Mon, 12 Jul 2010 13:04:00 GMT

Cyprus tourism arrivals rebound again in July

Tourism arrivals rose for the second straight month in June, giving hope that the worst of the downturn in the tourism sector might be over.

According to the passengers’ survey carried out by the Statistical Service, arrivals of tourists rose by 5.5% over the year earlier to reach 275,280 in June 2010 compared with 260,931 in June 2009.

In May, arrivals had risen by 4.7% after a steep drop of 23% in April, probably largely as a result of volcanic ash disruption.

Arrivals from the UK, still by far the largest market, rose by 3.0% in July, from 129,032 in June 2009 to 132,893 in June 2010.

There was a strong rise of 53.5% in arrivals from Russia, which is now the second largest market for tourists and is the strongest growing, with arrivals rising from 23,961 to 36,770.

Despite or even perhaps because of the crisis in Greece, there was a 13.3% increase in arrivals from Greece, from 11,322 to 12,831.

Rising bank deposits from other euro area residents combined with anecdotal evidence suggest that Greeks have been visiting Cyprus in order to open bank accounts in what is seen as a safe haven.

For the first six months of the year, arrivals were down by 0.6% at 877,958 compared with 883,002 in the corresponding period of 2009.

Arrivals from Russian during this period rose by 40.8% while arrivals from the UK fell by 5.2%.

Financial Mirror, July 2010

Cyprus Economy Evaluated by International Organisations

Wed, 07 Jul 2010 12:36:00 GMT

Cyprus satisfied with evaluation of its economy by international organisations

Finance Minister Charilaos Stavrakis has expressed satisfaction over a series of recent reports by international rating organisations as Fitch and Moody's concerning the economy of Cyprus.

He also said that the assessments of the International Monetary Fund about the Cypriot economy are aligned with the views of the Finance Ministry “that we are passing a period of stability” concerning the economy and that the minor recovery of the economy during the first three months of 2010 will continue during the second half of the year and will accelerate in 2011.

Stavrakis also said that the government aims at gradually withdrawing the emergency 400 million euro package of measures aiming to boost the economy of Cyprus.

He also noted that during the first five months of the year the public deficit dropped by 0.6% of the GDP on an annual basis.

Stavrakis said that after the positive response of the European Commission to the Republic of Cyprus’ Stability Programme, Cyprus' very high creditworthiness was confirmed by Fitch international ratings agency.

He also recalled the Moody’s evaluation, which describes in its preliminary report the current situation of the Cypriot economy in a positive way , while he also noted that the report of the International Monetary Fund (IMF) includes many positive comments about the Cypriot economy and is more positive than IMF reports the for Cyprus during the previous years.

Stavrakis assured that the government and the Finance Ministry will continue responsibly their dialogue with all competent parties and political groups with a view to build on this positive assessment of the economy of Cyprus.

To a remark that the IMF has asked for some courageous decisions by the government, Stavrakis said that some very courageous decisions have already been taken by the government.

Replying to a question, Stavrakis said that according to the Statistical Service the public deficit dropped during the first five months of 2010 by 90 million euro or 0.6% of the GDP, compared to the previous year.”

Financial Mirror, July 2010

First-time Buyers Fleeing Overseas

Tue, 06 Jul 2010 10:47:00 GMT

1 in 4 first-time buyers want to flee abroad

A quarter of all first-time buyers in the UK are considering purchasing property overseas and nearly three quarters (70%) are abandoning plans to buy UK property because of inflated prices, according to new research out this week from Moneycorp.

Moneycorp says that young British property buyers trying to get on the housing ladder are being forced to look overseas for a more affordable alternative.

“Despite turbulent economic times our report shows that a staggering one in four first-time buyers are still considering investing in overseas property at the moment,” says Moneycorp Private Client Dealing Manager, David Kerns.

“This is due in part to the high cost of UK housing, which has recovered over 12% since the lows seen in 2008. (The prices rises) make it far harder to get onto the UK property ladder,” he adds.

“When looking to buy property overseas almost one third (31%) of first-time buyers consider currency to be of top priority. This is unsurprising given that sterling is facing uncertain times at the moment. While the pound is currently rallying at a 19-month high, it has been a bumpy couple of years.”

The currency specialist’s third biennial report reveals that over a third (34%) of first-time buyers have been put off buying in the UK by the volatile housing market. The number of investments in UK properties remains low and sales are unlikely to pick up in the near future unless house prices drop.

“Britons have been treading on uncertain ground due to sterling volatility against the major currencies,” says Moneycorp with the pound having fallen in value by almost 17 percent against a basket of currencies during the last two years, before peaking to a 19-month high against the euro this week.”

In May 2008 €100,000 would have cost an investor £78,500, whereas today the same amount of currency would cost £81,000. Despite this, the research shows that many home-buyers are still prepared to look overseas.

The Moneycorp report was researched by OnePoll and it surveyed 2,000 people in the UK during May 2010, all of whom were in the process of buying their first property.

Opp News,July 2010

Increased Tourism Will Continue

Mon, 05 Jul 2010 15:10:00 GMT

Tourist arrivals expected to increase, says Cyprus official

Commerce, Industry and Tourism Minister Antonis Paschalides said he is confident that, in the next few months, tourist arrivals and revenue from tourism will increase.

“There are positive signs about tourism from various countries. We simply cannot be complacent, we have to continue the effort which we have begun to attract more tourists, in line with our strategic planning”, he said.

Paschalides, who was speaking to journalists after a memorial service for clergy and laymen killed during the island’s rule under the Ottomans, said “we expect and hope that in the next three or four months tourist arrivals and revenue from tourism will increase”.

Asked to comment on problems the tourist industry is facing, Paschalides said such difficulties cannot help Cyprus’ image abroad and added: “Having said that, I must say that I am optimistic and believe in the responsible behaviour of everybody involved in the tourist industry and expect that at the end of the day the right decisions will be made”.

Financial Mirror, July 2010

Tourism Revenue Increases

Fri, 02 Jul 2010 08:00:00 GMT

Cyprus sees increase in tourism revenue

Revenue from tourism recorded in May an increase of 4.2%, according to the Statistical Service. On the basis of the results of the Passenger Survey, revenue from tourism reached €164.8 mln in May compared to €158.1 mln in the corresponding month of the previous year, an increase of 4.2%.

For the period January – May, revenue from tourism is estimated to €383.0 mln compared to €390.4 mln in the corresponding period of 2009, recording a decrease of 1.9%.

Financial Mirror, July 2010

Moderate CGT Change Relieves Market

Wed, 30 Jun 2010 08:01:00 GMT

Market relieved by moderate CGT change

There was widespread relief in the property sector this week when the Emergency Budget only increased the capital gains tax from 18% to 28% for higher ratepayers rather than the predicted 40% to 50% on non-business investments. CGT will stay at 18% for basic and lower rate taxpayers.

Jonathan Thompson, a partner at KPMG, said: “This is about as good as it could have been given the worries about a higher rate of capital gains tax’’.

“The Chancellor has given the industry a much-needed lifeline” says Phil Calderbank, director of lettingsearch.co.uk. “The fear was that landlords would panic and rush to sell their properties before the tax came in, meaning that there would be a shortage of good quality rental properties on the market.”

Investors and landlords “place the greatest importance on the capital gains. Although some landlords will be affected by this, we are hoping that the majority will not be put off and will continue to invest in the buy-to-let market and continue to play a major part in the property market’s recovery,” says Calderbank.

Kevin Wilkes, Managing Director of the Worldwide Property Group, agrees adding “ a much lower than expected CGT rise means owners of second properties will be somewhat relieved. The fear of dramatic increases has proved unfounded and I welcome the move to leave CGT unchanged for those in lower tax brackets. Property investment offers an exceptional route to greater financial independence for many people, and sensible investors will have factored changes such as this increase into their investment strategies.”

The immediate implementation of the tax rise also means a rush to sell buy-to-let properties now seems unlikely.

Yolande Barnes, head of residential research at Savills, explains that “a delayed or phased introduction would have led to second home owners and investors selling to beat the deadline and might have increased supply, depressing prices.”

Jonathan Bramwell, Head of Country at Prime Purchase, predicts that “property owners who expected CGT to rise to 40% or 50% and who rushed through sales of second homes may now regret that decision. We are now unlikely to see a glut of property of 2nd homes coming to the market”

For a higher rate UK taxpayer who bought the average priced home ten years ago as a second home or investment, and who sells it tomorrow, the changes will mean that they pay an extra £7,500 compared to what they would have paid yesterday. This represents an extra 56% in tax on the £85,000 gain.

Despite this, there is still concern about the long-term effect of the rise on the housing market. Miles Shipside, commercial director of Rightmove said “the rise could permanently dampen the enthusiasm of the all-important investor market and lead to an increase in rental prices.”

In particular, buy-to-let investors, who played an important role in propping up the housing market over the last 20 years are likely to suffer the most which could hit the future supply of rented housing.

OPP News, June 2010

Trade Relations with China Strengthened

Fri, 25 Jun 2010 12:24:00 GMT

Cyprus and China to further enhance their trade and financial relations

Cyprus Commerce, Industry and Tourism Minister Antonis Paschalides and Chinese Deputy Minister of Commerce Zhon Shan reviewed bilateral trade relations between Cyprus and China and looked into ways of increasing exports of Cypriot products to China.

Delegations of the two countries under the two officials held talks regarding issues which concern the two Ministries. A trade agreement was also signed between Cypriot company Medochemie and Chinese company MEHECO for the export of pharmaceutical products to China.

In statements after the meeting, Paschalides noted that during the talks ''we expressed our thanks to the government of China and the Chinese people for their steadfast, continuous and consistent support of China to the Cyprus problem in all national fora.''

Paschalides also said that the two sides believe that prospects to improve and enhance trade, financial and investment relations between the two countries are very good.

On his part the Chinese Deputy Minister expressed his satisfaction for visiting Cyprus and noted that they had a sincere and constructive exchange of views regarding the further enhancement of the trade and financial relations between China and Cyprus.

He noted that both ministries are committed to strengthening the cooperation between the two countries in the fields of trade, investments and tourism, for which, as he underlined, there are huge prospects.

Furthermore he said that the government of China is encouraging investments of Chinese companies to Cyprus.

Financial Mirror, June 2010

UK Budget Announcements

Tue, 22 Jun 2010 12:42:00 GMT

UK Budget 2010

Chancellor George Osborne has increased VAT from 17.5% to 20% as he unveiled the biggest package of tax increases and spending cuts in a generation.

On capital gains tax, Osborne says low and middle-income savers will continue to pay capital gains tax at 18%. But top-rate tax payers will pay at 28%. This is effective from midnight 22/06/10

The 10% rate for entrepreneurs will be extended to cover the first £5m of gains, not the first £2m of gains.

Raising CGT above 28% would result in the Treasury getting less money, he says.

He also looked at tapers (an option proposed by John Redwood). But they would have been self-defeating, because they would have been too expensive, he says.

There will be fiscal tightening of £40bn by the end of the parliament, in addition to the previous government's plans.

Next year VAT will rise from 17.5% to 20%. "The years of debt and spending make this unavoidable," he says.

This will generate over £13bn a year by the end of the parliament.

Food and children's clothing, as well as other zero-rated items like books, will remain exempt.

Growth in the UK economy is estimated to be 1.2% this year and 2.3% next year; then 2.8% in 2012

Qatar Agreement with Cyprus

Fri, 18 Jun 2010 14:36:00 GMT

Ok for bill on Qatar agreement with Cyprus

The House of Representatives yesterday by majority a government bill enabling the Council of Ministers to alienate state land.

The Bill allows the Government to proceed with the agreement signed recently between Cyprus and Qatar for the creation of a joint venture for a major project in Nicosia, which will include a five – star hotel, apartments, offices and a commercial centre.

The bill passed after the approval of an amendment by ruling AKEL clarifying that this type of land arrangement only applied to this specific case.

AKEL and DIKO MPs voted in favour of the bill, while 20 MPs from the opposition parties namely DISY, EDEK, EVROKO and the Greens abstained from voting. There were no votes against the bill.

Cyprus and Qatar signed in April two agreements and four memoranda of understanding, covering sectors such as air services and the creation of a joint venture for a project opposite Hilton Hotel in Nicosia, including a five-star hotel, a shopping mall, offices and apartments.

The agreements and memoranda were signed at the Presidential Palace in Nicosia during official talks between delegations of Cyprus and Qatar, headed by President of the Republic of Cyprus Demetris Christofias and Emir of Qatar Sheikh Hamad Bin Khalifa Al Thani.

Financial Mirror, June 2010

Tourism Rebounds in May

Thu, 17 Jun 2010 07:24:00 GMT

Cyprus tourism rebounds 4.7% in May

Tourism arrivals in Cyprus rebounded in May after a plunge in April that was exacerbated by the volcanic ash episode.

On the basis of the results of the Passengers Survey, arrivals of tourists reached 258,014 in May 2010 compared with 246,546 in May 2009, recording an increase of 4.7%.

An increase of 42.5% was recorded in tourist arrivals from Russia (from 19,412 in May 2009 to 27,668 in May 2010) and 10.6% increase from Sweden (from 14,927 to 16,512 this year).

However, a decrease of 2.4% was recorded in tourist arrivals from the United Kingdom (127,061 in May 2010 compared with 130,154 in May 2009) and a falloff 0.1% in arrivals from Greece (10,524 compared with 10,531 last year) .

For the period January - May 2010 arrivals of tourists fell by 3.1% to 602,678 compared with 622,070 in the corresponding period of 2009.

Financial Mirror, June 2010

Russian Exports Increase in Cyprus

Wed, 16 Jun 2010 07:41:00 GMT

Paschalides promotes Cyprus in Russia

Cypriot exports to Russian have increased by 55 per cent in the past three years, despite the small decline in 2009 which was due to the recent economic crisis. Commerce Antonis Paschalides has said.

“Total imports from Russia are nearly double our exports,” added the minister who was addressing the Moscow Business Forum in Russia.

He said the value of Russian investments in Cyprus reached €2 billion in 2008, while the value of Cypriot investments in Russia during the same year was more than €1.5 billion.

Paschalides also said that in 2009 150.000 Russians visited Cyprus, while in the same year 49.000 Cypriots visited Russia.

“It is worth mentioning that a large number of Russians do not only visit Cyprus as tourists, but also use our island as a pleasant place to reside and be actively involved in various businesses,” he said.

Paschalides said that Russian companies could benefit from the numerous tax advantages and other incentives to establish in Cyprus for the supply of existing and newly emerging markets in the region.

Cyprus Mail, June 2010

Eurozone Output Rises Sharply

Tue, 15 Jun 2010 11:19:00 GMT

Euro zone April output at record, points to strong Q2

Euro zone industrial output in April surged year-on-year more than in any month in almost two decades, data showed on Monday.

The European Union's statistics office Eurostat said industrial production in the 16 countries using the euro rose 0.8 percent month-on-month for a 9.5 percent year-on-year gain.

The annual jump is the highest since measurements for the eur zone began in January 1991, Eurostat said.

Economists polled by Reuters had expected a 0.5 percent monthly increase and a 8.7 percent annual rise.

"April's sharp rise in euro zone industrial output indicates that the recovery in the export-sensitive industrial sector has been little affected so far by the region's fiscal woes," said Martin van Vliet, economist at ING.

"The industrial sector appears to be on track to expand at a swift pace in Q2," he said.

Eurostat also revised upwards production data for March to a 1.5 percent monthly rise and a 7.7 percent year-on-year gain from 1.3 percent and 6.9 percent respectively.

The April gains were led by output of intermediate goods which jumped 2.2 percent on the month and 16 percent year-on-year. The 16 percent rise is also the highest since January 1991, Eurostat said.

"The manufacturing sector has been the leading light of the euro zone economy so far in 2010, benefiting from improved domestic and, especially, export demand as well as inventory rebuilding," said Howard Archer, economist at IHS Global Insight.

"In addition, the marked retreat in the euro from last November's peak of $1.51 to recently trade at a four-year low of $1.214 is not only helping exporters but is also making euro zone manufacturers more competitive in domestic markets," he said.

But production of consumer goods, both durable and non-durable, fell 0.1 percent and 1.2 percent respectively month-on-month.

"(This) highlights the fact that persistently soft consumer spending has held back euro zone recovery, indicating demand among consumers was still fragile," Archer said

Financial Mirror, June 2010

ECB Interest Rates Held

Thu, 10 Jun 2010 12:56:00 GMT

ECB holds eurozone interest rates at 1%

Interest rates are at their lowest in the ECB's 10-year history.

The European Central Bank (ECB) has held eurozone interest rates at a record low of 1% for the 10th month running, as expected.

It comes a day after EU finance ministers met to discuss cuts in budget deficits across the continent.

Most EU governments will begin fiscal austerity this year or in 2011.

Spending cuts and tax rises are likely to cool eurozone growth and inflation, meaning the ECB can afford to keep interest rates low.

Earlier, the Bank of England announced that it had kept UK rates on hold at 0.5%.

BBC News, June 2010

Cyprus Emerging From Recession

Wed, 09 Jun 2010 13:27:00 GMT

Cyprus creeps out of recession in Q1

Cyprus crept out of recession in early 2010, ending a run of five successive quarters of economic contraction on a rebound in tourism and banking.

The island, one of the smallest euro zone economies, saw gross domestic product expand by 0.1 percent in the first quarter of 2010 on a quarterly basis, concluding its first recession for more than three decades.

The statistics department figures were a revision from a 0.2 percent contraction reported for the first quarter in a flash estimate issued on May 12.

Banking, services and tourism, a sector which represents about 11 percent of the island's economy, all improved in the quarter, the statistics department said.

On a yearly basis real GDP showed a negative 1.6 percent year on year on the first quarter, from a 2.9 percent contraction year on year in the last three months of 2010.

"This (year on year figure) is consistent with forecasts of zero growth for the year, though I wouldn't be surprised if annual growth in the year turns positive," said Yiannis Tirkides, Manager of economic research at Marfin Laiki Bank in Nicosia.

The European Commission forecasts a 0.4 percent contraction in its 17.2 billion euro economy this year, following a yearly contraction of 1.7 percent in 2009.

Tirkides said tourism was showing positive signs and that the island's international banking sector was also doing well.

"In the zero percent forecast I would include a range of values from growth of 0.5 percent to minus 0.5 percent," Tirkides said, referring to growth for the year

Interactive Investor, June 2010

Boost to Industry in Cyprus

Tue, 08 Jun 2010 10:26:00 GMT

Cyprus Industry Prepares for Boost

In tandem with celebrating its 50 years as a Republic, Cyprus is undergoing some exciting developments directly affecting the business travel sector via major projects including luxury hotels, golf courses, major Conference Centres, new restaurants, activity clubs and a lavish marina. Having recently overhauled both international airports, and as an already established destination for seminars and conferences, these major projects seek to boost the reputable portfolio of this beautiful island. As Olga Xanthou-Kondo, Managing Director of Premier DMC, a Cyprus destination management company with over 20 years experience in the local industry states:

“These new developments show the continued innovation and growth regarding services in Cyprus, which can appeal to yet another target audience of our clients, the event organisers. Our job as a Cyprus DMC is to suggest the best possible ways in which to take advantage of these new services based on your event objectives.”

Further to recent discussions of government with neighbouring Qatar, Cyprus is moving ahead with construction of a luxury development in its capital Nicosia. This will include a five star hotel, apartments and offices spread over 50,000 sq metres of prime real estate in the business centre of the capital. Its estimated value is over $150 million and the project is aimed at the increasing numbers of visitors to the island. The joint venture deal with Qatari Diar Real Estate Investment Company and the government will add fantastic business facilities and all accompanying resources to the capital.

Meanwhile the island’s second largest city, Limassol, located on the south coast, has already started construction on a 300 million euro luxury marina. The marina will house several hundred births, restaurants, cafes, shops and a stunning conference centre, all overlooking the waterfront, providing a major boost to not only Cyprus but the entire Mediterranean and Middle East regions due to the prime strategic location of the island. Private villas with moorings and luxury apartments geared towards the yachting market will also be available as real estate options. Expected to be operational in Autumn 2012, the marina will be run by world renown marine leisure management Camper & Nicholsons. Olga says: “This ambitious tourist development follows the recent movement of the island aimed at providing luxury accommodation and accompanying upgraded services to cater for special interest tourism and in particular business travelers. The exceptional conference facilities at the marina are expected to give a real boost to the Cyprus meetings and incentives sector.”

Last but not least, in September of this year, Cyprus celebrates its 50 years of independence as a Republic. Accompanied by island wide cultural events, a formal celebration will take place at Eleftheria Square (Freedom Square) in Nicosia, attended by the president and marked by a host of artistic and musical events by Cypriot artists. Furthermore, the anniversary will be celebrated internationally, with events including a London musical recital and reception event at Lancaster House, where the historic Zurich agreement was signed, starting the process leading to the islands independence. Art exhibitions, theatre productions and concerts, again featuring Cypriot artists and internationally renowned orchestras are also planned in major world cities including Athens, Moscow, Brussels and Paris to name but a few.

PR-usa net, June 2010

Cyprus Challenging Mediterranean Golf Destinations

Fri, 04 Jun 2010 08:07:00 GMT

Five-star golfing on the five-star island of Cyprus

If you’re heading to the Mediterrean for a spot of golf, forget booking a hotel in Portugal or Spain- try Cyprus instead.

For years, Portugal and Spain have enjoyed something of a monopoly on the finest golfing destinations in the Mediterranean, but they may be about to face quite a challenge from Cyprus.

When it comes to golf, Cyprus is the new kid on the block – it only boasts three courses, but there are ambitious plans for another 14 in the next few years to turn the island into another golfer’s paradise.

If the impressive courses at Aphrodite Hills, Secret Valley and Minthis Hills are anything to by, Cyprus is well on its way to becoming a utopia for golfers of all abilities.

Just enjoying the beautiful Cypriot sunshine and countryside is a delight in itself but to do it while playing a round was pure heaven.

If you’re seeking a new challenge, Cyprus is definitely the place to take your clu8bs to. And make it snappy before the secrets out.

Best for: Year-round sun and three fine courses

Time to go: Spring and early autumn – it’s not too hot and island is in bloom

Don’t miss: Tombs of Kings, Paphos, a World Heritage site

Need to know: They drive on the left in Cyprus, so driving is no problem

Don’t forget: To go native for traditional Cypriot meze

Offaly Express, June 2010

Cyprus Becoming a Pivotal European Golf Destination

Wed, 02 Jun 2010 12:19:00 GMT

Elea Golf Club near Paphos, Cyprus, prepares to open in autumn

One of the most important new European golf courses of recent years, The Elea Golf Club near Paphos, Cyprus, will be officially opened this autumn by the course's designer and six-time Major winner Sir Nick Faldo.

The Elea Golf Club, is situated in Paphos and 8km from the international airport.

This magnificent par 71 golf course commands a striking location above the shimmering Mediterranean Sea and has been meticulously crafted through dramatic landscape, featuring imposing weathered outcrops of limestone that offer a unique character across the course.

Commenting on his vision for Elea Golf Club, Sir Nick Faldo said: "This golf course certainly has the potential to play a pivotal role in establishing this part of the world as a leading European golf destination.

"When we designed the golf course at Elea Golf Club we decided to put the emphasis on thoughtful, rather than big-hitting, golf and there are plenty of strategic riddles for the golfer to explore and unravel over all 18 holes."

The fascinating layout circulates through stands of mature carob and olive trees, while the dramatic outcrops of weathered limestone strike a contrast with the deep green of the seaside paspalum grass fairways and semi-roughs.

In a carefully planned ecological design, individual holes are fringed by undisturbed and un-irrigated swathes of colourful native 'garrigue' flora. This stunning visual effect invokes a truly Mediterranean feel, while retaining the ethos of a traditional and dramatic experience for the golfer. In addition, the wildlife of partridges, birds of prey, butterflies and lizards thrive on the benefits of this carefully protected environment.

Although Elea Golf Club will undoubtedly attract visitors from across Europe and beyond, the management team is also keen to develop a club-style atmosphere for the residents of Cyprus.

With this in mind, a limited number of annual memberships will be available and successful candidates will enjoy a host of benefits, including a members' trophy bar, wonderful locker rooms, a private terrace, preferential tee times and unlimited access to the golf academy, which will also offer the very latest computer-aided swing analysis equipment.

Ross Robertson added: "We have a responsibility to serve the community in Cyprus as well as attracting visitors from overseas. We are keen to develop a healthy membership that will enjoy all the benefits, both playing and social, of being a part of a golf club which epitomizes all that is good about our great game."

Since its launch in 1996, Faldo Design has grown into one of the leading golf course design companies in the industry.

World Golf News, June 2010

Capital Gains Tax Speculations

Fri, 28 May 2010 10:23:00 GMT

Retirement plans 'will be ruined if capital gains tax is raised'

Hundreds of thousands of people will have their retirement plans wrecked if ministers raise capital gains tax, experts warned yesterday.

The majority of private sector workers do not have a pension - but many have a buy-to-let flat, country cottage or foreign bolthole.

Most plan to sell up to fund their retirement but now face a higher tax bill if they do. At present, capital gains are taxed at 18 per cent, above a £10,100 threshold.

Tax slug: Britons who own a bolthole on the Costas that they plan to sell to fund their retirement would lose out if capital gains tax rates were increased

The coalition agreement between the Tories and the Liberal Democrats calls for the rate to move closer to the 20 per cent basic rate of income tax and the 40 per cent rate in the case of high earners. The threshold might also be lowered.

Fidelity International, which manages £150billion of individual and company savings plans, said this would have serious repercussions.

It wants the Government to leave the annual allowance of £10,100 in its emergency budget on June 22 to avoid penalising the prudent.

Gary Shaughnessy, UK managing director of Fidelity International, said: 'The potential impact is very large relative to the initial investment made.

'For many investors, this tax hit is likely to arise at the time they may be liquidating assets to pay for their retirement.

'Reducing the annual limit would mean many prudent, everyday long-term savers would be penalised for simply trying to provide for their own futures. It might help toward reducing the deficit in the short term but longer term if we disincentivise savings, we'll simply end up with more people reliant on the state during their retirement years.'

There are fears that the tax change will hit many second homeowners, or buy-to-let investors, before they can make alternative plans for their retirement.

If they have no pension, they may have no option but to keep on working, or to sell up and take the tax hit.

Dean Mirfin, group director of Key Retirement Solutions, an equity release company, said: 'People have got such a lack of trust in pensions. You will never take people away from wanting to use property as a form of future provision.'

Capital gains is not payable on a primary, or main, residence but must be paid on the sale of a second home.

A poll of more than 5,000 people, by the investment firm Scottish Widows, revealed the appeal of 'property pensions'.

One in four said 'income from the sale of a property' - including a main home - would help fund their retirement.

One in ten said money from a property was the most important part of their income in retirement. The poll - conducted before the capital gains tax issue emerged - found more than 50 per cent think property is 'very or quite safe'.

Daily Mail, May 2010

Profits Beat Forecast

Wed, 26 May 2010 08:49:00 GMT

Bank of Cyprus Q1 profit beat forecast

Bank of Cyprus Group (BOCY) reported net after tax profit of EUR 81 mln for the first quarter of 2010, easily beating and surpassing analyst forecasts of EUR 69-71 mln. At the same time there was a positive contribution to profit from all the markets in which the Group operates. Net interest income recorded an increase of 33% reaching EUR242 mln in the first quarter 2010, demonstrating the Group’s ability to achieve increased recurring income even in adverse economic conditions.

The Group maintained its strong balance sheet with high capital adequacy (Tier 1 ratio 10,2%), ample liquidity (loans to deposits ratio 90%) and satisfactory loan quality (ratio of non-performing loans at 6,0%).

The return on equity reached the satisfactory level of 13,3% and the efficiency of the Group was improved with the cost to income ratio reducing to 51,0%.

The performance of the first quarter 2010 reaffirms the appropriateness of the Group’s chosen business model, allowing it to continue its expansion tackling effectively the challenges of the difficult operating environment and be ready to take advantage of any opportunities that may arise.

The Group’s net interest margin reached 2,60% for the first quarter 2010, an increase of 47 basis points compared to the first quarter 2009 (2,13%) and 9 basis points compared to the fourth quarter 2009 (2,51%).

At 31 March 2010 Group loans and deposits recorded an annual increase of 8% and 4% respectively, while from the beginning of 2010 the increase amounted to 3% and 2% respectively.

The non-performing loan ratio reached 6,0% at 31 March 2010 compared to 5,6% at 31 December 2009 and the provision coverage ratio (provisions % non-performing loans) stood at 58%. The coverage ratio including tangible collateral amounted to 122% (109% taking into account tangible collateral valued at forced sale value).

Financial Mirror, May 2010

Cyprus Economy Shows Resilience

Tue, 25 May 2010 08:39:00 GMT

Cyprus economy 'resilient'

President Demetris Christofias has said that Cyprus’ economy, in spite of the world economic crisis and in comparison to other countries, has proven to be resilient, adding that the government does its utmost to ensure that the fallout from the global crisis will be restricted to the minimum.

Addressing the Annual General Meeting of the Cyprus Employers and Industrialists Federation (OEB), the President said that the economy has been affected by the world economic crisis, and will continue to be affected, noting that important sectors of the economy, like tourism and the property and construction fields, have been worst affected.

“However, in spite of the world economic crisis, our economy, compared to the economies of other countries, has proven to be resilient. We have done what we can and we will continue to do whatever possible to ensure that the present crisis will affect us at little as possible”, he stressed.

The President said that the government aims to maintain the credibility of the economy by limiting the negative impact of the world economic crisis, as well as by promoting Cyprus as an international financial centre.

He referred to attempts to attract foreign capital, especially immediate investment, saying that this could play an important role in the effort to render the economy more competitive.

Famagusta Gazette, May 2010

EU to Reinforce Economic Surveillance

Mon, 24 May 2010 10:33:00 GMT

EU faces battle over closer economic union

Agreeing on a $1 trillion safety net may prove the easy part of saving the euro now the European Union's leaders are turning to the divisive issue of tightening economic policy coordination.

The European Commission wants to reinforce economic surveillance and budget discipline to strengthen the euro zone and prevent a repeat of Greece's debt crisis in any of the other 15 countries that use the single currency.

But a battle is looming over the proposals even before the first meeting on Friday of a task force set up by EU President Herman Van Rompuy to come up with ideas on how to toughen EU budget rules and improve policy coordination.

A call by the Commission to see governments' budget plans before they are submitted to national parliaments has caused some countries to fear their sovereignty is threatened.

Divisions have also been exposed by a German ban this week on short-selling, despite a vow by Berlin and Paris on Thursday to work together on the euro zone crisis.

Concerns are growing that the EU, which represents more than 500 million people, will miss the best chance in years to agree on far-reaching reforms to stabilise the euro.

"The EU will have to cobble something together by the end of this year but it is an open question whether it will be meaningful or not," said Daniel Gros, director of the Centre for European Policy Studies think tank.

He said the 27 member states could find it is much harder to secure a deal on closer economic surveillance in talks that will last several months than it was to reach agreement on the 750 billion euro safety under pressure from financial markets.

"If you're in a situation where you have months to agree and everyone wants it be as perfect as possible on paper, but in reality containing as few constraints as possible on member states, the situation is completely different," Gros said.

He said a meaningful deal might also be harder to come by if the euro recovers after falls in recent weeks and the 16-country euro zone's sovereign debt crisis eases, reducing pressure on EU leaders to carry out far-reaching reforms.

The euro has enjoyed many successful years in the 11 years since its creation but it has been undermined by the debt crisis in Greece, which has won a 110-billion-euro ($136.6 billion) rescue package from the EU and International Monetary Fund.

The European Commission wants to tighten mutual fiscal supervision to ensure often-flouted rules on budget deficits and debt limits are respected, and wants faster and tougher sanctions imposed on budget sinners.

There is also no appetite for treaty change to reinforce the budget rules, after the EU spent almost a decade securing agreement on the Lisbon treaty reforming its institutions.

Some EU leaders see the debt crisis as a chance to finally pursue the dream of closer economic union that was set out by the founders of what became the EU. Such moves have not been discussed so intensely by policymakers for years.

But economic analysts say the EU leaders need to narrow the gap between their rhetoric about a united and integrated Europe and the harsh reality of national interests and politics if they are to make much progress towards closer integration.

"The problem is that when countries signed up to the single currency they were not made aware that it would require such integration. Political elites need to start explaining why it does," said Simon Tilford, chief economist at the Centre for European Reform in London

Financial Mirror, May 2010

Domestic Tourism a High Priority

Thu, 20 May 2010 08:50:00 GMT

Cyprus government promotes domestic tourism

Cyprus Minister of Commerce, Industry and Tourism Antonis Paschalides has said that for the government and for the Cyprus Tourism Organization (CTO), the promotion of the domestic tourism constitutes a high priority issue.

Addressing the 2nd Exhibition on Domestic Tourism, which takes place in the framework of 35th Cyprus International Fair, Paschalides said that the sector of the domestic tourism marked a remarkable increase lately.

Paschalides called on Cypriots to use the several notable offers provided by the Cyprus hotel owners and “meet Cyprus and its beauty. Cyprus, definitely offers great vacations to everybody”, he stressed.

He also noted that the government and the CTO promote several initiatives in order to contribute effectively to the development of the domestic tourism, such as the participation to an exhibition of the Association of Cyprus Travel Agents.

The great interest of the people that visit CTO kiosks in those exhibitions, proves that the prospects for further development of the sector of the domestic tourism, are huge”, Paschalides pointed out.

Referring to CTO’s initiative “Small escapes…Great experiences”, Paschalides said that the public embrace it. The initiative provides half board stay in one of the several hotels that participate in the plan, as well as an excursion with a professional guide and a lunch in one of the proposed restaurants.

Financial Mirror, May 2010

Expat Pension Changes

Wed, 19 May 2010 09:45:00 GMT

New pension to allow resi- property sales

British expats can for the first time buy residential property through a pension scheme thanks to recent changes to the law.

People living outside the country for more than five years can now move their retirement funds into qualifying non-UK pension schemes (QNUPS) – which are free from HMRC rules on what assets can they can invest in.

But while some IFAs have welcomed the model as a way for high net worth clients to avoid taxation, others are warning QNUPS could be a “disaster waiting to happen” if advisers try to use them as a loophole.

The use of personal pensions to buy commercial property – including foreign hotel rooms and resorts – has grown as people search for alternatives to traditional retirement income.

But investing in anything classed as residential is banned under HMRC regulations, which also cover the existing expat pension model of qualifying recognised overseas pension scheme (QROPS).

The new legislation allows British expats to escape this rule by moving funds into a pension outside tax office jurisdiction, once the five-year waiting period is up.

“The benefits of a QNUPS are that it has no reporting requirements and it doesn’t have to be in a country with a double taxation agreement with the UK,” said Paul Davies, director of Global Qrops Ltd.

“Although it’s not happened yet, QNUPS could be used for investing in different types of property.”

Crack-down?

The QNUPS model was created to exempt expat pensions from inheritance taxes. There are also no limits on the amount you can transfer into them or the age at which you can invest in them.

Some firms have begun to promote QNUPS as a way for UK residents to invest more than the maximum amount allowed in domestic pension.

But Gary Barlow, director of Gerrard Associates, warned that HMRC might crack down on such activity. “The industry is stepping forward too quickly,” he said.

This kind of investment would be an unintended consequence of something designed to prevent offshore pension holders becoming liable to inheritance tax.

“The Revenue has proved recently that it is willing to change the law retrospectively, which could leave people with a large tax bill. It could be a disaster waiting to happen.”

Opp, May 2010

Cyprus Golf Property in Demand

Tue, 18 May 2010 09:29:00 GMT

One of the newest and brightest prospects for golfers everywhere!

This golf property development in Cyprus is sure to be massively sought after and a popular destination.

Most Cyprus golf properties are located on or right by courses, off-plan or under construction, properties have dramatically increased in value over the last five years due to demand from the 50,000 expatriates now living in Cyprus and the increasing numbers of international property investors who are taking advantage of niche markets thereby maximizing their capital appreciation. The properties here in terms of value for money far exceed other properties around Europe. There have also been some very important trade negotiations with the Arab States all throughout 2009 and in to the early part of 2010 which have resulted in many trade agreements and new legislation which will allow Arab investors to buy and invest in Cyprus. This will without doubt increase the value of desirable property in Cyprus and any shrewd investor should be looking seriously at this market.

Located on the northwest Mediterranean coast of Cyprus, the small mountainous town of Limni will soon be the site of a world-class golf resort aimed at European holiday-makers. The largest private commercial group in Cyprus, Shacolas Group, has appointed Gary Player and Nicklaus Design to create two signature championship layouts at the centre of Chrysochou Bay. The Master Plan also includes high end residential villas as well as a boutique hotel & spa.

Formerly an old copper mine, the parcel of land designated for the Player course is characterized by a large crater which will be integrated into the design. In addition, the property is raised up and set back from the shoreline, allowing for spectacular long-distance views of the Mediterranean Sea.

Already a booming tourist destination with year round sunshine, Cyprus is the new “jewel in the crown” for golfers seeking breaks in the warmth of the eastern Mediterranean. The Cypriot government has also introduced a strategy to enhance the image of the country, which allows for 14 golf courses to be developed on the entire island. As the first and only Player/Nicklaus development in the whole of Europe, Limni Golf Resort will undoubtedly be in a class of its own.

There is another golf course planned on the same site and the possibility of a third although the information is still classified as above top secret and the details of this remain elusive. However any future construction is to be of the highest quality and an early off plan investment in and around the PGA rated course is sure to prove an enormous success.

Said Gary Player during his visit, "The introduction of a golf course to this particular site really enables us to 'mend a scar' and give back to Mother Nature. By the time we've finished here, Limni will undoubtedly be a showcase for golf's green movement. " Gary Player also expressed excitement about working with a piece of land that offers such dramatic elevations. The topography will lend itself to a golf course with a lot of character, with some holes offering long distance views and others playing along the quarry wall. A course with majestic views to reward any golfer!

Press Release Log, May 2010

Cyprus Budget Cuts

Tue, 18 May 2010 14:09:00 GMT

Cyprus Finance Minister Calls for Urgent Budget Cuts

Cyprus must cut back on its spending to save 175 million euros this year in a bid to contain its public deficit at 6.0 percent, the island’s finance minister, Charilaos Stavrakis said on Friday.

The European Commission decided to take disciplinary action against Cyprus for exceeding public deficit limits above the EU ceiling of 3 percent of gross domestic product.

“The EU Commission agreed with us that without measures, the deficit would have reached 7 percent…we put in our aim, which was approved…that in the next four years there be a gradual decrease below 3.0 percent,” Stavrakis said.

Cyprus had a budget gap of 6.1 percent in 2009, which is expected to rise to 7.1 percent this year.

Presenting the government’s economic support package to reporters, Stavrakis said that the state has already saved 105 million euros out of its overall 175 million euro target by cutting operational expenditure in the public sector by 80 million euros in 2010 and the number of state employees by 490 people so far.

“This has happened for the first time in Cyprus’s history,” he said.

He said the government aims to increase this number to 1000 annually, while ongoing talks between the island’s President Demetris Christofias and the head of the public sector workers’s union continue on the issue of pay freezes.

Stavrakis said a further 40 million euros in fuel taxes and fuel oil grants would further plug the deficit gap.

The government also proposed to cut child benefits and student funding to those from privileged backgrounds, where family income exceeds 60,000 euros a year.

In April, authorities said they planned to raise low-rated VAT on certain goods and be more aggressive with tax evaders. It also introduced a freeze on public sector recruitments.

Data showed that the deficit for the first quarter of 2010 reached 55 million euros compared to 150 in 2009, while preliminary figures for Jan-April saw the deficit drop to 170 million euros, compared to 236 in the same period last year.

Cyprus remained in recession in the first quarter of 2010, flash statistics showed, but there were signs of a rebound after it fell into recession in 2009, as revenues plummeted in the once thriving property market and tourism sector, having been hit hard by the global economic crisis.

“The first four months of 2010 have seen an improvement in the image of the Cypriot economy’s public finances,” Stavrakis said.

Tourism accounts for almost 11 percent of the island’s GDP.

Its 17.2 billion euro economy, one of the smallest in the euro zone, contracted by 1.7 percent last year.

Vivuro,May 2010

Cyprus Property Market Shows Resilience

Mon, 17 May 2010 09:05:00 GMT

Lucrative Investment Properties in Cyprus

The property market in Cyprus has shown resilience in this challenging time of global economic slowdown. Cyprus has its own glamour and is home to people within a diverse range of communities. This traditionally rich country is the third largest island in the Mediterranean and has some of the world’s cleanest beaches, and the pine forested mountains and citrus and olive groves giving it a unique character. Nicosia, in the central, is the capital of the country. Limassol in the south coast, Larnaca in the southeast and Paphos in south western Cyprus are hot and popular destinations. This sunny island has a short rainy winter and long dry summer making it highly attractive to foreign tourists.

The island has limited land resources, most of which are developed. This has attracted a sizeable foreign investment that expects a boom in property prices, given a shortage of land for development. The deposit level for buying a property in Cyprus has traditionally been in the 20% to 30% figure and restrictions on foreign ownership has been lifted. International Monetary Fund has projected a growth rate of 3.4% and as a result, in addition to the British investors, Russians and East Europeans are making a beeline for real estates in Cyprus. In order to support and attract foreign investment in property, Ministry of Commerce Industry and Tourism has set up Investor Service Center that is designed to meet the needs of investors.

After joining EU in 2004, property market of Cyprus has witnessed a capital growth in excess of 20% per year.

Property in Cyprus presents a lucrative investment option for individuals as well as large corporations. In addition to the appreciation of value in long term, these properties offer excellent buy-to-let opportunities. Recently, the government has approved 13 new golf courses that will be developed along a resort style theme for the benefit of tourism and those wanting to live in such a wonderful environment. Larnaca, Polis, Paphos, and Limassol are the target destinations for these up market golf courses resorts style projects. This presents a good opportunity for long-term investors in Cyprus real estate.

Paphos in particular is a popular tourist destination, with great beaches and mild weather all round the year. It has provision for small as well as corporate real estate investors, offering all round excellent investment opportunities. Properties in these areas are a charming combination of traditional aesthetics and modern design. There is a vast range of properties, from fully furnished studio apartments with covered parking and common swimming pools, to large luxury villas with modern amenities near to the beaches or International championship golf courses. Cyprus property offers investors an excellent opportunity to own a piece of their own Mediterranean land in the sun.

Cyprus Sales Increase for 6th Month in a Row

Wed, 12 May 2010 07:39:00 GMT

Cyprus sales up but overseas falters

Property sales in Cyprus increased year-on-year for the sixth month in a row in April – but overseas agents continued to struggle.

A total of 675 of homes were sold last month, up 12% compared to the same period in 2009 but down 15% on the previous month, according to figures from the Department of Lands and Surveys.

However, only 127 properties went to foreigners – a tiny 4% increase on the 122 recorded in April 2009 and down 25% compared to March this year.

The annual increases were much lower than those recorded in March, suggesting the recovery of the market may be slowing. Monthly sales figures are still less than half of those recorded in 2008.

“Things are improving but at a very slow pace,” said Antonis Loizou, agent and chartered surveyor.

“The recent UK international exhibition showed that the British demand is still active, but it is directed with regard to Cyprus for relatively low income purchases around €150,000.”

On top of slow economic growth, Cyprus is dealing with negative publicity created by the number of property owners on the island struggling to obtain title deeds.

Although the country’s parliament is currently reviewing new laws designed to speed up the process of issuing deeds, there are doubts among buyers over how effective they will be.

Last week, around 100 foreign owners from the Leptos Property Action Group staged a protest in Paphos demanding their title deeds.

Opp News, May 2010

Volcano Affects Tourism

Wed, 12 May 2010 08:01:00 GMT

Volcano took its toll on Cyprus’s April tourism

No official figures have been released on the number of cancellations as a result of the volcanic ash from Iceland that grounded planes across Europe. Moreover, those in the sector say that it will take time to judge the effect of cancelled as opposed to postponed trips.

However, as of April 21, the president of the Cyprus Tourism Organisation (CTO), Alecos Orountiotis, had estimated that the number of trips affected had reached 20,000.

An additional 20,000 tourists would not have led to an increase in arrivals in April, but would have brought the year on year fall down to 12%.

In April a decrease of 25.8% was recorded in tourist arrivals from the United Kingdom (62,742 in April 2010 compared to 84.526 in April 2009) and 13.5% decrease from Germany (13,724 compared to 15,863 last year).

On the other hand an increase of 30.8% was recorded in tourist arrivals from Russia (from 8,341 in April 2009 to 10,910 in April 2010).

For the period January - April 2010 arrivals of tourists rose by 8.2% to reach 344,664 compared with 375,523 in the corresponding period of 2009.

Financial Mirror, May 2010

Gulf Investors Boost Cyprus Tourism

Tue, 11 May 2010 08:20:00 GMT

Gulf investors eyeing Cyprus tourism projects

Gulf investors are looking at several tourism and energy projects in Cyprus after Qatar’s decision to build a $150 million resort that could become the island’s biggest when finished in 2012, a minister said on Wednesday.

In a major Gulf investment, Qatari Diar, the property development arm of sovereign wealth fund Qatar Investment Authority (QIA), and the Cypriot government will jointly develop a huge tourism complex in the island nation.

Qatar will invest $150 million and Cyprus will provide land in the 50-50 project that includes a five-star hotel, shopping centre, offices and luxury homes, Antonis Paschalides, the Cypriot minister for commerce and tourism, told reporters at Arabian Travel Market.

“Other countries of this region are ready to go ahead with their investment plans in different sectors,” Paschalides said.

Michalis Metaxas, a director at the Cyprus Tourism Organisation, said the Qatari Diar project, covering 55,000 square metres, could potentially be the biggest tourist complex on the small island nation when work is completed in the next 30 months.

The clearing of military facilities on the site near central Nicosia is expected to start soon to allow for its construction, Metaxas said.

Tourism contributes about 1.4 billion euros ($1.79 billion) to the Cypriot economy, representing about 11 percent of the GDP.

Paschalides said with an economic downturn in top source markets of the UK and Russia, Cyprus is making “extra efforts” to woo tourists from the Middle East and India.

The Cypriot officials said a number of Gulf airlines are seeking rights for new flights as tourist numbers rise.

Sharjah-based budget Air Arabia plans to start Cyprus operations either in the last quarter of this year or early next year.

Air Arabia has been granted rights for three weekly flights between Larnaca and Sharjah but wants to have daily services.

Dubai’s Emirates plans to expand its 10 weekly flights to double daily, while Abu Dhabi-based Etihad Airways is keen to make its thrice weekly flights seven times a week, the minister said.

Maktoob.com, May 2010

Euro Makes Gains

Mon, 10 May 2010 10:19:00 GMT

Rescue plan sparks stocks rally, euro gains

Financial markets stepped back from a potential abyss on Monday 10^th after the European Union and International Monetary Fund

agreed a bumper rescue package to prevent a sovereign debt crisis spreading.

World stocks rose more than 2 percent, the euro gained and corporate and peripheral debt yields narrowed against benchmarks.

"Euro zone policymakers surprised probably even the most optimistic observers by presenting a quick and forceful, unprecedented crisis package," ING said in a note.

"It does not solve the fundamental fiscal problems but it gives countries now several years."

The package agreed earlier on Monday pledged 500 billion euros ($670 billion) of loans and loan guarantees to any euro zone countries needing funds, plus about 250 billion euros from the IMF.

It was a package on the scale of the $700 billion Troubled Asset Relief Program (TARP) launched by the United States to fend off the financial crisis of 2007-2009.

There were also measures by central banks to address funding strains and a European Central Bank plan to buy the region's government bonds.

"The EU has taken a decisive action to stamp out the speculative attack against the euro and this should be sufficient to bring some calm into the market," said Klaus Wiener, head of research at Generali Investments.

"What has been done is sensible. It has sent a very strong message to the market that the euro will not be allowed to fail."

The euro rallied from last week's 14-month low against the dollar.

The currency was up 1.6 percent at $1.2964 , having fallen to $1.2510 on trading platform EBS last week.

Mounting short positions on the euro prompted investors to cover their positions, helping the single currency recover.

On bond markets, the premiums investors demand to buy peripheral euro zone government bonds rather than German benchmarks fell.

The Greek/German 10-year bond yield spread narrowed sharply to 786 basis points versus an indicative 1,047 basis point at Friday's settlement close.

Liquidity in Greek bonds dried up last week with no trades going through.

There was little sign, meanwhile, that British assets were being driven by anything other than the global sentiment following a weekend of negotiations to try to create a government.

Financial Mirror, May 2010

Austerity Package for Greece

Fri, 07 May 2010 08:56:00 GMT

Greece passes tough austerity package

George Papandreou, Prime Minister, seeks to rally lawmakers behind his austerity plan aimed at saving Greece from default

The Greek parliament on Thursday 6th May approved a tough austerity package agreed with its eurozone partners and the International Monetary Fund as tens of thousands of people kept vigil outside for three bank staff killed in anti-reform riots on Wednesday.

The legislation passed by 172 votes to 121 in the 300-member chamber, with three abstentions by Socialist deputies, who were immediately expelled from the governing party. The far-right Laos party supported the Socialists, as did Dora Bakoyannis, a conservative former foreign minister.

The vote opens the way for Greece to start drawing down €110bn ($140bn, £94bn) in bilateral loans from other eurozone states and the fund.

The mood in Athens remained tense, with some bank branches closed as the bank employees’ union held a 24-hour strike in memory of their colleagues from Marfin Popular Bank.

“Yesterday was a very dark day . . . these people decided to go to their jobs and they paid with their lives,” said Anastasia Tourloti, an office worker.

The sombre mood outside parliament contrasted sharply with an angry debate in the chamber over the €110bn ($140bn, £94bn) rescue package from the European Union and International Monetary Fund.

Greece’s bid to avert a sovereign default, overhaul its public administration and revive its economy mark the biggest challenge the country has faced since it emerged from a seven-year military dictatorship in 1974.

But its politicians still have a narrow focus. In an angry exchange over how Greece reached the brink of bankruptcy last month, Mr Papandreou accused the conservative opposition of deceiving the European Commission over the budget deficit figures while in power and adding tens of thousands of their supporters to the civil service payroll.

Mr Papandreou said his socialist government would press ahead with fiscal and structural reforms in the EU-IMF package to “change Greece – sadly through great sacrifices – and ensure its future prosperity.”

But he recognised the challenge the country faces to rebuild its credibility with markets and investors.

“I know we’ll be judged on whether we can smash the bureaucracy and corruption that deter foreign investors and high-quality business and leave the country open to plunderers,” the prime minister said.

Parliament was expected to approve the package thanks to a comfortable majority enjoyed by the socialists.

But the conservative New Democracy party’s refusal to vote for the package has deprived the government of a broad consensus that would help accelerate structural reforms, analysts said.

Mr Papandreou’s approval rating has fallen since Greece asked to activate the EU-IMF package but he still commands a comfortable lead over Antonis Samaras, the conservative leader.

Financialmirror, May 2010

UK Election Result Causes Market Shadows

Fri, 07 May 2010 09:01:00 GMT

Hung parliament casts shadow over markets

London equities fell further on Friday as traders came to terms with the prospect of domestic political uncertainty after the inconclusive general election result in the context of turbulence across global markets.

The FTSE 100 fell 68 points to 5,193.8 in opening trade, a loss of 1.3 per cent, with higher risk resource and financial stocks under pressure.

UK government bonds and sterling continued to fall and traders expected stubborn volatility as long as the make-up of the next government remained unclear.

Sterling had a volatile night – it had recovered to the $1.49 level as the early results came in, but by 4am, as it began to look like no single party would claim the 326 seats needed for an overall majority, the pound began to lose its footing. By 8am it was down to $1.4679. The euro rose almost a penny against the pound to £0.8656.

“The election is shaping up to create the worst possible outcome at the worst possible time,” warned David Morrison, strategist at GFT.

“Investors’ nerves are already jangling and this added uncertainty will undermine UK equities further. The sell-off in gilts and sterling is a clear indication of how unimpressed the City is by the lack of a clear winner.”

Paul Kavanagh, partner at stockbroker Killik & Co, was more sanguine. “I continue to think the impact of a hung parliament on the FTSE 100 will be relatively small,” he said. “We are blessed in the UK with a very high proportion of stocks that are international in scope, like the mining and oil sectors, and the prospect of this outcome to the election has already been priced in to stocks.

“The reality of a hung parliament will be more closely felt in the sterling and gilt markets as traders keep a hawk-eye focus on the sovereign debt issue.”

ft.com, May 2010

Qatar Boost to Tourism

Thu, 06 May 2010 09:14:00 GMT

$150 Million Cyprus-Qatar JV Boost Tourism To Cyprus

The tourism industry in Cyprus has received a fresh impetus from the Middle East with a huge injection of cash from Qatar for a multi-million dollar tourism development. This was announced at the ongoing Arabian Travel Market by Antonis Paschalides, Cyprus’ Minister of Trade, Commerce and Tourism.

A 50:50 joint venture has been established to create a property investment fund that will develop the state-owned land opposite the Hilton Hotel in the capital Nicosia.

Qatar’s Diar Real Estate Investment Company will invest $150 million (AED 551 million) in this new joint venture and the Cyprus government will contribute the land on which the complex will be built. The area allocated for the complex is close to the commercial hub of Nicosia.

The two countries Cyprus and Qatar hold an equal stake in the 55,000 square-meter (592,020 square foot) tourism complex. Upon completion, the project will include a 5-Star hotel, luxury residential villas and apartments, retail space and office buildings. It is destined to become a major tourist destination, aimed at sophisticated investors and tourists from around the globe.

“This major tourism development underscores the strong relationships that exist between Cyprus and the Middle East countries and clearly underlines the confidence in Cyprus’ economy which has remained relatively unscathed from the global economic crisis,” Paschalides said.

He noted that this deal has helped restore investor confidence in the Cyprus market and some property developers are developing new marketing strategies in the hope of attracting a more up-market overseas buyers. Luxury developments are now being aimed at wealthier buyers in the Middle East.

Highlighting Cyprus’s attractiveness for Middle East visitors, Vassilis Theocharides Director, Cyprus Tourism Organisation (CTO) Middle East & Arabian Gulf Office said, “Even if you’ve been to Cyprus before, there’s always a new world to discover. Cyprus lies at the crossroads of three continents, where East meets West and a new experience awaits the visitor under the sun every day. Where Championship Golf courses, inviting beaches, and breathtaking mountain trails lie around luxurious hotels and the cuisine is among the finest in the world.”

Cyprus, one of the smallest members of the euro zone, is heavily reliant on tourism, banking and real estate. It has well-developed tourism infrastructure along its coastline, and is developing luxury hotels in Nicosia, located in the centre of the island.

“Tourism arrivals to Cyprus from the Middle East rose by 9.5% percent from January to March 2010 year on year denoting strong growth. Tourism accounts for around 11 percent of Cyprus's gross domestic product,” Mr. Theocharides concluded.

Greece Strikes Cause Chaos

Wed, 05 May 2010 10:42:00 GMT

General strike hits indebted Greece over new cuts

Flights to and from Greece were grounded, trains and ferries suspended their routes and public services were paralyzed Wednesday (5th May) as angry Greek workers went on strike to protest harsh new spending cuts aimed at saving their country from bankruptcy.

Public and private sector unions concede that the cash-strapped government was forced to slash spending, including cutting salaries and pensions for civil servants, and increase consumer taxes, to secure a vital €110 billion ($144 billion) three-year loan package from European partners and the International Monetary Fund.

But they say low-income Greeks will suffer disproportionately from the measures, which aim to save €30 billion ($40 billion) — the country's current budget deficit — through 2012.

"There are other things the (government) can do, before taking money from a retiree who earns €500 ($660) a month," said Spyros Papaspyros, leader of the ADEDY civil servants' union.

Markets have been far from assured that the package will douse Europe's smoldering sovereign debt crisis, which many fear could spread to other financially troubled eurozone countries such as Portugal and Spain.

Greece's 24-hour general strike shut down schools and customs offices and left hospitals working with emergency medical staff. The Acropolis and all other ancient sites were closed, while journalists also walked off the job, suspending television and radio news broadcasts.

"The Acropolis should be opened and all the touristic sites also," complained German tourist Helga Vintser from Hamburg. "From the tourists, they want our money, so they should work for us a little bit."

Thousands of people gathered at two points in central Athens for separate protest marches, the first major demonstrations since the new measures were announced Sunday. More than 1,500 police were deployed.

Almost every big protest this year has been marred by violent clashes between protesters and police. Discontent has intensified, as civil servants and pensioners face deep income cuts and consumer taxes have been increased again.

"These measures are one-sided and unfair. We understand the difficult financial situation but we are obliged to demonstrate because they are cutting our pay," said Giorgos Vassilopoulos, head of Greek Postal Workers Union, as he headed towards the pre-demonstration rally. "Some of us are losing 20 percent of our salaries. They plan needs to change, to promote growth as a way of repairing the economy — otherwise we'll be trapped in recession."

Despite the strike, the draft bill of the new austerity measures were to be discussed at committee level in Parliament Wednesday afternoon, and are to be voted on Thursday (6th May). Prime Minister George Papandreou's Socialists hold a comfortable majority of 160 in the 300-seat Parliament, and with a simple majority of 151 votes needed, the bill is expected to be passed easily.

CY News, May 2010

Rise in Building Permits

Tue, 04 May 2010 15:02:00 GMT

Cyprus building permits leap in February

Authorised building permits leapt in February according to the latest figures from the Statistical Service.

The number of building permits authorised by the municipal authorities and the district administration offices rose by 17.1% over the year earlier to reach 813, compared with 720 in February 2009.

In January, building permits had declined by 20.5%.

The total value of permits in February increased by 21.3% to EUR 284.0 mln, while the total area rose by 20.4% to 335,783 square metres.

These building permits provided for the construction of 1,691 dwelling units, up from 1,587 in February 2009.

During the period January -February 2010, 1,432 building permits were issued, a rise of 1.3% compared with the corresponding period of the previous year.

The total value of these permits increased by 1.0% and the total area by 2.1%.

Τhe number of dwelling units recorded a decrease of 6.0%.

Building permits constitute a leading indicator of future activity in the construction sector.

Financial Mirror, May 2010

Aid Package to Ensure Wider Stability

Thu, 29 Apr 2010 08:11:00 GMT

ECB's Weber- ‘Greek crisis poses no threat to euro’

* Says no risk to EMU from Greek aid request

* Says Greece 'got itself into this situation'

* Says euro zone inflation risks tilted upwards

The motivation behind the Greek aid package is to ensure wider financial stability, not to bail out Greece, Axel Weber, one of the European Central Bank's top policymakers said on Wednesday 28th April.

"The motive for preparing support measures is to secure financial stability and not help for Greece, which got itself into this difficult situation," Weber said in a speech at a meeting of German savings banks.

He also dismissed threats to the euro from the problems. "European monetary union is not endangered by Greece seeking aid, and we will make sure it stays this way," he said.

Weber, an ECB Governing Council member and the head of Germany's Bundesbank, reiterated recent comments that inflation risks in the 16-country euro zone were beginning to point upwards.

"Current interest rates are appropriate given the only moderate outlook for growth in the euro zone and the continued low medium term inflation risks, although compared to the March projections these are tilted upwards."

The ECB published its latest bank lending survey on Wednesday which showed banks tightened their credit rules for firms and households further in the first quarter and expect to toughen them again.

Weber said a widescale credit crunch in Germany was unlikely but could not be ruled out altogether.

"All in all there are currently few signs of a broad-based credit crunch in Germany nor of massive supply-side hindrances in the German credit market. But certainly such a scenario cannot be entirely ruled out."

Reuters, April 2010

Cyprus Ready to Help Greece

Thu, 29 Apr 2010 08:41:00 GMT

Stavrakis: Cyprus ready to offer financial aid to Greece

Cypriot Minister of Finance Charilaos Stavrakis has said that Cyprus is ready to offer financial aid to Greece, of around 60 million euro.

In statements Wednesday, the Minister said that Cyprus is ready to offer the above amount in the framework of the economic aid plan of the EU and the International Monetary Fund, for Greece.

''At this stage, it seems that the amount which corresponds to Cyprus is 60 million euro as a three year loan with an interest of 5%'', Stavrakis said.

He clarified that this loan does not seem to have any influence on Cyprus’ fiscal deficit, adding that “it will just affect public debt, which is estimated to be increased through this loan by approximately 0,4%”.

Stavrakis said that it is Cyprus’ duty to help Greece during this difficult time.

Asked whether there is any chance that Greece exits the Eurozone, he said “this must be considered as impossible”.

Financial Mirror,April 2010

Greek Economy Faces Uncertainty

Wed, 28 Apr 2010 10:00:00 GMT

Greece may need €150bn rescue, analyst warns

Economist says current €45bn bailout will not cover country's borrowing needs but believes Europe is unlikely to come up with extra funds

Rescuing the Greek economy could require a €150bn (£130bn) bailout over the next three years, according to Goldman Sachs, but this would be politically impossible for European leaders to swallow.

In a note to clients this morning, Goldman's chief European economist, Erik Nielsen, said that the €45bn bailout currently on the table is not large enough to cover Greece's borrowing needs.

After the recent surge in Greek borrowing costs, Nielsen believes IMF officials are now leaning towards a fully funded rescue package that will keep Greece from having to tap the money markets until its economic health has improved.

"On my numbers, a one-year fully funded programme needs to provide a minimum €50-55bn; an 18-month programme will require some €75bn, and a three-year programme a minimum €150bn. I think the latter number is out of reach even for the present political environment of generosity, so the debate is between €55bn and €75bn," wrote Nielsen.

"I suspect that some haggling is now going on between the IMF and the eurozone on the burden sharing of a bigger programme, but I rather doubt that the Europeans can do more than the already announced €30bn for the first year. If so, I suspect that the IMF will have to settle for something like a 12-month fully funded programme worth a total of €50-55bn, or could it be an 18-month programme worth some €80bn?"

On Monday there was a surge in the yields charged on Greek government debt, an indication that the financial community is anticipating a debt default. Some analysts argue that investors who hold Greece's bonds should share in the pain, through a significant reduction, or "haircut", in the amount they get back from the Greek government.

Nielsen believes that some form of restructuring is inevitable even if a fully funded bailout can be arranged for Greece, which has a national debt of €300bn.

Talks between officials from the IMF and European Union are ongoing. Greece needs to arrange a rescue package quickly as it needs to raise €8.5bn to repay bonds that mature on 19 May. But there are concerns that Germany may be unwilling to support the bailout unless Greece agrees to deep cuts in public spending and structural changes in its economy.

This morning, Jürgen Koppelin, a deputy leader of the FDP parliamentary group and a member of

Greek prime minister George Papandreou is imposing an austerity programme to try to cut the annual deficit, as a share of GDP, by four percentage points. Provopoulos argued that Greece should aim for a five percentage point reduction in the deficit, which hit 13.6% in the last financial year.

Guardian, April 2010

Uncertainty Looms for Greece

Tue, 27 Apr 2010 08:46:00 GMT

Euro slips on Greece aid uncertainty

The euro slipped on Tuesday after Germany demanded painful new austerity measures from Greece in return for badly needed financial aid, with investors likely set to push high risk European sovereign bond yields up further.

Major European stock markets slipped in early trade, with Greece's fiscal crisis, soft commodity prices and U.S. bank reform seen weighing on sentiment.

Greece could become the first euro zone country to be bailed out because of its weak finances, having already asked the International Monetary Fund and European Union for 45 billion euros to survive.

But investors have begun to wonder if that amount is enough to avert a Greek default and if other countries with high debts and low growth could fall like dominoes, jeopardizing Europe's economic recovery and threatening financial markets.

For now, the situation is viewed as a European affair, with asset markets outside Europe largely unfazed by the intense selloff in not just Greek but Portuguese bonds overnight.

Many investors are still more focused on solid signs of global recovery, underlined by strong earnings reports and sales forecasts from heavy machinery maker Caterpillar Inc (CAT.N) and appliance maker Whirlpool Corp (WHR.N) overnight. (.N)

Indeed, German consumer sentiment will likely hit a six-month high based on brighter views on the economy and income.

Financialmirror,April 2010

Greek Loan Package

Mon, 26 Apr 2010 09:05:00 GMT

Greece optimistic on big loan package

A top Greek economic official sought to shore up confidence among investors that Greece would avert a crippling debt default by securing billions of dollars in emergency loans from European countries and the International Monetary Fund.

Greek Finance Minister George Papaconstantinou on Sunday also warned market speculators "they will lose their shirts" by betting against Greece.

Papaconstantinou said in his Washington news conference that he had no doubt that at the end of intensive negotiations that are continuing Monday in Athens and over the next two weeks, Greece will win the support loan it needs from both the European countries and the IMF.

"We are all confident that this will be done in time and we will continue to be able to finance Greek public debt without absolutely any problem," he told reporters.

Papaconstantinou said he expected the IMF board would approve its portion of the loan support within the first 10 days of May and that approval would be in time to meet a payment of $11.3 billion on Greek bonds coming due on May 19.

He said that he expected the support from the IMF and the European governments to be provided at the same time but he said if some European parliaments were delayed in approving their contributions, the IMF support could be used to obtain bridge financing from other sources.

Greece is hoping to obtain emergency loans of about $40 billion from the group of 16 European countries which, like Greece, use the euro as a common currency, and an additional $13.4 billion from the IMF.

The Greek government has already agreed to put in place painful austerity measures to trim government spending and public pensions, but it was likely that the IMF and the euro-zone governments will require even tougher measures in returns for assistance.

The head of the IMF's managing director, Dominique Strauss-Kahn, expressed similar optimism, saying the IMF and European government recognized the "need for speed" because of Greece's escalating problems and the adverse impact it was having on financial markets around the world.

"We are all aware of the seriousness of the situation and the courageous efforts being made by the Greek people," Strauss-Kahn said in a statement.

Britian in a dramatic sign of China's new status as the world's third largest economy. The change also increased the voting power of developing from 44 percent of total votes to 47 percent. will be presented to the G-20 leaders when they hold their next summit in Toronto in late June.

Cyprus Weekly,April 2010

Easter Boost to Cyprus Tourism

Mon, 26 Apr 2010 12:43:00 GMT

Cyprus tourism earnings up 3.5 pct in 1st qtr

Cyprus's earnings from tourism rose 3.5 percent in the first quarter of the year, bolstered by earlier Easter holidays, data showed on Monday.

Tourism, which accounts for 11 percent of gross domestic product, along with real estate, helped push Cyprus into a recession last year, with the economy contracting 1.7 percent.

Revenue from tourism rose to 129.2 million euros in the first three months of the year compared to 124.8 million in the first quarter of 2009. In March alone, earnings rose 14.3 percent year on year to 65.6 million euros.

Arrival figures previously announced by the statistics office showed a 5.6 percent increase in holidaymakers in the first quarter.

An economist noted that 2009 was a low year for tourism and this year Western Easter holidays were earlier than in 2009, coinciding with Orthodox Easter.

"The outlook is rather unclear. We are helped by the value of the euro (against the pound sterling), because half of our tourism flows in from the UK," said economist Stelios Platis.

Financial Mirror, April 2010

Cyprus Economy Will Benefit From Qatar Deal

Fri, 23 Apr 2010 09:18:00 GMT

Qatar deal is good news for the economy

Many questions were being asked yesterday about the government’s deal with Qatar. Was the amount that would be invested adequate, who would have control of the project, was the location suitable, had an environmental impact study been carried out and many more. Some of the questions were answered by Finance Minister Charilaos Stavrakis yesterday, but we are sure many more will be asked when the contracts signed on Wednesday are sent to the legislature for approval.

It is inevitable that there will be concerns about such a big project on one of the busiest and most congested roads of the capital. And the government is bound to come under attack for giving the go-ahead to the project without undertaking an environmental impact study and securing the relevant town planning and building permits, as all other companies would have had to do. And there will be justified complaints from local businesses who have been waiting for months, if not years, to have town planning permits issued for projects.

The government may have a difficult task defending the preferential treatment given to the state and its partners but this should not detract from the fact that this was an excellent bit of business. The deal with Qatar is probably the best thing the Christofias government has done for the economy since coming to power. Stavrakis was right in describing the deal as a show of confidence in the Cyprus economy – the Qatari state would not invest in a country with poor economic prospects.

More importantly, Qatar would be administering the project, because it has the expertise and know-how. If the Cyprus state were to be be running the project, we would be pessimistic about its prospects of success because our state has always been a lousy entrepreneur. Qatar, on the other hand, can afford to pay for managerial and marketing expertise that would make the complex a success. And a successful project could lead to more Qatari investment in Cyprus in the future.

Perhaps this joint venture would also encourage the government to undertake similar projects with local businesses, as DISY deputy leader Averof Neophytou suggested yesterday. The state owns prime real estate all over the capital which could be used for big development projects in partnership with private business, said Neophytou. Joint projects would cost the government nothing in hard cash, as it would be providing the land, but they would give a boost to development for which there are no funds available at present.

It may take the government a while to pursue this idea, but for now we should be happy that the much-talked about deal with Qatar has been signed as it is good news for the Cyprus economy.

Cyprus Mail, April 2010

Euro Zone Growth Indicators

Fri, 23 Apr 2010 10:40:00 GMT

Purchasing managers signal strong euro-zone growth

Private-sector activity across the 16-nation euro zone in April rose at a pace not seen in more than 2½ years, offering further signs the region's economic recovery is gaining momentum, according to a preliminary reading of a survey of purchasing managers.

The data weren't enough to do away with concerns among some economists that weakening global demand could soon weigh on the region's fragile rebound from recession. And economists note that the PMI data have recently tended to overstate growth prospects.

The closely watched Markit flash euro-zone purchasing-managers index for the manufacturing sector jumped to 57.5 in April from 56.5 in March, setting a 46-month high and exceeding forecasts for a rise to 57.

A similar gauge for the services sector rose to a 30-month high of 55.5 from 54.1 in March, beating forecasts for a rise to 54.4.

The flash euro-zone composite PMI rose to 57.3 from 55.9 in March, the highest reading in 32 months.

A reading of more than 50 means a majority of managers saw a rise in activity, while a reading of less than 50 signals contraction.

Ben May, European economist at Capital Economics, said the data, if sustained, would point to quarterly growth of 1%. But he noted that the index over-predicted growth in the fourth quarter and that first-quarter growth could also undershoot the survey's suggestions.

`Encouraging' report

The recovery may have further to run in the near term, but a sustained period of fiscal consolidation looms, making for fragile domestic prospects, May said. "Once the global downturn begins to lose momentum, the recovery could be on shaky ground."

Chiara Corsa, economist at UniCredit Bank in Milan, said that while the PMI data have tended to paint an overly optimistic picture, Thursday's data were "definitely encouraging."

In particular, the data show momentum picking up steam in the beginning of the second quarter. They also show that activity in the services sector is beginning to catch up with the faster pace of growth seen in the industrial sector.

"Overall, though we recognize that there are some upside risks to our GDP forecast for the second quarter, we stick to our expectations of a moderate recovery story and we continue to see the first [European Central Bank] rate hike in March 2011," Corsa wrote.

The euro /quotes/comstock/21o!x:seurusd (CUR_EURUSD 1.3307, +0.0019, +0.1430%) slumped after the data, dragged down after Eurostat, the European Union statistics agency, said it had revised up Greece's 2009 deficit estimate and also expressed reservations about the quality of the nation's budget data. The single currency fell 0.4% versus the U.S. dollar to $1.3336. Read about Greece's budget woes.

Market Watch, Wall Street Journals,April 2010

New Sandy Beach Pictures

Fri, 23 Apr 2010 10:46:00 GMT

Take a look at the Sandy Beach Website www.sandybeachcyprus.com for recent pictures taken at the Sandy Beach Resort.

The 'Build Progress' section of the website demonstrates the recent stages of development on the site.

Qatar Investing in Cyprus

Thu, 22 Apr 2010 10:58:00 GMT

Cyprus-Qatar sign hotel complex deal

Qatar has signed a deal with Cyprus to develop a hotel, office and residential complex in the capital Nicosia, targeting rising numbers of visitors to the east Mediterranean island.

Qatari Diar Real Estate Investment Company and the Cypriot government agreed to set up a joint venture for the development of a leisure complex, with the initial investment exceeding 150 million dollars, officials said.

Mohmmed bin Ali Al Hedfa, Group Chief Executive Officer of Qatari Diar, owned by the Gulf state, said the first phase will be a five star hotel, while the second phase will be apartments and offices. The contribution in capital of each side in the venture was still under negotiation, Al Hedfa said. Each side will hold 50 percent.

The area allocated for the complex is close to the commercial hub of the capital and is expected to cover 50,000 square metres of construction, Cypriot officials said.

The joint venture agreement was one of several signed on Wednesday between the Cypriot government and Qatar, whose ruler Emir Sheikh Hamad bin Khalifa al-Thani headed a large delegation on a visit to the island.

Qatar reported growth of more than 11 percent last year despite the global financial crisis, and has been pouring billions of dollars into infrastructure, real estate and education projects.

CY News Live, April 2010

Greece Borrowing Hits a 12 Year High

Wed, 21 Apr 2010 08:36:00 GMT

Euro remains weak as Greece's debt problems weigh

Sentiment towards the euro remained bearish with Greek sovereign debt spreads continuing to blow out against German bunds to record highs.

Greek borrowing costs hit a 12-year high on Tuesday as Athens prepared to launch talks on an EU/IMF bailout package aimed at rescuing Greece from a debt crisis rocking the euro zone.

Ten days of talks will begin on Wednesday on the belt-tightening measures Greece must take until 2012, the European Commission said, paving the way for the swift payout of up to 30 billion euros of euro zone emergency aid if Athens asks for it.

The yield spread between Greek and German 10-year bonds widened to a record 489 basis points from 468 bps on Monday, according to Tradeweb.

Financialmirror.com, April 2010

Budget Deficit Leaps For Cyprus

Tue, 20 Apr 2010 08:26:00 GMT

Cyprus budget deficit leaps to 6.1% of GDP in 2009

Official figures confirm that the budget deficit ballooned in 2009, reaching EUR 1,028.7 mln, or 6.1% of GDP, from less than 1% of GDP in 2008.

Expenditure in 2009 increased by 5.5% while revenues dropped by 10.2%.

In the fourth quarter alone, total revenue fell by 15% to EUR 1,772.0 mln, while total expenditure decreased by 2.8% to EUR 2,346.1 mln.

The deficit in the fourth quarter was EUR 574.1 mln, compared with EUR 325.9 mln in the corresponding period of the previous year.

Taxes on production and imports in the fourth quarter dropped by 29.7% to EUR 534.0 mln. Within this category, VAT fell by 22.7% to EUR 387.0 mln

Taxes on income and wealth dropped by 20.4% to EUR 530.5 mln.

Revenue from sales of goods and services fell by 31.4% compared with the corresponding period of the previous year.

Wage bill up 12.4%

On the expenditure side, compensation of employees in the fourth quarter rose by 12.4% to EUR 803.5 mln and social transfers by 9.2% to EUR 689.5 mln.

Current transfers fell by 81.3% to EUR 49.3 mln.

There was a big increase in capital investment (38%), while intermediate consumption decreased by 7%.

Financialmirror.com, April 2010

Greek Bailout Postponed Due to Ash

Mon, 19 Apr 2010 08:34:00 GMT

Talks on Greek bailout package are postponed

International talks on a bailout package for heavily indebted Greece have been postponed because of the global travel chaos caused by Iceland's volcano, the Finance Ministry said Sunday.

The talks were to start in Athens on Monday (19^th April) and involve the government, the European Commission, the European Central Bank and the International Monetary Fund. The parties are to discuss a "three-year economic policies package" and the fact that euro zone countries and the IMF will provide financial aid only if Greece requests it, the ministry said.

But the talks have been delayed until Wednesday, "if conditions permit," it said.

Finance Minister George Papaconstantinou said Saturday that market worries over Greek bonds could calm down when the nations agrees on more details regarding standby loans.

He told reporters in Madrid that Greece has passed its "most difficult" month for refinancing its swelling debt by successfully selling some euro12 billion of debt in April. It needs to sell more than euro10 billion in May, he said.

Papaconstantinou claimed that Greek government moves to reduce its budget gap and the provision of some euro45 billion in bailout loans from the IMF and other countries that use the euro should now reassure investors.

Greece shocked markets and other countries in the 16-nation European currency zone when it said in September that its 2009 deficit would be four times above the EU's maximum limit of 3 percent of national income.

That set off a series of shock waves, sending the euro tumbling and increasing the cost of Greek government borrowings as markets demanded higher interest rates to lend to a country they believed could default on its debt.

It also saw EU governments demand Greece make painful reforms to curb the deficit.

A survey published in Greece on Sunday said most Greeks believe their country can overcome its current financial crisis without help from either the European Union or the IMF.

Respondents said IMF participation in a loan package would be "painful" and should be accepted only as a last resort.

The survey published in the Eleftheros Typos newspaper said 57 percent of respondents think that Greece can overcome its huge deficit on its own by following the right policies, without intervention from the EU or the IMF. Forty-one percent disagreed.

The IMF is perceived by many Greeks as a boogeyman that would demand deep wage and pension cuts and massive layoffs as conditions for supplying cheap credit.

Greece's European partners have agreed to provide euro30 billion in loans in 2010, if the country finds itself unable to borrow in the markets. The IMF is to provide up to euro15 billion on top of that.

The Greek government has said it will continue to borrow in the open market and that the EU/IMF aid package is a "safety net." (AP)

Financialmirror.com, April 2010

Cyprus Tourist Disruption

Mon, 19 Apr 2010 09:23:00 GMT

20,000 tourists kept away

Around 20,000 tourists did not make it to Cyprus due to the disruption of air transport caused by the volcano eruption in Iceland, according to Hoteliers Association Director Zacharias Ioannides.

He said that the tourists had booked with half of the 200 flights into Larnaca cancelled since the problem began on April 15. Ioannides expressed optimism that some of the tourists might reschedule their holidays when air traffic is back to normal.

Ermes Airport Spokesman Adamos Aspris said today that another 39 scheduled flights to and from Cypriot airports will be cancelled until 3 p.m. this afternoon, 34 affecting Larnaca and 5 affecting Paphos.

Cyprus Weekly, April 2010

Steps Made Towards Greek Rescue

Fri, 16 Apr 2010 08:39:00 GMT

Greece takes key step towards rescue

Greece capitulated to market pressure on Thursday (15^th April) and took an important step towards a bail-out from its Eurozone partners and the International Monetary Fund as it formally sought “consultations” over a €30bn-plus ($40bn, £26bn) loan package to stave off default.

In a letter to the European Commission, Greece’s finance minister, George Papaconstantinou, said Athens wanted to discuss “a multi-year economic policy program with the Commission, the European Central Bank and the International Monetary Fund”.

The announcement ended weeks of speculation that the IMF will be directly involved in the Greek rescue, during which the fund has held back from commenting for fear of getting ahead of a formal request from Athens.

The letter, which would help set in motion the first bail-out of a Eurozone country by the IMF, marks a key step towards Greece drawing down funds from its Eurozone partners and the Washington-based body.

Until now Athens has bet that the promise of financial assistance would be enough to reduce its borrowing costs and allow it to roll over its sovereign debt and continue to pay its bills. But, while Mr. Papaconstantinou was careful to say Athens had not yet decided to seek help, his letter to Brussels begins a formal process that is likely to be difficult to end.

The move came as yields on 10-year Greek bonds neared a record high. Spreads over German bunds reached 426 basis points before falling back to around 400 after the announcement was made.

Mr. Papaconstantinou’s letter said Greece was not yet committed to activating the package – which would come with tough conditions that are likely to include public sector job cuts and stringent pension reform.

“The program would be supported by financial aid from the Eurozone countries and the IMF – if the Greek authorities decide to ask for such aid,” Mr. Papaconstantinou said.

But analysts in Athens said the request for talks “amounts to a done deal”.

“Resorting to the EU-IMF mechanism is irreversible at this point. Otherwise we may see tremendous pressure on spreads,” said a top economist.

“This has all the hallmarks of a screwed-up arrangement,” said Morris Goldstein at Washington’s Peterson Institute for International Economics.

Although the IMF has been involved in co-financed rescue packages before, as in Latvia and Hungary, it was clear that the fund took the lead role in setting conditions and disbursing tranches of money.

The IMF would be expected to make available another €10-15bn as a stand-by loan on top of the €30bn available from Eurozone member-states.

If Greece applies for the package it would be able to cover its borrowing requirement for the rest of the year, analysts said.

FT.com,April 2010

Greece Passes its 1st Borrowing Test

Thu, 15 Apr 2010 07:58:00 GMT

Strong demand for Greek short-term debt issue

Greece has passed its first borrowing test since euro zone leaders agreed on a potential aid package, but the high price it paid on Tuesday (13^th April) for short term cash failed to quash doubts that it can beat its crisis alone.

The debt-laden Mediterranean state drew heavy demand at auctions in which it sold 1.56 billion euros of 6-month and 1-year treasury bills, filling a short-term financing gap and buying time to consider whether to grab the estimated 45 billion euro ($61 billion) EU/IMF aid deal.

But the hurdle of a 10-year, 8.5 billion euro bond that it must raise money to repay in May still looms, and analysts said the country of 11 million faced a long-term slog to win back investor confidence and return to economic health.

Markets, too, were unconvinced, with yields of Greece's 10-year benchmark bonds erasing gains from a rally following the aid agreement to rise within a percentage point of euro-era highs hit last week when some investors feared possible default.

"Today's successful Greek short-term debt auctions will further ease fears about Greece meeting its near-term financing needs, but it still faces an uphill struggle to return the public finances to a sustainable position," said Ben May, an analyst at Capital Economics.

Analysts noted that the interest rates were more than double previous tenders and signaled persisting investor doubt that could eventually drive Athens to grab the aid lifeline.

The government is trying to cut last year's public sector deficit by around a third to 8.7 percent of gross domestic product this year, but the spike in its debt costs has raised spending and its budget measures are expected to deepen an economic contraction of 2 percent, making that goal difficult.

It has not yet asked to tap the aid, which includes an extra 10-15 billion euros from the International Monetary Fund, and Finance Minister George Papaconstantinou said Athens would stay with its plan of tapping external markets.

"We are sticking to our target and I believe we will continue to borrow from markets smoothly, as we did today with the T-bills," Papaconstantinou told parliament.

The aid deal was agreed despite resistance from Germany, where Prime Minister Angela Merkel has stressed Greece should not be given clemency after years of budgetary sins.

Some analysts suspect the announcement of the deal's details on Sunday was to buy time ahead of a May 9 German election to avoid giving voters opposed to helping Athens a reason to punish Merkel and rob her government of its parliamentary majority.

Still, euro zone officials gave a thumbs-up to the rescue package and backed Greece's stance of first shunning the aid.

"Greece is now in a stronger position because we have built up a back-stop position," European Central Bank Governing Board member Ewald Nowotny told reporters.

"The aid program is not a gift, it is a loan. It is helping Greece to help itself."

Financialmirror.com, April 2010

Tourism Arrivals Increase

Wed, 14 Apr 2010 07:52:00 GMT

Cyprus tourism arrivals up 5.6 pct Jan-March-stats

Tourism arrivals to the east Mediterranean island Cyprus rose by 5.6 percent from January to March year on year, the statistics department said on Tuesday.

Visitors to Cyprus totalled 205,006 in the first three months of 2010 compared to 194,127 in the first quarter of 2009, data showed.

Last month alone there was a 14.8 percent rise to 103,803 arrivals from 90,434.

Tourists from Britain, the main country supplier, rose 5.7 percent in March while German visitors were more than 20 percent up. But the statistics showed a decline in French and Dutch tourists, down 27.7 percent and 19.8 percent respectively last month.

Tourism represents about 11 percent of Cyprus's gross domestic product. The island fell into recession in the second half of 2009 and was hit hard by a slump in visitor numbers

Financialmirror,April 2010

Cyprus Among Main Beneficaries

Wed, 14 Apr 2010 09:52:00 GMT

Portugal and Cyprus Win as Brits Return to Market

Portugal, Turkey and Cyprus are among the main beneficiaries of the returning British interest in overseas property, according to the latest figures from portal Rightmove.

The website recorded a 60% year-on-year increase in the number of overseas property searches in March. Destinations in Portugal saw a 6.3% increase in searches compared to the previous month, fuelled by particularly by a 106% spike for Costa Verde, as well as 16% rises for Lisbon and the Silver Coast.

“Portugal has surged past Australia and reclaimed its fourth place in our chart as the seasonal peak in emigration interest fades,” said Rightmove’s head of overseas, Robin Wilson.

Turkey and Cyprus also rose in popularity compared to the previous month and year, with Mugla and the Aegean in Turkey recording 16% and 12% monthly rises, respectively, and Paphos in Cyprus seeing 12% more interest compared to the previous month.

“Historically, Italy has rounded out the top five countries, but strong performances from Cyprus and Turkey could see an upset as interest builds into summer,” said Wilson.

The trend was backed up by foreign exchange broker Moneycorp, which saw an 18.5% rise buyers and sellers for Portugal and a 16.6% rise for Cyprus compared to the previous month.

“The GBP/EUR rate improved during March and is currently showing more signs of life, pressing higher towards the €1.15 level,” said Moneycorp’s head of private clients, David Kerns.

“Compared to February’s low of just under €1.10, properties within the Eurozone would have appeared a more attractive prospect for euro buyers in March which could account for the rise in enquiries that Rightmove Overseas has seen.”

Opp News, April 2010

Property Sales Up By 37%

Tue, 13 Apr 2010 08:31:00 GMT

Sales up on last year but foreigners holding back

Property sales in March indicate that the Cyprus market may be on the road to recovery, but foreigners are still not buying in the key tourist areas.

According to the latest figures from the Department of Lands and Surveys, property sales were up in March by 37% compared to last year and by 31% over the whole of the first quarter.

During the first quarter of 2010 the number of contracts of sale amounted to 2,086 compared to 1,596 during the same period last year; an increase of 31%.

Although overall sales are up, foreign buyers are still holding back. With the exception of Famagusta, where sales were up 39% during the first quarter of this year, foreign buyers have yet to return in any great numbers to the key tourist areas of Paphos, Larnaca and Limassol.

However, foreigners are buying in the capital, Nicosia, where sales during the first quarter are up 169% compared to last year. But it is likely that these will be business acquisitions as Nicosia is not a destination favoured by tourists and holidaymakers.

But there are some encouraging signs in Paphos and Limassol where sales during March exceeded those of last year.

Pundits believe that during 2010 the Cyprus real estate market will stabilise after a period of uncertainty and doubt. The property industry is also hoping that the long-awaited changes to Planning and Title Deed legislation will help restore investor confidence in the market.

Cyprus Property Buyers News, April 2010

Russian Buyers Gain Lead Over British

Tue, 13 Apr 2010 08:37:00 GMT

Brits and Russians in Cyprus

While news from the Cypriot property market is not particularly positive, as stagnation sets in one particular change has been the gain Russian buyers have made on the British as leading purchasers of real estate on the island.

Cyprus has escaped the global economic downturn no lighter than the many other elite property markets of Europe that boomed in the four to five years before 2008. Larnaca and Pafos have suffered most, said Yulia Tishkova, a property consultant at AVC Real Estate. “More precisely, [properties] in the most popular destinations for foreign investors have been hardest hit,” she said, citing data from major developers on the island. Limassol, the country’s second largest city, has suffered much less, Tishkova added, as developers there have refused to lower their prices.

The Cypriot market has suffered especially as a result of the weakened position of British buyers. “The biggest problem for the Cypriot market is that the British were the principle buyers,” said Mikhail Brustinov. “As the crisis has hit Britain hard and British investors have had problems with financing and credit, they have started to sell the properties they had in Cyprus,” he said.

This has increased supply in certain areas. There has been a fall in prices for elite real estate on the island of around 35 percent, Brustinov said. In Larnaca the average price of an apartment fell by 20.5 percent in 2009, while the cost of a villa went down by 18.7 percent, according to data from AVC Real Estate. In Pafos the situation was slightly better. Apartment prices fell by 13.4 percent and those for villas by 16.3 percent.

British buyers remain dominant, accounting for 47 percent of purchases, but Russians now make 38 percent of the acquisitions on the market.

The number of Russians buying property in Cyprus is growing; as a consequence the proportion of Russians active on the market has changed significantly. Where as in 2008 61 percent of foreign buyers in the country were British, and 26 percent Russian, the figures for 2009 show a level playing field. British buyers remain dominant, accounting for 47 percent of purchases, but Russians now make 38 percent of the acquisitions on the market. Scandinavians are also showing increasing interest in properties in Cyprus.

One of the key attractions of Cyprus for Russians is that the country is set to join the Schengen visa zone in 2011. “Property in Cyprus provides owners with a residency permit,” said Brustinov. This will also then provide buyers a visa to travel around the Schengen zone. “It’s very important for Russians,” he added.

“The demands of British and Russian buyers are dramatically different,” said Brutinov. The British look for properties to be holiday homes, or dachas, he explained. “They are not interested in high-quality fittings... They just want to come and relax with their families.”

Russians, however, are much more concerned with the construction quality, fittings, appointment and appearance of the building

The type of property also differs. “Above all Russian buyers acquire detached villas and houses,” said Tishkova. While 53 percent are looking to buy villas or stand-alone properties, only 13 percent of those interested in the Cypriot market are seeking apartments.

The difference is no new phenomenon. Development projects on the island have long targeted their products at one or other market. “Those firms that built for the British market and those who concentrated on the Russian market, built completely different projects,” said Brustinov.

As the number of British buyers on the market falls, companies that focused predominantly on that market have been very hard hit. Many are now turning to the Russian market as a potential source of buyers, but this is not necessarily easy. “Those companies that built their properties for the British market cannot sell them now on the Russian market,” Brustinov said.

One area where British and Russian buyers are coming closer together is golf. The country is particularly popular with British golfers, especially in the winter months. The game, although not as long and well established in Russia, has grown in prominence over the last few years. “When I first began to visit Moscow I was surprised, golf is becoming more and more popular in Russia,” said Kitru. The Aphrodite Hills resort has an 18-hole course spread out on both sides of the valley in which it is built. But, while golf has begun to gain popularity among Russia’s elite, it is still far from being the much more popular middle-class sport that it is in the Anglophone world. “Not all Russian clients are particularly interested in golf,” said Kitru.

“Russian buyers can be roughly divided into three groups,” said Brustinov. First he named those that plan to leave Russia completely, noting, however, that their numbers are the fewest.

The largest group of buyers is those seeking to set up a second or holiday home. Whether the property is an investment for their children, old age, parents or a combination of them all, these buyers are temporary but regular residents on the island. The final group, in between the other two in terms of size, are those looking to acquire properties purely as an investment. These, however, have been much reduced in number recently.

The Moscow Times,April 2010

Euro at Highest in Almost a Month

Mon, 12 Apr 2010 08:07:00 GMT

Euro jumps on Greek package in short squeeze

The euro leapt to its highest in nearly a month on Monday (12^th April), surging 1 percent on the dollar and yen as investors who had sold it scrambled to buy it back after euro zone finance ministers agreed a rescue package for Greece.

The euro's rise weighed broadly on the dollar, helping send the Australian dollar to its highest in five months and the New Zealand dollar to its strongest since late January, while the dollar index plunged through its 30- and 55-day moving averages.

Euro zone finance ministers approved a 30 billion euro ($40.5 billion) aid package of loans for Greece if needed, with 10 billion euros also expected from the International Monetary Fund, a move likely to calm markets in the short term.

The euro jumped as far as $1.3678 on trading platform EBS, up from $1.3488 in New York on Friday, before coming back to test support at its 55-day moving average at $1.3630. The euro, which hit a 10-month low at $1.3267 in March, is now seen as having potential to test a mid-March high near $1.3820 this week.

The agreement was likely to help Greece raise funds more easily but the problem was unlikely to disappear, said Robert Rennie, chief currency strategist at Westpac, Sydney.

"The way the market is short euro, this could give a leg up to around the next technical resistance at $1.3820. But can it sustain a move higher than that? I am not sure. We may see some selling emerge around there."

Scepticism about how Greece would resolve its debt problems has seen short positions stack up against the euro this year.

Data from the Commodity Futures Trading Commission shows currency speculators were still heavily short the euro in the week ended April 6, although they reduced their net short position to 67,223 contracts from a record 85,326 contracts the week before.

Financialmirror.com,April 2010

Revised Property Tax System

Mon, 12 Apr 2010 08:45:00 GMT

Revised property taxes and planning amnesty

The Cyprus government is banking on a second term in office to implement its revised property tax system which will be based on current property values rather than those of 1980.

Interior Minister Neoclis Silikiotis has stated that the planned revaluation of property values will be completed in 3-5 years and stressed that a tax system based on current values, rather than those of 1980, aims to right the wrong that burdens tax payers.

Mr. Silikiotis, who was speaking at a press conference, said that there are properties whose current value is 25 times greater that their 1980 values although they continue to pay taxes and duties on the basis of their assessed value at 1st January 1980.

Avoiding saying who will be mostly affected by the measures, the Minister said that they will address those whose properties have multiplied in value from their 1980 levels. He also emphasized that in some areas properties are taxed or pay duties on the basis that they are vacant plots, while in reality they consist of large developments and building complexes.

The Minister anticipates that the revaluation will take between 3 and 5 years.

Financialmirror.com, April 2010

Cyprus #8 in Telegraph’s World’s Best Places to Live

Mon, 12 Apr 2010 11:09:00 GMT

Dream Locations

Seasoned traveller Zoe Dare Hall introduces our search for the number one destination for overseas buyers.

Moving abroad is mainly a lifestyle ambition, the vision of long, warm evenings spent on the terrace and weekends on the beach. But few of us have the luxury of being able to make the choice based on lifestyle alone. As anyone abroad reliant on British savings, incomes or pensions will know, finance is the decider. "The pound has fallen against every currency, although it has regained 12 per cent in value against the euro compared with two years ago," says Rupert Lee-Browne from currency trader Caxton FX.

With practicalities in mind, Knight Frank estate agency has come up with its top 10 destinations for those considering a move abroad – a selection that divides broadly into tax, lifestyle and retirement, based on considerations such as economic and political stability, climate, accessibility, tax regimes, health, education and the state of the property market.

For lifestyle, Tuscany and Majorca rate highly, with France – predominantly Paris, southern/south-west France and the Alps – the best all-round lifestyle destination, offering a wide range of property, good education and health options.

Southern Spain, southern Portugal and Cyprus remain the most in demand destinations among retirees, Dring says. "These destinations are less appealing to people in their forties seeking somewhere new to live, as there are fewer opportunities to set up service sector businesses. But we are seeing some people decide to retire early, particularly those in the financial sector, who want to take a breather for five years then return," he comments.

"The exchange rate is certainly affecting British people moving to Europe," Dring adds, "but they may have bought their property as a holiday home a few years ago, so they have made the big capital investment already. Many people are looking to do a stint abroad and come back. They are not doing it forever."

8 CYPRUS

Good year-round climate, popular with British buyers. Low end of market suffering, but much of the new property stock is moving upmarket, with larger units and higher price points. Buying costs about 8 per cent.

Research: Knight Frank

Telegraph Online,April 2010

Greece in no Danger of Defaulting

Fri, 09 Apr 2010 13:24:00 GMT

Trichet says Greece not in need of rescue

Greece is not at the point where it needs a financial bailout and is in no danger of defaulting, European Central Bank president Jean-Claude Trichet said in an interview on Friday 9^th April.

Default "is not an issue," he told Italian paper Il Sole 24 Ore, reiterating comments he gave at an ECB news conference on Thursday while stressing the importance a joint EU/IMF rescue promise given late last month.

Greece was not yet at the point where it needed to tap into the aid. "At this moment in time I don't expect this mechanism to be necessary," he said.

Concerns over a possible Greek default escalated sharply on Thursday, driving down Greek asset prices and the euro.

Markets recovered slightly on Friday on speculation the debt-stricken country might soon receive help.

Finance Minister George Papaconstantinou said on Friday the country would not ask for the aid mechanism to be activated, and the current wide spreads on Greek debt did not reflect economic realities.

But markets still believe a potential trigger for a rescue could come early next week when Greece tests markets' confidence with a treasury bill auction.

The ECB was originally opposed to a rescue of Greece with the IMF but is now doing its best to show willing. Trichet, who has been criticised by analysts for giving it only lukewarm support, said it was a "good and achievable solution."

The ECB extended a helping hand to Greece on Thursday by sparing government bonds from tougher penalties when banks use risky assets as security against cheap central bank cash.

Speaking in Paris, Christian Noyer, France's ECB policymaker, warned the troubles facing certain countries were a risk to banks holding the relevant sovereign debt, or related credit default swaps.

Trichet also said countries cannot flit in and out of the euro. "One cannot jump in and jump out of the euro area as one hops on and off from a bus," he said.

Any country that wants to enter the euro zone had to respect the Maastricht criteria "not just for one year but also in a sustainable way," he added.

Financialmirror.com, April 2010

Eurozone Confidence at Highest in Two Years

Thu, 08 Apr 2010 08:12:00 GMT

Eurozone optimism unevenly spread

Confidence in the Eurozone's economic outlook rose to its highest level in nearly two years in March, but the optimism was un-evenly spread as the bloc's struggling economies continued to fall behind.

The European Commission's economic sentiment indicator rose 1.8 points to 97.7 in the euro area, boosted in particular by newly-found bullishness in the industrial sector, which has benefited from a weaker euro, making exports more competitive.

Confidence levels in many of the Eurozone countries, including France, rose closer to the 100 mark, the long-term average for the series. Germany broke the 100 as it jumped 3.4 points.

But economies such as Greece, Spain and Portugal remained well below their own long-term averages, with erratic month-on-month readings highlighting uncertainty over their long-term prospects.

The Eurozone data beat economists' estimates and were interpreted as a sign of the economic recovery's continuing momentum.

Although risks of a double-dip recession still concern some, yesterday's data, combined with bullish figures in the past fortnight, have been prompting some forecasters to edge up first-quarter gross domestic product estimates, which had stood at about 0.4 per cent quarter on quarter.

"The renewed pick-up in economic confidence . . .

gives encouragement that the recovery in the Eurozone as a whole remains on track," said Martin van Vliet, economist at ING. "But it goes too far to suggest that the Eurozone economy is blossoming."

Much of the new confidence came from the industrial sector, which has benefited this year from the euro's 6 per cent drop against the dollar since January - a fall largely attributed to the fiscal indiscipline of the member states that continue to struggle.

But consumer sentiment stagnated, raising concerns about high street spending levels, which economists say are essential to a sustainable recovery.

Ft.com,April 2010

Recovery Stalled

Thu, 08 Apr 2010 08:13:00 GMT

Eurozone recovery stalled at end of last year

The Eurozone economic recovery stalled at the end of last year, according to revised official figures showing the 16-country region performed worse than previously reported.

Gross domestic product was unchanged in the fourth quarter compared with the previous three months, said Eurostat, the European Union’s statistical office. Previously, it had reported a 0.1 per cent increase.

In contrast, the US economy proved far more dynamic in the three final months of 2009, when the country saw a 1.4 per cent rise in GDP. The UK escaped from recession later than the Eurozone, but also notched up a better performance in the fourth quarter, reporting an 0.4 per cent rise in GDP.

However, signs have emerged of a substantial improvement since the start of this year. Concerns about the Eurozone have focused recently on the weakness of its southern European members – especially Greece, which has been hit by a crisis over its public finances. But the latest economic indicators suggest that the first quarter of 2010 saw robust growth, with Eurozone manufacturers helped by the pick-up in the global economy and the fall in the euro that has been caused by the Greek crisis.

Revised purchasing managers’ indices for March showed private sector economic activity expanding at the fastest rate since August 2007. The “composite” index, covering manufacturing and services, rose from 53.7 in February to 55.9 – indicating the eight consecutive month of growth.

The latest readings were consistent with GDP rising by between 0.4 per cent and 0.5 per cent in the first quarter, according to Markit, which produces the survey. The weak final quarter of 2009 appeared “more a temporary blip than a reversal of fortunes”, said Chris Williamson, chief economist at Markit.

He added: “There are also signs that growth is becoming better balanced, which should help build a basis for a more sustainable recovery. Although still led by manufacturing, especially in Germany, services growth picked up to the strongest since late 2007.”

The strong purchasing managers’ indices will ease worries that the bitter winter had put the recovery on hold.

FT.com,April 2010

Stability Program Submitted

Wed, 07 Apr 2010 07:57:00 GMT

Cyprus Stability Program Submitted to EU

The government has submitted to the European Commission its Stability Program, which includes the basic targets to reduce the budget deficit to 6% in 2010 and below 3% by 2013.

According to an official announcement issued on Tuesday by the Ministry of Finance, the Stability Program was submitted to the Commission on Thursday, 1st of April, through the due process and it is already in the hands of the competent officials.

As it is noted, the Stability Program is a living document, which beyond its fundamental structure and measures, is open to change, adding that it is imperative to continue the dialogue both with parties and the social partners as well as the European Commission.

The Ministry’s announcement points out that the government remains committed to the efforts to reach consensus solutions on the economy in order to address the chronic structural problems to help economic recovery.

Therefore, after tomorrow's meeting between the Finance Minister and the leaders and representatives of all parliamentary parties, meetings with all social partners and other organized groups will follow in the next days in the context of the dialogue and discussions that have been going on for some time now, the announcement concludes.

The four main targets of the Stability Program relate to tax evasion, cutting down operational costs and non productive expenses in the civil service, boosting development and consolidating a more effective social state.

In his remarks last week, the Finance Minister Charilaos Stavrakis expressed hope that the main bulk of the Program will satisfy the Commission, noting though that there are always recommendations and amendments suggested by Brussels.

Financialmirror, April 2010

Attracting Investors to Cyprus

Tue, 06 Apr 2010 10:21:00 GMT

CIPA sets up team of experts for Cyprus Investment Funds

The Cyprus Investment Promotion Agency (CIPA) has established a Consulting Group of Experts for the Investment Funds, in an effort to attract investments to Cyprus.

According to a CIPA announcement, the need for the team of experts came out the results of a survey about the banking sector. It comprises three persons with good knowledge and experience on investment funds, headed by Angelos Gregoriades, member of the CIPA board.

CIPA was established in 2007 and is fully funded by the government. The board of 13 directors (10 from the private, 3 from the public sector) was appointed for an initial four year term.

The agency’s mandate is to promote Cyprus as an attractive international investment centre in key priority growth sectors, to advocate reform in order to improve the regulatory and business environment and infrastructure, and to provide investor support.

Financial Mirror,April 2010

Cyprus Tax Benefits

Wed, 31 Mar 2010 07:23:00 GMT

‘Cypriot’ Fredriksen is 88th richest in world

Despite his wealth diminishing by some 300 million dollars, John Fredriksen rose up the Forbes list of billionaires from 113th in 2008 to 88th position this year, with a personal fortune of $7.7 billion (€5.6 billion).

The world's leading oil tanker tycoon was ranked 9th in The Sunday Times Rich List 2009 with a worth of £2.5 billion (€2.7 billion), down from 8th and £4.65 billion in 2008.

He runs his empire from a 30,000 square foot manse in London's Chelsea district but is a naturalised Cypriot, having abandoned his Norwegian nationality over inheritance tax issues several years ago. This placed him at the top of the Greek Rich List as the ‘Cypriot billionaire’.

The 65 year old self-made billionaire is said to have benefited with the shipping industry recovering from the crush of recession, according to Forbes.

Fredriksen last year rescued bulk shipper Golden Ocean from bankruptcy with capital infusion. He slashed dividends at oil tanker giant Frontline and is still agitating for management change at container shipper Tui. The oil trading business is making strong profits and the biggest piece of his fortune is Seadrill, which builds and leases specialised ships for deepwater oil drilling, whose shares were up 150% in a year. Fredriksen also controls Marine Harvest, the world's largest seafood company and biggest salmon farmer and is working to improve operations, as well as combat criticism that farms harm wild fish populations. He is widowed and has two daughters.

Financialmirror.com, March 2010

Property More Popular Than Other Asset Classes

Wed, 31 Mar 2010 07:35:00 GMT

High Net Worths Return to Residential Property

The world’s high net worth individuals (HNWIs) have more money invested in property than in any other asset class, according to new research.

The Wealth Report 2010, produced by Knight Frank and Citi Private Bank, shows that real estate makes up an average of one third of HNWIs’ investment portfolios, with half of their property investments in the residential sector.

The report claims “a significant number” of HNWIs are planning a property purchase this year, with 37% of these investors eying a second home compared to 13% looking for a primary residence. Around 21% think property will be the best-performing asset class of the year, following equities with 33%.

"The impact of the financial crash has not been as hard on the typical ultra-high-net worth buyer of prime property,” said David Poole, head of Citi Private Bank UK. “This means that many wealthy owners of property are again looking for investments.

“Our clients look for opportunities when everyone else is circling the wagons. Buying becomes opportunistic in a downturn, particularly as people turn to hard assets such as property when other assets experience dislocation.”

There are fewer HNWIs in all major markets due to the global downturn. However, of the biggest groups, the number of wealthy Germans has fallen the least – by just 9% to 342,000.

This compares with 2,519,000 in the US (down 19%), 669,000 in Japan (down 12%), 439,000 in the UK (down 21%) and 343,000 in China (down 11%). The number of HNWIs in the UAE has fallen by just 2% to 21,000.

The report also show that Europeans are the most enthusiastic property investors, with almost 50% of their money located in real estate. Asian HNWIs have the biggest share of residential property, which makes up almost 70% of their real estate purchases. North Americans are the least likely to invest outside their own country, with 88% saying they would choose a domestic investment if given a lump sum.

While many argue that the idea of capital growth from property has disappeared from the investment market, long-term appreciation is still the most important objective of wealthy property investors, followed closely by asset stability and yields.

Most rely primarily on their own expertise to make investment decisions, followed by advice from colleagues. The internet was considered the least important source for guidance.

Opp News, March 2010

Property Tax Revision

Tue, 30 Mar 2010 07:42:00 GMT

Ministers to examine property tax in Cyprus

The Cyprus Interior and Finance Ministers are to examine different scenarios for revising property taxes designed to increase the inflow of revenue into state coffers.

At 16:00 30^th March the Finance Minister, Charilaos Stavrakis, and the Interior Minister, Neoclis Silikiotis, plan to meet to examine how state revenues may be increased by adjusting property taxes.

When the Cyprus Government announced its plans in January, the Association of Cyprus Tourist Enterprises, STEK, and the Cyprus Hotel Association, PASYXE, opposed the proposals as they would cause their industries financial problems: “this move will hit the hotel industry as hotel units will be required to pay much higher taxes; 10-15 times more than under he current system”.

Cyprus’ immovable property tax is calculated on the market value of the property as at 1st January 1980 and is paid annually the Inland Revenue Department.

According to a report in the Greek language “Politis” newspaper, the meeting will deal with the results of the survey undertaken by the Land Registry and will examine alternative scenarios on how to increase state revenues without affecting small-medium land and property owners.

Financialmirror.com, March 2010

Increased Sales Activity

Tue, 30 Mar 2010 08:12:00 GMT

Property sales contracts increased for the fourth month in a row

In February, real estate sales activity (as measured by the number of sales contracts) in the island’s free areas continued the rising trend that started in November 2009, according to the latest data published by the Department of Lands and Surveys. In particular, the number of sales contracts in February 2010 registered a year-on-year increase of 26.2%, following year-on-year increases of 24.5% in the previous month as well as increases of 22.3% and 1.3%, respectively, in December and November 2009. The number of sales contracts in February 2010 was 55.5% lower compared to the activity registered in February 2008, but the persistence of the rising trend over the last four months is encouraging.

The rising trend in the first months of 2010 is not surprising, given that in the fourth quarter of 2009 the year-on-year rate of reduction in the number of property sales contracts decelerated to only 5.6%, compared to a year-on-year decrease of 36.7% in the third quarter of 2009 and a 44.3% overall reduction in 2009 compared to 2008.

All Cyprus districts registered increases in real estate sales activity in February, but growth rates varied considerably across locations. In particular, Ammohostos (Famagusta) registered the largest year-on-year increase of 44.2% in property sales contracts, closely followed by Larnaca, where property sales contracts increased by 43.8%.

The smallest (but still sizable in percentage terms) increases were registered in Nicosia and Paphos where the number of property sales contracts increased on a year-on-year basis by 13.7% and 18.8%, respectively. The number of sales contracts in Limassol increased by 25% on a year-on-year basis, following a decrease of less than 1% in the previous month.

Among the five districts, only Nicosia, Larnaca and Paphos have registered consistent year-on-year increases in property sales activity over the last three months (February and January 2010, December 2009) with growth rates in excess of 12%. Property sales contracts decreased (on a year-on-year basis) in Ammohostos in December 2009 while in Limassol they posted a minor drop in January 2010.

Although the number of sales contracts is not the best indicator of overall effective demand for real estate, the continuing rising trend in this statistic can be regarded as a positive sign. However, there is still uncertainty regarding the future path of property sales in Cyprus as the Eurozone economy seems to remain fragile. According to the latest data released by Eurostat, the anemic growth rate of 0.4% that was registered in the third quarter of 2009 in the Eurozone economy decelerated to a mere 0.1% in the fourth quarter, raising significant doubts regarding economic growth in Europe in the months ahead.

Financialmirror.com,March 2010

Limni Golf Resorts Announcement

Mon, 29 Mar 2010 09:31:00 GMT

Listing of Limnis in N.E.A

Cyprus Limni Resorts and GolfCourses Plc, member of Shacolas Group, is pleased to announce that the CSE Council approved the listing of its titles in the Emerging Companies Market. Their trading will commence on Monday, March 29, 2010, when the Emerging Companies Market will launch its operations. The Greek trading code of the shares is “ΛΙΜΝΗ” and the British “LIMNI”. Overall, 300 million shares will be listed. Based on the listing price of €1,00 per share, the Company’s stock market value is estimated at €300 million.

Cyprus Limni Resorts and GolfCourses Plc is the owner of a land of 3.15 million square meters at the area of Limni in Polis Chrysohous. The land ownership starts from the seaside – coastline of 750 metres and a pier of 160 metres – and ends to the boundaries of the state forest on the mountain. The Company has secured written approvals for the construction of two golf courts on the biggest part of the land. It also includes a land of 300 donums at Kinousa hilltop, destined for future development.

The Company’s aim is to construct a high-quality Group, which will comprise of two “Signature Golf Courses”, a golf club for each court, a 5-star luxury hotel of recognized brand, a health and spa center, villas in autonomous plots and other housing units, coffee shops, stores, sports’ facilities, a desalination unit and other similar developments. The Company’s ambition is to construct a unique project that – together with the hotel – will enrich significantly the tourist infrastructure of Cyprus.

For this project, the company has appointed distinguished designers and other consultants.

The golf courts have been designed by the well-known golfers and golf designers Jack Nicklaus and Gary Player. The designing of the Master Plan has been undertaken by EDSA, while the team of consultants includes the international companies DTZ and AECOM, experienced in land and hotel development issues, the French Sogreah for hydrology and geotechnical issues, KMPG of Budapest for the economic study and other foreign and Cypriot advisors.

At the current stage, the Company is in the process of restoring the environment. Those activities of €27.5 million plus VAT will be completed in the second half of 2010.

For further information on the Company, the Informative Listing Document is available in electronic form at the web page, www.shacolasgroup.com.cy.

Greek Cypriot Newspaper, 26^th March 2010

Greece Rescue Package Agreed

Mon, 29 Mar 2010 09:26:00 GMT

Greek deal poised to reassure markets

The rescue package for Greece agreed by the European Union last week is expected to reassure international financial markets as Athens prepares to launch a syndicated bond Monday or Tuesday, European politicians and bankers said yesterday.

Greek bankers hope the EU package, together with the European Central Bank’s move to extend its liquidity operations, will help reverse a flight of deposits from Athens-based institutions since January.

Greece hopes to raise €5bn ($6.7bn, £4.5bn) this week from a bond issue that would mark a return to regular borrowing operations after a volatile first quarter. It has to raise about €15bn in April and May.

The Greek central bank estimates that, in the first quarter, savers transferred abroad about €10bn – equal to about 4.5 per cent of total deposits in the banking system. Some of this was invested in Greek government bonds with yields of 5-6 per cent after these were made available to individual savers.

“With the return of calm to markets, we expect funds held abroad to start flowing back to Athens,” said a senior banker. “But the smooth execution of Greece’s fiscal consolidation programme will also be critical to rebuilding local investor confidence.”

Jacob Frankel, chairman of JPMorgan Chase International, said pressure in the financial markets on weaker eurozone countries would be eased if Greece showed it was committed to fulfilling its obligations.

“For financial markets the time frame is not measured by the calendar but by the credibility of actions. The issue is not just financing but what policy changes Greece brings in,” he said.

The ECB’s decision to maintain the current minimum credit rating for collateral in its liquidity operations, which lowers the chances of Greek assets being excluded, is expected to trigger increased demand for Greek issuance, according to Athens-based bankers.

Nouriel Roubini, professor of economics at New York University, warned that Greece was “a canary in a coalmine”, signalling rising sovereign risk in advanced economies.

With three-quarters of Greece’s $400bn of debt held by non-residents, mainly European financial institutions, the losses from debt contagion could be damaging, he warned. “Greece is not too big to fail but too inter-connected to be allowed to fail. That is why even the Germans know you have to help them.”

FT.com, 29^th March 2010

Euro Finds its Footing

Fri, 26 Mar 2010 10:11:00 GMT

Greece deal lifts euro off 10-month lows

The euro found its footing and stocks rallied on Friday as traders expressed relief that the eurozone had finally agreed a rescue package for Greece.

The FTSE All-World equity index rose 0.2 per cent and the dollar slipped back as risk appetite returned.

Investors will be hoping that the agreement to aid Greece, should it face “very serious difficulties” raising funds, will draw a line under the eurozone fiscal crisis by providing a template for action elsewhere if needed. “Don’t bother looking at the next target,” will be the message to the markets from Brussels, “we stand ready to provide support to any members in need.”

If things do indeed calm down in the eurozone sovereign debt markets, it will remove an impediment to the recent risk rally – investors fear a default would be contagious, cracking fragile economic growth – and may allow stocks to continue their march to fresh highs for the cycle. (The power of the Greek issue to rattle markets was illustrated on Wall Street overnight, when reports that European Central Bank president Jean-Claude Trichet had described the IMF’s involvement in the aid plan as a “very bad” idea, were cited as the main reason for a late swoon in US stocks. He later said he welcomed the deal.)

Alternatively, the rescue may just encourage investors to focus their attention on the fallout from fiscal profligacy elsewhere. The US Treasury faced poor demand for its auctions of $118bn worth of bonds this week as investors choked on the supply. US bond yields have moved sharply higher.

That trend can damage equities, as higher rates bring worries of economic growth getting throttled. But such is the bullish mood on Wall Street that some commentators are suggesting that falling bond prices are good – because investors will move their money into stocks instead.

When bad can be seen as good, we must be in a bull market.

● The euro bounced off 10-month lows versus the dollar on the news from Brussels. It rose 0.6 per cent to $1.3359 and added 0.6 per cent against the yen to Y123.71.

● Greek debt responded to confirmation of the eurozone’s backstop. The yield on 10-year notes fell 11 basis points to 6.19 per cent – a still elevated level, however, that Athens has consistently stated is incompatible with its budget plans.

US Treasuries saw some buying after another poorly received auction overnight – this time $34bn of seven-year paper – had helped push yields on the benchmark 10-year notes to within shouting distance of the 4 per cent level, and their highest mark in nearly eight months. But on Friday, bargain hunting saw the 10-year yield fall 2 basis points to 3.86 per cent.

In Europe, the inability of Wall Street to hold on to its early Thursday gains affected the open. The FTSE Eurofirst 300 fell 0.3 per cent and the FTSE 100 in London dipped 0.1 per cent.

ft.com, March 26th 2010

Cyprus Escapes Crisis

Thu, 25 Mar 2010 09:33:00 GMT

Cypriot economy escapes crisis as deficit fears grow further

Cyprus has avoided the fallout from Greece's mounting debt crisis but its fiscal deficit could still rise way above the EU ceiling of three per cent of GDP if government austerity measures fail, analysts have warned.

In a bid to lead by example and trim the public sector's bloated pay roll, President Demetris Christofias announced a 10 per cent salary cut for himself, the cabinet and other top officials on Monday night.

He made the pledge during a televised press conference night to mark two years in power as the divided EU country's first communist president.

Economists argue that the Cypriot economy, technically in recession since last June, was undone not by Greece but by a plunge in tourists, especially from Britain, by Britons selling their holiday homes and a decline in Russian investment.

"Greece has an indirect effect through the presence of Cyprus banks there and stock prices tend to be affected. But it has no real effect on economic activity," European University of Cyprus research analyst Pambos Papageorgiou said.

"The UK is Cyprus's most important economic partner, Russian companies also have offices here and there is investment in Russia through Cyprus."

The Cyprus government is aware that its eurozone economy could come under tighter scrutiny from Brussels as it tries to tackle a fiscal deficit that analysts say could reach seven percent of GDP in 2010 if public spending is not restrained and more revenue generated.

The finance ministry said last week that the stagnant property market and fall in tourism receipts, by 16.7 percent, created a revenue shortfall in 2009 of €1 billion.

"We face a similar problem to Greece with our growing deficit. But we are nowhere near as bad," said Papageorgiou.

Mr Papageorgiou said there were structural differences between the public sectors of EU partners Cyprus and Greece that should make it easier for Nicosia to impose cuts.

"The Greek civil service is very politicised and there is a higher level of corruption. It's much lower in Cyprus."

He added that the Cypriot government, apart from cutting the salaries of the president and his ministers, should make changes to the public pay roll and avoid imposing too many taxes so as not to stifle investment.

"I predict we will have almost zero growth this year, so it is dangerous to try and raise too much revenue. Public finances must be improved, but excessive tax measures must be avoided."

Finance Minister Charilaos Stavrakis is expected to announce a raft of measures aimed at saving €500 million and has been consulting with political partners to win consensus on a stability pact that will be sent to Brussels.

He is confident economic recovery can be kickstarted with the package.

But the planned freeze on public sector wages and cuts to entry-level wages by 10 per cent could result in strike action.

Plans to overhaul tax evaluation on real estate, to hike VAT on services for which the normal 15 per cent rate is not applied and potentially reduce or means test a range of social benefits could also aggravate public discontent.

Economist Costas Apostolides agreed that Cyprus's economic woes relate more to what is happening in Britain and said reducing taxation, especially in the property and construction industry, would help to get things moving.

"We have stronger economic links to the UK than Greece with a dependence on tourism and property," which have both been hit by the global recession.

Times of Malta,March 2010

Decisions for Greece

Wed, 24 Mar 2010 09:36:00 GMT

EU must decide on Greece help this week

The European Union must decide on a way to help debt-laden Greece this week, or run the risk of causing a "serious disruption" for the euro, the European Union's monetary affairs chief said.

"There is already the technical preparedness. Now we need a political decision. This is also important to Greece so it would know what to expect," Economic and Monetary Affairs Commissioner Olli Rehn was quoted as saying in the Finnish daily Helsingin Sanomat.

"We are at a crossroads. Greece can cause a serious disruption (to the euro), or we can can learn from this crisis."

Rehn said there were still a number of alternatives on the table to help Greece, and he saw no problems with the International Monetary Fund (IMF) assisting Greece.

"The EU is close to the IMF. We are partners."

France and Spain have called for a special meeting of euro zone countries this week to discuss Greece ahead of the regular two-day EU summit which opens on Thursday afternoon.

Greece needs to refinance some 16 billion euros ($21.6 billion) in maturing debt between April 20 and May 23 and is hoping that a public display of an EU emergency support mechanism, which would not need to be activated, will be enough to force down the cost.

The crisis over Greece's debt, expected to hit 120 percent of national output this year, and its budget deficit, which reached 12.9 percent of GDP last year, has shaken confidence in the euro single currency.

Financialmirror.com,March 2010

Budget 2010

Wed, 24 Mar 2010 13:42:00 GMT

Great News on the Budget

Great news for our investors that Capital Gains Tax is to be raised to £2m from £1m. No rise in CGT rates.

Company Advert

Mon, 22 Mar 2010 14:19:00 GMT

A Place in the Sun Magazine

Watch out for our advert on page 8 in the next issue of A Place in the Sun. The magazine is available in all good newsagents from Thursday 25^th March.

Property Market in South Cyprus

Mon, 22 Mar 2010 14:37:00 GMT

Important Factors and Expectations for the South Cyprus Property Market

Cyprus has always been a popular destination for holiday makers and those seeking a quieter pace of life. Investment in Cyprus remains a good prospect with solid returns on investment of up to 20% per annum.

Cyprus has long been a popular holiday destination for British tourists, possibly because settling in is not as much of a culture shock as on other Mediterranean islands. English is widely spoken on this former British colony. For property investors, the land registry system is similar to back home. Familiarities such as these, set in the context of over 300 days of sunshine a year and 648 km of coastline, are clear enticements for the British to continue to flock to the island for both business and pleasure. Main property hotspots are in and around Paphos, Larnaca, Limassol and the ancient city of Nicosia.

EU membership since 2004 means Cyprus is offers a strong property market, reaping the rewards of a stable economy.

Cyprus enjoys a standard of living that is higher than many other European Union member-states while economic performance compares very well to that of most other EU countries.

The banking sector is the major financier for both investors and developers alike. Cyprus property is expected to benefit from the uncertainty and pessimistic expectations in the English property market, since many investors prefer to transfer their capital to more secure property markets with better future potential.

British investors have very strong buying power in Cyprus and they can use gearing from their investments in England to buy significantly more in Cyprus.

Interest rates in Cyprus are approximately 4%and investors are buying up now as, by liquidating their investments, they incur large cash returns which are significantly greater than lending costs, due to the great performance of capital gains in many prime Cyprus locations.

Inflation is noted at 2.3 % and unemployment is at 3.8% - both rates are encouragingly positive.

Cyprus has double taxation treaties with 26 countries, including the U.S.A, and there are no exchange restrictions on current international transactions. Non-residents and foreign investors may freely repatriate proceeds from their investments in Cyprus.

Offshore status allows many foreign companies (located in Cyprus but conducting business abroad only) to benefit from many highly beneficial tax and duty-free concessions.

Cyprus is currently undergoing the Strategic Plan for Tourism 2010 which plans the upgrade of its facilities and resorts in line with changes in tourism trends, with the chief aim of launching Cyprus tourism well into the 21st century. This will be achieved through increasing the amount of tourist arrivals, per capita tourist expenditure, length of stay and repeated visits. We will see an increase in theme parks, agro/nature tourism, marinas and golf courses to cater for the many interests of today’s tourists.

Constant improvements to air access to Cyprus ensure a steady growth in tourism figures. Additionally, the road infrastructure is considered to be of great importance in Cyprus due to an ever increasing need to cater for today’s more independent and adventurous tourist, wishing to explore the island with ease. These roads will of course increase ease of transit of merchandise to every location on the island.

The current drive for improved tourist facilities to boost the Cyprus economy can only be regarded as good news to today’s property investor seeking a stable tourist market on which to base a property investment with high rental potential and good capital returns.

Propertyshowrooms, March 2010

Pensions Targeting Foreign Property

Fri, 19 Mar 2010 08:53:00 GMT

UK Pensions to Target Foreign Property

Pension funds targeting foreign property are expected to be the main drivers behind a substantial increase in UK institutional investment non-listed real estate.

Institutions will up their stake in the market by 20% to £29 billion over the next three years, according to a survey by the European Association for Investors in Non-listed Real Estate, INREV. Over a third of institutional funds questioned already have non-listed exposure to residential and/or leisure real estate.

“Pension funds’ exposure to real estate is currently below targets,” said INREV’s director of research, Lonneke Löwik. “Now they are expected to grow to their strategic allocation targets and non-domestic, and therefore non-listed, is likely to be one of the significant beneficiaries of this.”

The INREV UK Investor Universe report, conducted in conjunction with the UK’s Investment Property Forum (IPF), shows that the £8 billion in non-listed real estate funds account for three-quarters of the total capital invested in foreign property by UK investor.

In total, UK life and pension funds are estimated to have £80 billion invested in real estate, representing 7% of their total assets. Non-listed investment is estimated at around £23 billion, representing 2% of funds’ total assets and 29% of their global real estate investments.

Small and medium-sized pension funds are increasingly using non-listed funds to invest in property as they do not have the resources and scale to invest directly. “Most investors use non-listed funds to improve the diversification of their real estate portfolios and, in particular, to access out-of-reach sectors and sectors where they do not have the expertise to invest directly,” said Löwik.

“The fastest growing area is non-domestic property. Helping investors deploy capital abroad will be a key element to the expansion of non-listed funds.”   

Opp, March 2010

Government Economic Proposals

Thu, 18 Mar 2010 09:47:00 GMT

Cyprus: A Pandora’s Box of government economic proposals

A government has three ways to reduce a deficit:

1. Reduce spending;

2. Increase revenue;

3. Some combination of the above.

The recent government package of 21 proposals to reduce the Cyprus deficit appears to go for number 3, a combination of both spending cuts and revenue raising. In fact, the government has opted heavily for number 2, an increase in revenue.

The proposals to reduce spending which are included in the government’s package of 21 measures are miniscule, an exercise in cosmetics. Can anyone take seriously the plan to reduce civil service employees by 1000 over three years? This amounts to considerably less than 1% annually of the total civil service workforce. Even this tiny amount cannot be taken for granted, given the government’s past record of freezing civil service employment and then promptly adding new personnel to the public sector payroll.

The new revenue proposed by the government is to come from increases in VAT, taxes on cigarettes, petrol, liquor and new water rates. Add in the recent increase in electricity prices and this means only one thing, a regressive set of measures which will hit particularly hard at the lower income strata of Cypriot society. Those who need to consume the highest proportion of their income.

A drop in consumer spending is at the heart of any economic recession. The UK, USA, France, Germany and most members of the European Union have incurred major increases in their deficits at this time primarily due to their efforts to support consumption. The main economic strategy of all these powers during the downturn has been to boost the ability of consumers and businesses to continue spending. The recent Cypriot package of proposals will move the economy in the opposite direction.

Although the economic measures in the government’s package echo the recent Greek economic proposals, the two situations are not the same. The Greek national debt is roughly double the 60% permitted by the EU. Cypriot debt is only 7 percentage points above that level. While Greece has to reduce its national debt from 112% to 60%. The Cypriot task is to reduce it from 67% to 60%. Different situations call for different measures.

Financialmirror.com, March 2010

3 Week High Against Euro

Thu, 18 Mar 2010 11:01:00 GMT

Sterling nears three week high against euro

The pound rose to its strongest in nearly three weeks against a depleted euro this morning (18th March) in the currency exchange markets on the back of yesterday’s strong jobs data.

Pound Sterling – UK Markets

Wednesday’s data helped push the pound to a strong position this morning against a weakened euro but traders were cautious before today’s public finance figures. However, the data showed UK public finances deteriorated by less than economists had forecast in February, which kept the pound strong in the global currency exchange markets.

At 1000 GMT sterling traded at 1.1171 against the euro and 1.5275 versus the US dollar.

Good data has contributed to the view that the UK economy may be recovering better than previously thought, lessening the chances that the Bank of England will opt to expand asset purchases under its quantitative easing programme.

Euro – European Markets

The euro weakened for a second day against major currencies amid concern Greece will fail to secure financial assistance from the European Union, reducing the appeal of assets in the 16-nation region.

Michael Meister, the chief finance spokesman for German Chancellor Angela Merkel’s Christian Democratic Union party, said yesterday that Greece should turn to the International Monetary Fund if it needs aid, signalling a rift with other European leaders.

At 1013 the euro’s currency exchange rate against the pound was 0.8951 and 1.3673 versus the dollar.

Problems in Greece are having a significant effect on the euro’s progress in the world currency exchange playground.

Currencysolutions, March 2010

Overseas Property Increase

Thu, 18 Mar 2010 11:12:00 GMT

Property Abroad – What’s it all About?

The past 4 – 8 years have seen a tremendous increase in the interest, purchase and hype of buying a property abroad. The late 90’s and early part of the 21st century has seen house prices surge in the UK to record heights, this together with the ever increasing coverage of the low cost airline destinations has given the average man in the street the excess equity in their existing homes and easier access to be able to think about buying and perhaps living overseas.

We’ve probably all been on a foreign holiday to some exciting destination, be it Europe, The Americas or even further afield and admit it whenever we’ve seen a local estate agent we always make a beeline for their shop window if not to compare the prices to back in the UK then certainly to see how and what we could afford – we’ve been doing it for years without really considering the possibilities.

4 years ago the number of properties owned by people from the UK hovered at around 170,000. Now there are over 1million Brits owning second homes in Spain and France alone, and figures from the Office for National Statistics recently revealed that around 200,000 Britons travel abroad every year in search of buying a property with the intention of staying for a minimum of 12 months.

Most of us here in the UK are already home owners and there exists a continuing strong demand for our little piece of England. However, there exists a growing sector of young people who are unable to climb on the UK property ladder because of the high cost of entry property prices and as such are entering the overseas property market as a means to secure some foot holding on an emerging property market.

A Place in the Sun – Channel 4’s property programme recently compiled their list of the 20 best places to buy a property abroad for investment purposes.

Romania – Poland – Portugal – The Baltic States (Latvia, Lithuania, Estonia) – Sweden – Belgium – Slovakia – Sweden – Finland – Hungary – Luxembourg – Germany – Czech Republic – Ireland – Austria Netherlands – France – Italy – Spain – Cyprus

Property-abroad.com

Cyprus Against Climate Change

Thu, 18 Mar 2010 12:02:00 GMT

Cyprus enterprises sign Charter Against Climate Change

The Cyprus Chamber of Commerce and Industry launched on Wednesday an initiative on Corporate Responsibility during a ceremony here today in the presence of Cyprus President Demetris Christofias.

Fifty one businesses signed the Charter Against Climate Change which commits them to working to fulfil Cyprus’ national goal to reduce carbon dioxide emissions by 15% by 2020.

In his speech during the ceremony, President Christofias said that climate change is the most dangerous challenge, as it evolves gradually and quietly, with repercussions in the years ahead.

“This allows for complacency which should not be permitted, which allows the fundamental cause of the problem to last. The cause is indifference for what is to follow, it is also being trapped by short term profit which develops into a heavy cost for the generations to come,” the President stressed.

The President warned against burdening further the environment, saying this would bring about climate change which might be out of man’s reach to rectify.

President Christofias also noted that the protection of the environment is not an obstacle to development but a precondition of viability and sustainability.

“We should invest, throughout the world, in a new economy with full respect to the environment. A clean and green economy in all sectors. Changes in the environment is a direct threat to our health, our quality of life, the food we eat, the water we drink, the air we breathe, a threat to the viability of our planet,” he pointed out.

He added that since 2008, Cyprus has been implementing a coherent strategy that combines development and the protection of the environment. The President referred to schemes relating to town planning, recycle, restriction of greenhouse emissions, treatment of liquid and solid waste and protection of the water resources.

CCCI President Manthos Mavrommatis said that businesses are given the opportunity through this initiative to contribute to Cyprus’ and EU goal to reduce greenhouse emissions by 2020.

CYTA President Stathis Kittis said that CYTA has for a long time been implementing policies to reduce emissions from its installations.

Financialmirror.com

Island of Love

Wed, 17 Mar 2010 10:06:00 GMT

Buying A Property In Cyprus - A Good Investment

Known among many as the Island of Love, Cyprus is one of the most famous tourist destinations and the 3rd largest Mediterranean island attracting thousands of tourists every year. There are many reasons why so many people opt to buy a property in Cyprus. As well as the warm climate which prevails throughout the year; Cyprus is home to many breathtaking beaches, world class cuisine and conditions suitable to peaceful living.

People say Cyprus is the place to go when one is retiring. It allows a simple and a leisurely life where people devote a greater part of their time to meeting friends and relatives, organising social gatherings and other pleasures in life. Cypriots are a friendly people who welcome visitors warmly. It is an ideal country for those who want a slow paced peaceful life.

Cyprus is an unpolluted country and buying a property in Cyprus can be a great investment since the property value is considerably higher than other European countries.

Owing to the improvements in international trade, tourism, public services, education and medical facilities, a recent survey has shown how the economy of the country has improved dramatically. In addition, there is a highly developed transport infrastructure so one doesn’t have to worry about getting around.

One reason why most people opt to buy a property in Cyprus is the low cost of living and with the entry of Cyprus in to the European Union more benefits have been added in relation to human rights.

Cyprus is a haven for those who love fun and entertainment. Night life is active in major towns and restaurants and cafeteria are in abundance. Cyprus is home to a large number of sites listed in UNESCO. Tourists fall in love with the wonderful beaches, mountains and scenic locations. It is also a great location for outdoor activities such as hiking, cycling, skiing, bird watching and walking. Among the most famous sites are Akamas national Park, the Troodos Mountain range with Mount Olympus, and the Tombs of the Kings.

Considering the above attractions and advantages, it is no wonder why so many people vie to have their own property in Cyprus.

Articlesnatch.com

Capital Gains Tax Fear

Wed, 17 Mar 2010 10:27:00 GMT

Capital gains tax fear sparks panic sales

Investors are rushing to sell shares and property ahead of the Budget on March 24, in the apparently misguided belief that Alistair Darling is about to raise capital gains tax rates.

But the chancellor is thought to have rejected raising the tax now, fearing it could provoke a backlash from the business community and undermine his central Budget claim to be supporting jobs.

Mr Darling considered raising the CGT rate before December’s pre-Budget report to discourage individuals from turning income, taxed at a higher rate, into capital gains.

The Treasury admits that the gulf in rates between the CGT rate of 18p and the new 50p top rate of income tax for high earners – which takes effect in April – is creating some “strange incentives”.

Mr Darling acknowledges that the Treasury will, at some point, have to close the gap, which he knows is being used by the wealthy to cut their tax bills. “We are continuing to look at this issue,” said one government insider.

Although final Budget decisions have not been taken, the chancellor believes the political and economic climate is not conducive to any move to raise the CGT rate.

Mr Darling wants to portray his Budget as one which underpins the recovery and boosts job creation in areas such as high-technology companies and the low-carbon economy.

Raising the tax on capital gains would be portrayed by the Conservatives and many in the business community as an attack on entrepreneurs. However, the Conservatives have said they are in “listening mode” about whether future reforms to CGT would make sense.

Meanwhile, Vincent Cable, Liberal Democrat Treasury spokesman, favours an equalisation of capital gains and income tax rates, as once espoused by the former Tory chancellor Nigel Lawson.

“The danger of allowing big differentials to arise between taxes on earnings and capital was clearly understood by Nigel Lawson and the last Conservative government, which taxed them at the same rate,” he said.

The fear of higher CGT rates has nevertheless spurred some to sell assets. David Kilshaw, private client partner of KPMG, the professional services group, said clients were very keen to take action before the Budget. “One way or another, pre-emptive action seems the order of the day.”

Alex Henderson of PwC said there was a considerable amount of nervousness surrounding CGT. “In a higher tax environment, 18 per cent does look a very good rate. People holding more passive assets are saying, ‘Can this last? Is it too good to be true?’ ”

Advisers said clients were splitting share holdings with spouses to use two lots of annual exemption and, in some cases, accelerating sales. Putting assets in trust was another option, although it could have inheritance tax consequences and the investor would not have sale proceeds to pay the tax which normally falls due.

But Mr Kilshaw warned against a “stampede”, saying there were arguments both for raising and holding the rate.

The case for a rise would be tempered by the risk of a repeat of the furore over the 2008 simplification of the tax when Mr Darling cut the rate for owners of non-business assets and increased it for business owners.

An increase would also raise relatively little extra revenue, as CGT revenues are expected to be just £2.6bn in 2010-11. But a rise in the rate could be presented as an extra defence against the wealthy dodging the 50p rate by declaring income as capital gains.

Ft.com, March 2010

Cyprus to Submit Stability Package

Wed, 17 Mar 2010 10:57:00 GMT

Cyprus to submit economic stability package soon

Cyprus will outline tax and cash saving proposals to rein in a widening deficit in a stability programme to the European Union this month, its Finance Ministry said on Tuesday (16th March).

The government is considering increases in value added tax, pay freezes across the public service and a clampdown on tax evasion to curtail a fiscal shortfall seen hitting 7.0 percent of gross domestic product this year, more than double the euro zone limit.

Any suggestions would be in the package submitted to Brussels, a finance ministry source said. "The report is still being worked on and will be submitted in the next few days," the source said. Stability programmes look five years ahead and are regularly updated.

The source, who declined to be identified, denied a report in a Cypriot daily which quoted Finance Minister Charilaos Stavrakis saying the package had already been submitted to Brussels for approval.

Cypriot authorities had previously said there would be a consultation process involving political parties and labour unions before measures were implemented.

Authorities may increase VAT rates for goods in a low tax bracket and have already said they want to revamp a tax system on real estate and pursue a pay freeze in the civil service.

Cyprus has a standard VAT rate of 15 percent, which would remain unchanged, but the likely candidates for an increase are goods in a lower band of 5 and 8 percent, applicable from pharmaceuticals to coffins, hairdressing and certain food items.

The finance ministry said in January the 2009 deficit was around 6 percent, but final figures for last year are not yet available.

Interactive Investor, March 2010

UK Salary Sacrifice

Tue, 16 Mar 2010 10:04:00 GMT

Investors give up salary to cut tax

One in four investors is now considering “salary sacrifice” to lessen the impact of higher tax and national insurance bills – and one-third say future tax policy could sway their votes in the upcoming general election.

In a poll of more than 2,000 UK adults, run exclusively for FT Money, one-quarter said they would be willing to give up some of their salary in exchange for other employee benefits, such as higher pension contributions or childcare vouchers, if it reduced their overall tax bill. Among 18- to 34-year-olds, the proportion rose to one-third.

Financial advisers said that more employers were offering salary-sacrifice schemes as pensions came under increased pressure.

“Salary sacrifice offers a way to offset lower pension benefits in a more cost-efficient way,” said Tom McPhail, head of pensions research at Hargreaves Lansdown. “As pressures have come to bear on pension funding, we have definitely seen more of it.”

Salary sacrifice is expected to be particularly popular with those earning between £100,000-£129,950 from April, as it could effectively give 60 per cent tax relief on pension contributions.

Unbiased.co.uk, which conducted the poll, said the saving was just one of the ways individuals could avoid losing up to £9bn a year in unnecessary tax.

“Seeing your payslip before and after these deductions can be shocking,” said chief executive Karen Barrett. “However, it is clear that people are starting to realise that there are ways to minimise their personal tax wastage in more unusual ways.”

But investors fear further tax rises later in the year – even if they are not announced in the Budget on March 24. Nearly one-third said they expected taxes “to rise substantially” after the general election, with one-quarter believing couples with young children will be hardest hit.

As a result, 41 per cent of people in their 30s say future tax policies could sway their voting intentions – and the view is widely held across the UK and different age groups. In the south-east, where 15 of the 30 most marginal seats are to be contested, 32 per cent say tax will be a factor.

Ft.com, March 2010

Limni Golf Resort

Mon, 15 Mar 2010 12:58:00 GMT

Located on the northwest Mediterranean coast of Cyprus, the small mountainous village of Limni will soon be the site of a world-class golf resort aimed at European holiday-makers. Limni is just outside the popular town of Polis with its paved streets and wide range of facilities. A short drive away is the Marina at Latchi with its many fish restaurants often serving fish that have been caught a few hours before. The town of Paphos is 30 minutes away and the airport 40 minutes, however these travelling times will shortly be reduced as a new motorway will soon be built linking Limni/Polis to Paphos and the airport.

Shacolas, the largest private commercial group in Cyprus, owns a plot of 2,800,000 square metres in Limni, Polis Chrysochou, where a huge project with 2 golf courses, an upmarket hotel, and luxury villas will be constructed the plot has access to the seafront with a quay of 150 metres. The Company is in a position to satisfy the needs of water supply and irrigation of the project. The above plot also includes a land of 280,000 square metres at the hill of Kinousa village, adjacent to the state forest, which will be developed separately in the near future and will benefit the village of Kinousa. The Company has already secured an approval by the competent authority for the separation of plots. Earth moving contractors have already started work on the main complex.

Shacolas has appointed Gary Player Design and Nicklaus Design to create two signature championship layouts at the centre of this development. The Master Plan also includes high-end residential villas as well as a boutique hotel, spa, restaurants and designer shops. As the first and only Player-Nicklaus development in the whole of Europe, Limni Golf Resort will undoubtedly be in a class of its own.

Formerly an old copper mine, the parcel of land designated for the Player course is characterised by a large crater which will be integrated into the design. In addition, the property is raised up and set back from the shoreline, allowing for spectacular long-distance views of the Mediterranean Sea. Already a booming tourist destination with year-round sunshine, Cyprus is the new "jewel in the crown" for golfers seeking breaks in the warmth of the eastern Mediterranean - playing golf in temperatures of 20 degrees in the middle of January is a new experience for many people.

The new Marina at Latchi. A new motorway link to this upmarket area. One of the largest golf course projects in Europe at the present time. This is an investors dream come true.

a20realestate.com

Market Growth Opportunities

Fri, 12 Mar 2010 09:18:00 GMT

Opportunities in the market lead to growth in Cypriot property sales

After a turbulent few months for the Cypriot housing market, news that property sales are beginning to pick up is likely to be welcomed by investors.

The latest statistics, compiled by the island's Lands and Surveys Department, demonstrate an increase in volumes of around 30 per cent in February compared with the same month last year.

Solomon Kourouklides, president of the Cyprus Real Estate Agents' Association, explained that the growth was probably a result of more opportunities opening up for buyers in the marketplace.

Many new purchasers are buying up property from individuals who are struggling with loan payments.

Meanwhile, Mr Kourouklides made his predictions for the coming year: "If the economic parameters remain the same, we believe that the market will remain at the save level as in 2009."

This is the second month in a row that property sales posted an increase, as in January the Land and Surveys Department reported that there had been a 24 per cent increase in house sales compared with the same period in 2009.

Propertyshowrooms.com, March 2010

The Return of the International Lifestyle Buyer

Fri, 12 Mar 2010 09:22:00 GMT

Cyprus Sees Return of International Lifestyle Buyer

Pure investors from the UK have disappeared from a holiday home market now dominated by cash-rich lifestyle buyers, according to new research.

The report from Savills International Research and holiday lettings company HomeAway.co.uk, revealed how far the overseas property market in the UK had fallen over the last year. Just 2% of the 430,000 foreign-home owners in the UK bought their property in 2009, compared to 70% who bought between 2003 and 2008.

“By spring 2009 Savills International noted that interest in international holiday homes had returned, albeit at far lower levels than previous years,” said the report. “The market has now reverted back to traditional, end-user buyers (as opposed to investors), and mostly in traditional, established hotspots.”

The high number of distressed sales that have contributed to oversupply and falling prices has helped keep pure investors out of the market, it added. “In contrast to previous years, investors solely seeking to capitalise on upward price movement are no longer active in the market place.”

Savills’ head of international, Charles Weston-Baker, told OPP that mid-market buyers had also started to return to the market. “We have started to see more grassroots sales coming through,” he said. “The very top of the market has largely been unaffected, but now end-users who are looking for lower-priced but quality property are buying to enjoy the product.

“We’ve also noticed how important sport has become to buyers, especially for baby boomers and those retiring. There’s a new enthusiasm for experiential holidays and buyers need a reason to be somewhere, such as golf or horse riding. We seem to have jumped 20 years in aging, where people are slowing down at 80 rather than 60.”

The report predicts another quiet year for the UK holiday home market, with most sales taking place to high-income lifestyle buyers in traditional locations, with little activity in the speculative or off-plan markets.

The proportion of people buying in major cities and in villages grew substantially at the expense of smaller towns and isolated rural locations. The popularity of purpose-built resorts also increased.

“This reflects not only the growth in preference for such developments but also the rise in quality and quantity of such communities,” said the report. Interest in buying property to renovate or improve also fell, mirroring the rise in resorts where ready-to-go homes maximise letting potential.

Savills’ market has become skewed towards mid-to-top end buyers, and properties worth more than £200,000 now form the majority of purchases, with a particular fall in popularity of homes worth less than £100,000.

news.vivuro.com, March 2010