The Central Bank of Cyprus (CBC) announced on Friday that the total amount of non-performing loans (NPLs) decreased by €722 million at the end of the third quarter of 2021, reflecting a quarter-on-quarter decrease of 14.4 per cent.
Further, total loans decreased from €28.388 billion at the end of the second quarter to €27.902 billion at the end of the third, reflecting a decrease of €486 million or 1.7 per cent.
As a result of the fall in NPLs, the ratio of non-performing loans to total loans has decreased from 17.6 per cent at the end of the second quarter to 15.4 per cent at the end of the third quarter of this year.
Moreover, the coverage ratio reached 45.7 per cent at the end of the third quarter compared to 46.8 per cent at the end of the second quarter.
It is noted that between December 31, 2014, and September 31, 2021, non-performing loans decreased by a whopping €23 billion or 84.3 per cent.
The CBC explained that the downward trend in NPLs in the third quarter of 2021 was attributed to the sale and transfer of loan portfolios to credit-buying companies, to loans that have been successfully restructured and reinstated in the category of loans at the end of their monitoring period, as well as loan repayments, including debt swap agreements with assets (real estate).
In addition, loan write-offs, made either in the context of restructuring and often concerning amounts for which there are precarious provisions in the accounts of banks, or concerning non-contractual or “accounting” write-offs against amounts already included, also contributed to the decrease in NPLs.
The total loan amount restructured by the end of the third quarter of 2021 came up to €3.911 billion, of which € 2.085 billion are still included in the category of NPLs.
Of the total loans to banks by the end of the third quarter, €14.626 billion concern corporate loans, of which €1.762 billion are NPLs.
Regarding household loans, these amounted to €11.130 billion at the end of the third quarter of 2021, of which €2.187 billion are related to non-performing loans.
The CBC noted that when determining NPLs, banks were required to apply the definition used by the European Banking Authority (EBA).
The EBA stipulates that when a non-performing loan is restructured, it is not automatically transferred away from this categorisation, but remains unattended in the category of non-performing loans for an additional period of at least 12 months, even if the borrower follows the newly agreed repayment schedule without any delays.
This means that a part of the restructured loans is still deemed as non-performing even if the borrower adheres to the new repayment schedule.
Fusion Reactors CEO Christos Stavrou is unequivocal when he speaks about the potential value of fusion technology, both in terms of its use to the world, but also to Cyprus.
“A private fusion company in Cyprus would provide a significant boost to the island in a number of ways,” Stavrou told the Cyprus Mail, adding that the commercialisation of fusion has the potential to usher in a new era, similar in scope to that brought by the industrial revolution.
Stavrou grew up in Cyprus but left 20 years ago to study abroad, acquiring a PhD in Plasma Physics from Imperial College, a masters degree in Fusion Energy from the University of York, a PGCE in Physics from the University of Oxford, and a bachelor’s degree in Physics from the University of Bristol.
This was followed by taking up roles at the Joint European Torus (Jet), an operational magnetically confined plasma physics experiment at the Culham Centre for Fusion Energy in Oxfordshire, as well as Tomahak Energy, a major fusion energy company based near Oxford.
“Having worked in both the public and private fusion sectors, I identified significant improvements to existing devices, which I believe will significantly accelerate the commercialisation of fusion,” Stavrou said.
“Both I and the team at Fusion Reactors believe that fusion is absolutely crucial in reducing greenhouse gas (GHG) emissions and thus in helping us avoid a climate catastrophe,” he added, explaining that his desire to launch Fusion Reactors stems from his goal of delivering commercial fusion as early as feasibly possible.
Stavrou and the team at Fusion Reactors have been working over the past two years to finalise their designs and methodology and are now ready to begin operations.
“We intend to begin fundraising in the first quarter of 2022 and begin operations as soon as the funds have been raised,” Stavrou said.
The Fusion Reactors CEO added that while the company is currently based in the United Kingdom, they are open to relocating elsewhere, including Cyprus, if an investment opportunity arises.
Stavrou told the Cyprus Mail that Fusion Reactors aims to directly address the issue of greenhouse emissions resulting from the production of electricity. Approximately one-quarter of all greenhouse emissions are produced from power generation, with about two-thirds of this resulting from the burning of fossil fuels.
The company is developing a reactor that can generate heat similar to that produced during the burning of fossil fuels, from which then electricity can be generated.
“This means that it can like-for-like replace the fossil-fuel burning boilers in existing and new thermal power stations, thereby converting them to green, sustainable power generators,” Stavrou said.
“Using Cyprus as an example, imagine keeping the current power stations (e.g. Vassiliko) with their current capabilities (generating the same amount of electricity, using the same existing grid infrastructure and with the same reliability and availability), but not burning diesel or mazut to get this electricity,” he added, explaining the conversion of the same power station to one that is completely zero-carbon, green and sustainable.
Stavrou deems the level of current climate change efforts both in Cyprus and abroad to be far from sufficient.
“In Cyprus, for instance, we are working and planning to become a fossil fuel (natural gas) producing country, at a time when fossil fuels should be phased out, with this increasingly happening in other countries,” Stavrou said, qualifying it by saying that this is understandable from a short-term economic point of view.
Humanity is currently faced with the challenge of satisfying an ever-increasing energy demand while decreasing emissions. This has placed renewable energy at the forefront of this challenge. While Stavrou sees the value in renewables, his view is somewhat less enthusiastic than most, describing them as being part of the solution, not the solution on their own.
One of the examples Stavrou mentioned is that of the UK, where renewables penetration is already quite high, bringing up instances where the country had to rely on fossil fuels, including coal, to bridge the gap in electricity production during low wind and sunshine conditions.
“It is exactly this reason why fusion is crucial, considering that by directly replacing fossil fuels, it allows the continued use of existing infrastructure,” he said, adding that “this means we can quickly scale up to meeting future demand with no GHG emissions and no weather dependency”.
Fusion has progressed from state-owned labs, with little interest from the private sector, to an explosion in private ventures.
One example is TAE Technologies, which was founded in 1998 and has grown into a company employing more than 250 employees. As of 2021, TAE Technologies has raised $880 million in funding, an industry-leading amount.
As recently as November of 2021, Helion Energy, founded in 2013, received $500 million in Series E funding, with an additional $1.7 billion of commitments tied to certain milestones and benchmarks.
“We have had interest expressed in our company already, and we expect that this will increase further when we start fundraising,” Stavrou said, explaining that the aforementioned companies started with small amounts similar to those in Fusion Reactors’ first fundraising rounds.
“Our first fundraising round will allow us to complete the first phase of our roadmap, which includes setting up our main facility and completing experiments on two of our devices,” Stavrou added.
COMMENT:
Cyprus is perfectly placed to move in to renewable energy, but moving from the current Nuclear Fission to Nuclear Fusion may be harder than it seems, the world has been 30 years away from Nuclear Fusion for decades, so maybe a government backed incentive for all new buildings to have solar powered roofs, and paved areas fitted with solar tiles to ensure that they are almost self sufficient would make and immediate and progressive change.
Cyprus’ move to open up its power generation market and boost the share of renewable sources in its energy mix will face its first big test next year, when the European Union’s executive arm assesses the project.
Cypriot lawmakers in October approved a law aimed to decouple the power grid operator from the state-run Electricity Authority of Cyprus and enable private power generation companies to supply homes and businesses.
The decoupling was among the reforms Cyprus pledged under its national Recovery and Resilience Plan (RRP) that European leaders approved in July.
The European Commission told the Associated Press in an email Friday that it will “formally assess the compliance of this reform with the (RRP) commitments” when the Cypriot government seeks EU funding next year.
Previously almost exclusively dependent on fossil fuels for power generation, Cyprus has made strides in boosting the contribution of renewables. This year’s target of a 13% share in overall electricity generation was exceeded by 4 percentage points, according to Energy Minister Natasa Pilides. Solar and wind energy are the two primary renewable sources.
Cyprus is also keen to introduce natural gas as a cleaner-burning alternative fuel as the country continues to search for possible deposits off its southern shores.
University of Cyprus Economics Professor Sofronis Clerides said another key reform that Cypriot authorities need to undertake is to streamline how the Electricity Authority runs itself. That, he said, would reduce the type of nepotism and clientelism that political parties rely on to bolster their power base by meting out jobs to supporters.
Three out of four Cypriots prefer to live in a house rather than a flat, while more than two-thirds own their own home, according to a recent Eurostat survey.
In their annual report on EU citizens living conditions for 2020, Eurostat found that 73% of the island’s population lived in a house, while 25.6% lived in a flat.
In the EU, 53% of the population lived in a house, while 46% lived in an apartment (1% lived in other accommodation, such as houseboats, trucks).
Ireland recorded the highest share of the people living in houses with 92%, followed by Croatia (78%), Belgium (77%) and the Netherlands (75%).
The majority of people in more than two-thirds of EU countries live in houses.
The highest percentages of people living in apartments were in Spain (66%), Latvia (65%), Estonia (61%), Greece and Lithuania (both 59%).
When it came to cities, 72% of the EU population lived in an apartment and just 28% in a house, while in rural areas, 82% of the population lived in a house and 18% in an apartment.
Homeowners
More than two-thirds of people in the EU lived in their own homes.
Being the owner or tenant of your home differs significantly between the Member States.
In the EU, 70% of the population lived in their own home, while 30% lived in rented housing.
The highest homeownership rates were observed in Romania (96%), Slovakia (92%), Croatia and Hungary (both 91%).
Owning a home is the rule in all EU countries, except for Germany, where owners and tenants’ percentages are 50-50%.
Tenants in Austria and Denmark made up 45% and 41% respectively.
In Cyprus, 68.6% live in their own home, while 31.4% rent.
Introducing CX Financia – Your Trusted Financial Advisor
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Founded in 2015 by a group of highly qualified professionals with work experience in the UK, Greece and Cyprus specialising in the financial services and banking sector. Our strengths originate from our dedicated team of professionals and our global partners with their extensive experience in legal, international accounting and auditing, banking and financial services industries.
We work with corporations, investors, and high-net-worth individuals, providing assistance in navigating the constantly changing and evolving world of international business and reducing financial liabilities and risks.
Innovation, teamwork, mutual respect, trust, honesty, and integrity are the values we share to offer the highest level of service to our clients.
Our Service Domain:
Company Formations and Full Management
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Final preparations are being completed in the Cypriot capital of Nicosia ahead of a visit by Pope Francis due to begin on Thursday.
For the government of Cyprus, this visit constitutes an historic event.
According to the Cypriot Deputy Government Spokesman, 77 reporters will accompany the Pope’s mission, while more than 200 journalists have been accredited to cover the event.
Although a brief trip, the final official schedule shows several events, including a Holy Mass at GSP sports stadium on the outskirts of Nicosia, a leading venue for international football matches.
Hundreds of Catholics, many of them travelling from throughout the Mediterranean region, are expected to attend the event.
Events
Pope Francis will also meet with refugees and immigrants, followed by an Ecumenical prayer at the Catholic Church of the Holy Cross in Nicosia, a unique parish church where Mass is celebrated in eight different languages.
During the trip, the Holy Father will visit the Presidential Palace, where he will be greeted by President Nicos Anastasiades who is expected to brief him on protection of cultural heritage, efforts to promote interreligious dialogue, the on-going ‘Cyprus problem’ and the migration and refugee issue and human rights.
The challenges facing the world due to the new outbreak of the Covid-19 pandemic will also be discussed.
Pope Francis will then visit Archbishop Chrysostomos II, the leader of the Orthodox Church of Cyprus and hold meetings with the leaders of the Catholic Church on the island.
This is the second Papal visit to Cyprus, after Benedict XVI successful journey in 2010 aimed at strengthening ties between the Roman Catholic and Orthodox churches.
Pope Francis will depart from Cyprus on 4 December to travel Athens.
On Tuesday the 23rd November 2021 the Great Britain Cyprus Business Association held a Business Orientation Conference at the Marriot Regents Park. The event was attended by the Minister of the Interior, Nicos Nouris, representatives of established developers, solicitors, investment consultants, accountants and other members of the rapidly expanding Cypriot business community.
Trellows is very proud to be a member of this professional organisation that was founded by Mr Savvas Kyriakides, to promote exposure, collaboration and expansion of the Cypriot business community, a task that the founder takes very seriously in his relentless efforts to connect businesses within Cyprus, around the UK and beyond.
There is no doubt that the Cypriot commercial compass has been recalibrated in recent years, taking the island on a carefully chartered course to a destination that will see it become the centre for financial investment, management and corporate presence for businesses seeking a presence within the EU, with simplified and favourable tax regulations, as well as access to one of the highest proportions of postgraduate educated populations in the world.
Cyprus has experience exponential growth in overseas investment and business relocation, with the completion of Brexit, making Cyprus, an island with a historical nexus to the UK a preferred EU headquarters or satellite location for many British businesses.
The property market in Cyprus is not only robust, but also benefits from excellent growth, yield and increasing demand.
The speakers at the conference consistently underlined the positive benefits of investing in Cyprus, whilst announcing several innovations, to legislation that will serve to increase the appeal of Cyprus as an expanding business and investment hub.
Trellows would like to thank the members who attended as well as those who could not, as they are part of a business community that is gathering pace and capturing the attention of businesses and investors worldwide.
If you would like to know more about joining the Great Britain – Cyprus Business Association please visit their website or contact the founder directly.
Michael Kyprianou & Co. LLC is praised for its ‘outstanding reputation in the international disputes market that is supported by strong credentials. The gender diversity of the practice is refreshing’ too. The ‘highly intelligent’ Marina Hadjisoteriou and the ‘very reliable and experienced’ Menelaos Kyprianou co-lead the team. The group is trusted by key insurance and banking institutions in Cyprus and abroad and by leading international law firms. In addition the group has considerable expertise in disputes relating to crypto-currency trading and all aspects of shareholder disputes, breach of fiduciary duties and professional negligence. It also has a growing practice supporting the health care sector and the transportation sector. It has been described as a team that is ‘a collage of brilliant minds and legal expertise’.
.Michael Kyprianou & Co. LLC has an able team that advises employees and employers on issues as diverse as employment agreements, settlement agreements through to the termination of employment and unfair dismissals. The department acts for a number of high profile clients on a variety of high-value and complicated cases too. The department, that is led by Lambros Soteriou, Savvas Savvides and Ioanna Solomou, has also been busy advising on diverse issues such as constructive dismissals, disciplinary proceedings and continues to work alongside some international law firms on a myriad of complex employment law matters. Recently it has been advising various organisations on employment law matters arising out of the Covid-19 pandemic.
Practice head(s):
Lambros Soteriou; Savvas Savvides; Ioanna Solomou
firm and particularly Savvas Savvides brings deep expertise and relationships in the area of private education. The firm’s tailored approach to our special sector is such an advantage, saving time and getting straight to the solution. Savvas Savvides brings unique expertise and relationships in the area of private schools in Cyprus, and because of that gets results’.
‘This law office commands a high reputation in legal and business circles in Cyprus. It comprises of high calibre staff with in-depth knowledge of legal matters in different categories who know exactly how to apply them in order to have best chance of success in court. The M. Kyprianou practice offers dependability, transparency and high efficiency in delivering the legal product. The team inspires confidence’.
‘We have worked with the firm on various employment legal matters. The lawyers know this field very well, they are very professional and efficient. They have won our trust and it is now the firm of our choice in any upcoming legal matter in Cyprus’.
‘I have worked with Mr. Savvas Savvides on several cases and he was always prompt, timely and open for calls and quick updates. Most of the time we had to work to tight deadlines, however Mr. Savvides and his team worked through all of the questions and concerns in a very polite and smart way’.
For further information contace Michael Kyprianou:
Pomos is one of the remaining unspoiled and undisturbed areas of Paphos. An ideal location to get away from it all.
Pomos village, hanging on the cliffs of west coast Cyprus, lies about 20 km afar from Polis Chrysochous, on the way to Akamas nature reserve. It is a laid back village very peaceful and quiet. It is ideal for those wanting to live the authentic Cyprus way of life, away from the hassle and bustle of tourist’s resorts. This tranquil and calm area prides itself with amazing views of the coastline and sandy beaches, making it the ideal place for rest and relaxation.
https://youtu.be/yPvQ0nQt9V0
BEACH
The beach that shows up in front of you is not only virgin but it has expansion of one kilometre. The beach of Pomos has something special. It has enough width and it is constituted from a fine but also coarse-grained sand, mixed with few colourful pebbles. Until the Akrotiri it is probably one from the most picturesque seaside water side of Cyprus. The mountain falls almost vertically to the sea while the chutes are covered with pines and fruit-bearing trees. Besides the lacy water sides with the numerous coves and the pointy small capes, give the scenery a unique picturesqueness.
Just now, some tourist apartments appeared in this remote silent place. This tourist units are the most impressive sight in the sand. The sand between the navy blue color of the sea and that of the pines, solitary and almost unknown in the wide public, is attractive to those who are interested in relaxation peace and quietness. You can only hear the noise of the waves. You feel your body to be penetrated by a soft cool breeze. You enjoy a limpid clear sky ,with stars that send you their bright or blurred light.
This incomparable beauty and peace, this sublime harmony in light and colour that you meet here in the sand of Pomos is something rare. It is probably, this moment, the most quiet tourist place of the island. So few visitors, local and foreigners to enjoy this expanded virgin sand! It is not sure though how long this peace and lonely life of this place will last.
PORT
The littoral place of the village contributed to the development of fishery. In the offshore area next to the Akron Pomos, there is a fishery shelter which in 1984 took in four fish boats that kept busy seven residents of the area. With state expenses since 1983 the port of the area developed significantly.
The professional fishermen but the amateurs too have enclosed the area all over enjoying the fresh alluring fish.
Today, the development is enough bigger, in an extent that fresh fish does not only serve the people who are there to enjoy the marvellous sight but also the restaurants of the area.
CAPE
The cape of Pomos or the Akron Pomos as it is more known , is in the area of Tilirias about two kilometres north of the village in which he took its name . Its formation took place because of the hard rock that is around it and which resisted the mordant energy of the waves. The route from the nearby village Nea Dimmata until the Akro Pomo is perhaps one of the most picturesque offshore routes in Cyprus. The mountain falls almost vertically to the sea while the steep slopes are covered with pines and fruit bearing trees. Besides the lacy seaside with the numerous coves and the sharp small capes give the scenery a unique picturesqueness.
DRAGON’S CAVE
In the past tradition said that ships arrived in the area and made burglaries. In this cave there was the famous Dragon who protected the area from all the evil things that happened then. It is a rocky cave, with an opening to the sea some kilometres further from the port, to the cape. The cave has lots of depth and sweet water comes from there.
SUNSET
While the sunset begins, the few scattered clouds take a soft golden colour and create a marvellous view. The Sunset here is Bucolic and blissful, wonderful and wild, head along this far north western coast of the island. The location of Pomos is the ideal place to watch the sunset. The scenery and nature are unique. Even in the same place every sunset is different from day to day. Pomos is one of the best sunset view points not only in Cyprus but all over Europe.
PACHYAMMOS
The small village of Pachyammos, just 3,5 km from Pomos is majestically beautiful and the mountains lead straight into the sea. The main point of interest is the impressive church of Agios Rafael, an important pilgrimage site for the faithful due to the belief in the miraculous curing powers of the saint.
The narrow sandy Blue Flag beach of Pachyammos makes for a nice stop Pachyammos Village Beach is an idyllic refuge for those seeking a remote and private stretch of bay to enjoy their day in tranquillity. The scenery and the views ascending the hill are simply amazing. Drive through the serpentine mountain road and enjoy the beautiful contrast of the wild green of Tiliria on your left and the dramatic coastline of hill girt bays and seaweed-covered rocky shores in the deep blue colours of the Mediterranean on your right. .
WHERE TO STAY?
Stunning natural environment, friendly, laid back people, great apartments and villas for your accommodation, wonderful beaches, stunning sunset, Pomos is the ideal place for those seeking active holidays in the nature.
Pomos is built next to the sea , in a medium height of 10 metres. The scenery of the village has an obvious leaning to the sea. The creation of tourist units in the enchanting beach of the village, offered the opportunity to the foreigners but to the local people to enjoy the magic of the scenery and their calm. Located on the north – west part of Cyprus, Pomos is an area of natural beauties, excellent sea and beaches. The National Park of Akamas Peninsula is just a few kilometres away. Akamas peninsula: The national park of Akamas is just next to Polis Chrysochous. From Polis you are able to explore this unique unspoilt area.
“The increasing numbers of lionfish around Cyprus created the need to create a platform that allows scientists to monitor their abundance and distribution in the area so that we can control their populations and their negative effects,”
According to the researchers working on the project, the lionfish is reproducing rapidly and in the Mediterranean no predator has yet been identified. It consumes mainly native fish and invertebrates found in the marine area of Cyprus, including species of commercial value, having the potential result of disruption of local biodiversity and fishing stocks.
As numbers proliferate, so have fears of the flamboyantly coloured fish posing the biggest ecological setback to ecosystems in the Mediterranean – which is already under pressure from pollution, tourism and over-exploitation. In the EU, Cyprus has become “the first line of defence” against the lionfish invasion.
With mounting evidence of the species’ capacity to outcompete other fish, the Cypriot government has increasingly come round to the idea of organised culls – acknowledging that if the pest is not brought under control lionfish will have an effect on commercial fishing.
A government spokesman said:
“If culls prove to be an effective tool in managing this problem we will apply it for sure. It is illegal in Cyprus to hunt using scuba diving equipment but in this case we are permitting it. We can’t say we’re not worried.”
On an island dependent on tourism, the department is taking measures to inform the public ahead of summer. Although there have been no known fatalities caused by lionfish stings, human contact with the venom is horribly painful as fishermen have discovered pulling catches from nets.
The first cull was held in a marine protected area off Cape Greco, with prizes handed out for harpooning the smallest and largest fish. The government is keen to encourage local fishermen and divers to get involved in the hunt.”
Lionfish, have no natural enemies, laboratory dissections had proved they were also furnished with ferocious appetites. “They eat everything. Culling this invasive species is the only effective way to reduce their numbers and ensure marine-protected areas continue to regenerate.”
In addition to removal action teams, surveillance platforms to monitor lionfish were being developed as part of the EU-funded programme.
“This is a regional problem and our insights and knowledge will be transferred and replicated in surrounding countries.”
Global warming and the rise in sea temperatures have encouraged the invasion.
Scientists believe expansion works to the Suez Canal have also played a role, by enabling the toxic fish to migrate from native habitats in the Red Sea. The canal, which is one of the world’s most important waterways, was widened and deepened to cater for ever-bigger container ships only three years ago.
“That may have saved time and money but to do it without any biosecurity measures in place was mad,”
“The oceans are bleeding invasive and damaging species into the Mediterranean like a cut artery.”
Lionfish were by far the greatest offenders with the highest impact on marine ecology because they are such voracious and adept predators. Environmental watchdogs have said invasive species are now among the top five leading causes of biodiversity loss globally. In the western Atlantic lionfish have been linked to the reduction of coral reef fish by about 65%.
Culls have proved highly effective in the Caribbean where the species has been blamed for destruction of coral reefs, diminishing populations of other fish and vast ecological damage.
“In these waters I think we may have missed the chance to eradicate them completely because they will spread as the seas warm,”
There is still time to control the population especially in marine-protected areas. And even better lionfish could be good business. In all of this there is a silver lining, as firm-fleshed fish they taste absolutely wonderful. There’s definitely a niche market to be had putting lionfish on dinner tables.
