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ISSUE 34 JANUARY 14 - FEBRUARY 13, 2014PRICE €4.95

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WHERE TO PUT YOUR MONEY

INVESTMENT GUIDE 2014

4 Gold THE INTERNATIONAL INVESTMENT, FINANCE & PROFESSIONAL SERVICES MAGAZINE OF CYPRUS

FEATURE

+ OPINION

32 | THE ACTION BEHIND THE TRANSACTION Serving the vast bankcard market from Cyprus, TSYS is a perfect example of a thriving international company whose strategically located operations here fuels its global success.

36 | THE FUTURE OF BANKINGChris Jones, Head of PwC’s Financial Ser-vices Practice in Europe, the Middle East and Africa, talks about the European bank-ing sector, what happened in Cyprus and what Europe can learn from the emerging markets.

6 814

Issue 34 January 14 - February 13,

2014EDITORIALUP FRONTFIVE MINUTES WITH…

66 {money}

70 {business}

74 {economy}

76 {tax&legal}

78 {lifestyle}

THE ROAD TOWARDS A BANKING UNION REMAINS BUMPY AND UNCERTAIN By Philippe Gudin de Vallerin 28

GOVERNANCE SHOULD TAKE CENTRE STAGE By Petros Florides 30

THE BITCOIN ADVENTURE

By Dr. Constantinos Charalambous 35

NO EASY ROAD TO RECOVERY By George Theocharides 53

THE OUTLOOK FOR THE CYPRUS ECONOMYBy Persella Ioannides 56

ALL ABOARD THE TITANIC By Savvas Savouri 64

62

16

TO GAIN A CLEARER PICTURE

OF WHAT 2014 HOLDS FOR

INVESTORS FROM A CYPRUS-BASED

STANDPOINT, WE INVITED

FOUR FINANCIAL EXPERTS TO SHARE THEIR KNOWLEDGE AND ADVICE

WITH US ON THE INVESTMENT POTENTIAL

OF THE MAIN ASSET CLASSES

(EQUITIES, BONDS, COMMODITIES, ALTERNATIVE

INVESTMENTS AND CASH) AND MORE.

42 | EUROPEAN PARLIAMENT DRAFT REPORT SLAMS TROIKAThe European Parliament has issued a highly critical draft Enquiry Report on the role and operations of the Troika with regard to the euro area programme countries.

46 | CONNECTING THE DOTSMarios Chiromerides, Managing Director of Connecor Investments, explains how the newly opened Nicosia-based office of this international transfer agency aspires to partner buyers and sellers alike, to mu-tually beneficial ends.

50 | SIMPLIFY, STANDARDIZE, AUTOMATEOracle’s three-word key to success. Interview with Michel Clement, Vice-

President Centraleastern Europe of the Oracle Corporation.

54 | “ALL TOURISM IS GOOD TOURISM”TUI’s Chief Executive, Peter Long, predicts more visitors to Cyprus in 2014

58 | WELCOME TO THE FLORIDA OF EUROPEA new report entitled Crisis Investing in Cyprus promises to make us rich.

62 | A PROFESSIONAL JOBAn article on the profes-sional services sector as featured in the latest issue of fDi magazine.

CYPRUS

58

32

54

contents.indd 4 08/01/2014 12:52

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ΜΗΝΙΑΙΑ ΕΚΔΟΣΗ ΓΙΑ THN ΚΥΠΡΙΑΚΗ ΑΓΟΡΑ & ΤΑ ΣΤΕΛΕΧΗ | TEYXOΣ 91 | ΣεπτεμβριοΣ 2013

TΙΜΗ €4.95 | Σε ειδικη τιμη €3.40 για τhn kYρiakh 1/09/13 μαζι με την εφημεριδα Σημερινη

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1 Α/ΦΟΙ ΛΑΝΙΤΗΣ

2 ΑρχΗ ΗΛεκΤρΙΣμΟυ κυπρΟυ

3 ΑΝΔρEΑΣ ΝεΟκΛEΟυΣ κΑΙ ΣΙΑ Δεπε

4 ALPHA BANK

5 AMBROSIA OILS

6 BARCLAYS

7 BERNHARD SCHULTE SHIPMANAGEMENT

8 ΒRITISH ρETROLEUM

9 CARREFOUR

10 CHAKARIAN COLOUR CENTER DULUX

11 COLUMBIA SHIPMANAGEMENT CYPRUS

12 CROWE HORWATH

13 εΛΛΗΝΙκΑ πεΤρεΛΑΙΑ κυπρΟυ (EKO)

14 ELYSEE IRRIGATION

15 ERNST & YOUNG

16 EXXONMOBIL κυπρΟυ (ESSO)

17 GRANT THORNTON

18 ΙκεΑ

19 KEAN

20 KPMG

21 LIDL CYPRUS

22 LUKOIL CYPRUS

23 μΙΤΣΙΔΗΣ ΔΗμΟΣΙΑ εΤΑΙρεΙΑ

24 MEDOCHEMIE

25 METRO SUPERMARKETS

26 MICROSOFT

27 μΤΝ

28 ΟμΙΛΟΣ εΛΛΗΝΙκΗΣ ΤρΑπεΖΑΣ

29 ΟμΙΛΟΣ εΤΑΙρεΙΩΝ P&P ICE CREAM

30 ΟμΙΛΟΣ εΤΑΙρεΙΩΝ VOICI LA MODE

31 ΟμΙΛΟΣ ευρΗκΑ

32 ΟμΙΛΟΣ ΛΑΝΙΤΗ

33 ΟμΙΛΟΣ ΦΩΤΟΣ ΦΩΤΙΑΔΗΣ

34 ΟμΙΛΟΣ χΑρ. πΗΛΑκΟυΤΑ

35 ΟμΙΛΟΣ J& P

36 ΟπΑπ κυπρΟυ

37 πεΤρΟΛΙΝΑ

38 PELETICO

39 PWC κυπρΟυ

40 QUANTUM ENERGY

41 REMEDICA

42 ΣυΝερΓΑΤΙκΟ ΤΑμΙευΤΗρΙΟ ΛεμεΣΟυ

43 STAROIL

44 ΤρΑπεΖΑ κυπρΟυ

45 ΤρΑπεΖΑ πεΙρΑΙΩΣ

46 υπερΑΓΟρεΣ ΑΛΦΑμεΓΑ

47 UNIVERSAL LIFE

48 VTT VASILIKO

49 ΦΑΝΟΣ Ν. επΙΦΑΝΙΟυ

50 χΑρΑΛΑμπΙΔΗΣ κρΙΣΤΗΣ

κοινωνικα ευαισθητεσεταιρειεσ

EDITORIAL

LOUCAS MARANGOSCEO, TFI Markets Ltd.

(Silver Sponsor)

POLIS ECONOMIDES

Chief Financial Director, Jumbo

Trading Ltd.

VARNAVAS THEODOSIOU

President and Managing Director,

ExxonMobil Cyprus Ltd.

YIANNIS TINIS Managing Director,

Amdocs Development Ltd.

ELENA LEONTIOU

Head of Media, IMH(Co-organiser)

DIETER ROHDENBURG

CEO, Intership Navigation Co. Ltd.

VIKTOR KISLYIPresident & CEO, Wargaming Public

Company Ltd.

PHILIP VAN DALSENCEO, MTN Cyprus

SERGEY POPRAVKO

Managing Director, Unicom Management

Services (Cyprus)

MEHRAN EFTEKHARGroup Head of Corporate

Services & Finance Director, Nest Investments Holdings

(Cyprus) Ltd.

CHRISTODOULOS ANGASTINIOTIS

Chairman, CIPA(Co-organiser)

HANS WOLFFDirector and Country

Manager, Barclays (Gold Sponsor)

NICOS ANASTASIADES

President of the Republic of Cyprus

2 ndCIPA INTERNATIONAL INVESTMENT AWARDS

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ISSUE 30 SEPTEMBER 14 - OCTOBER 13, 2013PRICE €4.95

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EVGENIOS EVGENIOU

CEO, PwC Cyprus (Platinum Sponsor)

John Vickers,Chief Editor

[email protected]

Investing in the Future

Α lthough it is both tempting and easy to look back at 2013 and to blame all kinds of people in Cyprus and abroad for the problems that finally became too big to ignore or resolve without enormous sacrifices, you don’t need me to do that for you, espe-cially two weeks into the New Year. Everyone knows what happened in March and

we all have a strong suspicion that what lies ahead will be neither easy nor pleasant. However, while it may still be premature to believe that the only way is up, it is essential that we maintain a positive outlook in 2014 and believe in the country’s ability to emerge from the present difficult situation.

As in previous years, we start the New Year with our annual Investment Guide (page 16) and the views of four financial experts on what those fortunate enough not to have lost their wealth and/or assets should be doing to see a good return on their investments. While most of their clients will be looking to foreign markets and studying the major share indexes, which rose impressively during 2013, some will doubtless be looking to Cyprus for a way of taking advantage of the island’s current predicament. The American authors of Crisis Investing in Cyprus (page 58) certainly believe that there is money to be made by investing in local companies and real estate at the present time. Others will take a less aggressive, longer-term view and see that Cyprus is now taking the necessary steps to restore confidence in those areas that have always proved lucrative and successful. Peter Long, the CEO of Europe’s biggest tour operator, TUI, believes that Cyprus will have more visitors this year than it did in 2013 (page 54), though he notes that various parts of the tourism sector need to consider their pricing policies. Similarly, the Cyprus Investment Promotion Agency (CIPA) has been taking its role seriously through a series of initiatives, including the funding of a broad-based Financial Times report on the country, one article of which we reproduce in this issue (page 62).

Of course, trying to think positively and look to the future with optimism in no way precludes examining what went wrong and who was responsible for Cyprus’ present straitened circumstances. The European Parliament has already published a draft Enquiry Report on the role and operations of the Troika with regard to the euro area programme countries, including Cyprus, and it is highly critical (page 42). The two rapporteurs and other MEPs will be visiting the countries concerned to hear the views of officials and it is expected that a hard-hitting resolution will ultimately be passed by the Parliament.

In Cyprus itself, things tend to move rather more slowly. Even when investigations are held and reports issued, they tend to be forgotten and ignored like the annual reports of the Auditor-General who, had she been listened to over the years, could have saved the state millions if not billions of euros. President Anastasiades has promised to act upon her recommendations. If he proves to be as committed to this as he appears to be regarding the implementation of the Memorandum of Understanding with the Troika, we shall certainly have some reason for optimism. 2014 is not going to be an easy year for anyone in Cyprus but it will be one during which progress is made on several important issues, including the first stages of the privatisation process regarding what are seen as the three most successful semi-government organisations (Cyta, the EAC and the Ports Authority). Moreover, developments in the energy sector and the lifting of banking restrictions are two issues that may be key to normalising the banking sector and the broader economy respectively. And while all the indications are that growth will not return until 2015, the public and private sectors need to have it as their goal for this year too. We are all investing in the future.


MANAGING DIRECTOR

George MichailGENERAL MANAGER

Daphne Roditou TangMEDIA MANAGER

Elena Leontiou

EDITOR-IN-CHIEF

John Vickers

JOURNALISTS

Effy Pafitis, Chloe Panayides

CONTRIBUTORS TO THIS ISSUE

Wendy Atkins, Rakis Christoforou, Dr. Constantinos Charalambous, Petros Florides, Philippe Gudin de Vallerin, Persella Ioannides,

Dr. Savvas Savouri, George Theocharides

ART DIRECTION

Anna TheodosiouSENIOR DESIGNER

Alexia PetrouPHOTOGRAPHY

Jo Michaelides MARKETING EXECUTIVE

Kevi ChishiosSALES & BUSINESS

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Tax Facts & Figures2014 - Cyprus

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The tax system in Cyprus

We in PwC are here to offer you the best of our knowledge and expertise. Our specialised tax solutions are adjusted to your own specific needs to support you in structuring your operations in an efficient way.

The guide is available on our website www.pwc.com.cy/tax-facts-figures

up front

AndreAs neocleous & co llc dominAtes Best lAwyers’ 2014 listing L

awyers from Andreas Neocleous & Co LLC domi-nate Best Lawyers’ 2014 listing of lawyers in Cy-

prus, announced on December 4, with fourteen lawyers from the firm ranked as leaders in their field, more than any other firm, holding leadership posi-tions in all practice areas and

accounting for more than 10% of all the lawyers listed in Cyprus. Andreas Neocleous is the Best Lawyers’ 2014 Limassol Bank-ing Law “Lawyer of the Year” and Elias Neocleous is Limassol Corporate Law “Lawyer of the Year.” Inclusion in Best Lawyers is based entirely on peer-review. The methodology is designed to

capture, as accurately as pos-sible, the consensus opinion of leading lawyers about the professional abilities of their colleagues within the same geographical area and legal practice area, using a sophis-ticated, rigorous rational and transparent survey process. Best Lawyers has been carrying

out research on the legal profes-sion for more than thirty years,. In 2006 Best Lawyers published its first international list (Best Lawyers in Canada) and since then has grown to provide lists in more than 65 countries world-wide. It has been covering the legal profession in Cyprus for five years.

Louis Vuitton Closes Cyprus Store

Luxury French brand Louis Vuitton’s Nico-sia store closed its doors on December 31 2013, following

a difficult year for sales of luxury goods in Cyprus. The dedicated boutique store, opened in 2007 on Stasicratous Street, was LV’s 372nd

boutique worldwide. The move comes as Louis Vuitton, along with other major international brands, seeks to pull out of operations in countries with struggling econo-mies to reduce the risk of a drop in turnover. LVMH (Moët Hennessy Louis Vuitton) recorded overall revenue of €13.7 billion in the first half of 2013, showing an increase of 6% compared to the same period in 2012; organic revenue growth was 8%. The Group continues to experience good momentum in the US and Asia, and continues to grow cautiously in Europe’s more difficult economic environment to visitors which draws them in.

Double Delivery takes emirates a380 fleet to 44 Emirates recently

took delivery of its 43rd and 44th A380 aircraft with a double delivery from

Airbus’ Finkenwerder facility in Hamburg, Germany. “Our customers love the A380 – from the quieter cabins and spacious layout on the main deck, to the on-board lounge and shower spas in our premium cabins. It is a beautiful aircraft which we have packed full of the best inflight comforts and products. From an operator

standpoint, the A380 is still one of the most fuel efficient aircraft per seat. It offers us some flexibility in range and also helps us to meet demand at slot-constrained airports,” said Tim Clark, President, Emirates Airline.

Emirates operates the world’s largest fleet of A380s, flying one in three of these modern jets in the skies today. Emirates was the first airline to order the aircraft back in 2000, and it ordered another 50 more at the Dubai Air Show in November. In 2013, Emirates received 13

A380 aircraft and it expects to receive another 13 in 2014. The airline still has 96 more A380s worth USD 43 billion on order, of which 71 are expected to be delivered over the next five years, before the end of 2018.

Emirates operates four scheduled flights weekly from Larnaca to Dubai: every Monday, Wednesday, Friday and Saturday. On these days in the morning, EK 107 arrives from Dubai while in the afternoon EK108 arrives from Malta on its flight back to Dubai.

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AndreAs neocleous & co llc dominAtes Best lAwyers’ 2014 listing

New App for Cyprus Basketball Fans

The Cyprus Basketball Federation (CBF), in collaboration with ZEBRA Consultants, has become the first Cypriot sports asso-ciation to introduce its own mobile app.

Fans of Cyprus basketball will now be able to access information regarding their favourite sport with a swipe of the finger on a smartphone

or tablet. The mobile app, which is available for free download at www.basketball.org.cy informs users on the latest Cyprus basketball news, CBF competitions, match schedules, live scoring and referee appoint-ments.

The app is available on Apple iOS and Google Android devices and works seamlessly on both mobile phones and tablets.

Utilising ZEBRA Consultants’ web-based zecontent Content Man-agement System, the mobile app is updated at the same time as the CBF website.

ZEBRA Consultants specializes, amongst others, in developing appli-cations for mobile devices, websites, online shops and other web based applications.

Y iota Kythreotou-Theo-dorou, Managing Partner at Pamboridis LLC since February 2013, has been appointed a District Court Judge with effect as of December

2013. After completing her training with Watson, Farley & Williams in London (2001-2003), she worked for Efstathiou & Associates, specialising in commercial law and commercial litigation. She joined Pamboridis LLC in 2006 and was made a partner and Head of the Corporate/Com-mercial Department in 2008. A Member of the Law Society of England and Wales, the Cyprus Bar Association and the Nicosia Bar Association, Kythreotou-Theodorou obtained her BA (Hons) Jurisprudence from Oriel College, Oxford University (1996-1999) and her LLM in Private International Law from Oxford Brookes University (2000-2001). She speaks Greek, English and Spanish.

60Conferences Planned By IMH

A t the annual IMH Christmas Breakfasts in Nicosia and Limassol last month, Managing Director George Michail announced the company’s plans for

2014.He told the invited guests that the company which, among other things, publishes Gold magazine, has an extremely full schedule of activities for the coming year, including 60 conferences in Cyprus and several abroad.

“Following the huge success of the recent Cyprus Economic and Investment Summit in Moscow, we shall be holding more such meet-ings in other key capitals in an effort to help attract foreign investment to Cyprus,” he said.

In Nicosia Michail made special mention of IMH’s latest media outlet, the Gold News por-tal, which launched that day (13 December), and the Gold News Daily Newsletter, the first issue of which was distributed the same day.

Michail concluded his address in both cities by proposing ways in which companies can promote their products and services through IMH’s conferences, exhibitions and busi-ness media which target what he called “the premium audience in Cyprus”.

“It is my firm belief that no other organisa-tion in Cyprus reaches and affects this audi-ence better than IMH does”, Michail told the audience at both gatherings.

New Judge AppoiNted


British entrepreneur James King has won an award giving him ₤50,000 to expand his busi-ness – despite being registered

blind. King from Milton Keynes, won the award for his company Oliver James Garden Rooms, which creates glazed home extensions. The Sun newspaper ran an article about the winner and the

award last month.The Stelios Award for Disabled Entre-

preneurs, funded by easyJet founder Sir Stelios Haji-loannou with the Leonard Cheshire Disability charity, recognises the achievements of disabled entre-preneurs.

James King, 47, was a bricklayer until his early twenties, when he was diag-

nosed with the hereditary eye condition Retinitis Pigmentosa. “Because of my vision we have to overcome certain situ-ations but because of this, we end up with a better standard,” he told The Sun.

Sir Stelios said: “I have been really impressed by the growth of James’ business and the way he is meeting a genuine need in the market.”

Shop Till You Drop!

FXTM INTERNATIONAL BOXING CUP CYPRUS BEATS RUSSIA

C ypriot boxers took the lead over their Russian op-ponents as

they competed in last month’s FXTM International Boxing Cup “Cyprus Vs Russia” at the FXTM Apollon Indoor Arena in Limassol, proving that there is a lot of potential for further development in the Cyprus boxing scene.

The boxing tournament, co-organised by forex broker ForexTime (FXTM) and the Li-massol Municipality, took place

under the auspices of the FXTM Aravis Boxing Team. Hundreds of spectators enjoyed a thrilling adrenaline-filled tournament where athletes competed for international supremacy.

Ten matches took place in the 57kg, 60kg, 64kg, 69kg, 75kg, 81kg, and 91kg categories. Cypriot winners were C. Antoniou, G. Danatsides, P. Tatidis, E. Kathopouli, F. Kazakov and G. Yakubu. Match winners from Russia were I. Kokshin, A. Esman, I. Shmelev, and A. Zaitsev.

Andrey Dashin, founder

and shareholder of Forex-Time and himself a sporting enthusiast, congratulated the athletes saying “We at Forex Time are very proud to sup-port youth and specifically to help athletes chase their dreams and succeed. Boxing is a very precise art form for me; it helps individuals develop the key skills of strategy, endur-ance and focus that can also be applied in everyday life and to the business world. Congratu-lations to all the athletes that have competed today and a special bravo to the winners”.

Cyprus and other countries of the eurozone may be suffering from austerity measures but some things never change. The 19th edition of the Dubai Shop-ping Festival (DSF) from 2

January to 2 February 2014 has once again made the emirate of Dubai a ma-jor attraction for visitors from around the world. The latest edition of the Dubai Shop-ping Festival, considered the region’s best entertainment and shopping extravaganza, promises to deliver an unforgettable experience to millions of visitors. Economy class return fares from Cyprus start from €430.

Jaber Mohamed, Emirates Manager for Cyprus said: “The 19th edition of the Dubai Shopping Festival is not only about one of the best shopping experi-ences in the world. Tourists from Cyprus will enjoy a festive and entertainment extravaganza. The DSF caters for every visitor as in addition to shopping and prizes, there are hundreds of events and activities ranging from interna-tional concerts, musicals and shows to sports, outdoor, and fashion events.”

Since it was launched in 1996, the DSF has grown from a mere shopping event to an international entertainment and shopping extravaganza that contin-ues to draw millions of visitors to Dubai every year. Last year, the festival drew 4.3 million visitors. Marios

Clerides, former chairman of

the Cyprus Securities and Exchange Com-mission (CySEC), has been appointed new

CEO of the Cooperative Central Bank (CCB). The

decision was taken at a board meeting on December

18, 2013 and announced a few days later. Clerides, 60, studied at the London School of Economics and Political Science,

and was awarded a PhD in Labour Econom-ics in 1982. First employed in November 1982 by Hellenic Bank (in charge of plan-ning and economic research), Clerides later – from 2006 onward – served as Group Sen-ior General Manager: Risk Management and Strategy. During a brief interlude of his time at the bank, Clerides joined CySEC as its chairman on a five-year contract, from 2001 until 2006. In April 2013 he was appointed, by the President of the Republic as a mem-ber of the National Council for the Economy. Following a €1.5 billion capital injection from the state, the Cooperative Credit Institutions have been 99% nationalised.

Publicity from The Sun for Haji-Ioannou Award

UP FRONT

up_front.indd 10 08/01/2014 15:23

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