Cyprus Mail: News Articles in English, 00-04-26

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From: The Cyprus Mail at <http://www.cyprus-mail.com/>

Wednesday, April 26, 2000

CONTENTS

[01] ‘Time to get down to business on the Cyprus problem’

[02] EU to fund bi-communal office in Brussels

[03] Banks surge to send market up 2.4 per cent

[04] Government accepts lower rise in taxi fares

[05] Union calls for equal rises in pensions

[06] Andreas recovering from white cell transplant

[07] Man, 75, dies after crash

[01] ‘Time to get down to business on the Cyprus problem

THE U.S. believes the time has come to get down to business on the Cyprus problem, the American ambassador to Nicosia, Donald Bandler, indicated yesterday.Foreign Minister Yiannakis Cassoulides agreed with Bandler and said a settlement has to be a "land for peace" deal.Turkish Cypriot leader Rauf Denktash meanwhile said he wanted the US and others to push the Greek Cypriot side towards a settlement of his liking, but the Government Spokesman, Michalis Papapetrou, was quick to label Denktash's demands "ridiculous".

On May 23, in New York, Clerides and Denktash are scheduled to meet for a third round of indirect UN-brokered talks aimed at arriving at a federal settlement.Bandler commented on the up-coming third round after his one-hour meeting with President Clerides yesterday morning.The US ambassador said the time had come for "intensive" negotiations. Bandler said the UN had completed the process of recording the positions of the two sides during the first and second rounds of the talks in New York last December and in Geneva in February.Bandler said the US now wanted to see "more intensive engagement and negotiation on the core issues.

"Bandler also hinted that the US would like to see the third round moved from New York to a more secluded location."The place of negotiations must allow for concentration and that means the greatest seclusion from outside forces is helpful to moving the negotiations along," he said.The government says it wants this third round of talks to be "fundamental," getting down to the nitty-gritty of a settlement deal. Denktash is demanding recognition of his occupation regime before he engages in serious discussion.

Foreign Minister Cassoulides repeated the government position in a speech on Monday night, agreeing with Bandler that the process of recording Greek and Turkish Cypriot positions had been completed."There is no excuse to carry on the dialogue with the same method and in the same way, " Cassoulides said.

In his speech, to the Rotarian club in Nicosia, Cassoulides also said a settlement would only be possible if the Turkish side gave up some of the territory occupied in 1974.He spoke of a "land for peace" deal and rejected a Denktash demand for an exchange of Greek and Turkish Cypriot land on either side of the divide."The solution will not come through the exchange of properties. The key to the solution is the territorial aspect. If the Turkish side wants peace, it is with land that peace will come: Land for peace," Cassoulides said.He also suggested the Turkish side could return the ghost town of Famagusta to government control as a "good will gesture.""In return, the Cyprus government would consider favourably a request for assistance to the Turkish Cypriots, within the context of legality, so that they could face their financial difficulties," Cassoulides said.Denktash is meanwhile urging the international community to "give the right instructions" to the Greek Cypriot side before round three of the talks.

In an interview published in Turkish daily Cumhuriyet yesterday, the Turkish Cypriot leader suggested it was the government that was holding things up by refusing to accept his demands for recognition.Denktash was quoted as saying he had told the UN envoy in charge of the proximity talks, Alvaro de Soto, that the reason the UN had so far failed to secure a settlement was that its envoys were always instructed not to question the status of the government as the only legal government on the island.Denktash's breakaway regime is recognised only by Turkey.Government Spokesman Papapetrou responded by suggesting Denktash's statements were a blatant case of the "pot calling the kettle black.""The one who is trying to scupper this effort, who is trying to downgrade it, is basically calling for pressure on the side that is conforming," Papapetrou said.

Wednesday, April 26, 2000

[02] EU to fund bi-communal office in Brussels

Government Spokesman Michalis Papapetrou said this Brussels NGO office was one of two bi-communal projects currently being funded by the EU.

The other is the Nicosia masterplan, a long-running effort to beautify the divided capital that has already received much EU and UN money.

Papapetrou said the government would have no direct involvement in the running of the Brussels NGO office.

"The government will have absolutely nothing to do with the running of this office. This responsibility will belong to a non-governmental organisation, " the spokesman told his daily press briefing.

The Brussels office is being set up after a relevant request from trade unions on both sides of the divide.

Papapetrou gave no further details about the bi-communal NGO office, being more concerned with making clear that EU funds provided for this and other projects involving Turkish Cypriots would not be channelled through the occupation regime.

Papapetrou said "not a single dollar" of EU cash would go to the Turkish Cypriots without the government's approval.

He repeated that the government had "no objection" to funds going straight to the Turkish Cypriots as long as there was no EU recognition of Denktash's occupation regime.

Papapetrou also denied reports suggesting that EU financial assistance for the Turkish Cypriots was sent to the occupied areas via the Republic’s Central Bank. What had always happened, the spokesman explained, was that Turkish Cypriot leader Rauf Denktash had refused to accept funds channelled through the Planning Office so the money had ended up in the Planning Office's account at the Central Bank.

Wednesday, April 26, 2000

[03] Banks surge to send market up 2.4 per cent

SHARE prices took a 2.4 per cent boost yesterday on a strong performance across sectors led by a surge in banking stocks after a subdued performance of the past few days.

Bucking the trend of a weaker open, the market rose some 12 points to a close of 552.33, trading between 539.31 and 552.33, the intraday highs and lows.

Turnover at £37.3 million was some £10 million up on Monday and most of the net turnover was absorbed by Bank of Cyprus, which exceeded three million pounds' worth.

Banking shares outperformed the broader market by climbing more than three per cent, while other sectors registered smaller advances.

"There was strong demand which outstripped supply. Investors don't really see the need to liquidate right now and the upsurge has dispelled an induced impression among many that the market would continue to fall," said one Nicosia fund manager.

Bank of Cyprus climbed 21 cents to £8.47, absorbing some 410,900 shares while Popular Bank was up 41 cents to £13.60 and its ex-dividend shares up 45 cents to £13.50. Hellenic climbed 10 cents to a last trade of £3.15 while Universal Savings were unchanged at £3.15.

Traders said investors were expected to keep a close watch on the market today when software provider Globalsoft.com debuts the market.

At an issue price of £1.50 in its IPO, speculation abounded yesterday at what its listing strike price would be.

"We reckon it is going to be considerably more," was all one trader would say.

Bourse authorities also announced that Demetra, the investment firm owned by the Co-Op movement, would make its debut tomorrow with 200 million ordinary shares and 40 million warrants. The shares have a nominal value of one pound each.

Cassoulides printers announced that it had bought a 45 per cent stake in Manchester-based One Karat advertising agency for £9,000 sterling.

The acquisition would help promote the printers' business in the UK, Cassoulides said in an announcement to the bourse.

The printing works, which has already announced a provisional tie-up with conference organisers and promoters Options Eurocongress, saw its share slip three cents to £1.67 yesterday on a volume of 435,497 shares.

Woolworth also announced that it has postponed a scheduled split in the nominal value of its stock from 25 cents to 20 pending announcements on the exercise date for a rights issue. The stock split, which was announced late last year, had initially been scheduled to take effect on April 30.

In terms of volume, Kyknos investment topped ranks yesterday with some 2.5 million shares changing hands, closing up five cents to a last trade of 95.

Wednesday, April 26, 2000

[04] Government accepts lower rise in taxi fares

TAXI drivers' concerns over steep fare hikes ordered by the government have led the Communications Ministry to accept a smaller rise.

Taxi drivers had said they did not in principle oppose the rise in starting fares, which have not increased since 1996, but feared the rise of more than 100 per cent would deter many of their customers from using taxis. No change is planned to the rate per kilometre.

A Communications Ministry official yesterday told the Cyprus Mail that "Minister Averoff Neophytou met with the taxi drivers’ unions and they decided on lowering the increase."

The official said the Minister had "wanted to discuss the issue with the people most immediately involved and consensus was found."

The Minister and the unions also decided that the higher prices, which had initially been planned to come into effect on Monday, would be delayed further, until the House approved a package of tax breaks drawn up to compensate low-income groups for a planned rise in VAT.

Ministry announcement said this was because taxi drivers paid VAT, and the new rates would have to include VAT.

The government wants to raise VAT from eight to 10 per cent, saying a gradual increase is needed to bring Cyprus in line with EU norms of 15 per cent.

Opposition Akel wants the government to offer more compensation for the increase in VAT.

The new taxi rates, excluding VAT, will have the daytime starting fee up from 65 cents to £1.25, instead of £1.50, and night fares starting at £1.65 instead of the proposed £2, up from the current rate of 85 cents.

The fare per kilometre remains at 22 cents during the day and 26 cents during the night.

Wednesday, April 26, 2000

[05] Union calls for equal rises in pensions

PENSIONERS yesterday called for a higher increase in state support for people who have never paid any social insurance contributions.

The government has suggested that the pensions paid to non-contributors be raised by five per cent, while pensions to people who have paid social security would rise by 10 per cent. Both are included in a package of compensatory measures for an anticipated rise in Value Added Tax.

The House Plenum is due to vote on the two per cent VAT rise and on the accompanying package of tax breaks after Easter.

Opposition Akel and the trade unions are calling on the government to beef up its package of tax breaks to return more money to low-income groups.

The Pensioners Union issued an announcement yesterday saying a letter outlining their suggestions had already been sent to Finance Minister Takis Klerides.

The letter called on Klerides to take into account the fact that the lowest non-social insurance pension was at present equal to the lowest social insurance pension, at £116.92 - "So we suggest a 10 per cent rise in both."

The Union said it would be unfair to create a large difference between the two pensions.

Klerides has said the government proposes to return around £47.2 million in tax breaks from the £62 million it expects to reap from a two per cent rise in VAT, last raised in 1994.

The government insists that it must gradually increase the rate of VAT to come into line with EU norms of 15 per cent. Akel says that the government is hiding behind the EU to introduce policies that are harmful to the people.

The tax breaks also include a rise in the tax-free threshold from £5,000 to £6,000, and a reappraisal of tax scales.

If the measures are approved, the CyBC levy, currently raised as a proportion of consumers' electricity bills, will also be scrapped.

Wednesday, April 26, 2000

[06] Andreas recovering from white cell transplant

Wednesday, April 26, 2000

[07] Man, 75, dies after crash

© Copyright Cyprus Mail 2000

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