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MARIOS ARGYRIDESBAT Cyprus

Changing With the Times

LORD LAMONT OF LERWICKAusterity & the

Intrusive EU

LUNCH WITH GOLD

Former EU Commissioner Androulla Vassiliou

WHAT’S ONTheatre, Film, Dance, Art,

Music & More

Goldt h e b u s i n e s s m a g a z i n e o f c y p r u s

prEsEnTs

Interviews with:KOJI sEKIMIZUpETEr HInCHLIFFEpETEr sAnDAnDrEAs CHrYsOsTOMOUTHEMIs pApADOpOULOsgEOrgE MOUsKAs

ISSUE 54SEptEmbEr 14 - octobEr 13, 2015prIcE €4.95

The InvisibleWe support you to create the value you are looking for by providing specialised solutions based on quality. Together we build relationships based on trust and we say things as they are, to assist you to deal with issues that tomorrow will prove important. We adapt our expertise and the power of our global network to your specific needs helping you make the difference.

© 2015 PricewaterhouseCoopers Ltd. All rights reserved

Expertise SolutionsValue

www.pwc.com.cy

Gold

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One drop is all it takes to start a ripple effect.And in this case it started with EY being commissioned to conduct a study for the Department of Merchant Shipping of the Ministry of Transport, Communications and Works on the future of shipping in Cyprus. EY is proud that our advisors, in conjunction with the Cyprus government, were able to bring these insights to light — insights that, we believe, will lead to better working shipping businesses in Cyprus.

For more information, visit us at ey.com/CY/en/Home

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InDUsTrYshipping in Cyprus and the World

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One drop is all it takes to start a ripple effect.And in this case it started with EY being commissioned to conduct a study for the Department of Merchant Shipping of the Ministry of Transport, Communications and Works on the future of shipping in Cyprus. EY is proud that our advisors, in conjunction with the Cyprus government, were able to bring these insights to light — insights that, we believe, will lead to better working shipping businesses in Cyprus.

For more information, visit us at ey.com/CY/en/Home

Is the next evolution of big data, big judgment?Find out how EY is helping companies transform the way decisions are made. ey.com/analytics #BetterQuestions

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EXTEND A WARM WELCOME TO ALL THE SPEAKERS AND DELEGATES

AT MARITIME CYPRUS 2015.

We wish youa successful conference

and an enjoyable stay in Cyprus.

IMH and GOLD

GOLDDAILY NEWSLETTER

GOLD GOLD

We understand shipping

Cyprus is at the forefront of global shipping with a fully functional and innovative department of merchant shipping, an EU approved tonnage tax regime and a committed resident shipping industry.

At KPMG Cyprus, our dedicated team of shipping professionals provide support to our clients by drawing on a depth of shipping knowledge and experience, offering tailored solutions to the challenges they face. Our highly qualified practitioners undergo continuous industry specific training so as to remain at the forefront of developments within the shipping industry and, together with our global network of shipping specialists, apply this expertise to the services we offer to the maritime sector, which include:

• Audit and assurance related services

• International and local tax planning, structuring and restructuring

• Tonnage tax compliance services

• Advisory services (corporate finance, valuations, mergers and acquisitions, restructurings)

• ISAE 3402 service reports on ship managers for communicating information to ship owners on the former’s internal controls

For more information please contact:

Sylvia A. LoizidesBoard Member, Head of Shipping T: 25 869 138, F: 25 363 842E: sloizides@kpmg.com

Alexandros S. SofocleousBoard Member T: 25 869 223, F: 25 363 842E: asofocleous@kpmg.com

kpmg.com.cy

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6 | GOLD | The Business Magazine of Cyprus

www.goldnews.com.cy | GOLD | 2322 | GOLD | The Business Magazine of Cyprus

In 2013, Rose George wrote a book calledNinety Per-cent ofEverything. The meaning was explained in the book’s subtitle:“Inside ship-ping, the invisible in-dustry that

puts clothes on your back, gas in your car, and food on your plate”.

When the Maritime Foundation, a char-ity that promotes seafarer matters, asked the residents of the UK port of South-ampton how many goods are transport-ed by sea, their answers were varied but

uniformly wrong. The correct answer is “Nearly everything”.Trade carried by sea has grown fourfold since 1970 and is still growing. There are more than one hundred thousand ships at sea carrying all the solids, liq-uids and gases that we need to live. And yet, despite its size and importance, shipping continues to be something of an “invisible industry”.Here are some facts and figures from the updated version of Oxford Economics’ 2014 study The economic value of the EU shipping industry, • In 2013, the EU shipping industry is estimated to have directly contributed €56 billion to EU GDP and employed 615,000 people. • It is estimated that around 80% of posts, or 501,000 jobs, are based at sea. It is tentatively estimated that around 44% of these seafarers are EU or EEA nationals. • Shipping is a high productivity indus-

try: each worker is estimated to have generated €85,000 of GDP, significant-ly above the EU average of €53,000. • The shipping industry indirectly sup-ported an estimated €61 billion con-tribution to GDP and 1.1 million jobs through its European supply chain in 2013. • The spending of wages by those em-ployed in the shipping industry and itsn supply chain supported an estimat-ed €30 billion of GDP and jobs for 516,000 people. • Taking the together (direct, indirect and induced), the total GDP contribu-tion of the European shipping industry in 2013 is estimated to have been €147 billion. • For every €1 million the European shipping industry contributes to GDP itself, it creates another €1.6 million elsewhere in the European economy. • The industry also supports employment for an estimated 2.2 million people.

REGARDING CYPRUS:• About 1,800 ships are registered with 22 million gross tons (out of which, the ocean-going ships under the Registry are just under 1,000 Ships). • It is the 10th largest merchant fleet in the world and the 3rd largest in the Eu-ropean Union.• It is the 2nd largest ship management centre in the world• It is the largest 3rd Party Ship Man-agement Centre in the EU Despite these impressive statistics, the shipping industry continues to main-tain a low profile, although according to Andreas Chrysostomou, Acting Di-rector of the Department of Merchant Shipping, it is not something that Cy-prus shipping aspires to: “If people are not told about something, they won’t know about it. Everyone involved needs to communicate better.”

One of the most important platforms for such communication is the biennial Maritime Cyprus conference, which brings together some of the most im-portant figures in the global shipping industry and has gained a worldwide reputation as one of the key events in the international maritime calendar,

bringing hundreds of shipping exec-utives, ship owners, managers, and delegates from international shipping organisations to the island. The main theme of the Maritime Cy-prus 2015 Conference, is Shipping: Game Change. As the title suggests, it will focused on crucial issues of concern to the international shipping industry. These include policy and regulatory matters and forthcoming changes to the international shipping scene, economic and environmental matters and their interaction with technology, geopoliti-cal and energy developments and fore-casting for the recovery of the economy and for the freight markets. The conference will be officially opened by President Nicos Anastasiades, while speakers include Koji Sekimizu, outgoing Secretary-General of the International Maritime Organization, Thomas Rehder, President of the European Community Shipowners’ Associations (ECSA), Peter Hinchliffe, Secretary-General of the International Chamber of Shipping, and Peter Sand, Chief Shipping Analyst at BIMCO. On the following pages, you can read exclusive interviews with them, as

well as with Andreas Chrysostomou, Acting Director of the Department of Merchant Shipping, and Themis Papadopoulos, President of the Cyprus Shipping Chamber.

The main aim of the biennial Mar-itime Cyprus conference is to provide a forum where important and current issues relating to international shipping are presented by distinguished speak-ers and subsequently discussed by the international shipping community, thereby helping to formulate sound and well-balanced decisions and policies on crucial shipping issues.

Maritime Cyprus also enables the participants to become more familiar with the strong maritime tradition of Cyprus and its people. The island’s shipping infrastructure constitutes an invaluable asset not only to the country but to Europe and the broader interna-tional shipping community. Moreover, for three days in September, the eyes of the shipping world are focused on Cyprus, helping it raise its global pro-file and remove the ‘invisible’ tag that continues to be attached to an industry that contributes an estimated 7% to the country’s GDP.

By John Vickers

Th I i iblIThThh IThTTTTTThTThh i iblii bblbiiibllibibbbIIITh IIII i iblIhTh i bleITThTThTTTTTThT ii bblbiibibibibbbIIIIII lIhTh I i iblTh I i blIITThhTTThThThThTTThThTTTThhhhTT ii bbblblbbiiibbibibibbibibbbbbIIIIIIIIIIThhTTTTTTThhhhhhheeeeeee IIIIIInnnnnnnvvvvvvviiiiiissssssiiiiiibbbbbblllllleeeeeeeThe Invis blehe In is bleTTTThhTTThhTTTTheheheeee bbbbbbsisisissibsibsibsibsibsibbbbbInInnnInInTheTheeeTTTTTTTThhhhhheeeeee IIIIIInnnnnnvvvvvviiiiiissssssiiiiiibbbbbblllllleeeeeeTThhe IInviisibblleTTThhhee IIInnvviissibbbllleeTh I i iblTh I i iblTTTTTTTTTTTTTTTTTTTTTTThhehhehhTThheTTheThThhehe bbbbbbbiibbibbbbsiisiiiisiisiiiisiibsibbibibsiisiiisiibbsibibibibbibbbbbbbbbbIInIInnIInnIInInIITT eT eTTheheTTTTThhhhhee IIIIInnvviiiissiiiibbbbbllllleeTThhe IInviisiibblleTThhe IInv s bbllThe InvisiblThhhhhheehh iiiiiiiiibbbbeehhTTTTTTTTThhhhhhhhheeeeee IIIIIIIIInnnnnnnnnvvvvvvvviiiiiiiiissssssssiiiiiiiiibbbbbbbbbllllllllleeeeeeeTTTTTTThhhhhhheeeeee IIIIIIInnnnnnnvvvvviiiiiiissssssssiiiiiiibbbbbbbbbbllllllleeeeeeTTTTTThhhhhheeeeee IIIIIInnnnnnvvvvvviiiiiissssssiiiiiibbbbbblllllleeeeeeeeTTTThhhheeee IIIInnnnvvvviiiissssiiiibbbblllleeeeeTTTTThhhhheeeee IIIIInnnnnvvvvviiiisssssiiiibbbbbllllleeeeeTTTTTThhhhhheeeee IIIIIInnnnnnvvvvviiiiiissssiiiiiibbbbbblllllleeeeeTTTTTTTThhhhhheeeeeeee IIIIIIIInnnnnnvvvvvvvviiiiiisssssssiiiiiibbbbbbblllllleeeeeeeeTThheee IInnvviissiibbblleeeTTTTTTTTTTThhhhhhhhhhheeeeeeee IIIIIIIIIInnnnnnnnnvvvvvvvviiiiiiisssssssssiiiiiiiibbbbbbbbbbblllllllllleeeeeeeeThe InvisibleTTTThhhheeee IIIInnnnvvvviiissssiiiibbbbllleeeeThe InvisiblehhhhhhhhhhhhhhTTTTTTTTTTThhhhhhhhhhhheeeeee IIIIIIIIInnnnnnnnvvvvvviiiiiiissssssssiiiiiiiibbbbbbbbbbbbllllllllleeeeeeTTTTTTTTTTTThhhhhhhhhhhhheeeeee IIIIIIIIIIIIInnnnnnvvvvviiiiiiiiiiisssssssiiiiiiiiiiibbbbbbbbbbbbblllllllllllleeeeeeThe InvisibleThe InvisibleTTTTTTTTThhhhhhhhhheee IIIIIIIIIInnnnnvvviiiiiiisssssiiiiiiibbbbbbbbbbllllllllleeeTThhe IInviissiibblleTThhe IIn iissiibblleTTTTThhTTThThThTTThThTheeTTTTTThhhhhhTTTThhhhThThTTThhhhThTheeeeeTThhhhhhhhhhhhhhhhhhINDUSTRY

| COVER STORY |

T H E B U S I N E S S M A G A Z I N E O F C Y P R U S

I S S U E 5 4 S E P T E M B E R 1 4 - O C T O B E R 1 3 , 2 0 1 5

C O N T E N T S 8 | EDITORIAL 10 | BUSINESS BRIEFINGEconomic & Business Highlights of the past month 14 | MY WAY Dionisis Pirivolisianos’ management style16 | FIVE MINUTES WITH… Alexandros Tsirides18 | THEY SAID WHAT?A selection of memorable recent quotes

OPINION23 | Naming and ShamingBy Andreas Neocleous34 | All About ChinaBy George Theocharides106 | Sights for Sore Eyes By George Mouskides 109 | Who Will Reform Greece? By George Mountis

FEATURES20 | Austerity and the ‘Instrusive’ European UnionInterview with Lord Lamont of Lerwick24 | Cyprus as an Investment Funds HubAngelos Gregoriades on the upcoming CIFA Conference26 | Going Green…An overall evaluation of the BIOforLIFE action plan28 | Increasing Sales Through Social MediaHow the hotel industry can take advantage of new marketing opportunities30 | Making MoviesBehind the scenes of Behind the Mirror100 | Changing with the TimesMarios Argyrides, Head of Finance at BAT Cyprus104 | Mediation in CyprusThe advantages of mediation and the trends in Cyprus

108 | Turning Good Leaders into Great LeadersThe IN Business Executive Leadership Programme112 | Ten Years OnThe world is becoming a more dangerous place116 | Dream it. Build it. Live it.

Imagine Cup120 | BOOKSHELFFive of the best new business titles

122 | IN GOOD COMPANY

124 | LUNCH WITH GOLDAndroulla Vassiliou, former First Lady and ex-European Commissioner 127 | BUSINESS CLASSGeorge Petrakides, Microsoft Country Manager, Cyprus and Malta128 | WHAT’S ONGold’s guide to the best cultural events130 | A DAY IN THE LIFEDemetris Taxitaris

COVER STORY

35 | The Invisible Industry

Shipping in Cyprus and the World. Interviews

with key speakers at Maritime Cyprus 2015

SPECIAL PROMOTIONAL

FEATURE51 | Shipping

in Cyprus

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10 | GOLD | The Business Magazine of Cyprus

RESUMED TALKS CREATE MOMENTUM

Negotiations between President Nicos Anastasiades and the Turkish Cypriot

-

-retary-General on Cyprus, spoke of their

-

-logue between the two leaders continues

ELECTRICITY INTEGRATION ON SCHEDULE

The integration of the electricity grids on

is proceeding according to schedule and technical work at one of the two connec-

-

Anastasiades and Turkish Cypriot leader -

-

-

‘LEADING BY EXAMPLE’ INTERNSHIP PROGRAMME

-

-

-alogue and reconciliation between the

an opportunity to experience the real-life challenges faced by their counterparts in

HMS Ambush in Limassol

Cyprus’ Sovereign Outlook ‘Positive’

Capital Intelligence (CI), the international credit rating agency, announced on August 28, that it has

affirmed Cyprus’ Long-Term and Short-Term Foreign Currency Sov-ereign Ratings at ‘B’. The Outlook for the ratings was revised to ‘Positive’ from ‘Stable’.The revision of the Outlook reflects the country’s better-than-expected economic performance; the Gov-ernment’s commitment to reforms, which is paving the way for Cyprus to exit the international rescue pro-gramme in March 2016; renewed – albeit limited – access to the inter-national capital markets, enabling the government to lower its refinancing risks; and manageable short-term financing risks in view of the support of the economic programme agreed with and fully backed by the eurozone member states through the European Stability Mechanism (ESM) and the International Monetary Fund (IMF).

CYPRUS PROBLEM

BUSINESSBRIEFING

IN THE NEWS

BRITISH CHEESEMAKERS JOIN HALLOUMI

BATTLESeveral British cheesemakers have expressed their opposition to the EU’s move to grant protected designation of origin (PDO) status to halloumi cheese, meaning that it can only be produced in Cyprus. In July, during his visit to Cyprus, European Commission President Jean-Claude Juncker noted that “Halloumi/Hellim cheese symbolises the shared her-itage of the island of Cyprus. It is a tradition which has linked the com-munities living here for centuries.”

ECONOMY

www.goldnews.com.cy | GOLD | 11

35 BIDDERS SELECTED FOR LI-MASSOL PORT COMMERCIALISATION

A -

LIMASSOL

International Registries, Inc.

tel: +30 210 4293 223 piraeus@register-iri.com

www.register-iri.com

service and quality are within your reach

THE MARSHALL ISLANDS REGISTRYACQUISITION

BARING PRIVATE EQUITY ASIA ACQUIRES ORANGEFIELD

B aring Private Equity Asia has announced that its affiliated funds have entered into an agreement with AAC Capital Partners to acquire Orange-field Group, the global fund

administration and corporate services firm. The acquisition will be Baring Asia’s second investment into the corporate and trust ser-vices (CTS) industry and follows the execu-tion in May 2015 of the agreement to acquire Vistra Group. The parties have agreed not to disclose the financial terms of the transaction, which is subject to regulatory approvals and other customary closing conditions. Orange-field Group is a global full service provider of administrative, fund, corporate and manage-ment services with a strong focus of working for funds and multinational companies. The company’s 34 full service offices provide sup-port in 45 countries around the world, includ-ing Cyprus.

BANKING

HELLENIC BANK RECORDS €500,000 PROFITHellenic Bank realised a net profit of €500,000 during the first six months of 2015, compared to a loss of €95 million for the same period in 2014. CEO Bert Pijls noted that the result “demonstrates the progress we have made in managing our NPLs as well as in providing new lend-ing to viable Cypriot households and busi-nesses. The recent economic developments in Cyprus have been encouraging. Hel-lenic Bank remains a strong bank ready to serve the needs of the recovering Cypriot economy.”

€60 MILLION PROFIT FOR BANK OF CYPRUS Bank of Cyprus announced a €60 mil-lion profit after tax for the first half of 2015. The profit for the second quarter of 2015 was €31 million, compared to €29 million for the first quarter of 2015. CEO John Hourican stated: “The Bank’s strengthened capital position and overall improvement in its financial position en-hance its funding options and will facilitate access to the capital markets for wholesale funding, subject to market conditions and investor appetite, allowing the Bank to further normalise its funding structure”.

12 | GOLD | The Business Magazine of Cyprus

Cyprus tops 5-star hotels list

highest percentage of 5-star ho-

-tel infrastructure is “by far better

Best value-for-money eurozone holiday

destination

of any holiday destination in the

ranking relates to the spending power of the pound sterling,

also take into account each

5th worldwide after Turkey, Aus-

Quality Award for Coral Beach Hotel

--

phos with its prestigious Quality Award, in recognition of the high

and excellence in hospitality -

guests for ranking again another

Emirates express lane at Larnaca Airport

-

use the express lane facility

attached to their boarding pass during check-in, which will act

stickered Boarding Pass at the

LEISURE & TOURISMTRAVEL & HOTELS

BUSINESSBRIEFING

T he Ministry of Energy and Com-merce recently announced that the transfer of oil reserves from Larn-aca to the Vasilikos Energy Centre was completed on August 14. The

Government had decided to move the reserves from Larnaca, in July 2014, in response to a long-standing demand by the town’s residents. In addition to the strategic reserves, private compa-nies will have to move their liquid gas and liquid fuel facilities out of Larnaca by the beginning of 2017. For the final movement of all oil and gas reserves from Larnaca, the Ministry of Energy has already offered private companies a chance to lease land at the Vasilikos Energy Centre on which to build their own storage facilities.

Transfer of Oil Reserves

Completed

OILNEW NAME

A --

NEW BUILDING

BNEW COURT

A -

--

NEW STORE

M -

WHAT’SNEW

www.goldnews.com.cy | GOLD | 13

Our local knowledge, your global advantageJordans Trust Company

BVI and Seychelles services, including shelf companies.

in these locations enables us to provide relevant, local knowledge giving our clients the advantage.

www.jordanstrustcompany.com

Contact our Nicosia

T +357 22 767 294E info@jordans.com.cy

Following the recent acqui-sition of a new building in Nicosia by Trust Cy-prus Insurance Company, which is wholly owned by Nest Investments (Hold-

ings) Limited, two more of its subsidiar-ies have now completed the purchase of another building in Limassol. Trust Re Bahrain Cyprus Branch and World Trade Center Cyprus have jointly pur-

chased a new seafront building under construction by property developer Takis Vashiotis Limited for €15.9 million. Occupying a prominent position on the seafront main thoroughfare, the 7-storey 3,700-sqm building will be delivered by May 2016. Part of the building will be occupied by staff of the two companies but the majority of the office space will be turned in to prestigious fully serviced business offices.

Limassol seafront building sold for €15.9 million

REAL ESTATE

-

-

-

Vehicle registrations up

STATISTICS

-

Tourist arrivals increase

Deposits up, loans down

Cyprus is 5th safest country Cyprus has been ranked

the 5th safest country in the --

sions and life expectancy

island tops the list of the safest countries with a

Economic sentiment rises

-

to the strengthening of the

-

prospects in construction -

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