Deputy Minister of Shipping Marina Hadjimanolis announced at the Cyprus International Business Association (CIBA) forum on Tuesday that the fleet of Cypriot-flagged ocean-going vessels has grown for the first time in two years.
This rebound comes after a period of decline fuelled by geopolitical tensions, notably the conflict in Ukraine and disruptions in global shipping caused by the Houthis, which have posed significant challenges to free navigation.
During her speech, Hadjimanolis emphasised that the resurgence in the sector aligns with the overarching goals set by the Nikos Christodoulides administration to continuously enhance and fortify the services provided by the Ministry of Shipping.
“We are very satisfied with the results,” she said, noting a significant 5.5 per cent growth in the fleet during the first half of the year and a 14 per cent increase in the number of companies registered under the tonnage system, now totalling 420.
Furthermore, Hadjimanolis outlined the proactive steps taken to boost the competitiveness of Cypriot shipping.
The potential sale of a substantial stake in the Bank of Cyprus’ equity, along with geopolitical developments, took centre stage at the Cyprus International Business Association (CIBA) forum, which took place on Tuesday in Limassol.
It should be noted that Bloomberg recently reported that AB CarVal Investors and Caius Capital are interested in selling their shares in the Bank of Cyprus, which together amount to 14.65 per cent of the bank’s equity.
Speaking at the forum, Demetris Efstathiou, Executive Director of Blue Diagonal and independent board member of Hellenic Bank, emphasised that the Cypriot banking system does not require additional foreign shareholders in terms of capital support.
He highlighted their high capital adequacy, excessive liquidity, and depositor security post-2013 crisis due to conservative banking strategies and profitability.
The president of the Cyprus Borrowers Association (Syprodat) Costas Melas on Tuesday welcomed the recent decision by the Cabinet to extend a range of government support measures, noting that it would provide much-needed respite for citizens.
“Crucially,” Melas said, “we must devise immediate and effective solutions aimed at supporting households, borrowers, and small to medium-sized enterprises”.
Moreover, Melas noted that Finance Minister Makis Keravnos, in his address at the annual general meeting of the Association of Cyprus Banks, expressed his expectation for significant strides towards narrowing the gap between deposit and lending rates.
“Moreover,” Melas added, “he advocated for a sustainable reduction in lending rates, particularly in light of the European Central Bank’s recent marginal rate cut of 0.25 points.”
The AIM-listed mineral exploration and development company, with interests in Africa and Europe, also revealed the date for its annual general meeting.
Ariana Resources reported a break-even position for 2023, compared to a £5 million profit in 2022, mainly due to a £4 million decline in Zenit’s profitability and increased operational costs.
In addition, administrative costs fell by £0.7m, but foreign exchange gains were £2m lower. The company also noted that the Turkish Lira’s decline impacted overall financial results.
Chairman Michael de Villiers reflected on the company’s achievements in 2023, describing it as a year of “remarkable progress and significant transformation” despite global economic challenges.
The statement noted that on June 20, Hadjimanolis visited Geneva with the express purpose of promoting the Cypriot ship registry.
Moreover, her visit included a series of high-level discussions aimed at bolstering Cyprus as a prime flagging destination for global shipping enterprises.
A key meeting was held with Gianluigi Aponte, founder and President of the MSC Group, the largest container shipping company in the world.
The discussions revolved around the latest developments in the global shipping industry and future expansions of MSC’s fleet.
The association published a report into prices from 2021 to 2024, which showed the largest difference was seen in Nicosia on June 6, of 14 cents between the highest and the lowest price.
In 2022, Limassol had the biggest difference between the highest and lowest price, of 15.3 cents per litre.
The consumer’s association points out that the average profit margin given by the suppliers is 6 to 6.5 cents per litre, so “in conditions of healthy competition there cannot be a discrepancy of up to 14 cents per litre.”
It also called for an investigation into how there could be a different pricing policy in each district.
Pasydixe said “the negative press reports concerning security are feeding the propaganda of tourist competitors and discouraging travel to Cyprus.
“The only appropriate route is to defuse” the situation, it added.
The press attention from “the recent unfortunate and unjustified references to the so-called involvement of Cyprus in the Middle East crisis can be characterised as a bolt from the blue,” it said.
Pasydixe warned that “if not handled properly, such press reports could lead to negative side-effects and turn into a factor of destabilisation for the economy.”
“In a period when Cyprus is just finding its footing after the pandemics and regional wars, it would be very unproductive to add – without reason – the geopolitical (in)security to the tourist equation,” it pointed out.
The Cyprus Stock Exchange (CSE) ended Tuesday, June 25 with losses.
The general Cyprus Stock Market Index was at 164.99 points at 12:41 during the day, reflecting a decrease of 0.37 per cent over the previous day of trading.
The FTSE / CySE 20 Index was at 100.37 points, representing a drop of 0.38 per cent.
The total value of transactions came up to €70,476, until the aforementioned time during trading.
In terms of the sub-indexes, the main, alternative, and investment firm indexes fell by 0.4 per cent, 0.4 per cent and 1.26 per cent respectively. The hotel index remained unchanged.
The biggest investment interest was attracted by the Bank of Cyprus (-0.24 per cent), the Cyprus Cement Company (+0.62 per cent), Demetra (-1.29 per cent), K+G Complex (-3.7 per cent), and Lordos United Plastic (-2.31 per cent).
