New home construction in February down a third

ACCORDING to figures released by the Cyprus Statistical Service, the number of building permits issued in February stood at 633 compared with the 699 issued in February 2011; a fall of 9.4%.

The total value of these permits reached €135.8 million and their total area 141.4 thousand square metres.

In February, building permits were issued for:

  • Residential buildings – 410 permits
  • Non-residential buildings – 131 permits
  • Civil engineering projects – 43 permits
  • Division of plots of land – 38 permits
  • Road construction – 11 permits

Over the first two months of this year, the total area of licensed projects was 268.5 thousand square metres; a fall of 27.8% on the 371.9 thousand square metres in the first two months of 2011. Similarly, the total value of these projects in January and February fell  25.7% to €261.2 million from €351.7 million in the first two months of last year.

Residential buildings

In February, the 410 permits were approved for the construction of 630 residential properties comprising 224 single houses and 406 multiple housing units (such as apartments and other residential complexes).

This is a fall of 33.0% compared with February 2011 when building permits were issued for the construction of 941 dwellings.

Source: Cyprus Statistical Service

According to the Cyprus Statistical Service, building permits constitute a leading indicator of future activity in the construction sector.

Armou resident warns visitors enter at your own risk

ONE HOMEOWNER at a stricken development in Armou village in Paphos is being forced to place a warning sign stating ‘enter at your own risk’ on his gate post, as the gaping holes directly outside his front door pose a serious danger to visitors to his property.

“I have to put up a sign pointing out that visitors are entering at their own risk as I obviously don’t have public liability insurance and we have huge holes right outside our front door, which are extremely dangerous,” Simon Phillips said.

Two of the holes are cavernous and measure three quarters of a metre wide and three metres in depth. All six homes in the recently built development in Paphos continue to slip down the hillside, and officials are concentrating on efforts to find a solution for the desperate homeowners.

Phillips’ house is in the picturesque village of Armou and is part of an estate which is in imminent danger of collapse after it was constructed on land locals had long been warned was unsafe. The president of Paphos’ architects and civil engineers association, Chrysostomos Italos was contacted by a number of the home owners to prepare a report, which he says he will present to them this week.

The development was built by JNM developers. The Sunday Mail has been unable to contact them for a comment. A number of the homeowners have issued court proceedings against the developer. All of the houses have serious structural problems, from slanting floors, to the partial collapse of stairs, walls, swimming pools and patio areas.

Outside drains are now exposed in one garden and retaining walls have split. Electricity poles in the area are also now leaning at an angle. One family was forced to leave their home, which they rented, a couple of weeks ago, as it was deemed unsafe by officials and is now visibly on a slant. The six houses have continued to move down the hillside in the past couple of weeks.

Two of the access roads to the development are currently impassable with giant gaps in both, the third is barely useable. Italos said he had finished the report but would not give any details until he has handed it over to the owners. “I can say that in my opinion, the developer is responsible, but I have been unable to get hold of him,” he said.

“I have also spoken to the Paphos district office and urged them to act as fast as they can in this matter and do something to help these people. They also confirmed that they would be taking legal action against the developer and any other responsible person concerning the dire situation in Armou.”

Homeowner Geoff Higgs said, “The land movement seems to have slowed down considerably in the last couple of weeks, but saying that, there is still movement there. I have been undertaking some ‘botch’ repair jobs on the tiles around my swimming pool and on my top outdoor step, as the tiles have now cracked.”

Higgs and his wife Maggie have already had to replace their swimming pool and carry out other works at their property, caused by the land slip.

Alpha Bank Cyprus Ltd announces interest rate cut

ALPHA BANK CYPRUS LTD, acknowledging the adverse effects of the economic recession and with the aim of assisting customers that experience difficulties in fulfilling their financial obligations, informs its clients that as of Monday, 7th May 2012, the Default Interest, with which all excesses and/or arrears of current accounts and/or fixed term loans and/or other banking facilities held with our Bank are charged, either in Euro or in any foreign currency, is reduced from 5.35% to 2.50%.

It is noted that the Default Interest which is charged on credit card accounts remains unaltered.

It is clarified that the relations between our clients and our Bank will be governed and/or will continue to be governed by the terms of the relevant contracts and/ or the general terms and conditions of the Bank.

Details and/or further information regarding the above may be requested from Alpha Bank Cyprus Ltd’s Branch network.

Nicosia, 26th April 2012

Do not ignore Cypriot bank writs for loan non-payment

IN RECENT days it has emerged that UK clients are now being served with writs from Cypriot Banks in relation to the non payment of loans taken out for the purchase of property in Cyprus.

The writs give the recipient a period of 30 days in which to file an appearance in court in Cyprus to defend the claims made within those writs and a further period of fourteen days in which to file a formal defence; this latter time frame can be extended in most instances to allow for the preparation of that defence.

It is therefore critical that any client being served in the UK seek legal advice from Cypriot counsel in order to respond within the stated deadline as failure to file the required appearance in Cyprus will result in the court progressing the claim in the clients’ absence and securing judgement; there would then be no opportunity to challenge the judgement or its subsequent enforcement.

Such enforcement can take place on properties in England as the judgement of the Cyprus Courts can be registered (this is a formality) and executed in England.

Additionally clients are also receiving Termination Notices from the banks in relation to the non- payment of the loans (Writs are likely to follow) and it is again critical that clients formally respond to these notices and to counter claim concerning the content of such notices.

We strongly advise that any recipient of such writs or termination notices act to address the matter and not simply ignore the service and the potential implications to the same.

We remain entirely at everyone’s disposal in this regard to answer and address any concerns.

Judicare

Contract for marina at Ayia Napa signed

The Ayia Napa Marina - Source: G. Caramondanis Investments Ltd

NEOCLIS Sylikiotis, Minister of Trade, Industry and Tourism, and M.M. Makronisos Marina Ltd have signed a contract for the construction of the long-awaited marina at Ayia Napa.

Although it has been more than 20 years since initial studies were prepared for five marinas in Cyprus, construction work has only started on the one planned for Limassol.

Designed to enrich the Island’s tourist product, the marina at Ayia Napa will provide berthing and other facilities for 600 yachts measuring up to 60 metres. It is expected to cost in the region of €200 million.

Start and completion dates for the project have yet to be announced.

Popular bank may need government bailout

THE Ministry of Finance has prepared an emergency plan to help the banking system cope with difficulties resulting from the write-down of Greek debts.

The Ministry issued a statement after a newspaper reported that the government was working on a nightmare scenario that demands pumping up to €2.5 billion into the banking system to cover their losses.

The statement admitted that the Island’s banking system is approaching a critical turning point and is faced with the challenge of recapitalising after suffering extensive losses on their holdings of Greek bonds.

The statement added that the Ministry plans to help the banks were based on three pillars: it is keeping watch on efforts being made by the banks to recapitalise through their own means, it is also ready to intervene if it becomes necessary to do so, and finally that any state intervention will be aimed at  creating conditions of financial stability and confidence, while minimising the overall cost to the economy.

The newspaper report that prompted the Ministry’s statement said that state intervention could be triggered by concerns that the auditors of the Popular Bank, Pricewaterhouse Coopers, could express reservations on the bank continuing to function as a viable economic entity. In that case, the Government would have to offer state help to avert its crash.

Commenting on the report, Popular Bank Chairman Michalis Sarris said that it was positive that the Government was taking measures to support the banking system. However, Dr Sarris regretted that the newspaper report revealed Government plans before an official decision had been taken.

Dr Sarris added that efforts are underway to secure help for the Popular Bank out of bank stabilization funds in Greece for the sections of its operations in Greece, bearing in mind that it had been a subsidiary of a Greek bank.

A report by Finance Minister Vassos Shiarly on the plan to help the banking sector is expected to be presented to the next meeting of the cabinet on 2nd May.

Mr Shiarly told reporters earlier this week that up to €1.5 billion may be required by one Cypriot bank to recapitalise.