Please tell me why Mr President

Editorial
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President Demetris Christofias
Presidential Palace
1400 Nicosia
Cyprus

 

Dear President Christofias,

Why have you let the title deed fiasco go on for so long?

Why have you allowed crooked lawyers, bankers and developers to continue to trade at the expense of your country’s reputation which is now, arguably, the laughing stock of the Internet?

Why has the Cyprus Bar Association not routed out, with vigour the corrupt elements in its midst?

Why is there apparently no justice for victims of property fraud in Cyprus?

Why have no Advocates been struck off by the Cyprus Bar Association?

Why does the Central Bank of Cyprus not regulate developer loans in accordance with the Basel 90-day rules?

Why do Cyprus banks not pursue developer loans where repayments are long overdue?

Why do Cyprus banks give mortgages to individuals when they know that the land has already been mortgaged by developers?

Why do we not own our own homes?

Why do you allow individuals who have/had a genuine love of Cyprus and helped to support your economy for years to be persecuted, worried, robbed of money, and more importantly health because of all of the above?

Why President Christofias? We would really like to know.

MEP Alyn Smith update

Readers may recall that MEP Alyn Smith wrote to the Cyprus President on 30th November 2010 asking if an impartial ombudsman or foreign investor advice service could be established to deal with the many property issues.

Alyn is still waiting for a reply.

Golf courses in Cyprus at Fasouri and Limni

Nigel Howarth
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6

SPEAKING with InBusinessNews last week Cyprus Interior Minister Neoclis Sylikiotis was reported as saying that licenses for three more golf courses on the Island are close to being authorised by the Town Planning Department:

A course at Fasouri outside Limassol by Lanitis Farm Golf Ltd. This is planned to include an 18-hole championship golf course designed by Cabell Robinson, a country club, a residential quarter consisting of residential town houses and amenity parkland.

Two golf courses at Limni in Polis Chrysochous by Limni Resorts & GolfCourses Plc. This is planned to include a Jack Nicklaus signature golf course set in 2.9 million square metres of prime coastland, a 5-star hotel and spa, high quality residential units, sports facilities and other amenities.

In October 2009, the Executive Chairman of Cyprus Limni Resorts & GolfCourses Plc, Nicos Shacolas, Limni told StockWatch that works will start immediately as soon as the master plan is approved and that “Despite the economic crisis, the Company has secured the financing of the projects”.

Cyprus planning amnesty bills delayed

Nigel Howarth
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8

VOTING on the three Cyprus planning amnesty bills has been postponed for two weeks at the request of Democratic Party member Andreas Angelides.

Although MPs Christos Stylianides of DISY and Phidias Sarikas of EDEK expressed the readiness of their respective party groups to discuss the three bills today, they consented to the request for a postponement by the Democratic Party (DIKO).

Andreas Angelides, who asked for the postponement of the vote, explained that the DIKO Parliamentary Group is considering the three bills in connection with the two bills relating to the transfer of property from vendors to purchasers. These two bills are currently under discussion at the House Legal Affairs Committee.

However, in the view of MP Aristophanes Georgiou of AKEL, the two bills under discussion at the House Legal Affairs Committee are unrelated to the planning amnesty bills.

Banks say town planning bills unconstitutional

George Psyllides
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THE government yesterday questioned the postponement of the approval of three town planning bills by parliament over bank concerns regarding a provision on mortgages.

Parliament was expected on Thursday to approve the bills, which include provisions that would allow thousands of buyers to receive their title deeds.

The Cyprus Interior Minister, Neoclis Sylikiotis, wondered why there was a further delay after many months of discussions that were concluded last December.

However, the Association of Cyprus Banks said it had not been consulted about the three bills discussed by the House Interior Committee.

The Association had written to the committee twice, on December 23, 2010 and February 21 this year, asking to be invited to give their views on a particular provision but to no avail. Neither were they sent the bills officially.

The banks went to committee members and informed them of their concerns before the vote.

“We said that it would be right for us to be invited to give our views,” said Michalis Kammas, the Banking Association’s Director General.

According to the banks, the point of contention is a provision that could put an encumbrance on a property or ban its transfer if it has an irregularity.

The banks say that banning the transfer of a property while mortgaged automatically reduces its value and consequently the lender’s collateral.

In the February 21 letter, the banks asked for the controversial provision to be removed suggesting that it could also be unconstitutional.

But the Interior Minister said that adopting the bank’s suggestion could render the whole procedure void.

The Association stressed that it was in favour of the town planning reform.

“We want these changes to be made so that it brings order in the market,” Kammas said. “It is to everyone’s benefit.”

Over 100,000 people remain without Title Deeds to their property due to irregularities at the time of construction or changes later on, or due to previous developer mortgages..

The new bills will allow buyers to legalise the irregularities, for a fee, and receive their Title Deeds.

Apart from town planning matters, the government has also drafted two bills to regulate mortgage matters that are under discussion at the House Legal Affairs Committee.

Kammas said banks have been consulted on those.

Editors Comment

No bank in its right mind is going to advance money to buy something that has no intrinsic value – such as any property that has the potential of being issued with a ‘poisoned’ Title Deed.

In October last year, the Cyprus Association of Valuers and Property Consultants pointed out that there were currently 120,000 properties without Title Deeds. And although some 20,000 applications for Certificates of Final Approval were in the pipeline, it was unclear how many Title Deeds are held up as a result of developers not repaying their mortgages.

MEP questions Cyprus swimming pool legal rulings

Nigel Howarth
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Arlene McCarthy
Arlene McCarthy MEP

THE AUTHORITIES in Cyprus have taken legal proceedings against the owners of shared swimming pools in private development complexes because they failed to apply for a swimming pool licence.

Under Cypriot regulations, shared swimming pools in private building complexes are treated as public pools and are therefore subject to much stricter regulations governing their use and the facilities provided for bathers.

In a written question to the European Commission MEP Arlene McCarthy has highlighted the fact that Cypriot regulations are no longer applicable as they have been superseded by EU regulations.

She has called on the Commission to ensure unfair legal proceedings against pool owners are halted and that the correct European standards are enforced.

Question for written answer E-001470/2011
to the Commission
Rule 117
Arlene McCarthy (S&D)

Subject: European Standard for swimming pools and its application in the municipality of Paphos

On 25 July 2008, the European Committee for Standardisation approved a European Standard for swimming pools (Swimming Pools – Part 2: Safety Requirements for Design and Operation, EN 15288-2.) This European Standard was to be given the status of a national standard, and all conflicting national regulations should have been withdrawn by March 2009 at the latest.

I represent a constituent who owns a property in a holiday complex in Cyprus. The complex has a shared pool, for the use of the property owners and their families and guests. Therefore, under European Standard EN 15288-2 it would be classed as a Type 3 swimming pool, making it subject to different standards than a public swimming pool.

However, the municipality of Paphos in Cyprus has recently taken legal action against several local holiday complexes, including my constituent’s, because they have not applied for a swimming pool licence. Under a 1994 Cypriot law, any pool which is used by more than one property is classified as a public swimming pool, and is subject to the same regulations, in contradiction of the European Standard.

What action will the Commission take to ensure that such unfair legal proceedings are immediately halted, and the correct European standards enforced? What aid and advice will the Commission provide to those residents who have already been taken to court regarding this wrongful application of Cypriot law, and paid fines?

Further reading

Written question to European Commission E-001470/2011: European Standard for swimming pools and its application in the municipality of Paphos

EN 15288-1: 2008 Swimming pools – Part 1: Safety Requirements for Swimming Pool Design (English)

EN 15288-2: 2008 Swimming pools – Part 2: Safety Requirements for Swimming Pool Operation (English)

About Arlene McCarthy

FIRST elected in 1994, Arlene McCarthy was re-elected in 1999 to represent the newly formed North West England constituency. Having represented the same constituency since, she was top of the list of candidates from the Labour Party at the 2009 European elections.

She holds a number of positions within Parliament, being a member of the Party of European Socialists, she sits in the Progressive Alliance of Socialists and Democrats group. McCarthy serves as Chair of the Committee on Internal Market and Consumer Protection and has since 2009 served as the Vice-Chair of the Committee on Economic and Monetary Affairs.

Property sales continue fall in February

Nigel Howarth
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ACCORDING to Land Registry figures published earlier today, the number of contracts of sale deposited at Land Registries throughout Cyprus during February was 602 compared with 704 in February 2010; a fall of 14%.

Sales fell in most of the seaside towns and Nicosia: Famagusta (-47%), Larnaca (-41%), Paphos (-7%) and Nicosia (-3%).

On a more positive note, sales of property in Limassol increased by 7%. And after seven successive months of falling sales, the number of properties sold during February rose compared with the numbers sold during January.

Total numbers of properties sold in Cyprus - February 2011
Source: Department of Lands and Surveys

Speaking to the Cyprus Mail earlier this week RICS (Cyprus) board member Pavlos Loizou said: “The market is characterised by low investment demand, and steady demand for home owner occupation,” adding that “The fiscal and political climate is very unstable to create a market to invest and we expect that the next six months will prove significant on how the foreseeable future of the local market pans out, both in terms of overseas demand but also whether the rumoured ‘savings’ in the government sector are implemented and how these will impact the property sector.”

Overseas sales

Property sales to foreign buyers fell in February with a total of 141 contacts in favour of foreigners being deposited compared with 146 in February 2010; a fall of 3%.

Compared to February last year, sales increased in Paphos (+50%), Nicosia (+15%) and Larnaca (+10%), but sales in other areas fell; Famagusta (-69%) and Limassol (-18%).

Sales of property in Cyprus to foreign buyers - February 2011
Source: Department of Lands and Surveys
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