A NCIIAL MII ROR THIISS WEEK
A CSE probe into the 1999 stock market boom and bust failed to find the real culprits, but reported extensive cases of cover up and deliberate mistakes, while on the European front, incoming Commission chief Joe Manuel Barroso faced a crucial vote by European parliamentarians, the Financial Mirror reported in issue 592, on October 27, 2004.
As details from the CSE Investigation Commission’s probe into the 1999 stock market scandal emerge, it is becoming increasingly clear that a major cover up has been orchestrated, shielding the real culprits who are responsible, diverting attention instead to share dealing by politicians and other issues. The fact that the 13-page report contains many inaccuracies and mistakes, something which is inexcusable for something that has been underway for four years, gives added credence to speculation that it may have been done intentionally in order to thwart the efforts of the Attorney General to file charges. As repeatedly reported
Social stakeholders will embark on a historical round of talks to reform the COLA wage indexation system, the Cyprus Financial Mirror reported in issue 83, on November 2, 1994, while Paneuropean Insurance was about to announce a stock-split.
The Cost of Living Allowance, probably the most controversial issue in the island’s economy, will be discussed in mid-November with the direct involvement of President Glafcos Clerides. Last week, the employers federation OEV said that labour costs continued to erode the competitiveness of the Cyprus in this newspaper, politicians, brokers, banks, the CSE Council and CySEC of 1999/2000, the media and investors all have a portion of the blame for what went wrong in the stock market, but the principal blame lies with the owners of of bankrupt companies that successfully went public through a tampering of their accounts, with the help of auditors, lawyers, sponsoring brokers and investment bankers.
Incoming European Commission chief Jose Manuel Barroso faces a crucial test of credibility and confidence as EU MPs cast make-orbreak votes on the bloc’s new executive team set to take office next week. Left and centre-left critics pressed on with demands that Barroso must move Italy’s controversial justice affairs commissioner-designate Rocco Buttiglione to another post due to his ultraconservative view on homosexuals, women and single mothers.
Germany and France offered their endorsement for Turkey’s eventual EU membership at a bilateral summit, as French President Jacques Chirac brushed aside doubts about Paris’ backing, while German Chancellor Gerhard Schroeder said they would vote for Ankara to be invited to EU membership talks in economy, with profit margins shrinking fast and the general decline of industrial exports and investments continuing.
The insurance company’s board will discuss the proposal for a 2-to-1 stock split and reduce its nominal share value from CYP 1 to 50c. Chairman Nicos Shacolas told shareholders at the 8th AGM that even though he was not too keen on the idea, he did not see any damage from the move which would bring Paneuropean in line with the other insurance stocks, Universal Life and Philiki, both of which have 50c nominal shares.
The two business organisations, the Chamber KEVE and the Federation OEV, have entered a hot race for employer supremacy, with the first announcing an EU award in its 1993 Cyprus Export Awards scheme, replicating a similar award December in Brussels.
The Economist Intelligence Unit has adjusted its forecasts regarding the Cyprus economy, slashing estimated 2004 and 2005 GDP growth rates from 3.4% and 3.8% to 3.2% and 3.5%, respectively, mainly due to the continued slump faced by the tourism industry.
The final year-on-year inflation for this year will be close to 4.5%, higher than previously forecast, due to a strong rise in inflation for September pushed up by the rise in a fruit and vegetable prices, as well as imported inflation of 5.7% due to foreign exchange fluctuations with the CYP, while a drop is seen in the services sector with inflation dropping from 6.4% to 4.2%.
The first stage of the HarvardCyprus International Initiative for the Environment and Public Health is expected to be completed within weeks, with the formal establishment by the end of November of the Cyprus International Institute for the Environment and Public Health (CII) a non-profit organisation, followed by the offer of scholarships at Harvard, the recruitment of professionals and the opening of temporary offices by the end of this year.
The number of building permits tumbled a further 26.7% in August, following the 21% decline in July, while steeper declines were reported in the capacity and value of projects and applications in the Famagusta region are now lower than last year.
The government placed advertisements for a tax amnesty calling all untaxed earnings in 2002 to be declared until December 6 for a flat 5% tax and until 31 December for a 6.5% tax rate. given out by OEV a year earlier.
Margin accounts, better known as investor accounts, will eventually become the only way through which Cypriot investors will be able to deal when trading in the stock market, said George Tripatsas, Manager of Hellenic Bank Investments. By placing either cash or securities as margin, clients can trade up to four times and over their deposit level and buy stocks in public companies.