TTTTHHHHEEEE FFFFIIIINNNNAAAANNNNCCCCIIIIAAAALLLL MMMMIIIIRRRRRRRROOOORRRR TTTTHHHHIIIISSSS WWWWEEEEEEEEKKKK
Laiki Bank were expected to be up by 120% in 2004 from the previous year, with analysts forecasting a dividend of 1.4 to 4c a share, while an ongoing dispute on the management of the bonds market is also having an i mpact for investors, according to the Financial Mirror issue 608, on February 16, 2005.
Laiki Bank is seen reporting a 120% year-on-year increase in net profits for 2004 to CYP 21 mln from 9.5 mln in 2003, with the island’s second largest financial group expected to announce results and possibly even a dividend.
The second market for bond yields does show some anomalies regardless of methodologies, according to researchers, despite assurances from the Central Bank to the contrary. Currently, the primary market for government bonds is much more liquid at about CYP 1.1 bln a year than the secondary market of just CYP 5 mln, raising concerns about supervision and management.
The Convergence Plan submitted by Cyprus forecasting that the deficit will decline to under 3% o GDP is seen as ambitious, but realistic, according to European Commission sources. The lan foresees average 4.5% growth based on local activity coupled by a rebound in exports on the back of an increase in tourism. Inflation, contained at 1.9% in 2004 from 4% in 2003, is seen at 2.4% in 2005 and remaining steady at 2% until 2008. The fiscal deficit is seen declining further to under 3% in 2005 to 2.9% of GDP from 4.8% in 2004 and declining steadily to 0.9% of GDP by 2008, based on government promises to reduce expenditure by 2.3%. Public debt, which reached 74% of GDP in 2004 is seen declining to 58% by 2008, but the Commission said that Cyprus needs to continue with its austerity plan
InterContinental Hotels & Resorts will open a new hotel in Cyprus in March, locatyed in the heart of the Aphrodite Hills Resort, among a championship golf course, spa and tennis academy. It is part of the CYP 150 mln development by Lanitis Group.