BOC storms higher, tourism grows 5%
Bank of Cyprus shares surged following a successful rights issue, helping push the CSE index higher, while tourism is expected to grow 5% in 2006, according to the Financial Mirror issue 650, on December 21, 2005.
Bank of Cyprus shares surged 5.5% to CYP 2.66 following the successful rights issue for 77.9 mln new shares that helped raise CYP 109 mln (EUR 190 mln). A total of 407 mln rights were exercised for 67.7 mln new shares, a subscription ratio of 87%, while 10 mln shares were
tariff-free import allowances for goods from new EU members Austria and Finland.
The government’s new Tariff Proposals will dramatically increase the rate of inflation that will affect all sectors, said Consumers’ Association head Christodoulos Miliotis. He said mostly food items, many of which do not have any tax, will see costs rising by up to 250% due to new levies the government wants to impose.
The Bank of Cyprus factoring division, the invoice discounting service, has seen turnover rise to CYP 150 mln claiming a 75% market share, according to BOC Factors Manager Athos Kyranides.
Societe Generale Country Manager Gerard Malhame said the French giant is one of the biggest lenders to the government arranging a USD 100 mln facility.
Cyprus Airways expects to make a profit of CYP 5 mln after a decade of losses, Chairman Vasilis Rologis told shareholders, adding that debt has been reduced from CYP 160 mln in 1993 to 110 mln. The state owns 82% of the shares and with the new stock exchange regulations, must reduce its control to 70%, considering a public issue.