Friday, August 10, 2012 CYPRUS MAIL
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CB boss calls for realism
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Demetriades says no let-up on recession until 2014 30
Troodos
By Elias Hazou
Paralimni
Nicosia 39
36 36
Larnaca
34 3
36
Paphos P
LLimassol
TODAY: Mainly hot and sunny, with a chance of afternoon showers over the mountains. Temperatures will reach 39C inland, 36C in the south and east, 34C in the west and 30C over higher ground OUTLOOK: Temeratures are set to drop slightly over the weekend YESTERDAY:
Max Temp Nicosia 40 Larnaca 36 Limassol 38 Paphos 34 Paralimni 38 Prodromos 29
-
Min 27 26 25 24 26 20
Humidity 22% 28% 59% 72% 26% 39%
SUNRISE: 06:03am
SUNSET: 7:40pm
Pollution Low/Low Low/Low Low/ Low Medium Low High
Air quality in Cyprus is assessed with the aid of a network of nine advanced monitoring stations. Data is recorded hourly. Information provided by the Air Quality Section of the Department of Labour Inspection (DLI)
Worldwide Athens Budapest Bucharest Brussels Cairo Copenhagen Damascus Dublin Frankfurt Geneva Istanbul London
36 27 39 17 27 19 36 17 20 23 35 19
Clear Clear Clear Cloudy Clear Cloudy Clear Cloudy Cloudy Clear Clear Cloudy
Madrid Manchester Moscow Oslo Paris Prague Rome Sarajevo Sofia Stockholm Tel Aviv Vienna
30 16 32 15 20 21 32 36 36 20 34 25
Clear Cloudy Cloudy Cloudy Cloudy Cloudy Clear Cloudy Clear Cloudy Clear Cloudy
EXCHANGE
€
1.2443
€
0.7937
For a full list of exchange rates, see page 10
CHEMISTS NICOSIA Ktena, 14 Santaroza Ave. Tel: 22760951, 22492381 (H) Y. Toumba, 86C Athalassa & Dorion Ave, Strovolos. Tel: 22313677, 22499681 (H) Ch. Nicolaou, 145 Kyrenia Ave, Anglanja. Tel: 22335477, 22450313 (H) E. Korfiati, 31 Kantaras, Tel: 22324205, 22354014 E. Kontopoullou, 36, Grigorni Afxentiou, Tel: 22770150, 97627448 LIMASSOL Chr. Kourtellou, 84 Macedonias & Vas. Constantinou, Tel: 25870288, 25737455 (H) A. Vasiliou 63 Griva Digheni
Ave., Tel: 25580906, 25386449 (H) M. Stephanidou, 6 Bishop Laurentiou St. Tel: 25333726, 25382177 (H) LARNACA
A. Evlavis, 34 Gr. Afxentiou Ave. Tel: 24651317, 24662689 (H) E. Papaioannou, 52. 54 Stratigou Timayia St., Tel: 24633150, 24813135
THE ECONOMY is not likely to come out of recession anytime before 2014, but the coming sacrifices resulting from an EU bailout will ultimately benefit the island, Central Bank Governor Panicos Demetriades said last night. He warned of painful measures such as negative effects on people’s income and also spoke of the importance of being realistic given what the economy is facing. “With the aid of the financial support mechanism, and through the consolidation of the banking system and of public finances, I believe we will see light at the end of the tunnel,” the Central Bank chief said yesterday in an ex-
clusive televised interview with the state broadcaster CyBC. “We do not expect the economy to come out of recession in 2013. But the foundations will be laid so that we can create a healthy economy for the medium-term,” Demetriades said. He went on to acknowledge that people’s income would be negatively impacted as a result of necessary cutbacks. “Some of the measures will undoubtedly be painful, but we can look at this as an investment for the future,” he said, adding: “It’s important to be realistic.” Cyprus, with a runaway deficit, requested financial aid from the EU on June 25; since then, officials from the International Monetary Fund, the European Commission and
the European Central Bank - known as the ‘troika’ - have twice visited the island. The troika has stressed the need for the government to slash the expensive state payroll – proportionately the highest in the eurozone – and introduce structural reforms. Demetriades said a memorandum laying out the terms of the loan would be signed with the troika most likely by the end of next month. The loan interest would be “quite low”, but on the flipside the repayment period would be relatively short although Cyprus expects to be granted a certain grace period, Demetriades said. The top banker forecast that new capital would eventually start flowing to the island’s banks - starved for cash and
in heavy need of recapitalisation. This was key, he said, because economic recovery would come about from the private sector and its access to liquidity – rather than from the state pumping money into the economy. Ever since the application for EU assistance was filed in June, the government has been at pains to blame the banks for the development, while Demetriades has announced there would be a thorough investigation into their loan portfolios and investments. Meanwhile an investigation into whether banks may have misled investors into buying high-yield securities should be completed by late September, he said.
Kontides is honoured at homecoming (continued from front page) during the festivities. This morning, the athlete will be honoured with the Grand Cross of the Order of Merit of the Republic of Cyprus. He will be presented with the distinction in a ceremony with his family and President Demetris Christofias at the presidential palace. Kontides won Cyprus’ first medal at an Olympics when he took the silver Monday in sailing’s Laser class in Weymouth, England. Currently ranked 11th in the world, Kontides gave up his university studies for two years, and suffered through a number of injuries during his training. Cyprus started taking part in the modern-day Olympics at the 1980 Moscow Games. Kontides said on the Cyprus Sailing Federation website that he was inspired by his father, himself a Cypriot sailing champion and former federation chief, to take up the sport at age 9. His coach said yesterday that Kontides has potentially three more Olympic Games in him provided he stays fit.
Young fans push their way through to obtain an autograph of the medal winner
Cheese-makers say no shortages expected
PAPHOS
A. Papoudas 25 Al. Ipsilanti Tel: 26811750, 26952138 (H) PARALIMNI
Ch. X. Alapai, 8 Gr. Dighenis Ave. Tel: 23742002, 23744155 (H)
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By Elias Hazou CHEESE-MAKERS yesterday sought to assure consumers that no severe milk shortages would arise as a result of a recent intervention in the market by the competition watchdog. Earlier this week milk suppliers warned of impending shortages after the Commission for the Protection of Competition (CPC) had ordered the Pancyprian Cattle Farmers’ Organisation (POA) to supply Pittas Dairies with 65 tonnes of cow milk per day. The cattle farmers say they have no choice but to comply with the order. But the quota imposed on them for supplying Pittas means they must reduce supplies to other dairy product companies, they claim. But in a written statement yesterday, the Cyprus Cheese-Makers Associa-
tion said no milk shortages would arise provided pasteurisers collaborated to ensure a smooth supply to the domestic consumer market. The association said this would be achieved by temporarily diverting some of the milk quantities intended for cheese-making to pasteurisation. It’s understood that, either way, August is traditionally a slow month for cheese-making and that cheese-makers operate at below capacity during this period. However, the cheese-makers said the fact they would be receiving smaller quantities of milk would impact their export business. It said that in recent days the reduction in milk quantities has reached 40 per cent in some cases. The competition watchdog counters that there should be enough milk to go around, accusing POA – which represents about 90 per cent of milk production on
the island – of deliberately manufacturing a crisis. Meanwhile cattle farmers threw another spanner in the works yesterday, announcing that the price of milk is set to shoot up within the next few days. “Raising the price of milk is our only salvation,” said POA chairman Savvas Evangelou. The rising prices of animal feed left them no choice, he explained. Evangelou blamed the government for not allocating farmers all the subsidies they are demanding. Reacting to the news, the Cyprus Consumers and Quality of Life Association called on the competition watchdog to intervene to stop the price of milk from going up. Head of the association Loukas Aristodemou said it was unacceptable that fresh milk here costs three times as much as it does in Germany.