Day: May 3, 2023

The University of Cyprus Economic Research Centre (ERC) has upgraded its projections for Cyprus growth rate, as the economy despite weaking due to the war in Ukraine remained strong creating favourable conditions for activity in the near term. In its economic outlook for May issued on Tuesday, the ERC has revised upwards its growth forecasts for 2023 and 2024 by 0.4 and 0.3 percentage points respectively, projecting a growth rate of 3.0% in 2023 and at 3.1% the year after. 'Despite a weakening in the growth momentum in the final quarter of 2022, Cyprus' economic performance has remained strong, creating favourable conditions for activity in the near term,' the ERC said, noting that although growth is forecasted to decelerate further in 2023 'it is expected to remain robust.' According to the ERC, the tightening in the financial conditions is expected to limit growth prospects in Cyprus, through lower domestic and external demand. The ERC explained that upward revisions are mainly driven by better-than-expected growth in the final quarter of 2022, moderating inflation, improvements in economic confidence, as well as by a favourable stock market performance, despite the recent turmoil in the international banking sector. It however, noted that 'downside risks to the growth outlook are currently dominant' and are mainly associated with the rising interest rates, as a result of monetary policy tightening, while high inflation also weighs on the outlook. Inflation in Cyprus, (based on the Consumer Price Index) is forecasted to decline in 2023 and 2024, as a result of lower pressures on international commodity prices and tighter financial conditions. Inflation is projected at 3.0% in 2023 and at 2.4% in 2024, with the 2023 inflation rate revised marginally downwards by 0.2 percentage points, compared to that in the January issue, mainly because of the recent deceleration of inflation on the back of lower international commodity prices. 'However, the inflation forecast for 2024 is higher than that in the January issue, by 0.4 percentage points, as robust domestic activity as well as past price pressures are expected to add to inflation persistence,' the ERC added.

Source: Cyprus News Agency

Household financial assets amounted to pound 59.7 billion in December 2022 of which 62% in currency, deposits and loans 2% in debt securities, 19% in stocks and 17% in other financial instruments. According to the quarterly financial accounts for the fourth quarter of 2022 published by the Central Bank of Cyprus, on Tuesday, household debt in the end of 2022 amounted to pound 20 billion, corresponding to 74% of Cyprus' GDP, marking a small reduction compared with the previous quarter, mainly due to the rise in GDP. Compared with December 2016, household debt ratio marks a sizeable reduction reaching 42%, the CBC said. Non-Financial corporations' assets in end-2022 reached pound 68.3 billion, of which 18% in currency and deposits, 4% in loans 03% in bonds, 49% in shares and 29% in other financial instruments. The sector's debt in the end of December 2022 amounted to pound 38.6 billion or 143% of GDP, marking a reduction of 7% compared with the previous quarter, driven by the rise in GDP. In comparison with December 2016, the corporate debt to GDP ratio declined by 68%. According to the CBC, Insurance companies' assets amounted to pound 4.5 billion, of which 9% in currency and deposits, 3% in loans 25% in debt securities, 45% in shares and 17% in other financial instruments. Investment Funds assets in financial instruments amounted to pound 7.1 billion of which 5% were in currency and deposits, 9% in loans and debt securities, 83% in shares and 2% in other financial instruments. Assets held by pension funds amounted to pound 4 billion in the end of December 2022, mainly in currency and deposits with a share of 23%, 15% in loans, 4% in debt securities, 46% in shares and 13% in other financial instruments, the CBC added.

Source: Cyprus News Agency

The Council of Ministers approved on Tuesday a bill simplifying procedures regarding the mutual academic recognition of university degrees, higher education institutions and other approved institutions between Cyprus and Greece. Minister of Education, Sport and Youth, Athena Michaelidou, explained in a statement after the meeting that the purpose of the bill is to ratify the agreement between the Republic of Cyprus and the Hellenic Republic regarding mutual academic recognition of university degrees, higher education institutions and other approved institutions, which was signed on February 1, 2023. The positive aspect of the approval by the Cabinet, she added, is the simplification and facilitation of procedures followed by the two countries regarding the mutual recognition of academic degrees. A list of universities and higher education institutions that are approved and for which academic recognition will be implemented has already been determined. The list may be updated following consultation between the two sides, concluded the Minister.

Source: Cyprus News Agency

The new Ambassador of the Republic of Cyprus in the People's Republic of China, Martha Mavrommatis, presented on April 24 her credentials to the President of China, Xi Jinping, in the framework of a joint ceremony for the presentation of credentials by a number of Ambassadors. According to a press release issued by the Press and Information Office (PIO), during the official ceremony that took place at the Great Hall of the People, President Xi Jiping, delivered a speech, after receiving the credentials, to all the new Ambassadors, welcoming them and asking them to convey their warm wishes to the leaders and the peoples of their states. During his speech, President Xi Jiping also noted that China is ready to deepen the friendship and extend the mutually beneficial cooperation with the peoples of all countries, on the basis of equality and mutual benefit, and promote the further development of bilateral relations.

Source: Cyprus News Agency

ENAG reports that Turkey's inflation rate remains in triple digits. Despite DISK's win in a lawsuit against the suspension, the official statistical institute continues to withhold the publication of its inflation basket. The official Turkish Statistical Institute (TurkStat) and the unofficial Inflation Research Group (ENAG) have released their April inflation data.

TurkStat reported a 2.39% increase in inflation for April compared to March, and a 43.68% increase compared to April 2022. The increase was 15.21% compared to December, while the 12-month average stood at 67.20%.

The communication segment witnessed the highest monthly increase with 5.93%, while the housing sector saw a -1.47% decrease. On an annual basis, the health category experienced the largest surge with a 66.62% hike, while the clothing and footwear sector saw the lowest increase with a 13.82% rise.

ENAG, a group of academics that announces alternative inflation rates in Turkey, has set April's inflation rate at 4.86% and the annual increase at 105.19%.

The inflation rate was recorded as 29.27% in the year's first quarter. ENAG, which takes subgroups as indicators, reported that the housing sector experienced the highest monthly decrease with -0.90%, while the clothing and footwear sector saw the highest increase with a 14.02% rise.

TurkStat does not abide by court's decision

In recent years, there have been suspicions of manipulation by TurkStat regarding the inflation rates they announce, as they are believed to be understating the actual figures.

Between January 2003 and May 2022, TurkStat published a list of average prices for over 400 items on a monthly basis, forming the basis of inflation calculations. However, the census bureau stopped publishing this inflation basket.

On 31 March 2023, The Confederation of Progressive Trade Unions (DISK) won a lawsuit at the Ankara 6th Administrative Court against TurkStat for suspending publishing the list, arguing that it was illegal to suspend data that had been previously disclosed for many years.

"With this court decision, TurkStat needs to announce again the inflation basket that it stopped in June 2022. We will apply to TurkStat to abide by the decision, and submit the list for the inflation basket to DISK, and we will announce it to the public," DISK Chairperson Arzu Çerkezoglu stated following the court decision.

As of now, TurkStat has not yet disclosed its inflation basket

Source: English Bianet

Kübra Ünsal and her friends have treated 4,500 cats and dogs in the field clinic. A 28-year-old woman named Kübra Ünsal, who resides in the Antakya district of Hatay, was rescued alive from the rubble of a 12-story building that collapsed during the earthquakes centered in Maras on February 6.

After receiving treatment and having to wear a brace for approximately three weeks due to cracked ribs, Ünsal immediately set up a field clinic with her friends who also had damaged clinics, in Atatürk Park.

Ünsal and her friends have treated 4,500 cats and dogs in the field clinic they established.

After treating injured and needy animals that were abandoned by the people they lived with, Ünsal and her friends redirect the animals to places or individuals who can provide them with better care.

The earthquakes

On February 6th, two earthquakes with a magnitude of 7.7 and 7.6 struck the southern province of Maras in Turkey, causing devastation across 11 provinces in the south and southeast of the country and northern parts of Syria.

Over 50,000 people have been confirmed dead, and more than 227,000 buildings were destroyed or severely damaged, according to government figures.

The latest report from the United Nations shows that the situation in the earthquake-affected area remains dire, with ongoing challenges exacerbating the crisis. Heavy rainfall and aftershocks have continued to wreak havoc in the region, further hampering relief efforts.

As a result, approximately 1.6 million people are still living in temporary shelters or makeshift tents, with limited access to essential services and basic living conditions. Additionally, three million people have been forced to flee their homes due to the disaster

Source: English Bianet

The opposition's candidate said the Mediterranean countries, the EU and the UN should cooperate to address the issue. Kemal Kiliçdaroglu, the main rival of President Recep Tayyip Erdogan in the upcoming elections, has called on the EU to cooperate with Turkey on the migration.

In a Twitter video late yesterday, Kiliçdaroglu criticized the government's handling of the crisis and promised a shift in Turkey's refugee policies, but also stressed the need for international cooperation.

Saying that Turkey should meet the needs of its own people in terms of water, energy and infrastructure, he remarked, "Europe has to realize that we cannot even keep the citizens of Turkey, let alone harbor these asylum seekers and irregular [migrants], if Turkey loses its own infrastructure and water."

"The European Union has to get out of the mindset that I give a bribe and get away with it," he said, referring to the 2016 refugee deal between the EU and Turkey, which aimed to reduce the number of refugees coming to Europe by providing financial aid to Turkey, which agreed to take back migrants who crossed the Aegean Sea to reach Greece.

However, the agreement has been criticized by human rights groups and the UN for violating international law and not providing adequate protection to refugees. Turkey's opposition parties have also criticized the government over the deal, accusing it of turning Turkey into "Europe's refugee camp."

Repeating this criticism, Kiliçdaroglu said that the agreement needs to be re-evaluated and that Turkey cannot continue to act as a "buffer zone" for climate refugees.

Therefore, he argued, Turkey should lead the Mediterranean Basin countries, where temperatures are rising 20 percent faster than the rest of the world, with "a new vision" for the region, and the EU should cooperate with it.

Climate migration

Kiliçdaroglu further warned that the Euphrates and Tigris rivers could dry up in the next 20 years if no measures are taken, causing agricultural problems in southeastern Turkey and affecting hydroelectric power plants, leading to severe water shortage. This would also result in over 60 million people in Turkey, Syria, and Iraq suffering from famine and water scarcity, he added.

Kiliçdaroglu emphasized the urgency of the situation, stating that if Turkey fails to act, it could face an influx of refugees from Syria and Iraq. In response, he called on the EU and countries in the Mediterranean Basin to work together to "reunite Syrians with their homeland" within two years at the latest.

The roadmap

He suggested negotiations with the Syrian administration and the establishment of a protocol with the legitimate government to secure the life and property of those who leave the country. The European Union and the United Nations would be involved in this protocol.

Kiliçdaroglu also proposed that contractors from Turkey build houses, schools, roads, and kindergartens for asylum seekers returning to Syria with funds from this cooperation. This plan aims to help Syrians rebuild their homes and communities, and to ensure a safe and sustainable return to their homeland

Source: English Bianet

Five hundred and twenty-four people have been taken into custody in an operation carried out in 52 cities; suspects are being charged with "producing and selling drugs." In the scope of a new Ankara-centered drug operation covering 52 provinces including Istanbul, Ankara, Izmir, and Konya today (May 3) 524 people have been taken into custody.

The detained suspects are being charged with manufacturing and selling drugs.

Joint operation with MASAK

Today's operation has been carried out with the coordination of the Financial Crimes Investigation Board (MASAK) and Ankara Chief Prosecutor's Office.

The Interior Minister Süleyman Soylu made an announcement about the operation in the morning and stated that they had followed the managers, the sellers, the bagmen, and the producers for approximately one year, tracing the money. The Minister informed that the bank accounts and transactions of 598 suspects including leaders and managers of the criminal organization have been monitored for a long period of time.

One third prisoners are drug offenders

Minister Soylu had announced on April 17 that the number of drug offenders who are in prison had increased from 36 thousand to 126 thousand in the last seven years.

The total number of prisoners is 341 thousand 497 according to the figures of the Ministry of Justice; therefore one-third of all prisoners in Turkey are in prison with drug-related charges.

Source: English Bianet