IN ITS issue a month ago (March30-April5 2013) when the Economist magazine extensively covered the political and economic aspects of the situation in Cyprus in the wake of the harsh treatment and bitter medicine applied by the Eurogroup a few days earlier, I, as a former senior ambassador of Cyprus to key posts, felt impelled to write its editor a letter, which was eventually published on April 13, 2013 subject to extensive editing.In its current issue (April27-May 3, 2013), the Economist returns – ‘there you go again' President Reagan famously remarked - with a main editorial titled ‘Cyprus, divided they fall’, on the political aspects, and a long grim article on the economic outlook titled ‘Through a glass, darkly’... 19 comments

TODAY the legislature will vote on the deeply unpopular memorandum of understanding which, in theory, should be passed with DIKO and DISY votes. We say in theory because nobody knows whether all deputies of these two parties would show up and, if they do, that they would vote in favour of the memorandum’s ratification. Without the legislature’s approval there would be no financial assistance from the EU and IMF, the state would default on its debt repayments and would have no money to meet its financial obligations, such as paying public sector salaries. In short, there is no alternative despite the stupid insistence of the demagogues that we should disengage from the memorandum... 10 comments

 FINANCE minister Haris Georgiades surprised many people on Tuesday when he said he hoped that currency controls could be lifted within the next few weeks. He conceded, in an interview with Reuters, that it could take a little bit longer, but “definitely not six months”, adding, “I am optimistic we shall be able to proceed much sooner.”He had to be optimistic to believe controls could be lifted much sooner, but to entertain the idea they could be lifted within the next few weeks verges on the unrealistic. While Georgiades’ eagerness to bring back pre-bail-in, banking practices is understandable, as this would constitute a return to normality, it is very difficult to see how it could be done in the current climate. ... 13 comments

 AS RECENTLY as three months ago most men were willing to have their testicles chopped off, donate a kidney to comrade Tof and sign a life membership of AKEL for the chairmanship of the Bank of Cyprus, Kyproulla’s biggest, richest and mightiest company.But today, if they had a choice, most guys would rather shovel muck on an Aradippou pig farm in 40-degree heat, than sit in the soft-leather, executive chair of the chairman’s wood-panelled, air-conditioned office on the top floor of the bank’s marble and glass Nicosia premises, eager secretaries queuing up to pamper him... 12 comments

 REGULAR readers do not need reminding of our column’s habit of describing our country as an unfenced, lunatic asylum. But one would have thought that today, faced with the horror of economic catastrophe caused by the accumulated lunacy of many years we would have started to get serious at last.Unfortunately not. Our lunacy and stupidity are incurable. This is crystal clear. You only have to look at what is happening around us every day to be convinced that this country could become the subject of the largest scale psychiatric study ever to be held in the world... 7 comments

 Recently sacked DEFA (Natural Gas Public Company) head, Costas Ioannou is the subject of a police probe into criminal offences he allegedly committed during his reign as head of CERA (Cyprus Energy Regulatory Authority) in 2009.For their part, the police confirmed that the investigation into Ioannou draws on an on-going civil lawsuit concerning a licence awarded to a Russian company by CERA to operate a private power station. To obtain the licence, the company had engaged the services of Ioannou’s cousin, Andreas Hayiannis as a mediator/facilitator to seek out possible buyers for the company. But the deal turned sour when a British company acquired all the shares of the Russian company. Hayiannis then sued the Russian company for not paying his mediation fee... 4 comments

 THOUGH Cyprus is a small island it is remarkable how different the development of tourism north and south of the Green Line has been. Details are shown in the table below which covers the period from 2000 to 2012, and shows that though the number of tourists visiting northern Cyprus has increased in proportion to those in the south from 16 per cent in 2000, to 43 per cent in 2010, revenues were still much lower in 2011 at 17 per cent in northern Cyprus. This brings out the fundamental difference in the structure of the tourist markets... 3 comments

 When I was a lot younger, I couldn’t understand Cypriot students who flew to the UK loaded down with Cypriot foodstuffs. I mean there was so much better stuff available in the UK. Kettle crisps, MacDonald’s, and soft, white sliced bread that stuck to the roof of your mouth when you bit into it. Even chocolates in the UK tasted better. So why would you want to take boring food from home with you, I’d ask them? ... 3 comments

WHEN IT comes to grand, but ultimately meaningless, initiatives nobody can compete with the political parties. Nothing illustrates this practice better than AKEL’s proposal for the 25 per cent reduction of rents on premises, housing small to medium enterprises (SMEs), for the next 12 months. The proposal has the support, in principle, of all the parties none which would want to be seen to oppose the lowering of rents... 5 comments

 THE CYPRIOT economy is receiving shocks from numerous quarters. First, the loss of working capital by Cypriot businesses, which have 40%-90% of their deposits over €100,000 held at the two main banks. The second is a liquidity shock due to the remaining deposits in these banks being frozen for months. Overall, 90%-100% of deposits above €100,000 have either been confiscated or frozen. The third quarter relates to a significant loss of confidence in the banking system. The last two shocks are amplified by unprecedented internal and external capital controls forced upon Cyprus. ... 4 comments