WM issue 5

| 51 |

Halfway through our interview, in a much more organised fashion. He even only three of these systems
Alexey Gubarev shuts the door created an algorithm that scours the Internet for in the world), for which he
to the room. Acoustic foam tiles items. “I know exactly what I want to collect be- had been waiting in line for
are placed on the walls in seem- fore I start buying it,” he says. That has allowed seven years! There is also
ingly anarchic fashion, while him to amass some 500 speakers, 600 record a Technics SB-AFP 1000
speakers the size of flat TV screens and turntables players, an odd 200 reel-to-reel machines and flat-panel speaker with the
from a bygone era are all around. We occupy thousands of amplifiers. Sometimes, depending Vienna Opera that he wants
wine-red leather armchairs that have been pur- on the rarity of the apparatus, he would buy to get his hands on but there
posefully arranged in the middle of the room. He duplicates. Having collected 99.9% of the items is a small problem: it is the
shuffles through a few LPs. “Most people have he wanted, that 0.1% remains unbelievably only one in the world.
never heard music – not like this,” he says, before elusive, as it rests in the hands of equally com- Gubarev often hosts nights
he settles on a record. The needle drops and the pulsive collectors or museums. “I now try to find around the turntables in
lights turn dim: the turntable is connected to a things that are extremely rare,” he says. There this very room. Although he has dabbled with
set of Avantgarde horn-loaded speakers. was one particular item he purchased recently, the piano, he admits that he knows enough
Gubarev’s collection is the history of music itself. a Technics SB-9500 speaker system (there are to know that he doesn’t know enough. On
Starting from the early ‘20s, over 8,000 items, in- the upper floor, where the restoration of the
cluding turntables, speakers, cassette players and equipment takes place (there’s also a number of
reel-to-reel machines are meticulously stacked shelves groaning under the weight of thousands
and numbered on shelves in several buildings of cassettes), stands a piano, which, according to
along the Limassol seafront. It’s not easy to put Gubarev, is an exact replica of the one the Beatles
a price on this collection. Indeed, he has spent used on recordings of many of their songs. I’m
more than €10 million over the years but some fairly certain that there are many more hidden
of the pieces in his collection are one-of-a-kind, treasures inside this building alone – so many, in
like the GoldMund Reference turntable, the Mi- fact, that it would have taken us weeks, maybe
cro Seiki SZ-1 and the Yamaha GF-1 speakers. even months, to uncover.
“These – well they are invaluable, aren’t they?” Alexey Gubarev is clearly a fortunate man, and
he says. He shows an evident preference for high- he is also lucky in a way that many collectors
end audio systems that were developed between would envy: “You know, my wife accepts this
1950 and 1990, which he equates to the Beatles: hobby,” he says, “because I don’t take it home. I
half-a-century later, there’s still nothing better. have only one room there that I listen to music
Back in the room, the lights are turned on, as in. Everything else is here – that’s a good com-
the needle reaches the inner grooves of the vinyl promise!”
record. Gubarev gives me a searching look. He He says this while trying to keep a straight face
was right: it was like tasting food after quitting but, in the end, he can’t avoid bursting into
smoking when the sheer volume of flavours takes laughter, which echoes around his wonderful
you by surprise. listening room.
After years of waiting, Gubarev has finally re-
ceived approval to build a 5,500 sq.m. museum ALEXEY
in Limassol to house his extraordinary collection GUBAREV
– a first of its kind on the Old Continent. One
of the rooms in the museum will offer the same Alexey Gubarev is a founding partner of Palta and
treatment that I have just received. “Our vision is was previously CEO of the XBT Holding group of
to punch emotion into people, to show how mu- companies and founder of Servers.com. For the
sic can interfere with your personality,” he says. past 20 years, he has lived in Cyprus, which he pas-
Gubarev’s passion for collecting audio systems sionately promotes as a base for IT businesses.
was ignited nine years ago, when he was 32 years
old. It was a way to satisfy the kid in him, the
one who didn’t have pockets deep enough to buy
such systems when he was growing up. “People
believe that you can make money just like that,”
he says and snaps his fingers. “But I work so
much and so hard every day.”
On arriving in Cyprus in 2002, Alexey Gubarev
founded two companies: XTB Holding, a global
privately-owned hosting network, and Palta, a
co-founding company for health and wellness
startups, which raised €100 million in 2021. “I
had grey hair when I was only 36!” he jokes. The
first sound system he bought was an Onkyo full
system, with Onkyo M-508 amps and after a few
years of random purchases, he started collecting

| 52 | T H E C O L L E C T O R S Photo by michalis kyprianou

A
Fabulous

Ride

Former rally driver Andreas Tsouloftas talks about his career and his impressive car collection.

| 53 |

Andreas Tsouloftas’ passion “After more than 20 years as a rally driver, I am There are many other later vehicles in the
for cars started when he was very proud to have a successor in the family. Tsouloftas collection, too: a Mercedes S class, a
teenager. Alexandros, the second of my five children, is Mercedes ML320 and an SLC, a Hummer H3,
“I learnt to drive when was very talented,” he says. a Renault Twizy electric car, a BMW i8, a Range
16 and, from that moment, Andreas Tsouloftas’ own passion for cars has not Rover Vogue, a Range Rover HSE Sport, a
cars became a big part of waned over time. “If I had the proper storage Smart and a Dodge Ram (for Alexandros).
my life”, he recalls. After completing his military area, I would have collected a few dozen!” he The oldest and most valuable is the 1957
service, he went to the UK for studies, where he confesses, before explaining that, when he built Mercedes Benz 190C. “It’s a beautiful antique
obtained his degree in Civil Engineering from his own house in 1996, he designed a special sports car, fascinating to drive. I consider it the
the University of Manchester. On returning basement area of about 150 sq. m. for his cars. ‘jewel’ of my collection,” he says with pride.
home in 1979 he became involved in rallying. “Unfortunately, as the family grew, I couldn’t As a hobby, collecting cars is not without
“At first, as a member of Limassol Automobile use that space as planned and I had to convert it its problems. The two biggest difficulties
club, I helped in the organisation of various into a play area for the children.” concern the necessary storage area and vehicle
rallies and then, in 1985, I decided to participate Nevertheless, he still has an impressive collection maintenance. “I keep my cars in various places –
as a driver. My first rally car was a Fiat Abarth of vehicles, which includes four of his Mitsubishi closed garages or covered. And you need plenty
130 TC which I bought from another driver, rally cars: the Galant VR4 Group A, the EVO 6 of free time to spend on them. Since my time is
Antonis Michaelides.” Group A, the EVO 7 Group N and the EVO 9 very limited, I employ a mechanic who takes care
It wasn’t long before Tsouloftas decided to Group N. of cleaning, the engines, keeping the batteries
import his own cars. “There are three antique cars too: a beautiful charged, etc.”
“In 1989, I imported a four-wheel drive 1957 Mercedes Benz 190C soft top/hardtop, a Asked if he has ever thought of sharing his
Lancia Integrale HF 8V from Italy and in 1963 Morris minor estate and a 1983 Mercedes collection with the public, he replies in the
1991 I bought a works Lancia Integrale 16V 190E. Of course, my ‘baby’ is the VW Polo negative but adds, “I may do so at a later stage.”
from Greece from the Greek Rally Champion R5 works rally car, which my son Alexandros is And does he consider that his collection is now
Giannis ‘Jigger’ Vardinogiannis. This was the driving with huge success and in which he has complete?
same car that Miki Biasion won the World won most of his rallies.” “No! I want to add a high-spec fully electric
Championship Rally of Portugal
with 1989 and ‘Jigger’ won two car, which cannot be anything other than
Championships in it in Greece.” a Tesla. I am currently in the process of
The car proved to be a winner for getting a new Tesla model Y, which I expect
Andreas Tsouloftas too. He soon started to have this summer. It is the fastest and the
winning rallies and leading the Cyprus best electric production car in the world.”
Rally Championship. In 1993 he moved It’s already been a fabulous ride for Andreas
to Mitsubishi Motors as the official rally Tsouloftas and he is clearly in no mood to
driver for Mitsubishi, sponsored by stop!
the manufacturers, first in a Mitsubishi
Galant VR4 group A and then a If I had the
Mitsubishi EVO 3 group A, an EVO 6 proper
group A and eventually an EVO9 group
N. “I was rallying with Mitsubishi until storage area,
2006,” he says, “winning many rallies I would have
and many Cyprus Rally Championships. collected a
I also participated in the Middle East
Rally Championship from 1991 to few dozen
2005, winning many trophies and cars!
getting podium results in Jordan, Qatar,
Syria, Dubai, Bahrain and Oman.” ANDREAS
In 2004, thanks to an impressive 7th TSOULOFTAS
overall finishing result in the Cyprus
Rally, which was a World Rally Andreas Tsouloftas is the Founder and Man-
Championship event, and some good aging Director of Tsouloftas Constructions Ltd,
results in the Middle East and Cyprus A. Tsouloftas & Sons Ltd, Tsouloftas Group of
Rally Championships, Tsouloftas was Companies and associated Joint Ventures. He
ranked 54th in the FIA’s Top 100 is also the President of the Limassol Chamber
World Rally Drivers classification. of Commerce and Industry. One of the most
The Tsouloftas name continues successful Cypriot rally drivers, he enjoyed a
to make waves: In 2021, his son
Alexandros won both the Greek Rally 23-year career in motorsport (1985-2008).
Championship 2021 and the Cyprus
International Rally.

| 54 | I N TFEARS VHIIEOWN D E S I G N E R S

| 55 |

Medochemie:
Where

Dioscorides
Meets El Greco

Dr. Andreas Pittas, Founder and Executive Chairman of Medochemie, discusses
the pharmaceutical company’s tough beginnings, why supporting Cyprus’ capacity for innovative research

should be a societal duty and how his love of art has influenced his career.

Medochemie was founded in 1976, just a turnover, then yes, it is slowly reaching €300 million and our tar-
couple of years after the Turkish invasion get for the next 5 years is, indeed, to reach the €0.5 billion mark.
of Cyprus. What difficulties did you face There were a number of factors that contributed to the success: be-
when starting a new business venture in sides the immense effort and work hours I put into the venture, the
an industry that didn’t exist, amid the factories outside Cyprus also contributed a lot to our growth.
political turmoil and society still reeling  
from the effects of the war? Medochemie has received every state accolade that exists. Do
Times were dark, in every sense of the word. There was real political these awards, though, reflect government action to help the lo-
turmoil and society was living in fear and pain. The number of refu- cal pharmaceutical industry, or is that no longer necessary?
gees was huge and so was the number of jobless people. However, it I will first talk about the present: the Government recognizes our
was time to create new things! It is worth mentioning that, after the work and the local market accepts more and more of our brands.
invasion, the Turks occupied the Government’s central medicine However, at the beginning, I would not say that we received any
depots, creating an absolute scarcity of many essential medicines. encouraging comments or tangible support in any way. On the con-
At the time, nearly everybody – especially health professionals – trary, at times, we faced hostile and negative attention.
advised me against the project, as they did not think that ‘Cypriot  
medicines’ were a viable enterprise. Here, I have to mention that,
since before the time of Christ, Cyprus had been exporting medi- ART HAS ENHANCED A LOT
cines to neighbouring countries, among them some copper salts that OF MY CREATIVITY AND
were later mentioned by the Greek physician and pharmacologist, IMAGINATION – FACTORS
Pedanius Dioscorides and other scientists of the time, as being the THAT YOU NEED BESIDE
best in the world – they were also used in surgery. So, the word
“difficulty” does not accurately reflect what we faced at the time but KNOWLEDGE, PASSION AND
yes, I could tell you many real stories about difficulties! LOVE TO CREATE NEW AND
CHALLENGING VENTURES
Some 46 years on, Medochemie is earning some half-a-billion
euros year-on-year, with operations and manufacturing sites all
around the world. Was there moment in time – a collaboration,
an investment, etc. – that was pivotal for the company to grad-
uate from being a local export champion to one of the top 200
drug companies in the world?
I believe your question exaggerates the figures. If you mean the

| 56 | I N T E R V I E W

IN 1976, NEARLY EVERYBODY – ESPECIALLY
HEALTH PROFESSIONALS – ADVISED ME AGAINST
THE PROJECT, AS THEY DID NOT THINK THAT
‘CYPRIOT MEDICINES’ WERE A VIABLE ENTERPRISE

The 2020s have been tough so far for everyone: a pandemic and the Cyprus Government’s Eastern Mediterranean and Middle East
a war have led to financial turmoil, broken supply chains and a Climate Change Initiative (EMME-CCI). In addition, I should point
collective feeling of uncertainty. Nonetheless, Medochemie has out the Institute’s High-Performance Computing facility and its estab-
continued to grow. How did you overcome these challenges? lishment as the national supercomputing facility of Cyprus. It houses
The way you put this question is absolutely right! Both 2020 and 2021 Cyclone, the fastest open-access supercomputer in the Middle East.
affected our earnings and how we had to conduct our operations due
to the scarcity of flight connections and a lack of transportation in gen- You also seem to have a particular fondness for art. How did that
eral, for both incoming and outgoing goods. However, we did not halt come about?
our new projects – among them a new €15 million building for new Even in my early youth, I was immersed in literature, with a special
product research and development. We expect to spend a lot more on love and adoration for Homer. Incidentally, Homer is still on my desk
innovation and we hope to receive some government support for this and I still read The Iliad and The Odyssey on and off. My love of
task. painting started from our Byzantine routes and was cultivated later in
  Austria and Germany, where I studied.
Medochemie is backing the non-profit Cyprus Seeds, which is
the only local accelerator focused on commercialising academic Is there a specific artist, or art form for that matter, that has
research. Why did you decide to invest in spinoffs and what policy shaped the way you approach business decisions?
change will attract more investors to look at academic research Your question leads me first to medicine, which contributes to deci-
coming from Cyprus? sion-making! A good knowledgeable health professional must some-
I support the important Cyprus Seeds initiative as I strongly believe in times take fast decisions. Therefore, that ability to take such decisions,
the potential of Cyprus in the broader areas of innovation and research which our business demands at all times, was already in me. On the
commercialisation. As the continuing successes of Cyprus in attracting other hand, art has enhanced a lot of my creativity and imagination –
major European research funds shows, our academic and research in- factors that you need beside knowledge, passion and love to create new
stitutions are world-class. Hence, it is our duty as a society to build on and challenging ventures. Since you ask me about a specific artist, I am
this success and to provide every support possible to the commerciali- a great admirer of the great Cretan painter Dominikos Theotokopou-
sation of our capacity for innovative research. My active involvement los (El Greco). He was 400 years ahead of his time, a prophet of the
with the Cyprus Institute, where I serve as Chair of its Board of Trus- impressionism, cubism and even expressionism of the 20th century.
tees, addresses this need as a strategic goal for the future of the Institute Here, let me highlight the research work of the Cyprus Institute’s Art
and, more broadly, of the Cypriot economy. I support policies that Characterization Laboratories, which I support. I am very proud of the
offer the proper incentives to create and sustain a dynamic local and growth of our scientific and technological capacity to study and analyse
regional ecosystem for innovation and research commercialization. Cy- the materiality, technique, provenance and, of course, the history and
prus Seeds is a key player in this ongoing effort. conservation of works of art and archaeological objects. Indicatively, re-
search and analysis on works by El Greco, Titian and a range of Byzan-
The Cyprus Institute, under the aegis of the Cyprus Research and tine icons have offered impressive new results featured in international
Educational Foundation, has launched and funded numerous pro- exhibitions and publications. We are currently collaborating closely
jects since its establishment. As Chair of the Foundation, does any with world-leading researchers and experts from the Louvre and the
single project stand out in terms of moving the needle forward? Fondation des Sciences du Patrimoine of France to develop innovative
I am particularly proud of the Cyprus Institute and of its accomplish- instrumentation for Heritage Science.
ments over the past few years. Our researchers have managed to make
major contributions in all areas of activity ranging from energy, water OUR TARGET FOR THE
management and atmospheric sciences to computational sciences and NEXT 5 YEARS IS TO REACH
science and technology for our cultural heritage. I would especially
mention the impressive growth of the Cyprus Institute in the critical THE €0.5 BILLION MARK.
area of climate change. Clear manifestations of this success are the
establishment of a new centre of excellence (CARE-C), focused on
addressing climate change and air pollution challenges and impacts,
as well as the fact that the Institute is the scientific coordinator of

I N V E S T M E N T | 57 |

OPPORTUNITIES The real issue is the Federal Reserve’s change of stance towards the
markets. Both the Fed and the ECB are already behind the curve and
BEGINNING market participants are fearful that central banks will be forced to take
more aggressive measures in order to combat sticky inflation. This is
TO ARISE IN A not an easy task, as they must control inflation without derailing their
respective economies into a recession.
TOUGH YEAR Unsurprisingly, when a central bank is behind the curve, equity and
bond markets have to do its job. Bond markets have priced in multi-
By Savvas Theofilou, Partner- Senior Portfolio ple hikes with sovereign and corporate yields blasting higher and bond
Manager, Argus Stockbrokers Ltd prices falling apart in the space of a few months. Moreover, as men-
tioned above, specific sectors and non-profitable companies in equity
Investors are growing nervous and uncomfortable. Following a markets have corrected significantly from their highs and are having a
very strong 2021, markets have been hit this year with simulta- hard time to find support. Recently, interest rate concerns have trans-
neous multiple negatives – war, COVID-19 and a tightening formed into growth concerns and a stronger narrative for a recession.
of monetary policy – but, in the end, it all comes down to If we see economic data weakening, then the odds of rate hikes might
inflation. This is a new and unusual story, with investors feel- start to slip, and thus can act as a positive factor on risk assets.
ing divided about it. There is one camp that sees inflation as It’s a fact that this is a very volatile market for investors and extremely
transitory, while the other views it as persistent. Consequently, difficult to navigate. It is important for investors to understand and
the market environment is extremely uncertain and divided in terms of po- have clear picture of their investment strategy/style. They need to
sitioning, causing higher volatility relative to previous years. The S&P 500 make sure they review their asset allocation periodically with their pro-
recently dropped more than 20% from its highs to hit the technical term of fessional advisor and be precise about their goals, always based on their
‘bear market’ intraday but it certainly feels as if it’s been around for a while. risk/reward profile. It is essential to know and somehow control the
Early last year, we saw some speculative areas like non-profitable tech names investment limits of each asset class within their portfolio so that they
and small caps topping out. Then, last November, other areas of the market avoid any surprises. Moreover, it is necessary to understand the port-
hit a peak and recently mega cap tech names finally broke. folio’s underlying investments and know to which regions, markets or
However, a poor market will always lead to new and exceptional opportu- sectors they are exposed and all the associated risks. When markets are
nities for investors. Inflation expectations have started declining, there is still in a strong downtrend and look oversold, investors are tempted and
strong employment, and, for now, we have positive estimated growth in try to call a bottom. This is a game that is hard to resist but quite
corporate earnings. Traditionally, professional investors with a medium- to difficult to succeed at. Investors will be much better off if they stay
long-term horizon have used this type of correction to gradually increase patient and stick with their investment strategy.
their investments further, based on their particular mandate. Furthermore, Lastly, investors need to accept and embrace the fact that markets
bond prices have experienced an epic decline since the start of the year – go through cycles. They need to maintain a positive mindset during
one of the biggest in history – bringing several opportunities in the fixed a period like the present one. As mentioned above, professional in-
income space. vestors with a longer-term horizon usually deploy capital gradually,
when the magnitude of the decline is that strong. Forward valuation
for equity markets is now back in the pre-pandemic range, with esti-
mates on earnings still going higher. Therefore, with the market well
along in pricing in a recession, wide variations and opportunities
exist across sectors and industries. For example, cyclical industries
tied to consumer goods, technology and housing have sold off mas-
sively, as opposed to defensive industries that have corrected very
little in absolute terms.
Currently, the environment is quite challenging and it’s dominated
by negative nominal and real cash returns. On the other hand, this
is a good time for investors to start searching for solutions that are
alternatives to cash. Fixed income is one area that has started to
become quite attractive. For instance, investors can look into short-
term global bonds and earn better returns than cash. Nowadays,
investors can easily gain access to tailor-made investment solutions
via institutional professionally managed products that can provide
safe and globally diversified fund structures, geared towards meeting
specific risk tolerance. These can provide highly competitive market
expense ratios and offer potentially better returns relative to cash
over a 3–5 year horizon. Investors just need to be patient and start
looking for some of the great values that are out there.

| 58 | W E A L T H M A N A G E M E N T

A GUIDE TO With the creation of significant
FAMILY OFFICE wealth, exciting opportunities
but also challenges can arise for
PLANNING, High Net Worth Individuals
GOVERNANCE (HNWIs) and their families, as
they acclimatise to its increased
AND complexities. The recent pan-
SUCCESSION demic and geopolitical tensions have taught family businesses
many lessons, including crisis prevention, agility and adaptabil-
By Andreas Yiouselli, Director, ity. This challenging environment of increasing risk, fraud and
Business Process Solutions And Constantinos Yiannikouris, cyberattacks has emphasised the importance of having an effec-
tive governance framework, which is key to staying prepared
Senior Manager, Risk Advisory, Deloitte for such situations, by building resilience and ensuring the
successful continuity of the business. Aided by advancements
in technology and digital transformation, wealthy families have
become more successful in appropriately committing and allo-
cating resources, while making a meaningful social impact.
To ensure an effective Family Office governance framework,
important considerations include balanced leadership and del-
egation, effective communications, Board oversight, succession
and contingency planning, as well as continuous operational
improvement.
Although Family Offices are often established by a family’s
senior members, effective governance hinges on the experienced
leadership of the senior generation and proper delegation to the
younger generation. While the vision and strategy should be set
by the family, strategic business decisions should be delegated
to the more capable family office personnel and supported by
qualified external advisors. A leading practice among Family
Offices is to establish a Board of Directors to provide oversight
and direction. Careful consideration of the Board’s composition
is imperative and should ideally also include objective external
advisors who can offer contrasting perspectives. The Family
Office often serves as the centrepiece for effective communica-
tion amongst the family. Developing a plan and educating fam-
ily members on succession after a senior family member passes
away is an important factor in avoiding disagreements over the
direction of the Family Office, which will ultimately safeguard
their long-term interests. Finally, successful Family Offices
thrive under continuous operational improvement and innova-
tion as they are constantly faced with evolving challenges.

AS THE BABY BOOMER GENERATION GIVES WAY TO
MILLENNIALS AND GEN ZS, AN UNPRECEDENTED
AMOUNT OF WEALTH WILL FLOW INTO THE HANDS
OF INDIVIDUALS WHOSE EXPECTATIONS ARE NOT
ALIGNED WITH THOSE OF THEIR PREDECESSORS

| 59 |

Challenges in family succession ALTHOUGH FAMILY OFFICES ARE OFTEN ESTABLISHED BY A
Potential reasons for failure in family succession include a lack of FAMILY’S SENIOR MEMBERS, EFFECTIVE GOVERNANCE HINGES
guidance, communication and training for the next generation, a ON THE EXPERIENCED LEADERSHIP OF THE SENIOR GENERATION
weak governance framework, and the failure to adapt the business
model in accordance with the current external environment. More AND PROPER DELEGATION TO THE YOUNGER GENERATION
importantly, different generations often do not have the same con-
cepts of business and investment management. So, when it comes to will not become a family burden. Through the implementation
inheriting a family business, it is hard to reconcile these generational of effective governance, Family Offices are in a unique position to
differences between family members and, therefore, conflicts may address these implications and plan for the inevitable by effectively
arise which, when compounded by a lack of systematic arrangements allocating and utilising the family assets. The evolution and effec-
for family succession, can end up fracturing family relations. With tiveness of a Family Office is secured if its members, the Board of
the fast-paced development of the global economy, the concepts Directors and their trusted advisors have direct and meaningful
of people born in different generations became widely divergent, communication. This will allow them to establish stronger business
often creating a gap between parents and their children in terms relationships and a well-structured family governance framework
of culture and values, which can profoundly influence the transfer to ensure the growth of the family business, ultimately ensuring a
of family wealth. The founding generation have a strong sense of sustainable and long-lasting future. As the baby boomer generation
attachment to the business they established and complex emotions gives way to Millennials and Gen Zs, an unprecedented amount of
about succession. Parental success can become a burden for the next wealth will flow into the hands of individuals whose expectations
generation, as when the successor generation reaches maturity, the are not aligned with those of their predecessors. This shift presents
founder generation is often reluctant to hand over responsibility and a momentous opportunity for wealth and investment management
decision-making to the next. professionals to build new relationships and capitalise on the biggest
wealth transfer in history.
Setting an effective governance frame-
work and helping the next generation ATTRIBUTES OF EFFECTIVE GOVERNANCE
Operating a Family Office is a long-term mission that requires com-
mitment, prudent planning and support from reliable professionals Articulate rights Develop a Establish
who really understand their clients’ needs, build trust and grow and responsibilities mission succession and
alongside the family. Without open dialogue and communication,
it is impossible to build sufficient trust within a family, let alone of family office statement for the contingency
ensure a successful transition. Family Offices can re-establish con- owners, family office plans for the
nections between generations by seeking to understand each family family office
member’s individual aspirations, establish common values and goals, management, and Consider a Board Embrace clear,
and set out a shared vision for the future of the family and the busi- board members of Directors with
ness. These rules are necessary to ensure the smooth management Engage skilled meaningful external regular
and succession of financial and human capital. These negotiations professionals communications
will gradually shape the family constitution, which will carry for- to support the involvement
ward the values of the family into the future. It is of the utmost family office Implement with family
importance that all family members support the process and oversee financial and members
the creation of effective governance mechanisms. Through their
active participation, every generation of the family can share their performance-based
respective values and personal ambitions. In this context, the family reporting systems to
members will assist in coordinating family matters, promoting inter-
action and communication, strengthening solidarity, and enabling develop accurate,
these values to be passed down through the generations to come. timely, and
transparent
Where to next? information
Life is full of surprises and families should therefore start planning
early on and adapt as they move towards different stages in their
lives, so that when an unexpected event occurs, its consequences

| 60 | S P E C I A L F E A T U R E

MARIOS CHAILIS

The Future

is Crypto

Libertex Group CMO
Marios Chailis reveals
how, during its 10 years
in Cyprus, Libertex has
drawn on the best that
the island has to offer as
it strives to maintain its
mission for excellence.
He also suggests what
could be done to entice
even more international
companies and investors
to Cyprus, while noting
that the future ‘most
definitely belongs to
crypto’.

| 61 |

The Libertex Group was established in 1997 but Libertex How do you envisage the future of the sector and how does Libertex
has had a significant presence in Cyprus for a decade now, plan to continue to stay ahead of the pack in the years ahead?
after selecting Limassol as the location of its headquarters. The future most definitely belongs to crypto, as it’s a new era of financial
What are the main reasons why Libertex chose Cyprus as progress. Libertex is one of the first brokers that has not only implemented
the base of its activities in Europe? crypto CFDs within its portfolio but also works to constantly improve the

Cyprus enjoys an ideal location, providing easy access and direct flights to trading conditions involved in using these tradable assets. Utilizing the latest

major financial hubs in the rest of Europe, the Middle East, and beyond. modern technology is of utmost importance to us, especially merging this

As you noted, Libertex, a trading platform used by the Cyprus-registered technology with market movements and digital trends. I should also add

company Indication Investments Ltd, has been operating in Cyprus since that Libertex was recently named Ultimate Fintech’s “Best Crypto CFDs

2012. As part of a global group that draws upon over 25 years of financial Broker” for 2022.

market expertise, we believe that the flourishing cosmopolitan hub of Li-

massol is perfect for conducting business and an ideal base from which In 2020, Libertex became the Official Trading Partner of Premier

we can further expand. The city is home to exceptional local talent League football club Tottenham Hotspur. Do collaborations such

and highly specialized professionals, it has excellent infrastructure, as this make trading more accessible to people who may other-

a great entrepreneurial and growing start-up culture, and all Cyprus wise not have considered it?

modern services and amenities. It also offers endless leisure I would not say that this is about making trading more

activities and opportunities for rest and recuperation. has the accessible to others; it’s more about branding and
Our professionals based here in the company’s new potential awareness. Let’s not forget that football is right-
state-of-the-art Limassol facilities have the chance ly considered the king of sports! The visibility

to enjoy a great quality of life and the perfect to become that a sports sponsorship can offer a brand
work-life balance. even more is hard to beat, especially when it comes
to very popular sport like football. But
attractive to
What can Cyprus do to become more at- more than that, the thrill and excitement

tractive to international companies such international of football can easily be compared to the
as Libertex and to foreign investors? companies thrill and excitement of CFD trading, making
Cyprus has already done a great the merger of the two even more meaningful. How-

deal to help foreign investors ever, when looking for a partner in this segment, bro-

and international companies, kers should always be able to identify with the values of

with the island now widely per- the club. For us at Libertex, it was important to work with

ceived as a great place in which to a club that has a similar story to ours – a club that started small

establish a business. We are pleased to but has very big ambitions and hopes and one that wants to grow

see that, in recent years, the coun- in order to make a difference. That’s why we chose Tottenham

try has invested in and improved Hotspur FC as our partner. Speaking about the exciting world

its digital infrastructure, helping of trading becoming more visible and accessible today, howev-

the island fast become an import- er, we shouldn’t forget that there are risks involved with trading

ant tech and start-up hub. Looking to that must always be taken into account.

the future, we believe that Cyprus has the

potential to become even more attractive to Have advances in technology made trading more accessible to

international companies as it paves the way for more people?

technological innovation and advancements – some- Without a doubt. In the past, complicated trading conditions and the

thing which is already being facilitated by the newly-es- multiple steps required to complete a trade only made trading possible

tablished Deputy Ministry of Research, Innovation and Digital Policy. for people who had undertaken trading courses and graduated from

We look forward to seeing exciting new initiatives and further techno- trading academies. But today’s modern mobile trading apps and plat-

logical transformation, driven by research, as well as greater investments forms, as well as the various online learning lessons and guides that are

in innovative entrepreneurship. This should make Cyprus even more widely available, make trading more approachable even for novices.

appealing and competitive, both at a European and international level, as But once again, no matter how confident someone feels about their

businesses like ours are given added impetus to grow and prosper. trading skills, they should always tread carefully.

As an established brokerage firm, Libertex offers clients around the Libertex recently signed a Protocol for Cooperation with the Cy-
world trading CFDs on various underlying assets such Forex, crypto, prus-based Hope For Children CRC Policy Center (HFC) which
stocks, futures, indices and others as well as real stock investments promotes the human rights of children. How important are initia-
through its proprietary mobile and online trading platforms. What tives such as these to Libertex?
are some of the major ways in which the sector has changed over the We are extremely sensitive when it comes to the well-being and pros-
years? perity of those in need, especially children. We want to create a bet-
The technological ‘revolution’ that allows users to enjoy all banking oper- ter future for our planet and children are that future. The Protocol
ations at their fingertips has undoubtedly affected the fintech industry. All for Cooperation that we signed with Hope For Children CRC Policy
competitors are striving to make their platforms faster, easier, more intu- Center (HFC) exemplifies the importance that we place on forging a
itive and more user-friendly. Many new perks and features are constantly brighter future by caring for the community, especially with regard to
being added to trading apps to keep user interest and excitement going. protecting and helping the younger generation.

| 62 | A R C H I T E C T U R E

Andreas Eleftheriou and Pavlos Antoniades, Founding Partners
of UDS Architects, talk about their involvement in projects that
have shaped Limassol’s skyline, the cultural influences that
dominate their architectural personas and the challenge of
environmental sustainability.

fuoonrllmcotwios nPhotosbyGiorgosCharal
W hat is more important for modern Function? Modern architecture practitioners, historians and theorists use
architecture – functionality or aesthet- Form Follows Function as the most important principle of the genesis of
ics? Can the two always be combined modern architecture, which dates back to 1930. Andreas and I share a com-
successfully? mitment to the Form follows Function motto and a love of the architecture
Pavlos Antoniades: This is one of the created by the modern architects of Europe and America. The Grand
most debated questions in architecture! Masters (Le Corbusier, Gropius, Mies van der Rohe, Frank Lloyd Wright)
Form follows Function or Form over created the language of modern architecture, which is based on an organic

| 63 |

marriage between engineering and architecture, between form and func- an Geometry and 3D solids. Back in the ‘80s when I was about 14 years
tion. This new language was an alternative proposal to the classical language old, I got my first computer and I spent a lot of time programming in 3D
formulated by the Beaux-Arts school, with its focus on abstract principles of coordinated systems. It only made sense that I would end up an architect,
order, proportion and symmetry. using advanced Information Technology visualisations as my basic design
tool. I am still fascinated by the elegance of geometry and mathematics and
Andreas Eleftheriou: Form Follows Function implies an honest ap- how simple rules and the interactions of basic solids and shapes can create
proach in the design, the construction method, the materials used and interesting volumes and voids. I believe that these principles are integrated
the function of space. Architectural elevations must express and commu- into my work and I always try to communicate them through my design
nicate the design logic used on the floorplans. For example, on a given proposals, which are based on interactive geometry and mathematics, a
building, the windows’ size and shape should reflect their actual use and language code and semiotics that I have known well ever since I was a child.
they don’t need to be all the same for purposes of symmetry. Why should
a room be square or rectangle instead of free form and harmonious with P.A.: As a child I was always very good at subjects such as Physics, Math-
its function? Bruno Zevi, one of the most important architecture critics ematics and Art and bad at anything that required a good memory! This
of the 20th century, who published The Modern Language of Architec- natural inclination towards practical subjects made me gravitate towards
ture in 1965, made Form Follows Function one of the most prominent pastimes and hobbies in which I could use my skills to create physical
subjects in the book, and argued that architecture is a language, which he objects, from model airplanes and power boats, which we would race with
attempted to codify by establishing the basic principles. friends, to small structures in our neighbourhood’s empty fields. A couple
of years before finishing High School, I met a family friend who was a well-
What aspects of your life before becoming an architect have subse- known architect in Famagusta, where I was living at the time. His interest
quently shaped your design principles and style? What inspires your in painting, sculpture, model making – in anything and everything that
creations? had to do with the arts and culture – made such an impression on me that
A.E.: I used to stutter a lot as a child, so my social interactions were limited! I decided, there and then, that this was what I wanted to do for the rest
Instead of socializing, I was reading and sketching all the time. I was ob- of my life. Studies in London followed, where I was lucky to have the re-
sessed with how to illustrate our 3D world on a two-dimensional piece of nowned architect David Chipperfield as a tutor and to also work with him
paper, so by trying to sketch everyday items and buildings in a 3D world, on architectural competitions. It was during this period that Chipperfield’s
I discovered the principles of perspective and I was fascinated by Euclide- attention to construction detail, to modern forms resulting from the use of

| 64 | A R C H I T E C T U R E

‘Architects, master-planners and engineers must challenge existing space, its materiality and construction methods of energy-saving for the
mentalities and discover a new sustainable model with innovation as a form of art, made a life lasting im- building. We designed and proposed a
pression on the way I view and design custom-made shading device that would
and progress as common denominators’ buildings. Apart from the influence that also house photovoltaic panels and cover
Chipperfield had on my architectural the whole of the façade. The panels
- ANDREAS ELEFTHERIOU approach, I was also affected by the re- would be programmed to follow the
gional minimalism of Luis Barragan and sun during the day and not only provide
We share a commitment to the Form follows Function the tectonic designs of Tadao Ando. shade but also produce energy and allow
motto and a love of the architecture created the façade of building to change during
What major projects have you been the day.
by the modern architects of Europe and America involved in and which single one is
closest to your heart? What is the greatest challenge in-
- PAVLOS ANTONIADES A.E.: I was the Project Architect, Archi- volved in designing for environmental
tect of Record and Supervising Archi- sustainability?
tect of the Limassol Del Mar high-rise P.A.: The effects of environmental pol-
residential project, which was delivered lution and climate change are being felt
recently. The design was based on an around the world and are bringing us
original idea and conceptual sketches to a critical juncture. The adoption of
by my friend John Dowes (Benoy important innovative practices for the
Architects) back in 2009! This project development of green and sustainable
presented enormous challenges – tech- buildings is shaping the new era in the
nical, logistic, financial (during the 2013 construction industry. However, defin-
Cyprus financial crisis), etc. – and, by ing what is really “green and sustainable”
working together with our clients and is a challenge in architectural design. For
our associated consultants, we man- example, an energy self-sufficient rural
aged to overcome the difficulties and development is not necessarily defined as
challenges and deliver one of the most “green” if it results in the deterioration
unique buildings in Cyprus which is of the natural environment of the area.
also a commercial success. Limassol Del For a building to be green or environ-
Mar is the most challenging project that mentally sustainable, it must incorporate
I have been involved in as an architect multiple and specific aspects. These
and my team and I learned a lot from include elements and criteria related to
this experience. I was also involved as an energy efficiency – energy conservation
architect in a few high-rise buildings in or the use of sustainable energy – as well
Cyprus – private residences, residential as the environmental impact of building
and office buildings – as well as a couple materials, the location of the building,
of hotel developments. and the overall development effect on
The single one which is closest to my the immediate physical, social or cultural
heart is the project I am designing for environment.
myself: a small residence in the moun-
tains with an integrated astronomical ob- A.E.: A green building should clearly
servatory, making its architecture as “in- reduce, eliminate or compensate for
visible” as possible and well-harmonised any environmental impact through
with the surrounding environment. sustainable design and the construc-
tion method. Green architecture
P.A.: I have been involved with my should focus on factors such as the
team in a number of interesting projects, building’s life cycle, waste, water use
each for a different reason, over the last and energy emissions. Today more
few years. As Lead Design Architect for than ever, the damage to the environ-
the ICON, we had to accommodate ment caused by urban sprawl and the
complex requests from the client which simultaneous shrinkage of the country-
included raised concealed parking floors, side should serve as a catalyst for a seri-
a cantilevered public pool and restaurant ous rethinking of current development
on the 9th floor, a tennis court on the models. Architects, master-planners
3rd floor and a private pool on the 20th and engineers must challenge existing
floor. An equally interesting project mentalities and discover a new sustain-
was the Imperio offices, in which the able model with innovation and pro-
client required us to employ advanced gress as common denominators.

| 65 |

Volunteering
&

Philanthropy

It might be a cliché but it is undeniably true that
philanthropy makes the world a better place. Similarly,
volunteering, which is all about doing unpaid work for
good causes, has a positive impact not only on those
who directly benefit from the assistance they receive

but also on those involved in providing it. Women
have always been big givers, playing a key role in
volunteering and philanthropy around the world, and
Cyprus is no exception. Four Cypriot women involved
in non-profit organizations answer questions about
what they do and explain how a spirit of giving can be
cultivated – especially among children and young people

– no matter how few resources we may have.
Photos

by TASPHO and
Michalis Kyprianou

| 66 | V O L U N T E E R I N G & P H I L A N T H R O P Y

Photo by TASPHO

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MARY PERDIOU-CHAIR, EUROPA DONNA CYPRUS

A New 20th
Anniversary

Campaign

Europa Donna Cyprus was founded in 2000 as one of the 47 members of the European organization Europa Donna, all of which share

common goals, including raising breast cancer awareness and improving/expanding breast cancer education. Mary Perdiou, Chair of

Europa Donna Cyprus, tell how her own story was what triggered her to become an advocate for cancer patients’ rights.

What are the main activities of Europa survival rates. Secondly, studies have shown have. Last but not least, women cannot –
Donna Cyprus? that a third of all breast cancer cases could unfortunately – take out an insurance policy
Europa Donna Cyprus is an independent be prevented. Also, there is accumulating after being diagnosed with cancer, and this
non-profit organization and a member of the evidence that healthy lifestyle choices can denies them access to financial facilities.
European Breast Cancer Coalition, Europa
Donna. All 47 members of the coalition What do you hope to accomplish through
works towards raising breast cancer awareness your philanthropy?
and generally breast cancer education, I want to advocate for the accreditation
appropriate screening, optimal treatment and of the existing mammography screening
breast cancer patient support. programme, the accreditation of the
specialist Breast Units and the education of
Why do you enjoy giving to this organi- THERE IS children and adults about a healthier lifestyle.
zation? ACCUMULATING Finally, as an organization celebrating its
I joined in 2004, when I was 20th anniversary this year, Europa Donna
diagnosed with breast cancer. After EVIDENCE
my first surgery – a mastectomy THAT HEALTHY Cyprus is launching “The Right to
– I underwent reconstructive LIFESTYLE CHOICES be Forgotten” campaign to fight
surgery. When my insurance for cancer survivors’ right to
company rejected my claim CAN REDUCE insurance coverage – something
for the cost of my reconstructive THE RISK that other European countries have
surgery, Europa Donna Cyprus
immediately sent a letter to the company OF BREAST already initiated through the appropriate
explaining that such surgical procedures are CANCER legislation and other measures. This is my
not something that a woman chooses to have personal mission too.
for aesthetic reasons but are a necessity after reduce the risk of breast cancer. In fact, the
breast cancer diagnosis. We finally convinced increasing number of breast cancer cases How do you see women’s philanthropy as
the insurance company and, since then, all may be due to changes in lifestyle habits, a force for good and change?
such claims are covered by health insurance. an increase in a sedentary lifestyle, weight I strongly believe that women have a
That was when I felt that I, too, should gain and obesity and sociological changes, different way of thinking. Women, at
become an advocate for cancer patients’ such as increasing age at first birth and the every stage of their lives and careers, are
rights. decreasing number of children that women committed. Thus, they have managed
to make a major impact on the field of
What do you wish everyone knew about philanthropy.
Europa Donna Cyprus?
Everyone should be aware of the following How we can develop a spirit of giving, no
facts: firstly, that the early detection of matter what level of resources we have?
breast cancer saves lives and women treated We should promote a desire to offer to
in specialist Breast Units have improved society among our children, even within our
limited resources and the only convincing
way of doing this is by example.

| 68 | V O L U N T E E R I N G & P H I L A N T H R O P Y Photo by michalis kyprianou

ANNA ACHILLEOUDI-PRESIDENT, PASYKAF

Education and
Volunteering

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The Cyprus Association of Cancer Patients and Friends (PASYKAF) is a registered, voluntary, non-profit, charitable organization.
For more than 35 years, it has been advocating for and safeguarding the rights and the quality of life for people with cancer and
their relatives. The Association’s Co-Founder and President, Anna Achilleoudi, describes how her own experience with cancer

inspired her to set it up and explains why we need to educate young people about volunteering from an early age.

What are the main activities of PASYKAF? CANCER WILL CONTINUE
Our mission is to be a model patient organization, focusing on pre- TO EXIST AND AFFECT
vention, research and education, health policy, patients’ rights and
the provision of professional cancer health services to patients and PEOPLE WHEN THE CURRENT
their families, from diagnosis onwards. Primarily, however, our aim is PANDEMIC IS OVER
to eliminate cancer, hence we carry out social marketing campaigns to
promote wellbeing, prevent disease, expand access to healthcare and working on issues of equality, patients’ rights and values, identify-
strive to give everyone an equal chance of living a safe and healthy ing needs and acting as advocates and as a lever of pressure on the
life. “Together in prevention, together in life”, as our motto states! Government to solve the problems. Financial support for PASYKAF
Our services include 24-hour home supportive and palliative care, is what enables us to continue and develop our services and pro-
psychosocial support on an individual and group level, support for grammes, so contributions, donations, sponsorships and voluntary
human loss, physiotherapy and lymphoedema clinics, and transport support are all welcome.
of patients to and from the oncology centres in Nicosia and Limassol.
All services and programmes are offered by health professionals and What do you hope to accomplish through your philanthropy?
others, free of charge. Recently, we have been partially integrated Our vision is a cancer-free Cyprus. Until this becomes reality, we will
into the NHS. continue to safeguard the rights and the quality of life of people with
cancer, balancing their immediate needs and priorities with long-term
Why do you enjoy giving to this organization? goals.
My personal experience with breast cancer was what motivated me
and some friends to establish the Cyprus Association of Cancer Pa- How do you see women’s philanthropy as a force for good and
tients and Friends in 1986. My own experiences abroad when dealing change?
with my health issue, together with those in Cyprus arising from my We are going through difficult times and, in the absence of solidarity,
work as an anaesthesiologist, helped me gain a better perspective on this situation will only worsen. There is a need for change. We have
cancer issues and clarity on how to deal with them. PASYKAF pro- to establish new structures as regards the promotion of health in chil-
moted substantial changes in Cyprus, as regards upgrading cancer dren, adults and the elderly. Women have always been able to orga-
treatment, through the establishment of the Bank of Cyprus Oncolo- nize and effectively strengthen every cause in which they participate.
gy Centre. Women who want to make a difference can improve their world in
many ways. Through business networks, women can create mecha-
What do you wish everyone knew about PASYKAF? nisms to raise funds and enable social change and a culture of health
PASYKAF was established by people who had experienced cancer. and well-being.
The patients and their relatives knew first-hand all about the needs,
the small joys and the difficulties that exist on the cancer journey. How we can develop a spirit of giving, no matter what level of
Hence, all of our programmes and services are based on the holistic resources we have?
needs of the patients and what is required to improve and main- Giving can be done in many ways, without being limited to financial
tain their health and quality of life. In 2021, PASYKAF served the assistance alone. Social changes can also be achieved by those who have
needs of 6,168 patients through 35,162 meetings and carried out access to key people. At the same time, however, it is important to invest
social marketing campaigns for the prevention and control of cancer in the education of our children. We need to inspire children about the
throughout the year. Even in 2020-2021, when the COVID-19 pan- value of charity and make them feel joy when they give to others. This
demic overshadowed everything inside and outside hospitals, we con- will help them evolve into people with values, respect, critical thinking
tinued to boost public awareness in order to strengthen the primary and other qualities, who will become part of a society of solidarity.
and secondary prevention of cancer, which is a permanent pandemic
and a real scourge, one that will continue to exist and affect people
when the current pandemic is over. At the same time, we continued

| 70 | V O L U N T E E R I N G & P H I L A N T H R O P Y Photo by TASPHO

MYRIA STAVRAKI
VICE-PRESIDENT, CYPRUS ANTI-CANCER SOCIETY

Offering
an

Emotional
Embrace

| 71 |

The Cyprus Anti-Cancer Society was established more than 50 years ago to care for people with cancer, to provide complete
palliative care, to support patients’ families and caregivers, and to inform the wider public about cancer prevention, diagnosis,
treatment and relief. Myria Stavraki, Vice-President of the Association, tells how her own battle with cancer made her realize

that patients need a strong embrace and understand the benefit of palliative care to all chronic patients.

What are the main activities of the Cyprus Anti-Cancer Society? Society treats around 4,000 patients and many more family members

The Cyprus Anti-Cancer Society provides comprehensive services through and caregivers.

a large team of health professionals, which include the operation of the

Arodafnousa Palliative Care Centre in Nicosia and the Evagorio Pallia- What do you hope to accomplish through your philanthropy?

tive Day Care Centre in Limassol, homecare nursing services for patients My personal involvement in charity made me wish to pass on the feeling

throughout Cyprus, psychological, social and spiritual support for patients of caring to everyone around me and, ideally, one by one we can mul-

and their families, physiotherapy and treatment of lymphoedema, aroma- tiply the idea of contributing to our community and establish a culture

therapy and patient transfer services from all districts to oncology centres in of caring people. I believe that it is important for us to care about some-

Nicosia and Limassol. thing – patients, children, education, animals, the environment, etc. It

doesn’t matter what that something is. What is important

Why do you enjoy giving to this organization? is that we nurture people who care. If we care about some-

Being a cancer survivor myself, I realized that cancer pa- If we care thing, that becomes our passion and then we become
tients need a strong embrace. By that, I don’t mean a literal about the best advocates for that cause and can move things
hug but they do need care, support and comfort through- forward in order to bring change and improvement. In
out their illness. My greatest wish was to be able to give something, my opinion, this is the only way to make the world a

this emotional hug to others and, through my involvement that better place.

in the Cyprus Anti-Cancer Society, I became part of this becomes

wonderful family. I feel lucky to be able to work with so our How do you see women’s philanthropy as a force
many other volunteers in order to support the crucial ser- passion for good and change?
vices provided by the Society to thousands of patients all and then I don’t think that gender defines philanthropy. As long
over Cyprus. we become as a person has empathy and shows kindness, they can
work towards making the world a better place. This is,
the best
What do you wish everyone knew about the Associa- however, a group effort that needs a lot of work and

tion? advocates strength from everyone.
It is important to communicate that palliative care is
beneficial to all chronic patients throughout their ill- for that How we can develop a spirit of giving, no matter what
ness. It is a multidisciplinary approach that improves cause level of resources we have?

the quality of life of patients and helps them get through Our children are the key. During the nurturing and

a very difficult period with dignity. It prevents and re- development of our children, we need to push them to-

lieves suffering, whether physical, psychological, social wards charity, to walk the path of giving and caring for

or spiritual. Palliative care is also helpful for the patient’s family or those who need help. First, it is important to let them choose a cause

caregivers, as it alleviates some of the stress and adds to their own qual- they feel passionate about and then teach them that helping does not

ity of life. The Cyprus Anti-Cancer Society has been offering free pal- only mean donating money or goods but it can also be about volun-

liative care services to cancer patients in our country for many decades teering, dedicating time and effort to an activity that will help that

without any discrimination. Over the years, it has grown and its ser- specific cause. Volunteerism teaches children about community effort,

vices have expanded tremendously. Today, we are the only non-profit gives them confidence and offers satisfaction in the knowledge that

organization in Cyprus providing comprehensive palliative care ser- they can make a difference. Our children need to be taught by exam-

vices and a large national homecare nursing service (nurses, psychol- ple. By involving them in activities that have a purpose, we let them

ogists, social workers and physiotherapists visit and care for patients experience the benefit of helping and make them understand the value

and their families in their home or place of residence). Every year, the of helping others. This will inspire them to want to do more.

| 72 | V O L U N T E E R I N G & P H I L A N T H R O P Y Photo by TASPHO

DR. POPI KANARI - PRESIDENT, KARAISKAKIO FOUNDATION

Making
a Positive
Difference

| 73 |

The Karaiskakio Foundation is a non-profit organization, founded in 1995 in memory of 5-year-old leukaemia patient Andreas Karaiskakis with the
initial purpose of establishing a public bone marrow donor registry in Cyprus. Today, with more than 200,000 registered volunteers, it holds the record
as the largest per capita bone marrow donor registry in the world. Dr. Popi Kanari, President of the Foundation, has been a volunteer with it for more

than 20 years. Here, she explains how philanthropy can address the root causes of systemic issues to make a positive difference.

What are the main activities of the Kara- What do you wish everyone knew about WOMEN
iskakio Foundation? the Foundation? WHO ARE
With its stated mission to “serve the unmet Many people still think that the sole INVOLVED IN
needs of vulnerable and underserved groups aim of the Karaiskakio Foundation PHILANTHROPY
of patients through innovative scientific and is to find a matching donor CAN DEMONSTRATE
social interventions,” the Foundation has or- from its Bone Marrow Reg- POWERFUL
ganized a network of specialized laboratories istry and save a life. This LEADERSHIP BY
to support patients with leukaemia, cancer, was, of course, the prime MAKING THE
and rare genetic disorders. The laboratories reason for its establishment but WORLD A BETTER
are among the most advanced in Europe and over the years it has expanded and AND MORE
they provide nearly 10,000 specialized labo- tailored its activities to create value EQUITABLE
ratory tests per year for patients with haema- to the health system in Cyprus and to
tological malignancies, young cancer patients, society at large. The Foundation uses its PLACE
adults with brain, colon, lung, breast and philanthropic resources to their maximum
other cancers, children with rare genetic syn- potential and has set and achieved goals, with humanitarian principles into action can be
dromes, families with cancer predisposition the support of volunteers and great sponsors, a life-changing learning process for all those
and many others. The Childhood Diagnostic to ensure the best possible outcome. around them.
and Research Unit enables doctors to imple-
ment targeted treatments, thereby improving What do you hope to accomplish through How we can develop a spirit of giving, no
survival rates and minimizing collateral dam- your philanthropy? matter what level of resources we have?
age from therapies. The Karaiskakio Founda- Philanthropy means “love for humankind” The most effective social impact is driven
tion also focuses on rare genetic disorders and and, unlike charity, it is a strategic process, by motivated, knowledgeable and pas-
has diagnosed 150 genetic diseases, which that tries to address the root causes of system- sionate people. The motivation for giving
had previously not been identified through ic issues with the aim of making a positive should start from an early age. The Kara-
conventional methods. difference to the cause you serve. For me, iskakio Foundation has volunteers who
philanthropy means freely giving my time, go to schools and talk about volunteering.
Why do you enjoy giving to this organi- skills and knowledge and working together Once a year, we honour the donors who
zation? with the staff, Board members, and other vol- have given their bone marrow. They do not
Cancer science is challenging and certain unteers and partners, to have a positive impact know the identity of each recipient but they
areas, like childhood cancer and rare dis- on the lives of patients in need and on broader feel blessed to have saved a life. This is the art
eases with predisposition for cancer, are still society. of giving and expecting nothing in return.
understudied. To work with scientists in Having young girls donate their cut hair to
this challenging area to provide solutions to How do you see women’s philanthropy as a the Foundation, which sends it off to be used
oncologists to save lives is more than I could force for good and change? in wigs for children with cancer, is cultivat-
ask for, in terms of personal satisfaction. I have Women who are involved in philanthropy ing the spirit of altruism at a young age. It
enjoyed giving to Karaiskakio since 1999 as can demonstrate powerful leadership by is a noble cause that does not require great
a volunteer and I still do. By volunteering to making the world a better and more eq- resources but the end result is so precious to
help achieve the Foundation’s vision and mis- uitable place. They can be role models for those in need.
sion and supporting its research, the cause for their families, their colleagues and society,
which I am working becomes more personal inspiring others and especially the younger
and real. This broadens my perspective, sharp- generation. Through altruistic actions and by
ens my empathy, fuels my passion to make a sharing values and integrity in a collaborative
positive impact on society and puts my hu- manner, women can help make society more
manitarian principles into scientific action. inclusive, prosperous and caring. Translating

| 74 | T A X P L A N N I N G

CYPRUS AND In today’s fast-changing world, marked by high lev-
HIGH NET els of conformity and changing tax obligations, tax
WORTH planning for High Net Worth Individuals (HN-
WIs) has become a hot service. Numerous jurisdic-
INDIVIDUALS tions around the world are competing intensely to
attract these individuals and their businesses.
By Valentinos G. Pavlides, Senior Manager, Cautious tax planning always matters but when an
Tax Services – Transfer Pricing Services, individual has a high net worth, doing everything right can be
even more critical. By employing tax strategies for high-income
Baker Tilly South East Europe earners, HNWIs can preserve more of their earnings and wealth
over time. The World Wealth Report defines HNWIs as those
who hold at least US$1 million in assets, excluding their pri-
mary residence, and ultra-HNWIs as those who hold at least
US$30 million in assets, excluding their primary residence.

FINANCIAL PROFESSIONALS AND ADVISORS CLASSIFY HNWIS
INTO 3 MAIN CATEGORIES:

• High Net Worth Individuals (HNWIs): People or house-
holds with liquid assets valued between $1 million and $5
million.
• Very High Net Worth Individuals (VHNWIs): People or
households with liquid assets valued between $5 million and
$30 million.
• Ultra High Net Worth Individuals (UHNWIs): People or
households with more than $30 million in liquid assets.
Cyprus has traditionally been an attractive jurisdiction for
HNWIs, offering both financial and non-financial advantages
as a place to live, invest in or invest through, and as a base for
their international business.
The island’s privileged geographical location is the main rea-
son for its significance as an important trade route and ship-
ping centre through the ages.
Cyprus has customarily offered alluring tax incentive schemes
that allow HNWIs to maximize their net return on their
investments and worldwide income. Individuals relocating
to Cyprus and becoming tax residents of Cyprus can enjoy
tax free status on dividends and on capital gains and interest
income from their foreign and local investments through their
non-domiciled tax status.
The main benefits and key aspects of becoming a tax resident
of Cyprus are summarized below.

Tax Residency

AN INDIVIDUAL WHO SPENDS MORE THAN 183 DAYS IN CYPRUS IN
ANY GIVEN YEAR IS A TAX RESIDENT OF CYPRUS. AN INDIVIDUAL CAN
BE TAX RESIDENT IN CYPRUS EVEN IF HE/SHE SPENDS LESS THAN 183
DAYS IN CYPRUS, PROVIDED HE/SHE SATISFIES ALL OF THE FOLLOWING
CONDITIONS WITHIN THE SAME TAX YEAR:

| 75 |

JURISDICTIONS AROUND THE WORLD ARE COMPETING INTENSELY TO ATTRACT HNWIS AND THEIR BUSINESSES

• does not spend more than 183 days in any other country; permit will have the right of residence in Cyprus for 1 year, with a
• is not a tax resident of any other country; possibility of renewal for a further 2 years. Furthermore, the individ-
• spends at least 60 days in Cyprus; ual’s family members can also obtain a residence permit in Cyprus
• maintains a permanent home in Cyprus that is either rented for the same duration as the holder of the Digital Nomad Visa. How-
or owned; ever, they may not be employed or perform any economic activity in
• carries on a business in Cyprus and/or is employed in Cyprus Cyprus.
and/or holds an office with a Cyprus tax resident company at any Nil/ Reduced withholding tax on income received from abroad
timeduring the year Cyprus has more than 65 double tax treaties that provide for nil or re-
duced withholding tax rates on dividends, interest, royalties and pensions
No tax on dividend and interest income received from abroad.
A non-domiciled individual, irrespective of his/her tax residency sta- Lump sums received as a retirement gratuity are exempt from tax.
tus is exempt from tax on dividend and interest income (such income In addition, a Cypriot tax resident receiving pension income from
is subject to contributions to the National Health Scheme (NHS) at abroad may choose to be taxed at a flat rate of 5% on amounts exceeding
the rate of 2.65%). €3,420 per year.
Estate duty, wealth tax, gift tax and inheritance tax
No tax on gains arising from the disposal There is no estate duty, wealth tax, gift tax or inheritance tax in Cyprus.
of investments
Any gains arising from the disposal of shares, bonds and other similar Corporate taxation
financial instruments (including options and rights thereon) are ex-
empt from tax (such income – of trading nature only – is subject to ON THE CORPORATE LEVEL, SETTING UP BUSINESS IN CYPRUS OFFERS
contributions to the NHS at the rate of 2.65%). THE BENEFIT OF CAPITALIZING ON THE DIFFERENT BENEFICIAL EU
Exemptions to income tax (employment income) DIRECTIVES AND THE VARIOUS PROVISIONS OF CORPORATE INCOME TAX
An expatriate individual (regardless of his/her tax residency or domi- LEGISLATION WHICH CATERS FOR:
cile status) who relocates to Cyprus to take up employment, and was
not a tax resident in Cyprus before the commencement of employ- • 12.5% income tax on corporate trading profits
ment in Cyprus, is entitled to a 50% or 20% exemption on employ- • 0% corporate tax on sale of securities
ment income earned. • No withholding tax on outgoing payments (dividends, interest,
Income tax exemption for overseas employment royalties)
The rendering of salaried services outside Cyprus to a non-Cyprus • Dividend income is generally 0% on foreign exchanges profits
tax resident employer or to an overseas permanent establishment of a (losses not deductible). Advance tax rulings are possible
Cyprus tax resident employer for more than 90 days in a tax year, is • Favourable tax regime for intangible property
exempt from income tax.
Tax planning and transparency

Digital Nomad Visa Scheme Cyprus is compliant with all international standards and require-
The Cyprus Digital Nomad Visa Scheme allows third-country na- ments on exchange of information and thus individuals can rest
tionals who can perform their work remotely to reside temporarily assured that becoming tax residents of Cyprus will benefit them both
with their families in Cyprus and at the same time work for an em- financially and business-wise.
ployer registered abroad (in case of an employee) or perform work Tax planning is not a once-a-year activity. It occurs in real time and
for companies or clients located abroad (in case of a self-employed year-round and, consequently, HNWIs should have this in mind
individual). Individuals who are granted a Digital Nomad residence when deciding on their next moves.

| 76 | B U S I N E S S T A L K

war and

| 77 |

peace The pandemic may have retreated but now the war
in Ukraine has sent prices skyrocketing and brought
uncertainty to the business community on the island.
A need for answers and concrete proposals aimed
at helping the economy recover led us to send out
invitations to Finance Minister Constantinos Petrides
and 11 local business leaders to discuss today’s key
issues. Here’s what happened. Photos by Taspho

| 78 | B U S I N E S S T A L K

Eleni Kaloyirou

George Chrysochos

Constantinos Petrides

W over the next decade, how Cypriot en-
trepreneurship has developed in recent
e had been warned. The week was going years and what the current challenges
to be dominated by sizzling tempera- facing local businesses are.
tures, occasionally interrupted by storms:
a fitting reflection of the current global WAR IN UKRAINE
environment. Gathering at the cosy
Beba restaurant in the heart of Nicosia, IMH CEO George Michail opened the
we were ready to hear what our guests proceedings by inviting the Minister of
had to say about the war in Ukraine and Finance to share his thoughts about the
its impact on the rest of the world, how current state of the economy, in light of
sustainable economic growth can be the ongoing war in Ukraine.
achieved, what the Government needs “Admittedly, first the pandemic and now
to do to attract more foreign investment the war in Ukraine have had an impact
on the growth prospects of the Cyprus
economy, at least in the short term,” said
Constantinos Petrides. “However, we
don’t expect it to last; the tourism sector,
for example, which had been signifi-
cantly affected over the last two years, is
already performing better than initially

“THE CHALLENGE IS NOT | 79 |
JUST ABOUT ENCOURAGING
ENTREPRENEURSHIP. IT IS ABOUT WHO’S
SUPPORTING IT WITH SUITABLE WHO
FINANCIAL STRUCTURES AND
LINKING ENTREPRENEURS WITH CONSTANTINOS PETRIDES
THE ACADEMIC WORLD AND THE (MINISTER OF FINANCE)
CHRISTOS V. VASILIOU
PUBLIC SECTOR” (MANAGING DIRECTOR, KPMG CYPRUS)

DESPINA PANAYIOTOU THEODOSIOU ANDREAS PETSAS
(SENIOR GENERAL MANAGER,
“IN THE COMING YEARS, GROWTH
WILL COME MAINLY FROM EUROBANK CYPRUS)
CHRISTOFOROS HADJIKYPRIANOU
INVESTMENT IN SUSTAINABILITY (CEO AND PRESIDENT OF THE COUNCIL,
AND TECHNOLOGY” EUROPEAN UNIVERSITY CYPRUS)

STAVROS PANTZARIS ELENI KALOYIROU
(CEO, HERMES AIRPORTS)

STAVROS PANTZARIS
(CHAIRMAN, EY CYPRUS)

PIERIS MARKOU
(CEO, DELOITTE CYPRUS)
DESPINA PANAYIOTOU THEODOSIOU
(JOINT CEO, TOTOTHEO MARITIME,
PRESIDENT, WISTA INTERNATIONAL

AND CHAIR, EAC)
GEORGE CHRYSOCHOS
(CEO, CYFIELD GROUP OF COMPANIES)
GEORGE THEODOTOU
(CEO, ALPHAMEGA HYPERMARKETS)
CHRISTODOULOS STEPHANIS
(GENERAL MANAGER,
A. STEPHANIS & CO LTD)
KODROS PILAKOUTAS
(HEAD OF BUSINESS OPERATIONS,
CHAR. PILAKOUTAS GROUP)

| 80 | B U S I N E S S T A L K

“WE ENVISAGE CYPRUS
BEING AMONG THE

PIONEERS IN THE GREEN
AND DIGITAL TRANSITION;

A COUNTRY WITH A
RESILIENT HEALTH SYSTEM, A
WELFARE STATE THAT OFFERS
STRONG PROTECTION TO

THE MOST VULNERABLE
MEMBERS OF SOCIETY”

CONSTANTINOS PETRIDES

“FASTER AND expected, covering the substantial GDP growth of 4-5%, without
SUSTAINABLE GROWTH loss of Russian and Ukrainian visi- factoring in pre-existing inflation,”
CAN ONLY BE ACHIEVED tors with those from other markets. he noted. “The Cyprus economy is
THROUGH A COMPLETE Specifically, tourist arrivals for the very much dependent on FDI, and
TRANSFORMATION OF first four months of 2022 constituted international economic shocks affect
THE ECONOMY AND, around 80% of arrivals during the it, especially when they take place in
MOST IMPORTANTLY, same period in 2019, which was a re- countries such as Russia and Ukraine
THROUGH A cord year for Cyprus. Based on that, with which we have business rela-
COLLECTIVE according to our revised forecasts, tions. This situation will inevitably
COMMITMENT TO THIS the economy is projected to grow by have a negative effect on professional
TRANSFORMATION” 2.7%, 3.8%, 3.4% and 3.0% for the services – one of the strongest pillars
years 2022-2025 respectively.” On of our GDP – and tourism, at least in
George Michail CHRISTOFOROS HADJIKYPRIANOU hearing this, Pieris Markou was quick the short and medium term.”
to mention rising inflation. “As an At this point, Eleni Kaloyirou sug-
outward-looking economy, Cyprus gested that there could be light at the
is definitely affected by the situation end of the tunnel as regards tourism.
triggered by the war in Ukraine. The “I believe that the travel and tourism
energy crisis, inflation and disruptions sector has the prospects to recover
to the supply chain are just some of and is worth investing in,” she said
the developments affecting the global determinedly, while acknowledging
economy and, of course, Cyprus. In- that, “This ‘catch-up’ period will,
flation already exceeds 8% here, due however, be challenging. The private
to constant rises in the price of fuel, sector on its own cannot successfully
electricity and primary products.” complete this transition. The state
He went on note that product delays must work together with the private
and shortages have recently started to sector and invest in the development
appear while investment is also at a of new markets as well as the expan-
standstill due to global market disrup- sion of existing ones, both in terms of
tions, the termination of the Cyprus promoting Cyprus as a destination as
Investment Programme and sanctions well as in improving the quality of the
against Russia. “These are a deterrent services we offer as a country.”
for potential investment and all these Where does the banking sector stand
negative developments mean that the in such times of crisis? Andreas Petsas
growth of the economy will be lower did not hesitate to outline the duties
than last year.” of financial institutions towards the
Christos V. Vasiliou agreed, pointing economy. “Banks, with the guidance
out that the war has taken us back to of the regulator, have adjusted over
square one. “The War in Ukraine be- the years to be able to deal with
gan just when all economic indicators various emerging crises. This is why,
for Cyprus were pointing towards today, we have such a strong banking
growth and stability with projected sector in Cyprus. Exogenous factors,

| 81 |

“WE MUST EXPAND OUR TOURISM PRODUCT AND
SERIOUSLY CONSIDER SEEKING TO ATTRACT FDI FROM

JURISDICTIONS SUCH AS ISRAEL AND OTHER EU
COUNTRIES BY OFFERING ATTRACTIVE INCENTIVES”

CHRISTOS V. VASILIOU

Christos V. Vasiliou like a pandemic or geopolitical turbu-
lence, are beyond anybody’s control
George Michail but the banks still need to have the
cushions to absorb these shocks to a
great extent.” Stavros Pantzaris sup-
ported Petsas’ statement and delved
further into the challenges that need
to be faced. “The banking sector, like
the real estate and tourism sectors,
has helped the economy grow over
the last few decades but, in the com-
ing years, growth will come mainly
from investment in sustainability and
technology,” he said. “When select-
ing an investment destination, organ-
isations are increasingly looking for
human talent and skills related to the
green and digital economy, as well
as relevant government policies, and
much less to corporate tax rates,” he
went on. “We therefore need to focus
on upgrading human resources and
introducing policies and legislation
that support growth in these areas.”
George Chrysochos chose to focus
on the silver lining in the current
disastrous landscape regarding the
real estate sector. “In the long term,
Cyprus will benefit from the instabil-
ity that the war is creating in Russia
and Ukraine,” he said, and elaborated
further: “Even if the war ends soon,
Russian and Ukrainian businesses,
HNWIs and families will seek a safe
haven in which to continue their
operations and retain their well-being
without any country risks. Cyprus
has traditionally been such a desti-
nation, so we will see more skilled
professionals coming to the island as
more companies relocate or set up
headquarters here. As a result, we
can expect to see a continuous high
demand for residential and commer-
cial properties. High inflation has
caused the ECB to raise interest rates,
making the cost of finance higher
for home buyers, so it is important
to sustain conditions of full employ-
ment to keep mortgages affordable.
The latest increase of 0.75% is too

| 82 | B U S I N E S S T A L K

Christoforos Hadjikyprianou Christodoulos Stephanis
George Theodotou

Andreas Petsas “REDUCING BUREAUCRACY
AND FULLY DIGITALISING THE
small to significantly affect the housing market.” PUBLIC SECTOR WILL ADVANCE
“Tourism is – and I believe will remain – the number ECONOMIC GROWTH AND
one pillar driving our economy” said Andreas Petsas, ATTRACT MORE INVESTMENTS
“But opportunities for new clients are arising in a
number of energy projects, hydrocarbon service-related FROM ABROAD”
industries, trade and shipping. Given the continuous
interest shown by foreign investors in these industries, GEORGE THEODOTOU
opportunities for banks continue to arise all the time.”

SUSTAINABLE
ECONOMIC GROWTH

“Whatever we do, there should not be any doubt or
uncertainty about the direction we wish to take,” said

| 83 |

“THE TRAVEL AND TOURISM SECTOR HAS THE PROSPECTS
TO RECOVER AND IS WORTH INVESTING IN”

ELENI KALOYIROU

Despina Panayiotou Theodosiou

Stavros Pantzaris

Despina Panayiotou Theodosiou. “What of fast and sustainable growth will rest
is required is a pragmatic approach – on three pillars: The green economy,
there needs to be infrastructure that the digital economy and the knowledge
promotes economic growth; we need to economy. Whatever we pursue from now
invest more in human capital, enhance on, whether they be existing sectors or
entrepreneurship and productivity and new ones such as ICT, medical tourism,
encourage innovation and new technol- alternative financing, etc., these three
ogies. Most importantly, we must ensure transformative elements – green, digital
that economic growth will be good for and knowledge – will have to be present.
all. We need an inclusive, diverse econo- They are crucial fundamental ingredients
my that focuses on a sustainable future.” for a sustainable economic model.”
Christoforos Hadjikyprianou then out- “We have witnessed an enormous wave
lined some key areas which, in his view, of adoption and awareness of sustainabil-
can act as torch bearers in the future. ity, worldwide,” added Christodoulos
“Faster and sustainable growth can only Stephanis. “It is of the utmost impor-
be achieved through an entirely new tance, as a country with vast resources of
approach, a complete transformation renewable energy, that we not only adopt
of the economy and, most importantly, but drive this change. We can and should
through a collective commitment to invest in green energy and sustainability
this transformation. The foundations as a means of attracting foreign invest-

| 84 | B U S I N E S S T A L K

Pieris Markou “ON A LOCAL
LEVEL, THE
REFORM OF
THE PUBLIC
SECTOR,
THE JUSTICE

SYSTEM, LOCAL
GOVERNMENT

AND THE
TAX SYSTEM,
IS VITAL TO
ENSURE OUR
ABILITY TO

ADJUST TO
THE ‘NEW
NORMAL’”

PIERIS MARKOU

“GIVEN THE CONTINUOUS INTEREST stitute supplementary pillars that are moving in
SHOWN BY FOREIGN INVESTORS IN tandem. Through the RRP, we aim to promote
ENERGY PROJECTS, HYDROCARBON Cyprus as a country with high levels of resilience,
SERVICE-RELATED INDUSTRIES, TRADE AND where the education system and workforce
SHIPPING, OPPORTUNITIES FOR BANKS skilling/upskilling are aligned with the needs of
CONTINUE TO ARISE ALL THE TIME” the future. Through the implementation of the
RRP, we also envisage Cyprus being among the
ANDREAS PETSAS pioneers in the green and digital transition; a
country with a resilient health system, a welfare
ment and of being accountable for tomorrow’s long-term sustainable growth strategy and the state that offers strong protection to the most
world – the one that our children will live in – ability to attract more foreign investment has vulnerable members of society. I strongly believe
and ensure that our passion for betterment lies at been at the forefront of the Government’s eco- that the Recovery and Resilience Plan can be a
the forefront of innovation.” nomic objectives. This can be achieved firstly by game changer, regarding the sustainability of the
“Sustainable economic growth can be achieved safeguarding macroeconomic stability, pursuing recovery and the rationalisation of the economy,”
by implementing policies with a positive social prudent fiscal policies, ensuring financial stability he concluded.
impact, which include society and its members and maintaining a competitive, business-friendly
as a whole,” said Kodros Pilakoutas. “It is im- regulatory environment. Secondly, we have FDI
perative, though, that as a country, we move recently prepared a long-term growth strategy,
forward in the renewable energy sector. As an based on a clear identification of the challenges It didn’t take long before the issue of Foreign
island blessed by the sun, we should be paving the country is facing, barriers to growth and Direct Investment arose. George Theodotou was
the way to a green future, independent to the the reforms needed to unleash Cyprus’ growth eager to stress the importance of collaboration
maximum possible degree from oil and gas. potential. It also includes certain sectors that between the state and the business world. “We
The way we are prepared to meet the challenge could expand further, so as to improve the diver- must focus on strengthening and attracting in-
of sustainability will define our future,” he not- sification of the economy,” Petrides explained, vestment in crucial sectors of the economy, such
ed rather ominously. before stressing that, “The national Recovery and as technology, education, R&D, renewable ener-
Constantinos Petrides agreed. “The need for a Resilience Plan and the long-term strategy con- gy, supply chain and logistics, which are engines
of growth at present. Strengthening these indus-
tries will have a multiplier effect for the entire
economy and create thousands of high-quality
jobs,” he told the gathering and added: “Further-
more, when it comes to attracting investment,
the state and the business community must work
together to promote Cyprus and its comparative

| 85 |

advantages abroad and make the country an even ister, noting that, “The Resilience and Recovery ment programme should be aligned with Euro-
more business-friendly destination, through tar- Facility is an ideal means of transforming our pean standards and act as positive promotion of
geted and sustainable policies and incentives.” country into a modern economy, by making all the island as a business hub.”
“Foreign investors see Cyprus as an increasingly those structural changes needed to transform it George Theodotou pointed out that, “Reducing
attractive investment destination and appreciate into a modern investment destination without bureaucracy and fully digitalising the public
many of its comparative advantages, including considerable cost, since there is ample available sector will advance economic growth and attract
the skills of the local labour force and the coun- funding from the EU. We need to make all the more investments from abroad. Furthermore,
try’s tax regime and infrastructures,” argued structural changes that will enable us to take ad- improving Cyprus’ connectivity and transport
Stavros Pantzaris, but he agreed that, in the vantage of those funds.” links to the rest of the world, can help establish
context of a rapidly changing global economy, “The Government needs to quickly translate its the country as a major business hub in the re-
we need to step up the pace of transformation of share of resources from the Recovery Facility into gion.”
the economy and open it up to new, dynamic tangible projects and specific investment prop- George Chrysochos instantly agreed. “Cyprus
sectors. ositions, both for the state as well as for private is still suffering from state bureaucracy in many
George Chrysochos then added his own view of investors,” Eleni Kaloyirou said thoughtfully. areas, from never-ending legal processes and de-
the matter. “Cyprus should attract investments “The plan must be clear and transparent, so that layed key decisions. The Government needs un-
that benefit the economy in the long term. The investors can assess the financial viability of such dergo digital transformation in order to expedite
most important and direct way is to promote projects. Equally importantly, the state needs to and optimize its procedures and a fundamental
headquartering in Cyprus.” He noted that, while ensure that red tape is minimized so that projects transformation of the country’s legal system is
everyone is agreed on this and important work is are executed quickly and efficiently. The Gov- urgent.”
being done by many relevant bodies, the present ernment has promised to streamline and expedite
regulatory and legislative framework does not procedures in the past and it needs to deliver on ENTREPRENEURSHIP
support it. “There is still too much bureaucracy this promise if we are going to have tangible re-
and delays continue in the issuing of planning sults. This will improve the image of Cyprus and Christos V. Vasiliou did not hesitate to praise
and building permits for offices and residential encourage much-needed investment, especially Cypriot entrepreneurship, while pointing out
projects. There are difficulties with issuing work from foreign investors, which is required to deliv- some of the challenges that may act as obsta-
visas for employees and a lack of tax incentives er the future growth of the economy.” cles to its development. “Entrepreneurship has
for Real Estate investments.” He went on to say Pieris Markou noted that, “The international made huge strides in recent years. It is no longer
that, with the Russian & Ukrainian markets fac- scene will see a significant step towards stabil- confined to the borders of Cyprus but looks to
ing major challenges, Cyprus needs to diversify isation once the war in Ukraine ends and the expand internationally and to improve its market
and target other regional markets such as Israel, energy crisis is resolved,” and shared his own offering. However,” he noted, “We need to stay
Egypt, the Middle East and other EU member vision for the Cyprus economy. “On a local focused because the road from concept to com-
states. “Cyprus in one of the few countries in the level, the reform of the public sector, the justice mercial application is a long one. We also need
region which has friendly relations with both system, local government and the tax system, is to set up an appropriate ecosystem which can
Israel and all the Arab countries, and it also needs vital to ensure our ability to adjust to the ‘new be used to fund those great ideas to bring them
to re-establish and strengthen its traditional busi- normal’. It’s also important to accelerate our to life. The banking sector should also act as an
ness relationship with the United Kingdom.” digital transformation and build on the coun- important pillar, financing good business propo-
Christos V. Vasiliou returned to George try’s competitive advantages, as well as on new sitions and investing along the way.”
Chrysochos’ focus on headquartering and said business sectors, such as energy, research and Andreas Petsas clarified that, “There are always
that greater efforts need to be made in order to innovation, shipping, private healthcare and opportunities in every sector of the economy,
establish Cyprus as the ideal location for compa- education, green and blue development, as well provided that a case/transaction is correctly
nies in the ICT, Energy, Funds, Healthcare and as sustainable development. Achieving these re- structured, has the right amount of equity by the
Education sectors to set up their headquarters. forms,” he said confidently, “will give an impetus entrepreneurs and shareholders and sufficient
“We must also expand our tourism product and to foreign investment into the country, which is cash flow.”
seriously consider seeking to attract FDI from a fundamental pillar of our economic growth. “Cypriot entrepreneurship has matured over
jurisdictions such as Israel and other EU coun- To this end, we need to adopt a more modern the last years, adapting to a rapidly changing
tries by offering attractive incentives,” he stated investment framework based on transparent and environment of uncertainty,” Kodros Pilakou-
decisively. And he agreed with the Finance Min- lawful investment procedures. The new invest- tas added and Christodoulos Stephanis agreed
wholeheartedly, saying: “Uncertainty has peaked.

“IN THE LONG TERM, CYPRUS WILL BENEFIT FROM
THE INSTABILITY THAT THE WAR IS CREATING.

RUSSIAN AND UKRAINIAN BUSINESSES, HNWIS AND
FAMILIES WILL SEEK A SAFE HAVEN AND CYPRUS HAS

TRADITIONALLY BEEN SUCH A DESTINATION”

GEORGE CHRYSOCHOS

| 86 | B U S I N E S S T A L K

The pandemic, an invasion on European
soil and pessimism in the markets have all
contributed to conservatism as regards inno-
vation and expansion. In addition, foreign
markets now appear more attractive and are
therefore drawing highly skilled individuals;
globalization has driven uniformity or the
survival of the fittest, thereby drowning local
or developing enterprises and, due to rapid
tech growth and continuous developments
in the IT and data spheres, businesses often
struggle to stay afloat without the necessary
support.”
Constantinos Petrides did not deny the dif-
ficulties mentioned. “It is true that Cypriot
entrepreneurship has faced a lot of challeng-
es recently, due to the pandemic and more
recently the war in Ukraine and its reper-
cussions,” he said. “However,” he went on,
“a number of generous government support
packages have helped alleviate some of the
cost borne by businesses and households, by
providing additional liquidity, preserving
their viability and jobs.”
“Countless challenges still remain today,”
Stavros Pantzaris added, in agreement with
what had been stated, “but if you asked me
to identify the most critical among them,
I would say: (a) digital transformation and
its impact on jobs and skills, (b) the global
effort to combat climate change and (c)
society’s rising expectations from companies
to place ESG issues at the core of their strat-
egies. These challenges also represent great

Kodros Pilakoutas “AS AN ISLAND
BLESSED BY THE
SUN, WE SHOULD
BE PAVING THE
WAY TO A GREEN
FUTURE,. THE WAY
WE ARE PREPARED
TO MEET THE
CHALLENGE OF
SUSTAINABILITY
WILL DEFINE OUR

FUTURE”

KODROS PILAKOUTAS

| 87 |

opportunities for businesses and those that can Equally, there are new challenges that relate to “WE CAN
identify and act upon them are likely to prosper the need to upskill the workforce, identify and AND SHOULD
and lead growth in the years ahead.” develop new talents. This drive must not only be INVEST IN GREEN
Despina Panayiotou Theodosiou, however, sustained but it must be accelerated, despite po- ENERGY AND
stressed the importance of merging sectors and tentially new inflationary pressures on the global SUSTAINABILITY
know-how in various industries in order to sup- and local economy. If we let up now, things will AS A MEANS OF
port entrepreneurship and not merely to realise move backwards.” ATTRACTING
short-term visions. “The challenge is not just “In my view, the business scene will change
about encouraging entrepreneurship. It is about significantly in the coming years,” said Pieris FOREIGN
supporting it with suitable financial structures Markou. “Traditional sectors will still continue to INVESTMENT
and linking entrepreneurs with the academic be the focus but we will see new sectors arising. AND OF BEING
world and the public sector,” she said, suggesting The great challenge for Cypriot entrepreneurs in ACCOUNTABLE
that there should also be greater cooperation with the short term is to embrace technology. Com-
the financial world, “because new ideas need panies that invest in developing and offering FOR
financial support, which has to recognise the bal- technology solutions will remain competitive TOMORROW’S
ance between risk and reward.” and on the frontline of development. Businesses
“Entrepreneurship can lead a country but it also will also have to look into their operating costs; WORLD
needs the state to facilitate the path” said Chris- they should develop an outward-looking culture,
toforos Hadjikyprianou in agreement with her. while creating and promoting new products and CHRISTODOULOS STEPHANIS
And he continued, “Allow me to mention that services based on market needs. All this will be
for a country with an unparalleled competitive fundamental to the future of business in Cyprus.” as what we call the ‘knowledge economy’ begins
advantage in solar energy capacity, the fact that “The European Recovery & Resilience Facility to take off. The business community has a lot
we are stuck at 15% renewable energy output has laid the foundations, to which both the state to give and a lot to learn from our research insti-
shows that we have a serious problem of focusing and the business sector must respond,” said tutes and their scientific output and we need to
on what is necessary and important. There is only Christoforos Hadjikyprianou, like a man on strengthen that partnership. That is where the
so much that businesses can do in an unwilling a mission. “As educational institutions, we are future lies”.
context. The state must play its part by speeding playing our part. I detect some progress in that, By now, it was 3:30 pm and time for the 12
up bureaucratic processes and establishing a after years of pressure, we are gradually seeing participants to relax with coffee and Beba’s
more efficient and business-friendly digital space. partnerships of entrepreneurship and education signature semifreddo cake and to forget about
business for a while. Meanwhile, the weather
had changed once more and a slight breeze hung
in the air, while the sky had begun to cloud over
but, now reflecting the overall optimistic tone
of the preceding conversations, we could still see
the sun shining through.

Special thanks to Βeba Restaurant

| 88 | T R U S T S

PROTECTING Trusts are highly versatile instruments
YOUR LEGACY which can be used for a wide variety of
purposes to achieve specific goals. In sim-
THROUGH ple terms, the common law Trust is struc-
A• CYPRUS tured as a triangular relationship where
INTERNATIONAL the Settlor unilaterally transfers property
to the Trustee (whilst not forming part of
TRUST the Trustee’s property) for the benefit of a third person which
is the Beneficiary.
By Elena Christodoulou, Advocate/Senior Associate,
Corporate Department and Alexis Christodoulou, What is a Cyprus International Trust?
Advocate/Associate, Corporate Department,
Elias Neocleous and Co LLC IN TERMS OF SECTION 2 OF THE LAW, A CYPRUS INTERNATIONAL
TRUST (CIT) IS DEFINED AS A TRUST IN RESPECT OF WHICH:

• the Settlor (whether a natural or legal person) is not a resi-
dent of Cyprus for the calendar year prior to the creation of
the Trust;
• at least one of the Trustees is, during the whole duration of
the Trust, a resident of Cyprus, and
• no Beneficiary (whether a natural or legal person) other than
a charitable institution is a resident of Cyprus for the calendar
year prior to the creation of the Trust.

Utilization from a personal
tax perspective in Cyprus
One of the key standout points in the above definition, from
a personal tax perspective, is that Beneficiaries should not be
residents of Cyprus for the calendar year prior to the creation
of the Trust. What this effectively means is that a Beneficiary
of a CIT can take up tax residency in Cyprus at any stage after
the Trust has been established and benefit from the benign
personal tax system which Cyprus has to offer, specifically in
relation to non-domicile tax residents who are exempt from
Special Defence Tax on dividend income, interest passive
income and rental income (note: rental income is subject to
income tax) until they complete 17 years of tax residency in
Cyprus (provided that they become Cyprus tax residents for
the first time).

CYPRUS IS IN THE “PREMIER LEAGUE” OF TRUST
JURISDICTIONS AND A DESTINATION OF CHOICE FOR
THE ESTABLISHMENT OF INTERNATIONAL TRUSTS

| 89 |

Settlors’ reserved power country and notwithstanding the fact that the Trust is voluntary and
without consideration, or that it is for the benefit of the Settlor or his
THE LAW ALLOWS THE SETTLOR OF A TRUST TO RESERVE POWERS TO or her family members. The burden of proof of the Settlor’s intent
HIMSELF OR HERSELF, TO RETAIN A BENEFICIAL INTEREST IN TRUST to defraud lies with the person seeking to set aside the transfer. Fur-
PROPERTY, OR TO ACT AS THE PROTECTOR OR ENFORCER OF THE TRUST, thermore, any action for avoidance of the Trust or setting aside of the
ALL WITHOUT AFFECTING THE VALIDITY OF THE TRUST. THE POWERS THAT transfer must commence no later than two years after the assets were
MAY BE RESERVED ARE EXTENSIVE, AND INCLUDE THE POWER: transferred to the Trust.
These provisions, particularly the requirement to prove intent to de-
• to revoke, vary or amend the terms of the Trust; fraud on the part of the Settlor, set the bar very high for a claimant
• to apply any income or capital of the Trust property; trying to set aside a transfer to a CIT. Even though the standard of
• to act as a director or officer of any corporation wholly or partly proof is the balance of probabilities, rather than the criminal standard,
owned by the Trust; the claimant must still establish that the Trust was more likely than not
• to give binding directions to the Trustee in connection with the a fraud. This is a difficult standard to meet in practice, and the burden
Trust property; and of proving fraud is higher than is usual for civil cases. In practice, the
• to appoint or remove any Trustee, enforcer, protector or Benefi- claimant would need very strong evidence to show that the Settlor
ciary. intended to defraud his or her creditors. A claimant domiciled outside
The Settlor may impose a general stipulation that the Trustees’ the EU without assets in Cyprus would be required to provide security
powers are exercisable only with the consent of the Settlor or any for costs under Order 60 of the Civil Procedure Rules.
other person specified in the terms of the Trust. The Settlor may also Protection against forced heirship and similar claims is provided by
reserve the power to change the governing law of the Trust. These Section 3(i) of the 1992 Law, which stipulates that the laws of Cyprus
provisions give Settlors great flexibility to adapt to changes in circum- or of any other country relating to inheritance or succession will not in
stances or objectives. any way affect any disposition of assets to a CIT.
The Law strengthened these defences by explicitly providing that any
Asset protection features question relating to the validity or administration of an International
Asset Protection Trusts ring-fence the Settlor’s assets from persons Trust or a disposition to an International Trust will be determined
who may have a claim against him or her. An Asset Protection Trust by the laws of Cyprus without reference to the law of any other juris-
adds another layer to the defences. They are also invaluable in a varie- diction. It also makes it clear that the fiduciary powers and duties of
ty of other contexts. In personal life, in light of the substantial awards Trustees, and the powers and duties of any protectors of the Trusts,
that courts in certain jurisdictions are making, an Asset Protection are governed exclusively by Cyprus law. Furthermore, it provides that
Trust may be used to provide added reassurance against claims on the dispositions to a Trust may not be challenged on the grounds that they
breakdown of marriage or a civil partnership, particularly for individ- are inconsistent with the laws of another jurisdiction – for example, re-
uals from jurisdictions where prenuptial agreements are ineffective. garding family and succession issues – or on the grounds that the other
Many countries have forced heirship provisions in their succession jurisdiction does not recognise the concept of Trusts.
law, reserving a specified portion of the deceased’s estate for relatives, Finally, the Law entrenches jurisdictional protection by providing that
and an Asset Protection Trust may provide a means of regaining free- an International Trust containing a choice-of-law clause in favour of
dom of testation. Cyprus law is fully protected from unfounded foreign judicial claims as
By their nature, all Trusts provide an element of asset protection by a matter of public policy.
segregating the assets held in trust from the Settlor’s general assets, These provisions further reinforce the already formidable asset protec-
which would be available to satisfy his or her debts or, in the worst- tion features of the CIT.
case scenario, would pass to his or her Trustee in bankruptcy; howev- The enactment of the Law has elevated Cyprus to the “Premier league”
er, a CIT has several further advantages. of Trust jurisdictions, making the island a destination of choice for the
The Law contains a very strong presumption against avoidance of a establishment of International Trusts. Further, upon consideration of
CIT. Unless the court is satisfied that the Trust was made with the other local laws, the island is also an attractive destination of choice for
intent to defraud persons who were creditors of the Settlor at the personal residency once an International Trust has been established.
time when the payment or transfer of assets was made to the Trust, With the correct planning and considerations, the creation of a CIT
the Trust will not be void or voidable, notwithstanding the provi- can be a highly valuable tool in relation to asset protection, succession
sions of any bankruptcy or liquidation laws of Cyprus or any other and tax planning.

| 90 | I N T E R N A T I O N A L W E A L T H

Michael
Milonas

Benjamin
Bilski

I N T E R V I E W | 91 |

The
Long
and
Winding
Road
to Success

Benjamin Bilski, Founder and CEO, and Michael Milonas, co-founder and CEO of NAGA, recall the internal company struggle
that became the impetus for the trading platform to become a frontrunner in the neobroker business and explain how an
obsession with winning, combined with finding the right partner, ultimately led to success.
Photo by TASPHO

| 92 | I N T E R V I E W

In the back room on NAGA’s top Copy his fashion app that emulated Tinder’s
floor, there are people setting trading, swipe left and right concept. That inves-
up cameras and fiddling with tor would introduce Bilski into the new
microphones. I am supposed to where amateurs fintech wave that was sweeping capital
interview the neobroker’s two shot- copy the markets. He jumped on the idea of mar-

callers, Benjamin Bilski and Michael rying social networks and finance, even
Milonas, but I can’t recall for the life though, admittedly, he was a complete
of me to have agreed to capture the novice at the latter. SwipeStox became

whole affair on video. It is explained transactions of one of the first mobile social trading
to me that this is just another day at apps and the building block for NAGA.

the office for them – in retrospect, I knowledgeable “And this is where Michael and I got
shouldn’t be surprised. Neobrokers traders, played
emerged as a means for millennials to Ftogether,” Bilski says.
enter the capital markets, employing a big part in or as long as he can remember,
clever user interfaces on their trading changing
platforms that take their cues from Michael Milonas wanted to
games, which evidently makes trading
win, to be the best at every-
accessible to a wider audience. And,
most importantly, they incorporate thing. By the time he turned

17, he had fashioned an amateur work-
NAGA’s destiny shop in his parents’ garage where he
fixed bikes and sold parts. His love of

practices developed by social media: petrol engines was only equaled by his

on a neobroker’s platform, traders can love of music. It was 1995 and together

trade in ideas and novices can copy with some friends, he landed a non-paid

the experts. So, storytelling is innate to gig to produce a show called Full Speed

ANAGA, whether done in a chat room or in front of a camera. for the now defunct radio station Talk FM. “We were clueless; we
s a teenager, Benjamin Bilski discovered that he was a fast had no idea what music was,” Milonas says. “But, I thought to my-
swimmer and realised that this was the perfect sport for self: that’s a mountain to conquer.” They started working on other
someone with his background. As an only child, he didn’t local stations, one of which shared a building in the centre of Nicosia
play well with others and was comfortable being the cen- with the then famous club Versus. “So, having a very curious and ex-

tre of attention. Raised by Polish parents in Germany with the kind ploratory nature, I got to know the DJ of that club, who wanted me

of discipline that was needed to quickly rise through the ranks, he to be his assistant,” he recalls. A month later, a fight between the DJ

acquired a taste for competitive swimming, aware that a win was only and the club owner gave Milonas a shot at the decks, and despite be-

as good as the next one. On his way to the top, he did not have time ing a novice, he took the job. “You know; everybody wants everything

to explore rebellious teenage nature – he was an adult before having in life – right? But very few get it because very few are willing to do

his first drink in beer country! The life of eat, sleep, swim and repeat, what it takes,” he says. And, he adds as an afterthought, “It’s not going

though, started to wear him down. Looking around, he realised that to work for everyone; it certainly didn’t work for us here every single

success was not only measured by the fastest time and, at the age of time.” Milonas was the resident DJ at Versus from 1997 to 2000. The

21, the German champion and bronze medal winner at the 2009 Inext mountain to conquer was much higher: founding and running

World Games announced his early retirement from the sport. Many the legal consultancy firm Parparinos Milonas for 10 years.
n late 2015, Bilski was looking at regulatory licensing across
“Dwere left bewildered and some downright indignant. Europe and with CySEC having earned a good reputation,
uring my swimming career,” Bilski says, “because he was introduced to Milonas. For his part, Milonas recalls
that he saw in Bilski a younger version of himself, “one who
I was having financial issues, I was trying to make was willing to take huge leaps of faith.” The connection was

money on the side. I had a passion for fishing

– my family’s from Poland and fishing is a big
thing – so I started to buy and sell fishing equipment online.” In instant – the kind of chemistry that’s difficult to capture in

2009, when he retired from the sport, he decided to set up a proper a sentence – and they agreed to work together. Milonas would run

e-shop selling fishing gear and outdoor equipment called Angelplatz a small team in Cyprus and build the back-end brokerage software,

(German for “fishing spot”). Meanwhile, he enrolled into the Florida while Bilski would stay in Germany to get the company off the

Atlantic University for a course in business administration. “I always ground. At the time, the brokerage industry in Cyprus appeared to

wanted to study. Basically, I thought that if I wanted to be successful be too set in its ways to see any value in bringing the traditional buzz

in business, I needed a degree,” he recalls. Bilski rode the e-com- of the trading floor into the digital world of modern trading – and

merce slipstream at the turn of the 2010s, and sold the shop to make they weren’t particularly welcoming to new entrants, either. “I met

his first million while only 23 years old. But that was never going with 14 or 15 brokers in Limassol and I told them ‘this will increase

to be enough, because it wasn’t about the money – there was always your sales; this will increase your revenue’. They said it was non-

the next win. In 2014, after burning through some serious cash on sense,” Bilski says. He turns to Milonas and asks, “What did you call

a couple of failed ideas, Bilski found someone to take a small bet on them – cut-throat, right?”

| 93 |

Meanwhile, during those first few years, irreconcilable business environment and people with the right mindset to build
differences at the top were dragging NAGA down to a great company. As luck would have it, their new product-first
the bottom. Bilski wanted to get the fundamentals approach came at the right time. The platform was ready for the
right. His co-founder, though, was already selling great influx of millennials, who flocked to neobrokers (and other

the company as a US$10-billion idea. This attracted a certain trading platforms) to make up their losses in the capital markets

type of employee and created a culture that was, in his view, too from the economic hurt delivered by the pandemic lockdowns. In

concerned with appearances and little to nothing at all with sub- 2021, NAGA raised US$100 million in capital from Star Inves-

stance. Managing a group of people with such a different value tors, hired 150 people – most of them in Cyprus – onboarded a

system made life increasingly difficult for Bilski. “I was always record number of some 250,000 customers, transacted more than

sitting in my own office. I wouldn’t talk to anyone there. I was a quarter of a trillion dollars in volume, and derived one of Ger-

doing my thing, trying to do as much as possible on the base many’s best share price performances. As a result, the company’s

level and fundamentals. And then I got into a huge, massive valuation leaped from US$180 million to US$465 million. Copy

scrimmage with the co-founder. I couldn’t stand it anymore,” trading, where amateurs copy the transactions of knowledgeable

he says. By 2019, NAGA was on the brink of collapse. Bilski left traders, played a big part in changing NAGA’s destiny. That same

Germany and came to Cyprus in a last-ditch effort to salvage the year, NAGA paid some US$2 million in copy bonuses. They got
company. He knew that the only way to win was to take control the fundamentals right – so, on to the next mountain.
of the product.
don’t mean any disrespect to the industry, but
ilonas takes a rather serious tone. “Without Ben coming I fail to see a vision; somehow they’re all doing
to Cyprus, none of this would have happened,” he says. the same stuff. It’s some old-school banking,”
Bilski says. Among the many features intro-
MWith both men sharing an understanding that wins duced last year was NAGA Pay, a payments

“Iwere built from the ground up, they resolved to fight for the com- solution that combines an IBAN account, a
pany. They boarded a plane to Shanghai, convinced their biggest

shareholder to back them up and put their own money where debit card, a broker account and a crypto wallet. NAGA wants to

their mouth was. NAGA had been listed on the Frankfurt Stock bring to the trading business the one-stop shop concept that has

Exchange since 2017 and the other shareholders were people who seen such great success with Big Tech. What Bilski envisions for

didn’t offer the kind of value that Milonas and Bilski wanted to NAGA is for people to dive into a new world, where they are us-

add to the company. So, they made them an offer they couldn’t ing the app to buy groceries, when they suddenly receive a push

refuse: they either took the money, or the two men would walk notification that the latest NFT is coming out and, in the same

“Wout, taking the engine of the company with them and leaving the breath, move part of their funds into their digital assets. “I think
this also resonates with our team,” Bilski goes on. “It’s something
shareholders to deal with the spare parts. that they can relate to, because they are not just sitting in front of
e didn’t take out guns but all the rest a chart. We already represent change. Working at NAGA now is
was there,” Milonas remarks in a a thing, at least in Cyprus. They see us as springboard, as being in
deadpan manner. “It was very tough; the right company in the right sector.”
psychologically, stress-wise. And I ask both of them, “How does it make you feel to have won that
don’t forget, Ben and I were also
taking a massive responsibility and the liability to run a company huge bet and are now reaping the benefits?

Bthat was literally being driven into the ground.” Bilski answers in the most German of ways. “It’s gut. But, it’s
ilski says, “For me, it was everything.”
A lot of people were eventually fired and others bought “Enot over.”xactly,” Milonas chimes in. “We haven’t actu-
out – Bilski and Milonas were effectively the last men ally reaped any benefits. Look, we just proved
standing. So, it made sense to move the company to that this company has a future. And the journey
Cyprus. In Bilski’s words, the land of sun and sea offered the right ahead is long and difficult.”

NAGA wants to bring to the trading business
the one-stop shop concept that has
seen such great success with Big Tech

10TH ANNIVERSARY

INTERNATIONAL INVESTORS,
INDIVIDUALS, AND COMPANIES
FOR THEIR SUBSTANTIAL CONTRIBUTION

TO THE CYPRUS ECONOMY

JULY 2022 | PARKLANE RESORT & SPA, LIMASSOL

3,500

distinguished guests

76winners
550

nominees

10sponsors/partners
156award presenters

SPECIAL THANKS TO ALL OUR SPONSORS
FOR THEIR CONTINUING SUPPORT!

PLATINUM SPONSOR

GOLD SPONSOR

POWERED BY

MEDIA SPONSOR UNDER THE AUSPICES OF H.E. ORGANISERS
THE PRESIDENT

PRINTED WITH CARE BY KEMANES PRINT SHOP

| 96 | F A M I L Y B U S I N E S S E S

FAMILY To many, the term “family business”
BUSINESSES means a rather small or medium-sized
TODAY: RISING business with a local focus. It also con-
CHALLENGES nects with a set of common and peren-
IN A RAPIDLY nial issues such as succession planning,
CHANGING pressure to hire family members, the
ENVIRONMENT lack of a defined strategy in case of the
planned or sudden retirement of the owner and a high turno-
By Demetris Vakis, Board Member, ver of non-family employees.
Head of Family Business, KPMG in Cyprus While many small businesses do fit that description, this does
not diminish the powerful role that such enterprises play in
the local and, indeed, the world economy. On the contrary,
family firms in Cyprus, accounting for over 90% of business-
es, are responsible for job creation and for making valuable
contributions to the national economy.
Family enterprises are significantly different from others,
in that their ownership structure gives them a long-term
orientation. “The regenerative power of family business-
es – Transgenerational entrepreneurship” survey report by
KPMG Private Enterprise and the STEP Project Global
Consortium, published in 2022, brings together insights
from 2,439 CEOs and other leaders from top family busi-
nesses across 70 countries and territories, illustrating the
common factors that make up the formula for family busi-
ness resilience and regeneration: a strong entrepreneurial
orientation, emotional attachment to their business and an
ambitious next-generation leadership seeking new experi-
ences beyond the family business.
While family businesses are different and unique in the
business world, they are still affected by the overall social
and economic environment. Today, governments, businesses
and people in Europe and in Cyprus are increasingly con-
cerned with challenges such as rising inflation and the surge
in energy costs. The stagnation period experienced during

ALTHOUGH, IN MANY CASES, FAMILY
BUSINESSES OUTPERFORM

NON-FAMILY-OWNED BUSINESSES
WHEN IT COMES TO PROFITS, TODAY
THEIR VERY SURVIVAL IS IN DANGER

| 97 |

FAMILY ENTERPRISES ARE SIGNIFICANTLY DIFFERENT
FROM OTHERS, IN THAT THEIR OWNERSHIP STRUCTURE

GIVES THEM A LONG-TERM ORIENTATION

the COVID-19 pandemic is now being made worse due to the im- to be addressed, especially at a time when a new reality is taking
pact on the economy of the war in Ukraine. A volatile economic shape. Also, managing family assets and preserving family wealth
environment has ensued, with businesses of all sorts trying to curtail are crucial during these uncertain times. Because family businesses
costs and remain relevant, while also maintaining and expanding look beyond merely preserving growth, many of them find it diffi-
their customer base. cult to address the challenges they are facing without intermixing
The evolving digital economy, changes in technology and globalisa- family and business affairs. When it comes to innovation and entre-
tion have far-reaching consequences on the business models of family preneurship, family businesses can find themselves trapped. Their
businesses. COVID-19 has created a new reality for the business reluctance to innovate is sometimes based on the fear of losing their
world, where digitalisation in every possible aspect of a business is unique identity, losing control, undermining the family reputation,
crucial. Family businesses, in particular, need to onboard new tech- or compromising socioemotional wealth. Thus, it is imperative to
nologies, turning digital where possible in an attempt to deal with ensure that the innovation potential is fully unlocked while leverag-
the changes forced by this new reality. In addition to digitalisation, ing cohesion within the family and the business.
innovation is also high on their agenda, as they now recognise that An area that invariably has an impact on the long-term success of a
the world we live in has dramatically changed and doing the same family business is its ownership. Should the family introduce new
things as before and expecting different results may not be the right shareholders, be they non-family managers or other investors? This is
strategy for future survival, let alone success. Although, in many a question that can be answered by taking into consideration many
cases, family businesses outperform non-family-owned businesses factors, including all the unique characteristics of each business and
when it comes to profits, today their very survival is in danger. No- the aspirations of the family. The decision may not be based solely on
tably, in the time frame of a single generation, businesses have had financial considerations and there is always a dilemma.
to adapt to new digital marketing and delivery channels, to decide The role and composition of the Board of Directors in family busi-
how to invest in new technologies and compete on a global stage. nesses is also important. In most cases of family businesses, the Board
It is widely accepted that business transformations that once took is composed exclusively of family members and, invariably, only the
decades to take place are now happening in the space of just a few shareholder(s). Boards are required in all enterprises to provide a more
months, mainly because of the rapid pace of technological change strategic view of the affairs of the business and offer an impartial as-
and increased competition. sessment, utilising the collective experience and expertise of trusted
These rapid changes and volatility have made it evident that no individuals.
single employee – not even a CEO – can be an expert in everything. Business advice and strategy planning might come from expert external
In these times, family businesses should be more outward-looking, talent as well. Family businesses that employ outside advisors tend to
open to recruiting people with expertise and know-how, who may make better informed decisions, especially when the required exper-
not belong to or have ties with the family. tise is not available internally or through the Board. Family business
The challenge for family businesses is to sustain dynamic pro- professionals/advisors can articulate a governance framework that sep-
gress across the generations. To do this, they need to manage the arates business from ownership and defines a clear process to resolve
inherent conflict between family and business needs on a consist- any arising issues. In many cases, external professionals that can assist
ent basis. Family expectations should be managed and the same with the digital journey of the family business are also needed, as many
should apply to the business. Conceptually, succession is a process “traditional” enterprises might not yet have realised the benefits of
that needs to be methodically planned and executed. During the e-commerce, for example, or they might not have the necessary skillset
pandemic, though, it has been happening unexpectedly and hap- to adapt to the various changes in technology and customer needs. In
hazardly. Family businesses are often reluctant to bring in talented addition to focusing on short-term concerns, family businesses need to
people who do not belong to the family, fearing that they will address the underlying longer-term challenges they face, to survive and
interfere with the succession planning. This is an issue that needs thrive over generations.

| 98 | I N T E R V I E W

A Deepening
Relationship

| 99 |

France’s Ambassador to Cyprus, Salina Grenet-Catalano, explains how the already excellent relations between the
two countries could improve even further while also revealing how global events first inspired her to become a
diplomat and later confirmed the correctness of her choice.

Taking place Photo by Taspho neutrality and phase out fossil fuels, to be in-
during a par- dependent for our food supply, to protect our
ticularly com- What do you consider to be some of the borders. We will most probably need to change
plicated time main challenges that persist in Europe some treaties to move forward but there are
for Europe, today and how do you believe these can be also many things that can be done within the
the French overcome? current framework. Finally, we will need to
Presidency of Through the process of the Conference on meet the challenge of those who wish to join the
the Council of the Future of Europe, which reached its European Union but are faced with a long ac-
the European conclusion in May, we asked the people of cession process. President Macron has proposed
Union ended Europe this very question. Everyone has the idea of a “European political community”,
on June 31. been able to contribute through panels in all which is a framework around the EU that
How would you take stock of this six- member states and online. This has led to the would allow us to better cooperate and face our
month period? formulation of 49 proposals and objectives, continent’s challenges.
Indeed, the French Presidency of the EU tied to 320 measures. The EU institutions will
Council has taken place in very challenging now examine the ideas and ensure a rapid and How do you perceive the current relations
times for Europe, due to the war in Ukraine. appropriate follow-up. On 9 May (Europe between France and Cyprus and how do you
Yet the priorities we had chosen at the end of Day), President Macron shared his vision of believe these can be further developed in the
2021 were, in fact, the right ones: a more sov- what the concrete results of this consultation years ahead?
ereign and strategically autonomous Europe, of our peoples might be. The French president The bilateral relationship between France and
implementing a new growth model for Europe focused on two keywords: independence and Cyprus is excellent. We have a lot in common
based on the support for the two big transi- effectiveness. Notably, our citizens want more and have been growing closer and closer over
tions – ecological and digital – and the idea of European action on key topics for the future the last two decades. Our joint membership of
a more humanistic Europe that is proud of its such as biodiversity, health, and alimentation. the European Union is probably the catalyst
values. They want a more just, inclusive and demo- of the strength of our relationship and, beyond
Let me mention a few of our landmark suc- cratic Europe. They want a Europe that can that, a shared belief that the EU should be a
cesses. First of all, our response to the war defend itself, especially in light of the war in powerful and assertive actor on the world stage.
in Ukraine: we have managed to agree as Ukraine, and be the master of its destiny. They Accordingly, ties between Cyprus and France are
Europeans on six unprecedented sanctions don’t want less Europe but more Europe, more the most developed in the political and strategic
packages and massive assistance to Ukraine, concrete, with results that can be felt not only fields.
in the financial, military and humanitarian in times of crisis such as the pandemic or the I am convinced that we should deepen this
fields. We have proven together that Europe war, but also in times of peace: to reach carbon relationship in two main areas. The first one
is, indeed, able to act quickly and swiftly is related to culture and Francophonie: more
when necessary. This crisis response is now I HOPE Cypriots should be able to enjoy the benefits of
also dealing with the energy situation, where MORE FRENCH speaking French and of choosing France for their
we hope concrete results will be achieved. On WILL VISIT CYPRUS studies. And for that they don’t necessarily need
our “non-crisis agenda”, we managed to pass to be francophone from the get-go. There are
Europe’s Strategic Compass, which defines BUT MORE many programmes in English too, in all fields
what the threats are for the EU in the world CYPRIOTS SHOULD
and how we respond to them collective- of studies and in prestigious institutions. The
ly. Major progress has been made ENJOY FRANCE, second one is related to our economic ties,
regarding the different texts of the TOO. DIRECT where I think our priority should be to
“Fit for 55” package on climate FLIGHTS see how we could do more together
for example. In a field that THIS SUMMER to perform a quick and smooth
may interest your readers, we ecological and digital transi-
managed to adopt a directive HAVE BEEN A BIG tion. Let’s not forget tourism
that will set an obligation for wom- BOOST IN as well; I hope more French will
en to be represented by at least 40% THAT visit Cyprus but more Cypriots should
on company boards, which goes in the DIRECTION enjoy France, too. Direct flights this sum-
direction of reaching full equality between
men and women in our Union. mer have been a big boost in that direction
and will help deepen the relationship across the
board.

| 100 | I N T E R V I E W

What areas of investment in France are of improvements, electric cars and high-quality was part of the delegation of our Minister
particular interest to foreign investors, in-
cluding Cypriots? public transport, we are probably one of the few Delegate for European Affairs, who was on
I am glad that you ask this question because,
sometimes, due to the different sizes of our countries with nearly everything on offer and an official trip to the United States from 9
economies, there is the idea that investment can
go only one way. France is particularly attrac- strong know-how. to 12 September 2001. We were actually
tive to investors. Actually, according to a study
carried out by EY, France has been the number flying over New York when the attack on
one country for foreign investments in Europe
for three consecutive years. It is also number one the twin towers of the World Trade Center
when it comes to R&D investment. We have
witnessed a trend in France toward reindustri- took place. We then remained stranded
alisation in key sectors for the future: healthcare
and the green transition. France is also attractive CYPRIOT in Boston for several days, waiting for US
due to its very strong and dynamic consumer INVESTORS airspace to reopen. We participated in very
market of 67 million people as well as its highly emotional vigils on the Harvard campus and
qualified labour force when it comes to new
technologies, especially in the digital sector. SHOULD LOOK shared both the emotion and also the effect
Through structural reforms in recent years, we FOR THE RIGHT of the shock that had struck the Americans.
have made France much more business- friend- On a professional level, this major event has
ly. Those were drastic changes toward simplifi-
cation and predictability in the fiscal and labour “NICHE” WHERE profoundly changed the way we conduct
domains. Foreign investments also benefit a THEY CAN BRING diplomacy. The fight against terrorism has
lot from the strategic investments made by our
government to best prepare the country for the become an international priority. Our rela-
challenges of the future and boost competitive- SOMETHING NEW tionship with the United States – for which
ness. TO OUR MARKET I was responsible at the Ministry of Foreign
As for where Cypriot investors could find some
opportunities, I would say that they should Affairs in Paris at the time – was deeply af-
look for the right “niche” where they can bring THAT NOBODY
something new to our market that nobody else ELSE PROVIDES fected. We had to adjust our strategies and
provides. Halloumi is already increasingly pop- our working methods.
ular in France and surely some other products On August 4, 2020, I was chargé d’affaires in
could follow.
Beirut when the terrible explosion at the Port
Cyprus is developing as an international
business hub. Do you believe it is attracting What was behind your decision to enter the occurred and devastated a large part of the
the interest of French businesses and poten-
tial investors? Can you suggest any further diplomatic service? Lebanese capital, leaving thousands dead and
incentives?
Cyprus still isn’t well known or ‘on the map’ Although I come from a modest, not interna- injured. This was followed by a difficult peri-
of French businesses and investors. This is, of
course, explained by the fact that the island tional-leaning background, I nonetheless felt od of crisis management to help not only the
remains a small market but it doesn’t mean
there aren’t interesting opportunities. Of course, very early – when I was 15 years old – that I was French people affected but also the Lebanese
attracting more French businesses to the island
means attracting their expertise, either directly destined to become a diplomat. Two signifi- population. President Macron made two vis-
or through partnerships. There have been very
positive developments recently such as the part- cant historical events struck me and cemented its to Lebanon three weeks apart. A massive
nership that has been concluded between Al-
phaMega Hypermarkets and the Casino Group, my choice: the civil war in Lebanon in the French aid (humanitarian, military, etc.) ef-
a major actor in retail in France and around the
world. I hope there will be more such success 1980s and the fall of the Berlin wall in 1989. fort was deployed, which had to be organised
stories like this in the future. For instance, I
firmly believe that, in dealing with the challenge Those two events had a major impact in the and coordinated for several weeks.
of the ecological transition, French expertise
would be really useful to Cyprus. When it French media back then and raised a lot of Those two painful experiences have left their
comes to green energy production, storage, grid
questions for me, especially the situation of mark on me personally – especially the sec-

French hostages in Lebanon and the dra- ond one – but they have above all shown me

matic situation of the population out there. the usefulness of the diplomatic profession,

I couldn’t understand why, in the name of especially in times of crisis.

their religion or community, people could kill

each other. On that basis, my interest grew How would you describe your life in Cy-

in the Middle East, its religious, political and prus and what are some of the things you

cultural complexity. On the opposite side, miss about France?

the fall of the Berlin wall gave me a glimmer I consider myself a lucky ambassador! What

of hope, demonstrating that the world could more could I ask for on top of the opportu-

change for the better with the reunification of nity to serve in an EU member state, at the

Germany and the new dynamic with the EU heart of the Eastern Mediterranean region?

to the benefit of our continent. I told myself This is, of course, a troublesome region of

that, by becoming a diplomat, I could satisfy the world but that complexity is also what

my thirst to discover other cultures, other makes it so interesting. Our partnership

countries and to contribute, to the extent of with Cyprus is excellent and is becoming

my abilities, to help bring about peace and deeper and deeper. On a more personal

cooperation between those people. note, the country’s beauty, cultural and

historical wealth – including its Lusignan

What are the experiences that have im- past – the sun and the Mediterranean char-

pacted you the most as a diplomat and as a acter of the Cypriots reminds me a lot of

person during your over two-decade inter- Provence where I was born. I wish to carry

national career in the diplomatic services? out my term here and leave with the senti-

Without a doubt, two episodes of crisis. First ment of having advanced our friendship and

of all, September 11, 2001. At the time, I our ties.