Human rights lawyer Achilleas Demetriades has a series of proposals to muster funds in the order of €20bn, in an effort to tackle the property issue, one of the thorniest aspects of the Cyprus problem.
The former member of the Technical Committee on Property told CNA in an interview: “We need to clearly define the property issue in order to present a ‘turnkey solution’ to the problem”.
Demetriades, who has handled many cases in the European Court of Human Rights, analysed his set of proposals, which he calls “one page brainstorming”, containing facts, assumptions and incentives for a positive outcome.
Among other points, Demetriades said that zoning should be frozen for at least two years to minimise speculation. He proposes that refugees’ claims to the Federal Immovable Property Commission to be separated between those seeking a “fast track” remedy, i.e. cash repayment, and those aiming for restitution or other time-consuming options.
“Most people want to take their money and go” especially after the 2013 financial crisis, he said.
Before explaining the rationale behind his proposal to secure the necessary funds, Demetriades refers to existing difficulties to agree with the math. “We get bogged down in details, unfortunately” although this shouldn’t prevent us from getting into the methodology of the problem, he says.
The lawyer admits, however, that there is no agreed data, and says that numbers require perhaps adjustment. As the basis for his calculations, he uses various studies published by economists.
According to the estimates cited by Demetriades, there are 1.3m donums of Greek Cypriot land in the north with a value €45bn. Turkish Cypriot land in the government-controlled areas of the Republic amounts to 0.4m donums, worth €5 bln.
He says that in the event of a solution, each constituent state should undertake the cost of compensation and re-housing, potentially with international assistance. As an example, he points to Turkey’s capital share available in the Council of Europe Development Bank (CEB).
His first assumption is that territorial adjustments will eventually lead to the return of Greek Cypriot properties, worth €20-25m, to their owners. The return of the fenced-off part of Turkish occupied Famagusta, with its high value properties, will contribute to that. According to the same rationale, the remaining Greek Cypriot properties in the northern part of the island will account for around €20bn.
Then there is the issue of Greek Cypriot refugees who say they want to return to their properties after a settlement. If we are to believe a study that sets their number to 22% of the total, Demetriades said that this will bring down compensation claims by another €5bn, leaving €15bn to be settled.
Moreover, he says that at least three quarters of Turkish Cypriot land in the southern government controlled areas has been assigned to the unrecognised “government”, in return for receiving property that is located in the north. This, he said, facilitates the return of this property to the Greek Cypriot side, lowering the bill to around €10bn.
One of the proposals to drop figures even further, is to allocate a share of the federal debt to Turkish Cypriots, after Ankara pardons their own debt. A share of €5bn will work as a “unifying factor”, Demetriades said and noted that this is “a creative way” to reduce the bill.
Finally, he proposes the remaining €5bn to be covered by Turkey, either through guarantees to the Federal Immovable Property Commission, its CEB capital or otherwise.
In case all of this is not enough to cover the necessary funds, Demetriades proposes to count in the proceeds of gas revenue and in particular those coming from the gas pipeline that will traverse Turkey.
“All this will be widely contested’ the lawyer admits, he says however that “we should not let unknown factors prevent us from outlining the problem.”
Demetriades also presented a series of possible incentives to make his proposal work. He proposes to pay compensation to Greek Cypriots in cash or set up a trust, similar to that in Lebanon.
Another suggestion is to impose a two-year moratorium on foreclosures, in exchange of priority repayments of mortgages to Commercial Banks, using the money from compensation.
As for the Bank for Reconstruction that will be called to subsidise rebuilding activity, Demetriades proposes to capitalise it, among others, by attracting funds through a tax amnesty for Cypriots, as well as for non-Cypriots opting for the nationality scheme.
He also proposes the Federal Cyprus to enter into a Double Tax Treaty and a Bilateral Investment Treaty with Turkey, as well as to renegotiate the one with the UK in view of Brexit.
The human rights lawyer said finally that Cyprus should not expect too much from an international donor conference, when there are so many pressing cases arounf the world, such as Syria.
46 Comments
repulsewarrior
June 16, 2017 at 23:57Thank-you, Mr. Demetriades; most encouraging.
Red ken
June 16, 2017 at 22:52Never read anything this stupid.
First question why. Is GC land in north value higher than TC land in south .?
1.3 million donum 45bn =34.615 euro a donum
0.4 million donum 5 bn = 12.500 euro a donum
This fool he thinks he can pull fast one on TC
0.4 million donum at 34.615 euro = 13.8 bn.
If we follow your calculations you owe TC but 5bn
Hahahaha hahahaha
Fred Yusuf
June 19, 2017 at 14:40You will find that TC properties in the south is at least 3 times the value of the GC properties in the north.
Andreas
June 16, 2017 at 20:28What about 43 years of compensation?
braveheart
June 16, 2017 at 20:28Add them to your life expectancy.
Andreas
June 17, 2017 at 20:25Go back to Turkey.
braveheart
June 17, 2017 at 21:11I do quite frequently, and then I come back.
Red ken
June 16, 2017 at 22:56No keep it to yourself
TC don’t want anything from GC.
Andreas
June 17, 2017 at 20:26Then your a fool. Hostility must stop.
Slomi
June 17, 2017 at 10:07It is applicable for people on both sides.TCs and GCs.
Andreas
June 17, 2017 at 20:25Yes it is
Slomi
June 17, 2017 at 21:19Hmm.Thank you.
Andreas
June 18, 2017 at 10:34TCs should be treated no differently from GCs. Hostility must stop.
Slomi
June 18, 2017 at 11:02A BRAVO view.
Fred Yusuf
June 19, 2017 at 14:43I suspect those who accepted properties in the north or south in the past will get no compensation but there are those of us who did not exchange our properties. And of course there is also all the help GCs have recieved as help after being classified as refugees to be factored in too.
Veritas
June 16, 2017 at 17:50Everything works in theory.
To implement a complicated scheme like this or a similar one, will be very hard in Cyprus.
Since money is the number one priority, well above aspects like compromise, feasible or future advantages, I wish Mr. Demitriades all the best.
emba paphos
June 16, 2017 at 15:48The roc unwittingly contributed to the issue by building masses of low cost housing post 74….on TC land in the south…so doubtful if those TC who had an empty plot pre 74 and now see a high rise in it will go back (& that is if they fall into the category of those who can return)…so compensation will be in order….same can be said of Gc plots in the north…Key thing is that people are allowed to choose…..fair enough if a hospital school road etc straddle your formerly empty property then tricky….if not I think people should be given a choice.
Or a straight up poll asking ALL Cypriots how many would return given the freedom to do so….
Arty
June 16, 2017 at 17:16Did you mean refugee housing?
emba paphos
June 16, 2017 at 17:42yup
Arty
June 16, 2017 at 19:01Would you have preferred tents?
emba paphos
June 16, 2017 at 21:25My housing standards are not the point I was trying to make
Arty
June 16, 2017 at 21:27Your housing standards? Are you a refugee?
Philippos
June 16, 2017 at 15:19I’ve seen these kinds of calculation before, in joke books. One such calculation proves that no one is at work, by fixing the available hours and then deducting for week ends, sickness, holidays, bank holidays etc and from the 200 hours a month you come out at zero…but quite a lot of us are working so the calculation must be wrong. On the other hand if the Turks can’t do the maths and it makes them feel that the compensation that might be due from them is piddling, then well done that clever man, they might just go for it
Muffin the Mule
June 16, 2017 at 14:07Complicated..
Slomi
June 17, 2017 at 10:08very.
Hasan Cypriot
June 16, 2017 at 12:37What a load of crap!
Slomi
June 16, 2017 at 13:57Yes.
clergham
June 16, 2017 at 12:01Will all involved get their title deeds?
braveheart
June 16, 2017 at 12:52No problem in the TRNC.
Arty
June 16, 2017 at 17:15what trnc?
Bob
June 16, 2017 at 18:34We have them don’t you worry
Red ken
June 16, 2017 at 23:14But you want give the title deeds to the right owners.
You use it to borrow money against it and run away.
Living 100,000 homes whit out title deeds.
Everyone knows GC are l…ers
Slomi
June 17, 2017 at 10:10I am one of those who paid all money +VAT while “purchased” the house but still without any title deed.How people like us can forget this fiasco.
braveheart
June 16, 2017 at 11:27A typical lawyer’s approach. Make it sound so complicated that nobody understands. Just sign on the dotted line.
Yani
June 16, 2017 at 11:45Simple maths
GC property value in the North 25 bn avro
RETURN after territorial adjustment 10 bn avro
property EXCHANCE 10bn avro ..
COMPENSATION payable by Turkey 5bn avro
10+10+5= 25
braveheart
June 16, 2017 at 11:46All you have to do now is to implement it. Good luck!
Arty
June 16, 2017 at 17:15We don’t need luck, you do.
Red ken
June 16, 2017 at 23:06You need more than luck.
TC are in position. You’re just hoping.and beginning.
Arty
June 17, 2017 at 08:19Hoping and beginning what?
Red ken
June 17, 2017 at 11:58It’s not complicated to Greeks like your to work it out ones you get your head out of your a..s
But hay you are Greek you can’t just get your head out of your a..s and smell the coffee,it’s not in your DNA
emba paphos
June 16, 2017 at 15:34avro?
Red ken
June 16, 2017 at 23:35Problem is you make things up as you go.
One minute 45bn then 25bn then10bn
You were doing the same thing not long ago about Germans.
One minute they owed you 10 bn and the next 100bn and anything in between.
You have no credit whit any one ,everyone knows that it’s a Greek thing
peemdubya
June 17, 2017 at 01:11How about you check your fingers – “with” is not spelled “whit”. Just saying.
Slomi
June 17, 2017 at 10:11it is not the language which matters in such discussions. Facts matter more.
Arty
June 16, 2017 at 19:07Its only complicated to retards like you. Stop reading your script and start thinking for yourself, hold on you can’t, erdogan won’t let you.
braveheart
June 16, 2017 at 19:21Idiot.