The Forum Clown has spoken ..... as usual, a lot of rubbish!
Paphitis:
Nice one DT.
How would you know?
The fool thinks that the Americans don't use real money, but of course Pootin definitely does. He has case loads of Bank Bills which he flies over to Cyprus in a clapped out Topolev.
You know nothing about money ..... so don’t make childish comments, you just make yourself look even more stupid. FYI: Russia has substantial gold reserves that backs its currency, it also owns a large chunk of US $ debt as does China. He that owns your debt .... owns you!
Oh and he also said something about Noble Energy charging the RoC Government for the Oil Rigs when it is actually the Republic of Cyprus that has an equity share in the profits so of course they are liable to some of the expenditures.
You really are dumb! You have a plot of land, I as a builder build a house on it for you. Unless you are funding the construction from your own resources, you need to raise the cost of building the property. You do this by borrowing from a bank. I, the builder, gets paid contractually agreed stage payments from the bank until I completes the contract. The builder is paid and you have an equivalent debt ..... the bank who holds the debt, owns your property until the debt is paid.
The NE deal is no different in context. They will carry out the project to recover oil/gas from Cyprus’ owned bit of sea bed, but with money from a bank loan in the name of The RoC. If NE own the rig, (
which may be the case ?) and do all the work at their own cost ......... when it comes on stream NE will pay the RoC a small commission for taking their oil/gas and selling it. The RoC will have no debt .... but they will not own the produce from the field. NE will have taken the risk and to NE would go the spoils. When the oil runs out, NE have made their profit and RoC loses its income.
Or RoC will own the infrastructure and the associated debt to the banks and NE will then operate the resource and RoC will pay them per unit production. There is no such thing as a free meal! (
Surely, basic common sense for most people, although it obviously is beyond your comprehension?)
he also said that Cypriots don't have the expertise to work on an Oil Rig, when I know my next door neighbor in Cyprus works in the Middle east as an Engineer.
Firstly there are '
engineers' and there are Engineers!
Thank goodness most Cypriots have more intelligence that you demonstrate. A 2013 Cyprus Mail report, about the subject of Cypriots working in the gas/oil industry and it mirrors exactly what I said ......
Cypriots have neither the expertise nor the experience to offer. The ‘10,000’ jobs you refer to will mainly go to foreigners ..... the only jobs that Cypriots would be suitable for are the service support to the foreign workers
as I previously stated. Maybe hard to swallow but Cypriot Universities like the Frederick Institute can provide all the ‘
Gas/Oil Management’ degree courses they like but the recipients of the BSc or MSc’s have no experience and will start at the bottom of the ladder. They will not achieve a management position until they earn it through performance and experience .... say 20-30 years if they are lucky!
http://cyprus-mail.com/2013/09/22/leave-cyprus-now-if-you-want-gas-jobs-later/Yeh the USA isn't investing in Cyprus! Well tickle me pink! god damn, they own a big chunk of all the banks in Cyprus!
Yes ..... they own the shares but they have added no actual value to the bank by investing more money. They have just acquired a ‘big chunk’ of possible profits or the debt, if the bank goes to the wall. The share holders who sell are the ones that make a profit (hopefully) ..... NOT the bank or the RoC!
Once again .... you show how little you know about the financial markets!
When you buy the first issue of shares in a company .... you are making an investment in that company. In return you get share certificates, which have no intrinsic or face value .... they are the equivalent of a receipt for the original share purchase. You will receive dividends as a share holder. Subsequent share transactions do not invest any more money into the company ..... they may increase the value of the
‘receipt’ but the company sees no more investment, no matter how much the shares increase in value. Only the share holder benefits and that value is a spot value at any given moment in time and is determined by market traders.
So, if a US company bought 51% of the shares in a Cyprus bank, it would control the bank but it would not have directly invested any money, only the previous holders of the ‘
receipts’ would gain anything of value ...... like converting their ‘
receipts’ into actual money with a defined value as currency and depositing that into a bank.
Hellenic Bank = 33% American
I’ll take you word for it!
Americans are Hellenes.
Maybe ..... but they are not a very smart people as a race. Nice people but ..... I doubt you would easily find an American ........ that could even find Cyprus on a map!
Once again you demonstrate your ignorance..........
Anyone still want to have a guess as to which country is the biggest investor in Cyprus?
Is it
a) USA
b) Mother Russia
c) China
d) Greece
According to the Cyprus government, latest figures available go up to 2010 ....... it is certainly
NOT the USA.
“The leading investor countries at 31 December 2009 were Greece (23.6%) , Russia (15.4%), the United Kingdom (10.8%)...... The US comes LAST (1.0%) even little Gibraltar was ahead of the them (1.1%) !
(
can’t get a ‘link’ so Google it, if you want to get a more balanced and reasoned view.) Ref: Cyprus Investors in Cyprus - Department or Trade, Ministry of Commerce, Industry and Tourism paper 2013
This describes investment ...... i.e. using their money and transferring it into projects in Cyprus ..... that is very different from buying shares on ‘
The Markets’ as a percentage ownership of a company. If a US company used its own capital or borrows it outside of Cyprus, to build a hotel in Cyprus ...... then they are investing. If they buy shares in the Hilton Hotel Group .... they are buying shares from the current share owners. Hilton Hotel Group would not see any more money out of the deal, only if the US purchaser was buying shares directly from the Hilton Company.
DT:
Don't know what you mean about Russian money being actual money....these investments were performed by buying equity and debt directly from Cyprus. That's actual money
.
Buying ‘
equity’, is buying up shares .... yes? The company whose shares are purchased do not see an increase in investment into their company unless it is from the initial share issue. After that, any further exchanges are the profit or loss to the holder of the share, not the company. So buying shares on the market is not investing more money into the Company or the RoC.
Buying ‘
debt’, is lending money to a company/government ....yes? A Bond purchase has an intrinsic value and is redeemable at a given date in the future. You therefore hold the debt, whereas there is no debt when you purchase shares. A Bond is an IOU, whereas a share is a receipt with no defined or intrinsic value and is not redeemable within a given time period.
If a Russian brings a suitcase full of Dollars/Pounds/Euros to Cyprus in his ‘...
clapped out Tupelov’ and spends it on whatever, it is an inflow of money into the economy. It is not a loan. They are effectively the first purchaser of their ‘
share’ in the RoC economy and thus the payment they make goes into economy. If they bought RoC Government bonds, they would be loaning money to the RoC ......... so the RoC would be in debt to the Russian.
