Supply and Demand

No, not another post about water! For those interested, the water came back on the following day. So, in all likelihood it was some unplanned maintenance rather than us being cut off for not paying the water bill. But since the water bill still hasn’t been paid (and some of it goes back as far as August) you may see more posts on this in the coming weeks.

So, back to supply and demand. Sometimes we sometimes read the UK news with a little bafflement. Right now one of the big stories appears to be the annual rumpus regarding the must-have toy this Christmas. For 2007 that, apparently, is the Nintendo Wii.

For those who have never heard of them the pronounciation you are looking for is We. The Wii is a games console, made by Nintendo and this year demand in the UK has exceeded supply so much that Nintendo considered canceling all advertising. Whole websites are devoted to searching online retailers, minute by minute, to track down elusive stocks. Discussion are ranging in online communities such as The Motley Fool and MoneySavingExpert about how to get hold of a Wii. Is is worth flying to the US or taking the Chunnel across to France in the hopes of picking one up there? On eBay Wiis are selling in crazy volumes, and sometimes crazy prices.

So, if Wiis are in such short supply that people are considering trading in their first-born child for one why are we baffled? Well, because had we not read these news stories and seen the online discussions here in Cyprus we wouldn’t know there was a shortage. Why not? Well, ‘cos there are plenty on the shelves, obviously! The electrical concession in one of our local supermarkets has three on display. When we asked if they were displaying empty boxes the staff were a little bemused.

No, they are full. Why? We have more in the storeroom if you want more than one and we will get more supplies next week

The price? £169CYP (£206GBP) against a UK recommended retail price of £178GBP.

A trip to Nicosia ended up with us wandering through a newly built mall. The electrical store there had a stack of about nine on the stock floor. This time we didn’t even bother to ask if they were real. Apparently there’s no shortage in Cyprus.

Today we dropped into our regular supermarket to pick up a loaf of bread and a gas bottle. Yes, shopping can be a little different here! While we were paying we spotted another little stack of Wiis. And they were on sale, reduced down to £155CYP.

We can only assume that Nintendo didn’t fully understand their market. Here, home computing is not that common. Less than 10% of homes have a computer so perhaps home gaming is even less usual. The result is that while the UK seems to be getting tied in knots over whether little Jonny will get his Wii for Christmas, here they are being put on sale as there is no interest.

Strange times!

Banking, Cyprus Style

On the list of errands this week was a trip to the bank. They called – on one of our cell phones, while we were at the beach (really!) – to tell us that our new Euro cheque books had arrived and could we please stop by to pick them up. On 1 January 2008 Cyprus has chosen to switch currency from the Cyprus pound (CYP) to the Euro (€, EUR) as is their right as a European Union (EU) member.

The trip into the bank was a reminder of how frustrating bureaucracy can be, how different things sometimes are, and how we still get tripped up occasionally despite our best efforts. It was also a timely reminder of how cheap it is to bank in the UK, although it’s likely that we didn’t appreciate that while we were still living there.

In England as long as we didn’t spend more money than we had in the bank or go beyond an agreed overdraft limit then banking was absolutely free. No charges for cheque books or statement or online access and, in most cases, a small amount of interest was paid on credit balances.

In England it looks like that might change as banks reconsider their position, partly as a result of the legal action to reclaim penalty bank charges. Last year the top six High Street banks in the UK made an estimated £4.5bn from penalty charges. These are charges that are incurred for unauthorized overdrafts, bounced cheques and clearing Direct Debits when there are insufficient funds in the account. Consumers are now going to court to claim back these fees on the grounds that they are ‘unfair’ in the legal context and therefore can not be charged.

Whilst they might be successful in reclaiming these charges there’s a real chance that banks may change their business model as a result and that may well result in the end to free banking as enjoyed by many at the moment.

Anyway, having picked up our two new cheque books (one for each account) we can expect to see a charge of around £6CYP (£7.20GBP, $14.50) on our next bank statement. The statements themselves will cost us £2CYP (£2.40GBP, $4.80) and the direct payment of our rent will be another £3CYP (£3.60GBP, $7.20).

In addition the bank keeps 10% of all of the interest they pay to us. That gets sent to the government to pay for defending the island. Since you ask, yes we were a little surprised to see that on the bank statements too.

Only now do we appreciate quite how cheap it was to bank in England.

So, having picked up the cheque books we then broached the slightly difficult matter of the debit cards. When we opened the accounts we were given debit cards but they were only good for one year. A month before the anniversary new cards arrived, with a three year expiry. Obviously we had proved ourselves worthy of the trust of the bank. Actually that’s not too hard here, bouncing a cheque is a criminal offence and, as well as a conviction, will result in the individual being added to a black-list which is shared with all banks on the island.

Sadly, the new debit cards failed to work. When we tried them in an ATM they were rejected, and eventually kept by the machine. Each time the card was kept we went into the branch and explained the problem. The member of staff then opened the ATM, removed the card and returned it to us there and then. In England, and probably in many other parts of the world, the staff would have to wait until the bank was closed before opening the ATM. At the very, very least they would have to wait for the branch to be empty of customers.

Here such safety-measures are laughed at. Tony M, we often think of you when we go to the bank ;-)

After several rounds of having Ian’s cards retained by the machine we headed back to the bank. It turned out that the cards had been cancelled because the wrong PIN had been used too many times. But, said we, it’s not the wrong PIN. After much frowning and tapping away on the computer the bank clerk looked even more baffled. Eventually she asked

“You didn’t change the PIN when it was first issued, did you?”

This was asked in a tone of voice which implied that such behaviour would be truly strange. Of course this is exactly what we had done, what we always do, what everyone does, surely? When we confirmed that we’d changed the number from the bank’s randomly-assigned 7813 to something more memorable she then asked

“And you have been trying to use the new PIN? Aha, then I see the problem! That is the wrong PIN. You must use the PIN that the bank issued, not the one you have chosen!”

All of this was said in such a way as to confirm, if it were needed, that everyone knew this and that we were obviously mad. Surely it makes sense for the bank to reset the PIN to their original choice when they issue new cards, overwriting any changes we had subsequently made. Really, the mind boggles.

Now we know to keep a note of the original PIN so that in three years time, when these cards expire and are replaced, we will know what PIN to use access the account to change the PIN back to one we can remember.

But none of this can happen until we can use these cards again which won’t happen until the bank is issues a PIN reminder, which they are happy to do for the princely sum of £10CYP (£12GBP, $24)!

Pragmatic Cyprus

There is, often, a pragmatic side to people here and it pops up in the oddest places.

A while back someone sent us a cheque. It was from the Laiki Bank, the second largest bank on the island.

As in the UK the account number, name and the like were printed on the cheque along with the branch name … which is where the pragmatic nature shines through.

The branch in question is in Larnaca, on the ring road that loops around much of town. It’s actually at one of the main junctions – with traffic lights – which is known locally as the Fire Station junction because that’s where the town’s big fire station is located. It’s often used as a landmark when giving directions.

Ok, you know the fire station on the ring road? Well, if you are driving into town from the motorway then turn left at the fire station lights and it’s the first block on your left sort of thing.

So guess what the branch is called. Go on, have a go!

Yep, that branch of Laiki bank is named, by Laiki Bank themselves, as the Fire Station Traffic Lights branch.

The Italian glass bar

Some friends have become heavily involved in fund-raising for a local charity which is setting up a hospice to give local care to local people. All being well the first three beds should be available within the next month providing end-of-life and respite care to the terminally ill.

In cultural terms the island has, traditionally, had a slightly different approach to countries such as the UK or America. Until recently the expectation was that the terminally ill would be treated at home, by relatives, or would be hospitalised and treated even if the only point of the treatment was to make everyone feel that something was being done even if the treatment was futile. As a result hospices, respite care and even palliative care are much lacking here.

As in most places, providing such care is expensive. Each of the three beds will cost tens of thousands of Cypriot pounds to maintain each year so effective fund-raising is an ongoing challenge.

As part of the fund-raising the charity runs a shop in Limassol which does a roaring trade in clothing, books, bric-a-brac and some less obvious items. The friends concerned are currently spending large amounts of time driving around the area and collecting items that have been donated. Over drinks recently we were regaled by stories of the strange things that people offer them and the oddities that sell such as …

…. a three foot high yellow stuffed tweetie-pie which was bought by a Filipino. Why? Seems to be the only reasonable question here! Sadly they didn’t get the chance to ask so we’ll all remain baffled for the rest of time.

… a huge old-fashioned electric typewriter taken away by an elderly local last seen cycling through Limassol with it perched on the hand bars of his bicycle …

… and a large Italian glass drinks bar.

Apparently some of the stock is too big to put in the shop or even to hold in the storeroom so one of the volunteers has taken to using his apartment storeroom as a temporary home for large items. Things like the bar – which was offered and seemed too good to refuse – is now causing some scratched heads. If it’s too big to display in the store then how do they make people aware that they have it? Is there a ready market for a custom built Italian glass bars, professionally packaged and shipped to Cyprus and still in it’s wrapping?

We’re not sure the photo does it justice but if there is anyone reading that has a (large) corner of their home that is crying out for such a thing and has a couple of hundred pounds to spare? Oh, and doesn’t mind a trip to Limassol to collect the thing. If you are interested, or know someone who needs such a thing, then drop us an email via our About page or leave a comment on the blog and we’ll put you in touch with the current owners of the bar.

Financial Shenanigans

Well, we must finally have arrived. Last week we had our first unsolicited financial services call. The company called on the home phone number and wanted to speak to Ian, inviting him to meet with one of their representatives to discuss ways to maximise his income. Mands took the call and did a small double-take when she recognised the name of the company.

Calling them a boiler room would be a little strong and would, in all likelihood result in some unpleasantness as the company are known to be particularly litigious especially with regards to defamation. It’s probably fairer to say that they have a reputation for hard selling over-priced inappropriate financial products to people who might not be financially savvy or might lack key information because they are overseas. Financial and ex-pat forums are full of tales of woe from people who have bought shares or made investments via companies like this only to lose tens of thousands of pounds.

The company that called us apparently have the dubious distinction of being the only financial company ever to be kicked out of Panama for dodgy dealings. Come-on, Panama? Surely you really, really have to go some distance to get thrown out of Panama for misbehaving?

Anyway, we won’t be calling back any time soon to make an appointment with their advisor but should they call again we might just have a little fun on the phone with them. Meanwhile, if you ever get an unsolicited phone call like this then make sure you check the FSA’s lists of Unathorised Firms and Individuals which is part of their Scams page.