A series of measures aimed at facilitating financing for small and medium-sized enterprises (SMEs) and startups was approved yesterday by the Council of Ministers, while simultaneously making changes to the strategy of attracting foreign businesses to maintain their positive contribution to the local economy.
Specifically, as stated by the Minister of Finance, Makis Keravnos, after the Council of Ministers meeting, the Equity Fund is expected to be fully operational by the end of March, while a proposal for the establishment of a National Development Agency is expected to be submitted for approval the same month.
Mr. Keravnos mentioned that the combination of the two aims to address gaps observed in the financing of SMEs and startups.
It is worth noting that reference to the National Development Agency, as it was named, was also made by President Christodoulides during the presentation of this year’s governance program.
Regarding the proposed establishment of the Agency, the Ministry of Finance stated yesterday that a consultancy firm has already been tasked with conducting a study to identify its activities and tools, with the aim of submitting the relevant proposal to the Council of Ministers in March.
“The National Development Agency is a result of the recognition that there are gaps in the financing of SMEs and startups, as well as in some cases self-employed individuals,” he said.
Additionally, within the first quarter of this year, the Cyprus Capital Financing Fund (equity fund) will also be fully operational.
The Ministry of Finance reminded that the management of the Fund’s capacity of €37.5 million has been entrusted to the European Investment Fund of the European Investment Bank (EIF).
“The Fund will primarily invest in innovative and innovative Cypriot companies with the aim of addressing the financing gaps identified in the Cypriot market due to the high investment risk these startups have,” he said.
As stated by the Ministry of Finance, the Council of Ministers also proceeded yesterday with a review of the strategy for attracting foreign businesses in order to address some issues they face and to further increase the number of these businesses, which, as mentioned, create new jobs, expertise, and significant added value to our economy.
According to him, the new actions that have been included in the strategy and will be promoted by the competent Ministries concern the revision of the duration of the residence permits of these companies when certain data change, the implementation of the blue card directive, which relates to the condition of entry and residence of third-country nationals, while the issuance of a business visa (visa card business) is promoted, which concerns a new unit providing facilities to cover the educational needs of the children of foreign workers in Cyprus.
Also, a new unit is being promoted, which aims to address housing problems faced by foreign companies, said Mr. Keravnos, noting that this unit relates to the new housing incentives for build-to-rent and the revision of certain urban incentives.
