in-cyprus 7 May 2020 -Bouli Hadjioannou
The Council of Ministers on Thursday approved a revised bill to pump much needed liquidity into the economy with €1.5 b in state backed loans for companies reeling from the impact of the coronavirus outbreak on the economy.
It was one of several decisions taken on Thursday to support the economy and businesses.
The new bill provides for:
– €300 m in guarantees for loans to very small companies
– €1 b for medium and large companies
– €200 m for very large companies
The loans will be given by the banks and will have a duration of three months to six years.
For very small companies, the guarantee will be covered 85% by the state and 15% by the banks and for medium sized and large companies 70% by the state and 30% by banks.
The bill is subject to the approval of the House of Representatives.
“We anticipate that the total liquidity that will be pumped into the economy as a result will be close to €6 billion,” he said.
