THE LARGEST SUPPORT PACKAGE - PLANS ANNOUNCED 9/1

 Filenews 9 January 2021

Please note the support measures have been published in note form.  If/when further detailed information is provided, it will be shown.  There are also support measures announced by the Minister of Labour - but these were all in slide format in Greek.

Package of financial support measures estimated at €350 - 400 million announced by Finance Minister Konstantinos Petridis who stressed that the government is here to support the real economy, workers and self-employed workers who have been affected by the worst economic crisis in our country since 1974, as he said.

First Plan - State grant for enterprises and self-employees

Enterprises and self-employed workers with a reduction of more than 35% of turnover. The plan covers new businesses set up in 2020 which showed a decrease compared to the industry average. The conditions are: To be based in Cyprus, to have covered the VAT obligations and have an obligation to reopen the business in 2021. The amount of the subsidy shall be calculated by a specific algorithm.

For companies that are suspended, the basis of calculation is the average turnover in 2021.

The maximum subsidy amount shall be EUR 300 000 and the minimum amount of EUR 1 000. The project budget is estimated at EUR 200 million.

Example of a gym with a turnover of 311,000 euros and an 80% reduction will receive a subsidy of 8,000 euros. 

The second project concerns a special allowance for self-employed workers who are not registered for VAT. The subsidy amount is 50% of the monthly allowance they receive from the Ministry of Labour. Excludes those who declared an income of less than EUR 150.

The third plan concerns the suspension of instalments to banks. We have re-evaluated the data with the central bank and decided that it is necessary to give a breather to businesses that will cease operations with the new measures.

The dose suspension period is for a further 6 months until 30/6/2021. Applications will be paid by 31/1/2021. New loans signed after 30/3 are not covered.

In companies with a mortgage residence up to 300,000 euros.

Companies and self-employed workers whose work is suspended.

Hotel business.

The fourth project concerns measures to support tenants. First two-month suspension for the months of January and February for the payment of 70% of the rents of suspended enterprises. Debts must be settled by February 2022. Suspension of the payment of rents for the two months to those rented by the state. Providing tax relief to landlords who provide rent reductions.

The maximum subsidy amount shall be EUR 300 000 and the minimum amount of EUR 1 000. The project budget is estimated at EUR 200 million.

Example of a gym with a turnover of 311,000 euros and an 80% reduction will receive a subsidy of 8,000 euros. 

The fifth plan is to extend the interest rate subsidy plan to new business loans for six months.

The sixth plan is the six-month extension of the interest subsidy on new mortgages.