Filenews 7 May 2021
The third tranche, amounting to €124.7m, is expected to be disbursed at the end of May. by the Community Fund SURE, to cover additional costs of ongoing measures to support labour costs due to the pandemic through the plans of the Ministry of Labour, Welfare and Social Insurance, says a communication from the Office of Public Debt Management (DGS).
According to the GDR, the additional amount of €124.7 million for the period 2007-2013 was €124.7 million. increases the total amount of the loan from SURE for Cyprus to €603.7 million. Cyprus has already received €479 million from SURE. in two instalments (1st tranche €250 million, 2nd tranche €229m). These loans are granted on favourable repayment terms, supporting increased budgetary needs amid the ongoing coronavirus pandemic.
As mentioned, due to the continuation of the pandemic, Cyprus made in April 2021 a supplementary request to the European Commission to cover additional costs of the ongoing measures it is taking to tackle the pandemic (Ministry of Labour Plans), amounting to €124,700,000, which was approved by the Council of the European Union on 23 April 2021.
To this end, it has been prepared by the European Commission and signed by the Minister of Finance, with the approval of the Council of Ministers, an addition amending the existing Loan Agreement (addendum to the loan agreement) with the revised funding request.
It is recalled that the original Loan Facility Agreement dated 05 October 2020 between the EU as a lender and Cyprus as a borrower provided for a total nominal loan amount of €479,070,000, from which the maximum possible amount was obtained, i.e. €479,000,000.
The ultimate objective of the European SURE Programme is to support employment in pandemic-affected business units on the basis of government policy plans adopted at national level by Member States, it is reported.
According to the details given by the GDR for the first two instalments, the first tranche is allocated to €150 million. with a repayment period of February 2025 (5 years) and €100 million, repaid in November 2050 (30 years), while the second tranche relates to loans of €157 million. with repayment in June 2028 (7 years) and €72 million. with repayment in November 2050 (30 years).
