Filenews 3 July 2022 - by Eleftheria Paizanou
The blockage that exists with the 14th prerequisite of the Recovery Fund in relation to the access of loan servicing companies to the data of the guarantors, delays not only the second tranche of €85 million, which the country should have already received months ago, but will cause chain delays with the remaining ten instalments. From the amount of €1.2 billion that Cyprus expects to receive by 2026 from the Recovery Fund, so far it has put only €156.8 million in its coffers (as an advance payment), corresponding to 13% of the amount. The first tranche was not accompanied by prerequisites and was given last year, when the Republic had signed the relevant agreement with the EU.
The milestones of the second tranche were supposed to close on December 31, 2021, but, seven months later, it is still pending, due to the reservations of the parties on the issue of the protection of guarantors. This implies a delay in the third tranche, the application for which would be submitted in August, but after another 18 milestones would be implemented by 30 June. After the pitfalls that arise in the course of the implementation of the National Plan, it is a given that the timetables for which the Republic has committed itself to Brussels will not be met.
Even if it becomes possible to find a compromise formula for the guarantors next Monday in the Parliamentary Committee on Finance...it will be a good autumn as in will flow the European cash (2nd tranche) into the state coffers, while by the end of the year, if everything goes smoothly, it is likely that the country will get the third tranche, i.e. the remaining €85 million.
In the last meeting that took place between the Minister of Finance Konstantinos Petrides and the leaders or representatives of parties, the latter, in addition to further improvements to the two controversial bills, had called for an amendment to the general framework of foreclosures. As "F" is informed, the ministry accepts the changes proposed by the Ecologists to the bills concerning an increase in sanctions in case of violation of the law by the management company, while when the loan ends up in a management company then the guarantor will give his consent to have access to his data.
The government is also lagging behind
In addition to the delays that exist from the Parliament, delays are also observed on the part of the government, for the other prerequisites. On Thursday, the Ministry of Finance submitted to Parliament a bill providing tax incentives to attract investment in research and innovation, which is a milestone of the Plan, with its implementation date in the first quarter in 2022. And for this prerequisite there will be a delay, as the bill was recently tabled and until it is approved by the Parliament it will take time. The bill completes the package of tax measures to attract companies to Cyprus.
