Commission: One billion euros in Cyprus to support businesses and the self-employed

Commission approves € 1 billion Cypriot program to support businesses and the self-employed

Untitled project 2021 08 17T125528.198 European Union, COMMISSION

The Commission approved the Cypriot program of 1 billion euros to provide support to businesses and the self-employed, based on the temporary framework for state aid.

Cyprus has notified the Commission, under the Interim Framework, of support for companies affected by the outbreak of the coronavirus and of the restrictive measures to be taken by the Cypriot Government to limit the spread of the virus.

As announced, the support will take the form of state guarantees for new loans.

"The measure will be open to companies operating in all sectors (except the financial sector). "The aim of the regime is to provide liquidity to viable companies that have faced disruption of their business activity due to the outbreak of the coronavirus", it is noted in a announcement of the European Commission.

It is added that the Commission has found that the Cypriot measure is in line with the conditions set by the interim framework. In particular, scheme (i) covers new loans with a minimum maturity of three months and a maximum maturity of six years; ensure that support is effectively channeled by financial intermediaries to beneficiaries in need; and (v) ensure that support is provided by 70 December 31 at the latest.

According to the Communication, the Commission concluded that "the measure is necessary, appropriate and proportionate to remove a serious disturbance in the economy of a Member State, in accordance with Article 107 (3) (b) TFEU and the conditions laid down in the provisional framework and therefore approved it under EU state aid rules ".

"This € 1 billion scheme will allow Cyprus to support businesses and the self-employed affected by the coronavirus pandemic by providing state guarantees for loans. The scheme will help these companies cover the liquidity shortages they face due to the ongoing crisis. "We will continue to work with Member States to find the best solutions to support businesses in these difficult times, in line with EU rules," said Margaret Vesteyer, Executive Vice-President of the Commission for Competition Policy.