In the framework
of the measures taken by the Republic of Cyprus in support of small and medium-sized
enterprises (SMEs), an agreement was signed on 17 February, between the
Republic of Cyprus and the European Investment Fund (EIF) concerning the
management of the Cyprus Entrepreneurship Fund by the EIF. The agreement was signed,
on behalf of the Republic of Cyprus, by the Permanent Secretary of the Directorate
General for European Programmes, Coordination and Development.
The Cyprus
Entrepreneurship Fund aims at improved SMEs funding, given the liquidity
problems the Cyprus banking system faces today. The Fund is expected to
contribute to enhanced investment activity and to the creation of new jobs.
The Cyprus
Entrepreneurship Fund is financed through a €100 m. loan to the Republic of
Cyprus by the European Investment Bank (EIB), secured in a loan agreement
signed on 13 December 2013. It will be implemented in cooperation with
financial institutions which will be selected through a call for expression of
interest published by the European Investment Fund in the beginning of March.
The financial institutions will co-finance at least 50% of the loans, which
means that the total sum of financing expected to be given to SMEs will amount at
least to €200 m.
The allocation
of resources to SMEs will be realized through the granting of loans with
particularly favourable terms as regards the interest rate and repayment
period. It is noted that loan beneficiaries also include primary sector SMEs, and
that Structural Fund co-financed projects shall also be eligible for financing
through the Cyprus Entrepreneurship Fund.
An information
event concerning the Cyprus Entrepreneurship Fund will take place on 26
February 2014, at the Ministry of Finance.
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