Cyprus Lawyers G. Kouzalis LLC informs as to the
Decisions by Cyprus Council of Minister for the support of the Economy
The Council of Minister approved yesterday 07/05/2020 three (3) New Bills for additional support of the economy. The new bills will be sent to the European Commission for approval and then submitted to the House of Representative for a vote.
According to the Minister of Finance Mr Constantinos Petridis the following measures have been approved:
- Sponsorship of small businesses and independent employees, i.e. very small business and those who employ up to 10 people as follows:
- Business in full-suspension until 3rd of May: €2625
- A business that continue to be in full-suspension after 4th of May: €3500
- Business in partial suspension until 3rd of May: €1875
- A business that continue to be in partial suspension after 5th of May: €2500
- Full employees in full or partial suspension until 3rd of May: €1125
- Full employees who continue to be in full or partial suspension after 4th of May: €1500
In this way, efforts are made to provide assistance to small businesses to meet need during the crisis, such as renting out certain debts to suppliers or other operating expenses.
- Provision of liquidity to companies or businesses through guaranteed loans of 1.5 billion euros as follows:
- 300 million Euros for very small businesses that employ less than 10 people.
- 1 billion Euros in medium-sized businesses.
- 200 million Euros in large companies.
The loan guarantee rate will be for very small businesses and self-employed people of 85% from the state and 15% from credit institutions, while for medium and large businesses it will cover 70% of the guarantee from the state 30% from credit institutions. The loans will be given for a period of three months to six years by the financial institutions with very favorable terms and a favourable interest rate.
The total liquidity that can be channelled into the market through guaranteed loans will be close to 6 billion Euros.
- Incentives for further reduction of rents:
Specifically, concern owners who rent Real Estate to individuals or legal entities and reduce the rent for a period of 3 months to facilitate tenants who have been affected by the Coronavirus Pandemic.
The Law stipulates that they will be given a tax relief of 50% of the rent reduction amount, meaning that the rent reduction will not be less than 30% of the monthly rent and will not exceed 50% of the rent.
For more information do not hesitate to contact your Cyprus Lawyers G. Kouzalis LLC at lawfirm@cytanet.com.cy or call at 23811788.