Cyprus introduces €150 mln support packages

Cyprus on Wednesday announced a raft of new measures in a EUR 150 mln support package for the economy to deal with effects of the pandemic with total rescue funds touching EUR 3 bln. Finance Minister Constantinos Petrides and Labour Minister Zeta Emilianidou unveiled a series of targeted plans to support workers and businesses over the next four months.

Beneficiaries of the plans are expected to rise to 50,000. Two plans are aimed at hotels and establishments that are directly affected by tourism or have economic activities associated with companies that are subject to mandatory suspension of operations.

Other schemes cover the unemployed and businesses that have lost 40% of their turnover.

“With these five plans, as we had promised, we continue to offer a safety net for the protection of employees,” said Emilianidou.

The monthly cost of the five plans is between EUR 35 mln and EUR 40 mln, but it also depends on the turnover reduction of each company that participates.

Petrides said the new plans are mainly based on a more targeted continuation of employment support measures in areas of activity that continue to be affected by the pandemic, and their implementation will be governed by a stricter framework, to prevent abuse.

He also announced cabinet’s approval of a Guarantee Agreement amounting to EUR 38.11 mln with the European Commission, for Cyprus’ participation in the “SURE” mechanism, which aims to protect jobs affected by COVID19.

The Minister argued Cyprus responded swiftly with a comprehensive and coherent three-phase Economy Support Programme, total amount of the Program including fiscal interventions was estimated at around EUR 1.2 bln while interventions to support business liquidity exceeded EUR 1.7 bln.