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Government Guarantee Plan for Small Businesses

17/05/2002 11:00
Following relevant proposal by the Ministry of Commerce, Industry & Tourism, the Cabinet approved a Government Guarantee Plan for Lending of Small/Medium Sized Enterprises of the Manufacturing Sector.

Aim of the plan, which is part of the New Industrial Policy, is to aid funding of existing and new businesses which do not have the necessary security needed by banks for loans towards expansion of their units or creation of new ones.

The plan, apart from government guarantees for securing of loans up to CYP 100.000, also provides for subsidy of the interest rates of such loans by 2 points beyond 5%, up to their repayment.

By the introduction of the new Government Guarantee Plan, the Ministry believes that a great number of viable businesses will be developed. The contribution of the Plan to the development of new businesses for the production of new products and high technology products is also expected to be notable.

The plan will be implemented as of 10 June 2002 and interested parties can obtain further information from the “Plan Guide” issued by the Ministry.