The cabinet on Thursday approved a scheme to provide government guarantees worth €300 million for bank loans that will finance development projects and small and medium businesses (SMEs)
Described by the deputy government spokesman as an “exceptionally important decision for Cyprus’ economy,” the plan involves the government guaranteeing loans from the European Investment Bank to Cypriot lenders.
The plan will be submitted to the European Commission competition regulator for approval.
“Many coordinated and parallel efforts are being made to secure approval as soon as possible,” Victoras Papadopoulos said.
The lending criteria to SMEs will be set by Cypriot banks.