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Cyprus Minister unveils scheme to stimulate new business activity

pilides happy
Energy Commerce and Industry Minister Natasa Pilides

Cyprus minister of energy, commerce and industry Natasa Pilides presented a new scheme on Tuesday, May 18, to promote new business activity on the island.

The scheme includes a budget of €30 million that is earmarked for new businesses, a crucial goal for Cyprus since it can potentially help decrease unemployment, while an additional €166 million will be allocated for households and existing businesses.

The minister stated that over the past four months, the Ministry of Energy, Commerce and Industry had launched schemes that will cost €121 million in total, with the final amount rising to €166 million by the end of the current year. This amount is part of a grand total of €450 million designated to be used by the ministry between 2021 and 2027.

“The government aims to provide material assistance to businesses because they are the driving force behind the country’s economic development, particularly during the present period of time when there are intense efforts to help the economy recover and bounce back from the effects of the pandemic,” the ministry stated.

In terms of the support for new businesses, the minister explained that the new scheme is a continuation of pre-existing schemes to bolster new business activity, something which the minister noted was one of their most popular and successful endeavours over the past few years.

“During the past seven years alone, these schemes have helped 608 men up to the age of 40 and women up to the age of 55 to pursue their dreams, launch their own business and at the same time create new employment opportunities in the job market,” the minister said.

The new scheme officially went into effect on May 17 and will conclude at the end of the current year.

Key points included in the new scheme include:

  • Unification of young peoples’ and women’s entrepreneurship schemes to bring admin costs down
  • Both unemployed and employed persons that are either young people between 18 and 29 years old, men between 30 and 50 years old, and women between 30 and 55 years old are eligible
  • Increasing the highest possible budget an applicant can submit to €120,000
  • Increase the percentage of a new business the government can fund to 70 per cent for young people and 60 per cent for the two older age groups
  • Increasing the maximum amount the government can contribute to €84,000 for young people and €70,000 for the two older age groups

 

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