Further progress made on recovery plan

Cyprus has made further progress in its EU recovery and resilience plan after the cabinet on Monday approved the government’s agreement with the European Commission, the ministry of finance said on Tuesday.

Finance Minister Constantinos Petrides has already signed the final document which will be sent to the commission for final approval.

The commission’s aim with an EU-wide plan is to “mitigate the economic and social impact of the coronavirus pandemic and make European economies and societies more sustainable, resilient and better prepared for the challenges and opportunities of the green and digital transitions.”

Permanent secretary of the directorate general for European programmes, coordination and development at the ministry Theodosis Tsiolas told the Cyprus News Agency that the plan provides for €1.2bn in grants and €0.2bn in loans.

Tsiolas further explained that Cyprus must satisfy 14 points by the end of 2021 to receive the funding.

They include bills to reform the public service, bills to combat corruption, projects upgrading the courts as well as measures that contribute to environmentally sustainable development.

For Cyprus to receive its first instalment, which amounts to €65m, the 14 points must be achieved.

In accordance with the protocols, when the commission reviews requests for funding it will also examine to what extent the 14 points have been met. Funding can be suspended should Cyprus fail to satisfy the criteria.