Bill provokes deficits in transparency, the risk of interwoven interests and serving of interests
Statement by AKEL Spokesperson Stefanos Stefanou on the government’s state guarantee bill
AKEL C.C. Press Office, 11th May 2020, Nicosia
The debate that took place today in the Parliamentary Finance Committee on the government’s state guarantee bill has highlighted certain very key elements:
- What Small and Medium-size Businesses (SME’s) and self-employed people actually need is support, not loans. But the government continues to insist on the logic of lending through the banks. In addition, the amounts proposed by the government are much lower than the real needs and must be increased.
- The government, to serve its own expediencies that have to do to with passing the bill, has packaged the financial assistance with guarantees for loans, two completely different procedures. The financial assistance will be provided by the state with mechanisms and procedures of the Ministry of Labour, while the loans will be provided by the banks.
- Based on the criteria that are set out in the bill, the beneficiaries for both for financial assistance and lending are much less than the total number of SME’s and self-employed workers.
- Who will loan and how much is up to the banks to decide without any substantive control. This.
As AKEL, we have submitted numerous questions and proposals at today’s meeting and we will submit specific amendments with the aim of providing better support to SMEs, self-employed workers and households. We recall that to support these groups, and the economy in general, AKEL has proposed a specific package of proposals to the government.
