The government’s economic measures still focused on loans
Statement by AKEL C.C. Spokesperson Stefanos Stefanou after the meeting of the Parliamentary Committee on Financial and Budgetary Affairs
AKEL C.C. Press Office, 1 June 2020, Nicosia
Today we were briefed by the Minister of Finance about the government’s measures for the economy. For us, in the Cypriot conditions of indebted small and medium-sized enterprises (SME’s), the emphasis must be put on the state providing direct support. We called on the government to increase the amount for a one-time grant to the very small, small businesses and self-employed workers. Small businesses and self-employed workers need this grant to endure the conditions of the crisis caused by the coronavirus pandemic.
It should be noted that the program that the government has presented is still focused on loans/borrowing. It gives emphasis to borrowing, something that does not serve the very small and small businesses, which are over-indebted with loans. From what the government has presented, it is evident that large and medium-sized companies which have access to loans will be the ones to benefit and at the same time will receive a generous subsidy of their loans.
In addition to the one-time grant increase, we have asked for the inclusion in the support package of pensioners too who have a small and medium-sized business or are self-employed. We also called for the reduction in value added tax on catering and tourism and for those business activities linked to and involved in the tourism industry to also be included.
We will monitor the whole development with the loan procedures. There are procedures that might prove to be time consuming, such as, for example, borrowing from the all-European guarantees fund that is now being set up. The experience from the other two schemes running from 2013 and 2014 is not so positive for very small and small businesses. SME’s have not been able to borrow. There is an urgent need for direct funding to proceed immediately to help SME’s survive.
