“With the five plans, as we had promised, we continues to offer a safety net for the protection of employees” said Emilianidou.

She explained that the monthly cost of the five plans, would be between € 35 million and € 40 million, noting, however, that it also depends on the turnover reduction of each company, that will participate in these plans.

On his part, the Minister of Finance stressed that the new plans are mainly based on a more targeted continuation of employment support measures in areas of activity that continue to be affected by the pandemic, and their implementation will be governed by a stricter framework, to prevent any abuse.

 Petrides also announced a Cabinet’s decision to approve a Guarantee Agreement amounting to € 38.11 million to the European Commission, for Cyprus` participation in “SURE” mechanism, which aims to protect jobs affected by the pandemic.

The Minister pointed out that Cyprus responded immediately and in a coordinated manner, with a comprehensive and coherent three-phase Economy Support Program, noting that the total amount of the Program including fiscal interventions was estimated at around 1.2 billion euros and interventions to support business liquidity were more that € 1.7 billion.

He also said that Cyprus’ policies to support the economy which amounts to around 3 billion euros, consist one of the largest support programs in Europe, but also the largest emergency plan to support the economy that has ever taken place in Cyprus.

“With the coherent Economy Support Program, the Government has essentially lifted the entire burden of the operation of the economy during the restrictions period, but also during the period of the gradual lifting of the restrictions,” said Petrides, noting that 190,000, citizens 26,000 businesses and 22,000 self-employed were supported by public funds. He added that a total of €500 million was given for income subsidy in the three phases of the Support Program.

Moreover, the Minister of Finance said that even more prudence and responsibility in financial management was needed over the next period and stressed that the possibilities of state support and public finances were not unlimited, while there’s still a big uncertainty regarding the course of the pandemic and the international economy.

He also said that in the next period, the continuation of healthy fiscal management should be ensured by shielding public economics, the optimal participation in the programs of the European Union and especially in the Rehabilitation Fund, the revision of Cyprus’ development model which as he said was already in progress and the continuation of reforms.

Source: CNA

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Source: CNA

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Following a meeting of the Council of Ministers, Anastasiades said that the government decided to provide liquidity amounting to 800 million euros to finance Small and Medium Enterprises (SMEs), through the Cyprus Entrepreneurship Fund, noting that the new set of approved measures aims to support the real economy of the country, “utilizing fully the tools provided by the EU and the European institutions.”

Anastasiades said that beneficiaries will be SMEs that have a number of employees that does not exceed 250 people per business.

He further noted that in order to grant loans to the Cypriot SMEs and to mid-cap companies, the government decided, in cooperation with the European Investment Bank, to increase the loan scheme by 500 million Euros.

Beneficiaries will be enterprises registered and operating in Cyprus which employ up to 3000 employees per business.

Moreover, the Council of Ministers approved the participation of the Republic of Cyprus to the Pan-European Guarantee Fund that has been set up with a view to address the repercussions of the COVID-19 pandemic at the EU member states.

Anastasiades said that Cyprus is expected to draw 300-400 million euros from this fund for the needs of the Cypriot economy.

Beneficiaries will be SMEs and mid-cap companies that have been hit by the pandemic.

The granted loans will be guaranteed by 80% by the Pan-European Guarantee Fund.

The President said that all loan schemes provide for the protection of jobs.

The government also decided for an interest rate subsidy scheme for new business loans to enterprises, including the self-employed, which lack liquidity due to the pandemic. This concerns loans that were granted or will be granted from March 1^st 2020 until December 31^st 2020.

Beneficiaries will be all the enterprises and self-employed, under the condition that they are not considered problematic as provided by the definition of the European Commission. Anastasiades said that the measure falls within the guiding lines issued by the European Commission.

The interest rate subsidy will be for four years as follows: During the first two years the interest rate will be subsidized up to 3.5 percentage points, while for the third until the fourth year the interest rate will be subsidized  by 2 percentage points for the SMEs and by 1.5 percentage point for the large enterprises.

Moreover, according to Anastasiades, the Council of Ministers decided to subsidize the interest rate for a particular period of time and with a fixed maximum loan with a view to support owner-occupied housing.

This concerns loans that were granted or will be granted from March 1^st 2020 until December 31^st 2020 and will not exceed 300 thousand euros.

The duration of the subsidy will be four years and will be up to 1.5 percentage point of the interest rate.

The government also decided to implement a scheme to subsides very small and small enterprises as well as the self-employed.

The President said that the aim of the scheme is to cover part of the rent and the operational expenses. The total amount of the subsidy is over 100 million euros.

The grants concern 50,000 very small and small enterprises as well as self-employed which employ up to 50 people.

According to Anastasiades, the amount of the grant will be allocated as follows:  self-employed and very small enterprises that have party or fully suspended their operation, have been participating in the Special Schemes of the Labour Ministry for the period from April 13 – May 12 2020 and were employing up to one person: 1250 euros, from 2 to 5 persons: 3000 euros, from 6 to 9 persons: 4000 euros and from 10 to 50 persons: 6000 euros.

The President also said that with a view to boost recovery, the Council of Ministers decided to give instructions to all the competent authorities with a view to immediately call for tenders for all development projects based on the President’s announcements or other projects which are mature, irrelevant from the planned period for the tenders according to the budget.

Therefore, Anastasiades noted the implementation of development projects is being expedited. As he noted the project which concerns the building of the House of Representatives if being excluded for the time being.

The President also said that the government decided a scheme of incentives up to 6,3 million euros with a view to boost the tourist sector and Cyprus’ connectivity. He noted that along with the current scheme the amount reaches 15.7 million euros that will be allocated until the end of 2020.

Moreover, with a view to reinforce the tourist accommodations and restaurants they decided to reduce VAT from 9% to 5% for the period from July 1^st 2020 until January 10^th 2021.

In addition, Anastasiades said, an amount of 22 million euros will be allocated to support and boost the agricultural sector as has already been said by the Agriculture Minister.

The President said that the total amount of grants with a view to safeguard jobs, partly cover the operational expenses and rents of the self-employed and the businesses, is up to or will exceed 430 million euros.

At the same time, he noted, boosting liquidity gives the potential to draw loans amounting to 1.7 billion euros, without taking into consideration the subsidizing of interest rates by the state for business and house loans.

The President stressed that the government proves once again, with the decisions taken today, its determination to support the dynamic restart of the Cypriot economy.

“I want to assure you that we will take any other measures considered as necessary, with the same determination, within of course the framework of the state’s economic potentials,” he noted.

Details about the measures adopted will be given by Finance Minister Constantinos Petrides during a press conference that will be held on Thursday

Source: CNA

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According to a  press release issued by the Presidency, President Anastasiades will preside over on Wednesday a meeting of the Council of Ministers, at the Presidential Palace. The meeting will start at 7 p.m local time.

After the meeting, the President will address the public to announce the measures to support the employees and the economy.

Source: CNA

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On Friday, government announcements are expected regarding the reopening of airports and hotels in Cyprus, framing thus the time schedule for all stakeholders to prepare, Karayiannis said. He noted, moreover, that airports are expected to open “sometime within June.”

He also pointed to a meeting that took place on Wednesday, between the Scientific Advisory Committee and the President of Cyprus, where Deputy Minister for Tourism, Savvas Perdios, announced that he drafted a list with 20 countries which could send tourists to Cyprus. The list includes traditional markets, as well as new ones, Karayiannis said.

“The Epidemiological Surveillance Unit will carry out an evaluation of the epidemiological situation in these countries. In case some countries are on the same epidemiological level with us, or are better off, we will accept tourists without obliging them to bring a certificate saying that they have done the test for coronavirus and without being quarantined. Respectively, the same conditions will apply for Cypriots visiting these countries” he added.

Karayiannis also pointed to public announcements concerning an initial understanding between the governments of Cyprus, Greece and Israel to promote tourism between their countries, saying that this could extend to other countries such as Malta, Austria and the Baltics.

Asked about countries in Europe’s South, that were particularly hit during the pandemic, Karayiannis said that they might present a much better epidemiological situation as early as July, and that there is a possibility to allow the flow of tourists from and to these countries.

“The rate of new cases as well as of deaths is already declining in Italy and Spain. Therefore, very soon they will reach the same levels with Germany, when the country decided to open up businesses” Karayiannis concluded.

Source: CNA

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The Cyprus government`s action plan for the gradual lifting of the restrictive measures for flights to and from Larnaca and Paphos airports were the focus of a meeting on Wednesday at the Presidential palace under President Nicos Anastasiades.

The meeting was attended by the Ministers of Transport, Health, Finance, Labour, Foreign Affairs, Justice and the Deputy Minister of Tourism as well as by the members of the scientific group on COVID-19.

In statements after the meeting, Sentonas noted that President Anastasiades listened to the opinions of the scientists for various issues, related to these plans, as the phases for the opening of airports, the categorization of the venues, the determination of criteria and the preconditions of each category as well as the measures for prevention and health protection.

Sentonas said that President Anastasiades thanked the scientists for their valuable services for the management of the pandemic, and the effort they are making to inform citizens.

Source: CNA

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Koushos was referring to a government bill on state guarantees to support the business sector which was withdrawn following the disagreement of political parties with various provisions included in it, according to a presidency press release.

He stressed that the government could not risk time consuming procedures which could have been necessary, had the bill been voted to include proposed amendments by the parties, which may have been unconstitutional or against the framework set by the EU and would mean lengthy legal proceedings possibly before the Supreme Court. Such a delay, he noted, “would clearly prevent the economy’s restart and the provision of liquidity.”

Replying to criticism by opposition party AKEL he said that the government’s only concern was “to safeguard jobs and the sustainability of our businesses which are suffering so that the economy and the country can stand once more on its own feet.”

Koushos further said that Cyprus President Nicos Anastasiades has had meetings with parliamentary party leaders, the parliamentary committee on financial and budgetary affairs has had tens of teleconferences and the Ministry of Finance has communicated with parties tens of times in the last two months, adding that the government has accepted a long list of over 15 amendments which had almost distorted the effort’s philosophy and proceeded to outline a number of them.

He also expressed the government’s readiness to explain to the people precisely which political party proposals it had accepted and which are still pending before the parliamentary committee of finance.

Source: CNA

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All aspects of traveling will be addressed in the action plan, Karousos went on, such as new measures at airports, necessary modifications in their infrastructure, conditions to enter the Republic and screening methods for coronavirus, either before boarding the plane or when arriving in Cyprus. In any case, air traffic will be restored gradually, the Minister concluded.

Almost 7,000 people repatriated
————————————————-
According to the Minister of Transport, a total of 6,947 people have been repatriated since March 21, with flights arranged by the Republic of Cyprus. The repatriation program continues and in the next few days we plan to arrange flights from France, the Netherlands and Denmark, Karousos concluded.

Foreign Ministry Spokesman Demetris Samouel told CNA that the implementation of the plan to repatriate people is “on the right track.”

For the first time, he said, flights scheduled to take place in the period ahead cover the number of people who want to come back, on the basis of the interest expressed through the connect2cy online platform.

Among other things, this is attributed to the very good cooperation between competent government services and the significant contribution of Hermes in planning repatriation flights, Samuel concluded.

Source: CNA

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Source: CNA

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He added that the date on which Cyprus will open up as a destination will not necessarily be the same as the date when the first tourist arrives, as foreign markets may not be ready yet.

He also said that bookings will be set at the last minute this year and added that if some airlines or travel organizers have booked earlier, this should not be taken for granted because no one knows how things could turn out.

As for the possible tourist markets for Cyprus this year, as he said, there are some countries that seem to manage better than others the pandemic and probably their citizens want to travel in the summer. These countries are Germany, Scandinavian countries, Austria, Switzerland, Greece and Israel. Tourists from these countries, he said, appear to be able to travel earlier than other countries, but as he said, “no one knows yet”. Cyprus, he added, which was also successful in managing the pandemic, is a country that tourist see as a possible destination.

 However, he clarified that Cyprus would take into account scientific data proving that the country of origin has managed to control COVID-19, before accepting any tourists.

At the same time, he added that many hotels may choose to stay closed and some others may choose to open later in the summer, since operating costs will be increased due to some restrictions on how they will operate.

As for domestic tourism, Perdios said it could cover some of the losses, but to a small extent. He explained that until last year domestic tourism was around 6-7% of the tourism in Cyprus and with some actions by the Ministry of Interior, the contribution of domestic tourism could increase to 10-12% this year.

However, as Perdios said, Cypriot citizens could not replace almost 40 million overnight stays.

He also said that the Deputy Ministry will launch a targeted campaign in the direction of domestic tourism, while there will be subsidized holidays for social tourism, short getaways and organized excursions.

At the same time, he noted that he is aware of the fact the people of Cyprus will come from  a period of inactivity of two or three months which may have affected their incomes, while as he said, if Greece opens up, many Cypriots may choose it as a destination.

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