Cyprus economic package to amount to €1.5 billion

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The finance ministry is working to finalize a revamped package of economic assistance amounting to at least € 1.5 billion, about 7 percent of GDP, credible sources told the Cyprus News Agency (CNA) on Monday.

Finance Minister Constantinos Petrides announced last week a € 700 million financial assistance package, equivalent to 3 percent of Cyprus ‘GDP. However, after a meeting with parliamentary parties, Petrides confirmed that the government would accept additional measures, including the provision of government guarantees.

Petrides will start contacts with Central Bank Governor Constantinos Herodotou, leaders of political parties, and with the CEOs of commercial banks today and tomorrow, according to a ministry source.

On Monday, Petrides will meet Herodotou with dedicated teams from the Ministry and CBC to discuss the topic of offering government guarantees to lenders impacted by the coronavirus epidemic.

The goal is to finalize Tuesday’s revised economic package in a bid to send bills for approval to the Council of Ministers, the same source told CNA.

“The economic package would amount to at least € 1.5 billion,” a senior official told CNA, adding that it would provide direct assistance to the Cyprus economy, deferred government revenue in the form of payment suspension of direct and indirect taxes and other fees, as well as government assurances that will not have a fiscal effect until they materialize.

Source : flexi-news.com