The scheme had been drafted first last year as an instrument to assist businesses stricken by the pandemic fallout.

Disagreements regarding its provisions and the many changes demanded by the opposition forced the government to withdraw the bill. It was eventually passed this year and came into effect on Friday.

State guarantees will cover 70% of the potential losses with banks covering the remainder, irrespective of whether the loan is secured.

Duration will be between three months and six years except current accounts, which will run for a year.

Loans and current account facilities without any collateral will not exceed 50% of the amount granted to self employed persons and very small businesses, 30% when it comes to small and medium businesses, and 20% for large businesses.

Loans must be approved by banks by March 31, 2022.

Terms and conditions apply.

Source: Cyprus Mail