Cyprus economy and competitiveness council prepares proposal for SME funding (Correction)

The Cyprus economy and competitiveness council said it is preparing a proposal aiming to create an equity fund to support Cypriot small and medium enterprises (SMEs) which face difficulties in obtaining funding.

Takis Klerides Chairman of the Council told the Parliamentary Committee of Finance that the proposal will be submitted to the government in the second half of this month.

Speaking before the parliamentary committee, Andreas Assiotis, member of the council, said that the Council’s proposal highlights that SMEs play an important role to the economy, adding that SMEs are facing problems associated with obtaining finance from banks which are not willing to assume risks due to the information gap especially on start-ups.

The recommendation provides for the creation of a fund aiming to provide an alternative source of funding to SMEs, he said.

Source: Cyprus News Agency