NEW SUPPORT PLANS FOR AFFECTED BUSINESSES AND WORKERS

 Filenews 12 November 2020

New support plans and extension of existing ones announced by the Ministers of Labour and Finance for businesses and workers who will be affected by the new strict measures to tackle the pandemic, during a press conference.

The measures include a worker subsidy plan, a business subsidy plan, which is subject to compulsory full suspension, and a six-month extension of the interest rate subsidy plan for new business and home loans until 30 June 2021.

Five projects by SUPPORT

"The manipulations had to be such that they would not exhaust the resources. The comprehensive support programme we have implemented today has given practical support to workers. Today, given the new restrictive measures and fully aware of the concerns, new support measures have been decided," said Finance Minister Konstantinos Petridis.

The Minister of Finance announced at his placement five projects to support businesses and workers:

1. Employee subsidy scheme
2. Subsidy Scheme for Enterprises that are under compulsory complete suspension, in accordance with the Decrees of the Ministry of Health and the relevant Decisions of the Council of Ministers and participated in the Special Plans of the Ministry of Labour Welfare and Social Insurance from 16/03/2020 – 31/10/2020

Beneficiaries:

Enterprises including employers who are subject to compulsory full suspension, in accordance with the Decrees of the Minister of Health and the relevant Decisions of the Council of Ministers from 16/03/2020. The payment of the one-off grant will not require the submission of an application by the beneficiaries. Necessary condition that they were integrated and approved in the Special Plan for the Complete Suspension of Business Operations, of the Ministry of Labour, Welfare and Social Insurance implemented under the emergency measures to deal with the COVID19 pandemic.

Objective: Grant rent and other operating expenses.

Grant amount/one-off grant:

Companies including employers who were completely suspended from 16/03/2020 and employ up to 9 persons €10,000

Companies including employers who were completely suspended from 16/03/2020 and employed by 10 or more staff. €15,000

3. Subsidy Scheme for Enterprises and Self-Employees who are subject to compulsory full suspension, in accordance with the Decrees of the Ministry of Health and the relevant Decisions of the Council of Ministers or have a reduction in turnover of more than 80% and will participate in the Special Plans of the Ministry of Labour, Welfare and Social Insurance

Beneficiaries:

Enterprises and self-employed workers who are subject to compulsory complete suspension or have a reduction in turnover of more than 80%. The payment of the one-off grant will not require the submission of an application by the beneficiaries. Beneficiaries must be included and approved in the Special Plans of the Ministry of Labour, Welfare and Social Insurance implemented under the emergency measures to tackle the COVID19 pandemic and will be announced by the Ministry of Labour, Welfare and Social Insurance

Objective: Grant rent and other operating expenses

Grant amount/one-off grant:

Self-employed and micro-enterprises that were or will be completely suspended or have a turnover reduction of more than 80% and will be included in the Special Plans of the Ministry of Labour, Welfare and Social Insurance and employ up to 1 personnel. €500

Self-employed and micro-enterprises that were or will be completely suspended or have a reduction in turnover of more than 80% and will be included in the Special Plans of the Ministry of Labour, Welfare and Social Insurance and employ up to 2 - 5 staff. €1250

Self-employed and micro-enterprises that were or will be completely suspended or have a reduction in turnover of more than 80% and will be included in the Special Plans of the Ministry of Labour, Welfare and Social Insurance and employ up to 6 - 9 staff. €1750

Self-employed workers and small businesses that have been or will be completely suspended or have a reduction in turnover of more than 80% and will be included in the Special Plans of the Ministry of Labour, Welfare and Social Insurance and employ up to 10 - 50 staff. €2500

Self-employed workers and enterprises that have been or will be completely suspended or have a reduction in turnover of more than 80% and will be included in the Special Plans of the Ministry of Labour, Welfare and Social Insurance and employ more than 51 staff. €3000

Notes:

1. The granting authority of the two Projects will be the Ministry of Labour, Welfare and Social Insurance.
2. It is noted that the measures referred to will be notified to the Directorate-General for Competition of the European Commission for final approval as compatible with the State aid scheme and its activation will take place after the relevant authorisation has been obtained.
3. It is understood that a company can only benefit from one of the above two Projects.
4. It is understood that the 3rd Plan does not include companies that participated in the Winter Suspension Plan of the Ministry of Labour, Welfare and Social Insurance.

1. Six-month extension of the Interest Rate Subsidy Plan for new business loans until 30/06/2021

In addition to the extension, improvements have been made to the Plan, namely the obligation to submit a responsible declaration by an approved accountant of the applicant for micro, small enterprises and self-employed workers.

2.Six-month extension of the Interest Rate Subsidy Plan for new home loans until 30/06/2021

With regard to the Interest Rate Subsidy Plan for new home loans, it has been decided that new home loans which at the time of issue have been consolidated with existing serviced home loans may be included, subject to the following conditions:

(a) The consolidated loan does not exceed €300,000.

(b) The agreement on the new home loan was signed after 1 March 2020.

(c) Loans of the same purpose have been identified in the new loan other than the new home loan and have not been delayed beyond 90 days.

(d) The interest rate on the loan relating only to the new home loan will be subsidised.

(e) The loan and borrowers will meet all other provisions of the Plan.

It is recalled that the above two Projects entered into force in July 2020 and expired on 31/12/2020. Given the interest that has been expressed so far and with the ultimate aim of giving more time for businesses and citizens to join the Projects, an extension is given to cover business and home loans concluded or to be concluded from 1/03/2020 until 30/06/2021.

In response to a question about possible cuts to the payroll of civil servants, Mr Petridis said that our policy at the moment is that of supporting private consumption, noting that "we have not reached the point of cuts" and that this would have a chain effect on domestic consumption.

Mr Petridis assured that "the resilience of the Cypriot economy, the continuation of a flexible, targeted, prudent pandemic management policy within our capabilities, the full exploitation of European tools, but also the pandemic-adapted 2021 budget, are our weapons for dealing with this unprecedented economic crisis".

In conclusion he stressed "I am sure that we will overcome the second wave of the pandemic and lead to a strong recovery"

Extension

The Minister of Labour in her own position noted that "On the basis of the plans announced last week I want to assure that with the new health measures support will continue and precisely the plans announced were made in such a way as to cover workers and businesses in difficulty".

As he said the plans announced last week are expanding.

Also two new plans announced by the Minister of Labour: Special allowance equal to 60% of the proportion of earnings of the days for which they will not be able to work or go to work, will be entitled to those workers due to restrictions in Limassol and Paphos.

The second concerns vulnerable people whose relatives are not in the provinces of Limassol and Paphos, they will become special workshops to serve these people.

As Mrs Amlianidou said, the plans announced today are estimated to cost the state an additional €30m. per month.

Which employees will be able to move to and from Limassol and Paphos

Products and raw materials will be allowed to be transported to undertakings that remain active. The movement of workers necessary with the exception of retail undertakings or serving the public will also be permitted. In addition, workers in essential services as well as farmers and livestock farmers will be entitled to move.