Insider Economy Cyprus government looking for Investment Fund's Manager

Cyprus government looking for Investment Fund’s Manager

The government is now looking for a Manager for the country’s Investment Fund which is to be set up following approval last August by the Council of Ministers.

The Fund’s purpose is to provide capital financing to small to medium-sized enterprises (SMEs) in Cyprus, Phileleftheros reports.

The Ministry of Finance is in the process of drafting the tender for the Manager whose main duty will be the implementation of the country’s investment strategy.

The Fund Manager will also be assigned with taking investment decisions in cooperation with an appointed committee.

The committee members will be appointed by the Fund’s Board of Directors and will be experts of reputable and specialized knowledge in investment funds, according to a letter sent to Parliament by the Ministry.

The letter also notes that the Fund will fill an apparent gap in the financing of Cypriot SMEs. According to a study carried out by the European Investment Bank, there is a €35m gap in capital raise funding.

“This shows that the capital market has begun to mature as Cypriot small to medium-sized enterprises become more receptive to capital raise in return for financing, which can become an important alternative form of financing, since it is directly provided and can be combined with the provision of expertise for the further development and management of a company.”

However, the Cypriot capital financing market is one of the least developed in Europe and this is a disadvantage for the competitiveness of local SMEs and the economy in general.

This was an issue included in Cyprus’ economy assessments as well. State resources will get the Fund off its feet, with the initial allocation standing at €5m. By 2022, the government will contribute a total of €20m.

Seeking the €5m fund release, the Treasury noted that  benefits from the setting up of the Investment Fund will be substantial.

And that it will also address the extremely high level of debt of Cypriot businesses and boost efforts to attract investment in a wide range of economic sectors with the aim of fostering sustainable growth.

By Eleftheria Paizanou

 

Read more:

https://in-cyprus.com/investcyprus-showcases-cyprus-advantages-on-investment-funds-and-headquartering/

Top Stories

Schools close only if we say so, Prodromou notes

  Five hundred pupils have missed classes due to the Covid-19 pandemic, said education minister Prodromos Prodromou, making clear that there was no need for...

Famagusta hospital Covid patients rise to 24, four in increased care

  The number of Covid 19 patients being treated at the Famagusta General, the referral hospital for coronavirus, remained at 24, (22 yesterday) four of...

Turkish VP Octay illegally visits fenced off city of Varosha

  Turkish Vice President Fuat Octay walked along the beachfront of the fenced off city of Varosha today, part of which was illegally opened earlier...

18 people given preferential citizenships in casino resort, says Auditor General

  The Auditor General's Office has accused the government of bending the rules on the citizenships for investment programme, by granting passports outside the framework...

Kakoratzia state forest fire put out before spreading

  A fast forest fire service response prevented a potentially destructive fire from spreading this morning. It broke out at the Falkonopetra area of the Kakoratzia...

Taste

Squash soup

Ingredients: 1 kg pumpkin, cut into small cubes, approximately 5 cups 2 medium (400g) sweet potatoes, cut into cubes, approximately 2 ½ cups 1 chopped leek, only...

Mezedes

No visit to Cyprus is complete without enjoying the traditional meal of many small dishes known as ‘meze’. This large feast, which has been a...

Prawns with fried cheese, barley shaped pasta

Put the barley shaped pasta into a small pan with salted water, bring to a boil and when tender, drain. Peal the prawns leaving...

Salmon and shrimp sheftalies

Mix all ingredients for tabbouli in a bowl and keep to one side so flavours can combine. Prepare the sheftalies: wash and soak the casing...