Insider Economy Parliament to vote down bill on government-guaranteed bank loans

Parliament to vote down bill on government-guaranteed bank loans

A government plan to guarantee up to €2bn in bank loans to businesses and self-employed people will be voted down by parliament, Phileleftheros reports.

This is obvious after main opposition Akel’s objection was followed on Tuesday by that of centre Diko with the party asking for the debate set before Friday’s House plenum to be postponed.

Diko demands numerous clarifications before the bill is approved, especially on the provision that 70% of the loan will be undertaken by the state and 30 % by the bank in the case where a borrower fails to meet his/her obligations.

Ruling Disy has also raised concerns with party leader  Averof Neophytou saying it was highly doubtful from the start that a common solution on the bill could be reached. And that the bill had gone through so many changes that made it impossible to be effective.

He also said that socialist Edek, the Solidarity Movement, Greens, Citizens Alliance and far right Elam were also against the proposed bill.

However, as the bill is set to be shelved the financial teams of Akel and Diko, along with experts, are jointly drafting new proposals so that the €2 billion is spent on employees.  Because, they are certain the coronavirus consequences on the economy will be prolonged.

Akel’s leadership on Wednesday is to hold a conference call with experts so as to finalise the party’s proposals on direct support of the state towards employees and society at large.

Amongst other, the opposition party will propose the issuance of an international bond with the money raised going towards employees.

The Finance Ministry was, afterall, considering ways to pump out fresh liquidity that would, however, act as a security cushion in the case where traditional state revenue is reduced dramatically.

Akel may also propose that employees are exempted  from certain obligations such as the payment of social security and taxes. On the other hand, Diko proposes that the state proceeds with the internal lending of €2 billion so as to sustain employment.

Diko MP Angelos Votsis said the internal lending should guarantee that government plans in support of employees continue.

At the same time, despite the fact that the proposed government bill on guarantees loans will be put on ice,  Finance Minister Constantinos Petrides on Tuesday sent to parliament the revised texts of both the bill and the decree on this.

Amendments include a provision clarifying that state guarantees up to €350 million will be given to loans for the self-employed and small businesses. Also, government guarantees of up to €250 million will be granted to subsidise part of the interest rate on performing loans of natural persons.

Read more:

New measures being drafted to counter coronavirus economic impact



Top Stories

178 new cases, out of 9.884 tests announced on Wednesday

The Health Ministry announced 178 new Coronavirus cases out of 9,884 PCR and rapid antigen tests on Wednesday, 20 January, taking confirmed infections to...

Where to get antigen rapid tests on Thursday

The Health Ministry announced the following antigen rapid test sites for Thursday, 21 January 2021: LIMASSOL Parking place Sklavenitis supermarket, Germasogia 08:30-16:30 Parking place Lidl supermarket, Limassol...

Expert says too early to assess epidemiological situation

Head of the Scientific Advisory Committee on the coronavirus, Dr Constantinos Tsioutis, told CNA that it is too early to safely assess the evolution...

Inauguration of Joe Biden as the 46th President of the United States

Lady Gaga sings the National Anthem during the inauguration of Joe Biden as the 46th President of the United States on the West Front...

Building collapses in central Madrid explosion, several injured

One building collapsed in a central Madrid explosion, a Reuters reporter saw, with smoke coming out of the building and rescue workers evacuating elderly...


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...


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...