Cyprus President Nicos Anastasiades called on businesses to look abroad to secure their viability, as recession continues to hamper economic domestic economic activity.
The President`s remarks came as the Cypriot economy is in recession since mid-2011 amid unprecedented financial crisis, that escalated further with the bailout of the financial sector which came to the brink of collapse in March 2013. The €10 billion bailout featured a haircut of banking deposits above €100,000 as well as capital restrictions that hampered economic activity.
“With the contraction of the Cyprus economy, our businesses` openness is of crucial importance for their survival and development,” Anastasiades said in an address during the Cyprus Innovation Awards ceremony, read out by Minister of Commerce, Industry and Tourism.
He pointed out however that the fruits of hard work by the Cypriot businesses are becoming more and more evident despite the challenges due to the financial crisis.
The President recalled reforms in Cyprus` Income tax exempting investments on innovation business, noting that in the context of the EU structural funds for the period of 2014 – 2020 will include incentives to private businesses in industry, the services sector and agriculture to support high risk investor angels, that is, investors willing to invest to business start up.
Anastasiades recalled that 39 businesses have signed a public funding agreement in the context of the first Business Innovation Scheme which will disburse €4 million from the structural funds, as well as the Business Innovation Support Schemes with funds amounting to €30 million for the period of 2014-2020.
“Following the example of EU member-states considered as pioneering in innovation and applying optimum practices in Cyprus the close cooperation between public and the private sector will allow us to fulfil the