European Investment Bank Vice President Plutarchos Sakellaris said he intended to make every effort in order have an SME credit guarantee fund up and running in Cyprus by next autumn.
Sakellaris, who is currently in Cyprus, visited on Friday afternoon President Christofias at the Presidential Palace, in the presence of Finance Minister Kikis Kazamias and informed him on the efforts to establish the fund, as well as on other EIB financing schemes.
In statements after the meeting, Sakellaris said they discussed the EIB’s planning to assist the Cypriot government in establishing the fund, with an initial capital of 25 to 50 mln euros.
The fund will be initially bequeathed with a capital loan by the EIB and will be later financed with equal funds from the state budget, Sakellaris pointed out, noting that the aim is to provide guarantees for covering part of the banks’ risks when lending money to SMEs.
From his part, Kazamias said that the fund will be boosted after receiving its initial capital and noted that the fund will operate on very specific terms to serve the purpose of its establishment.
The purpose of the fund is to provide state guarantees for the repayment of loans received by financial institutions, like banks or credit cooperatives, the Minster went on, adding that SMEs will have to fulfill their repayment obligations.
