Cyprus is gearing to set up a National Development Organisation which coupled with the Cyprus Equity Fund will promote entrepreneurship by covering financing gaps for small and medium-sized enterprises and start-ups, Minister of Finance Makis Keravnos said on Wednesday.

Speaking to the press after the Council of Ministers meeting, Keravnos said that the Cabinet has assigned an advisory firm to carry out a study on the organisation’s activities and tools and to table a proposal to the Council within March.

Moreover, Keravnos said that the Council of Ministers has approved a set of actions, thereby upgrading the Strategy for attracting foreign businesses and talent.

The National Development Organisation resulted from the ascertainment that there are gaps in SME and start-ups financing as well as in some cases self-employed, the Finance Minister noted.

On the Cyprus Equity Fund, Keravnos recalled that the fund will be managed by the European Investment Bank’s EIF with a budget of €37.5 million, of which €30 million will be provided by the Cypriot government and €5 million by the private sector and will begin operation in the first quarter of 2024.

Furthermore, Keravnos said the Council of Ministers approved actions that will be incorporated in the updated strategy to attract “businesses and talent in Cyprus, noting that these businesses have created jobs, provided technical expertise and significant added value to our economy.”

The strategy has been instrumental especially in attracting ICT foreign companies since 2022 contributing to the economy’s robust growth rate which amounted to 5.1% of GDP.

“Recognising its significance we have revised the strategy,” Keravnos said.