Cyprus’ Minister of Energy, Trade and Industry Natasa Pilides spoke on Wednesday of the need to create the right environment to facilitate the financing of companies, in order to avoid losing the relevant European funds.

She was addressing a workshop on financial opportunities in business, organised by the Ministry.

The Minister referred to European resources of more than €200 million for the seven years 2021-2027 intended for the development of business competitiveness. As she said, their allocation would be based on the Government`s plans for the transition of the country to a new, cyclical model of economy, focusing on sectors with dynamic and long-term perspective, such as that of industry.

She noted, however, that the effective utilization and absorption of these resources also depended to a large extent on the intention of the country`s major banks to facilitate access to finance for participants in the programs.

"The difficulty of the banks in lending the amount that will concern the contribution of companies to the investment, in combination with the lack of alternative forms of financing, jeopardizes the possibility of absorbing these EU funds, affecting companies, but also the economy in general," she said.

The aim, Pilides added, “is to create the right environment so that companies could easily secure the necessary financing mainly through banks, in order to implement sustainable investment proposals and, at the same time, to absorb the EU financial resources.”

She also stressed the importance of new alternative sources of financing such as venture capitals gaining ground in Cyprus, to fill a significant gap that exists in Cyprus’ business environment.

The Minister also noted that in the current conditions of intensifying competition, within Cyprus and abroad, the duty of all is to shield business and provide the necessary supplies to meet the challenges. She also assured that the Ministry will continue to help and support Cyprus’ companies.

Finally, she expressed confidence that the Cypriot economy could emerge stronger from the current crisis and restore its position on the international stage.