The Finance Minister’s plans for the promotion of 30 private development projects will stumble at the reservation of the banks for new loans and the hesitation of the businessmen to promote new developments.

The Minister announced the introduction of a bi-ministerial committee for the promotion of a list with the big private projects that CCCI granted as an offset of the cuts of €250 million from the state development spending.

The Ministry believes that the adoption of the projects could have been accelerated with the coordination of the state services, which are usually slow when granting licenses or starting new projects.

However, this time the problem is not the “usual suspect” – bureaucracy – but the difficult economic environment for new investments.

The market seems to have run out of fresh money since uncertainty makes the lending of new projects difficult and upsets the businessmen’s plans.

“No project is stuck to bureaucratic procedures. On the contrary, most of them have secured a license or are just one step before licensing, while for a smaller number of projects, no applications have been submitted”, Interior Minister, Neoclis Silikiotis told StockWatch.

“Therefore, no bi-ministerial committee will be introduced. After a meeting with the Finance Minister on Monday, he said that he will personally examine the list with the 30 projects handed by the CCCI”, he said.

The two Ministers agreed that some of the projects will be able to go on, if money from abroad is found.

“I will ask to be informed whether there is still interest on behalf of foreign investors in projects such as the theme park in Oroklini. A Russian company has already expressed its interest in it”, Mr. Silikiotis noted.

Similarly, Urban Planning Manager, Christodoulos Ktorides said that the projects fall behind due to the businessmen’s reservations.

“”The Urban Planning has the necessary mechanisms to bypass bureaucracy and to promote applications so long as the businessmen express their interest”, he said.

Among the projects included in the CCCI list are Lanitis Farm Golf, Four Seasons Hotel & Harbour, Cyprus Limni Resort, Marina Ayia Napa Resort, Afroditis Project, Med Life Club Village, Venus Rock, the Universal Life health center and other.

A characteristic of the prevailing conditions is the “Marina Ayia Napa Resort” joint venture.

“Procedures do not stumble at bureaucracy but to the lack of liquidity”, Gerasimos Caramondanis told StockWatch.

“After Mari, the banks have put a moratorium on funding the projects for the period of six months”, he said.

“For the Ayia Napa marina, although we expected that the final meeting at the Commerce Ministry would take place on October 31 and the contracts would be signed right after, we received a letter from the banks saying that its financing freezes for the period of six months”, he stressed.

After April 4, the banks will allow its financing. The Commerce Ministry has been informed on the letter”, he added.

Irrespective of the delays in the promotion of the big projects, the market circles welcome the Finance Ministry’s intervention.

Chairman of CIPA, Phidias Pilides favours the government’s intervention for the promotion of the big projects.