The Government is moving forward with the establishment of the National Development Organization. In conjunction with the Capital Financing Equity Fund, this organization aims to address funding gaps in small to medium-sized and start-up businesses, announced Finance Minister Makis Keraunos.

He added that a consulting firm has already been commissioned to conduct a study to identify the activities and tools of the Organization, with the goal of submitting a proposal to the Cabinet in March.

Mr. Keraunos stated that the Cabinet has approved the related proposal with the aim of further enhancing entrepreneurship. "The National Development Organization is a result of identifying funding gaps in small and medium-sized enterprises, as well as in some cases of self-employed individuals," the Minister of Finance mentioned, adding that the Cabinet has approved the commissioning of a study to create this organization and its activities and tools "to assist small and medium-sized enterprises."

He mentioned that the related proposal is expected to be submitted for approval by the Cabinet within March.

Simultaneously, Mr. Keraunos noted that the Cabinet has also approved the Cypriot Equity Fund. He reminded that the management and size of the Fund, expected to reach €37.5 million, have been assigned to the European Investment Fund of the European Investment Bank (EIB), adding that the establishment of the fund has been completed and its operation is expected to begin in the first quarter of 2024.

Mr. Keraunos said that the state contribution amounts to €30 million, with the remainder coming from private capital. "The Fund will mainly invest in innovative and start-up Cypriot businesses, aiming to cover the financial gaps identified in the Cypriot market due to the high investment risk associated with these start-up companies," the Minister of Finance added, noting that the Republic of Cyprus has signed a financing agreement with the EIB, which has been tasked with monitoring the operation of the Fund.