Parliament to vote on the establishment of the Cyprus Business Development Agency

The House of Representatives will hold an extraordinary plenary session on Tuesday to finalize the bill establishing the Cyprus Business Development Agency (KOAE). This legislation is a prerequisite for the Recovery and Resilience Fund. The agency will receive €60 million in state funding over five installments between 2024 and 2030, after which it is expected to be self-sustaining. Its primary objective is to facilitate access to financing, loans, and consulting services for small businesses, startups, and self-employed individuals. The agency will be managed by a five-member board appointed by the Council of Ministers upon the recommendation of the Minister of Finance. A transitional board with a 12-month tenure will be appointed first, followed by members subject to fitness tests similar to those for bank executives. While the government maintains that the €60 million is the final amount, some members of parliament have expressed concerns regarding the agency's long-term financial viability. Further amendments from political parties, focused on enhancing support for small businesses, are expected to be discussed on Monday.