The cabinet on Wednesday 21st of August approved the creation of an investment fund aimed at boosting economic growth, support startups and foster business innovation, according to a proposal put forth by Finance Minister Harris Georgiades.
The fund, which will fall under the regulation and framework of the Securities and Exchange Commission, will receive an initial sum of €20 million from the state, government spokesman Prodromos Prodromou said, but he specified the government will have no say in the fund, which will operate on strictly business criteria and will follow international standards on management and investment.
“It will be an innovation, a mechanism which will support efforts for growth and in particular innovation, startups, given that the state can take the initiative but will have no say in the decision making,” spokesman said to the reporters.
The proposal was put forth by Mr. Georgiades and is set to be an alternative source of funding so as to ensure the banking sector is not the only source of funds to entrepreneurship, according to Mr. Prodromou and is a practice carried out in several economically developed countries.
According to Mr. Prodromou, the finance minister had also told the council of ministers that the state revenues were significantly increasing in the first six months, with lower expenditures – or more specifically, half the expenditures.
This allowed the state to have a significant surplus during this period, with a low inflation rate of about 0.5 per cent, while public debt is around 96 per cent but falling – after a spike, following the co-op bank demise.