Government to spend €850m in direct support until June

The Cypriot government announced the extension of measures to companies and self-employed persons hit by the coronavirus outbreak until June 12, increasing direct support to €849 million or 3.5% of GDP.

Moreover, Labour Minister Zeta Emilianidou said the government intends to extend the measures to support businesses and self-employed persons for a period of four months beyond June 12, supporting businesses that lost more than 50% of their turnover and continue register a reduction of their turnover, even after the kickstart of economic activity.

The Ministry of Labour’s support scheme come at a monthly cost of €240 million.

The first support package announced by the government in mid-March, that was initially to remain in effect until April 12, amounted to €369 million, and included one-off measures such as direct support to public hospitals amounting to €100 million, €15 million to support the Cyprus tourism sector, and €11 million that went toward a one-off allowance to Cypriot university students who were not allowed to return home for Easter holidays due to the coronavirus.