New financing body under discussion
Lawmakers are set to begin debating government legislation to establish the Cyprus Business Development Organisation (CBDO), a new public body designed to improve access to financing for small and medium-sized enterprises (SMEs), startups and self-employed professionals.
The bill, approved by the Council of Ministers on 17 June, was submitted to Parliament last week and will be examined by the House Finance Committee.
According to the explanatory memorandum accompanying the legislation, the organisation will be established as a public law entity to help address financing gaps in the market while complying with national and EU state aid rules.
Supporting businesses and investment
Under the proposed legislation, the Cyprus Business Development Organisation will seek to improve businesses’ access to finance where banks and other financial institutions are unable to provide sufficient funding.
Rather than competing with private lenders, the organisation will complement existing financing options by offering financial instruments that facilitate the use of European and other funding sources.
It will also aim to promote entrepreneurship while strengthening the competitiveness and international expansion of Cypriot businesses.
Loans, guarantees and advisory services
According to the government, the new organisation forms part of a broader strategy to improve the competitiveness, productivity and resilience of the Cypriot economy.
Its mission will be to support business investment, encourage innovation and help companies finance projects linked to the green and digital transition.
The organisation will be able to develop and manage financing tools, including loans, guarantee schemes and advisory services for businesses.
It will operate as a public law organisation under a governance framework that includes accountability and oversight mechanisms.
€60 million in state funding
The government has also announced that the Cyprus Business Development Organisation will receive gradual capital funding of €60 million from the Republic of Cyprus.
Additional financing opportunities are expected to come from European institutions and financial organisations, enabling the body to better support businesses and maximise access to EU funding, particularly ahead of the European Union’s 2028-2034 Multiannual Financial Framework.
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