NICOSIA - The Finance Ministry has presented the island's political parties with the stimulus package aimed at boosting the island's economic growth.
The package is expected to be submitted to the Council of Ministers for approval next week.
On unemployment which reached 9.3% in 2011, the Finance Ministry and that of Labour will introduce a scheme totaling €20 million that gives special emphasis on the skills of unemployed persons, according to the proposed measures.
It also provides for the introduction of a scheme for hiring long-term unemployed persons and young people with a budget of €8 million.
On development projects the Finance Ministry priorises the various projects according to their maturity and contribution to employment, while it will prepare an action plan to be presented to prospective investors.
The Finance Ministry will also set a department in the Planning Bureau to manage the projects to be implemented under the Public - Private Partnership venture.
The packages also provides for the set up of a financing mechanism for Small and Medium Sized Enterprises (SMEs) which through the provisions of guarantees will enable small SMEs to obtain loans from commercial banks. The mechanism will secure its liquidity via a loan from the European Investment Bank.
On tourism, the government will take the necessary measures to increase the share capital of national carrier Cyprus Airways without excluding the selling of the cash-strapped carrier's majority stake to a strategic investor. The opening of Casinos is also on the cards.
As regards the boosting of the business climate, the Ministry plans to introduce an accelerated depreciation by 20% for purchases of machinery, 7% for investments in buildings for the next three years and recommends the abolition of the deemed distribution of profit in respect capital expenditure to fixed assets.
The austerity measures have been welcomed by the European Commission, which on January 11 said that Cyprus has taken effective measures to correct its excessive deficit.