THE TIME TO REACT IS NOW
New Support Measures for Businesses in Cyprus
In addition to the support package that has been announced on the 27th of May by the President of the Republic of Cyprus, new measures to support businesses, workers and the unemployed hit by the Coronavirus crisis in Cyprus were announced within a press conference on the 3rd of September by the Cyprus Government.
The new schemes are directly addressed to businesses which either registered lower revenues, or suspended their activities indefinitely, due to the effects of Coronavirus. Special support plans will also address affected employees alongside the special allowance for the unemployed.
The newly approved support measures are the following:
The highlight is still on the tourism sector, as it continues to be one of the most affected industries by the restrictions imposed internationally.
As it has been stressed by the Finance Minister, Mr. Constantinos Petrides, during the press conference, the course of the Cypriot economy, which relies highly on tourism, will depend on the course of the World economy and how other countries will deal with Coronavirus pandemic.
Following the same line of thought, it looks like 2020 is a lost year for hoteliers and nobody expects any substantial income in the tourism sector before 2021, provided that the global pandemic is controlled in the near future.
Moreover, based on the current situation and considering some short-medium term projections, it seems that we shouldn’t expect significant recoveries before 2023, which means that the years to come will be difficult for this business sector.
When the Consumer Trends Change so Should the Business Model
Under these circumstances, one obvious question arises: How is a business to plan ahead when it is still impossible to foresee the future?
Taking advantage of the existing support measures is definitely recommended, and all companies should consider them if they have been directly affected by the pandemic.
Nevertheless, additional actions should be taken as well in order to safeguard the companies’ future. In spite of everything, directors need to think ahead and adjust to the market conditions.
All across Europe a rescue culture is now developing, which is focused on prevention rather than cure. Within this new context, Insolvency Practitioners who are also Restructuring Experts are an important resource as they can use their significant experience and specialized skills in order to help companies in distress to identify the best options going forward.
Finding proper ways of diversifying the product, improving the services, restructuring the activity, or making the step towards digitalization are just some of the actions that should be considered by any business looking to survive these uncertain times.
Reactive policies can no longer be considered a suitable approach when the new reality demands a proactive mindset.