Amendment aims at bolstering business cash flow
The Development Ministry intends to table an amendment in Parliament that will secure access to cash flow for all companies that are entitled to the benefits of the investment incentives law, in an effort to bolster liquidity in the market.
This in effect constitutes a shift for the investment incentives law from an investment-orientated instrument to a tool that will boost cash flow at a time when the liquidity deficit to enterprises is estimated at about 7 to 8 billion euros.
This problem stems from the fact that banks are unable to put money into the market due to losses accumulated from bad loans and the effects of the debt restructuring.
The amendment required the prior blessing of the European Commission, which is why it had not been tagged onto the Development Ministry?s recent bill regarding the improvement of the business climate that became law last week and makes it easier for smaller investments to enjoy the investment incentives law?s benefits.
The new clause will now be tagged onto an Interior Ministry bill so that Parliament can vote on it on Monday.
