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Eurocypria receives EUR35 million funding from Cyprus Parliament through share purchase plan

22-Feb-2010 1:02 PM

Cyprus Parliament approved a EUR35 million funding package for Eurocypria on 18-Feb-2010, providing fresh capital for the struggling charter airline (Cyprus Mail, 19-Feb-2010). The carrier requires the funding to repay loans amounting to approximately EUR28 million. The funding will be provided through the acquisition of new shares. There is also the possibility that overseas investors may purchase some of the share issue. Finance Minister, Charilaos Stavrakis, stated that through “informal contact” with the European Commission (EC), the Ministry had been assured there would only be a possible issue over state support if another airline complained officially.  However, Limassol-based law firm, Anastasios Antonious, filed an official complaint on 17-Feb-2010 with the EC regarding the financing on behalf of an anonymous client.