- €170 million support from the EIB and the EIF to help Cypriot businesses overcome the pandemic,
- Cyprus remains the main recipient of EIB participation in Europe in terms of GDP
- EIB President meets President Anastasiades and relevant ministers and confirms future investments in the business, urban development and renewable energy sectors
The President of the European Investment Bank (EIB), Mr. Werner Hoyer visited Cyprus to discuss recent and future investments in the country and to see how the EIB is helping Cypriot companies to overcome the business challenges related to the COVID-19 pandemic, and how it is helping to improve road safety in the country.
"Last year was another important year for cooperation between the EIB and Cyprus, which is a key recipient of the Bank's financing. The EIB's support helped the Cypriot economy to overcome the challenges of the COVID-19 pandemic. The Bank's financing also continues to play a key role in enhancing economic and social opportunities in Cyprus. We look forward to continuing this long-term partnership and maximising the opportunities offered by the transformational investments available," said the Minister of Finance of the Republic of Cyprus and Governor of the European Investment Bank, Mr. Constantinos Petrides.
"This visit provides a first-class opportunity to discuss with President Anastasiades and Finance Minister Petrides the positive impact of the European Investment Bank's activities in Cyprus, following another successful year of broad engagement in 2021. The EIB Group's financing has helped Cypriot small and medium-sized enterprises ("SMEs") to create jobs and invest in research and development. Last year, the bank also provided significant support for transport investments in Cyprus. We look forward to continuing to work with the Cypriot authorities and businesses on future priority investments," said European Investment Bank President Werner Hoyer.
Cyprus is the top recipient of EIB financing
Cyprus remains the largest per capita recipient of EIB support of any country in Europe, with total EIB exposure amounting to €2.7 billion, or 13% of the country's GDP.
New EIB Group financing for priority investments in Cyprus last year amounted to €303 million, an increase of 24% compared to 2020. This includes the largest ever European Investment Fund (EIF) contribution to Cyprus to strengthen financing for economic resilience against COVID.
EIB support to Cyprus in 2021 also represented the fourth largest support for transformation projects in the 40 years of the EIB Group's involvement in the country. EUR 170 million of EIB Group support for business investment, including a record participation by the EIF[/B]
Last year the EIB and the EIF provided EUR 170 million of new targeted business finance to support investment by Cypriot companies in difficult times.
This includes €100 million of EIB support for local SMEs and mid-cap companies under the second Cyprus Enterprise Programme, following the successful implementation of the first package.
2021 saw the largest ever participation by the European Investment Fund in Cyprus. New investments by Cypriot companies will benefit from the new €70 million European Investment Fund financing to be managed by Hellenic Bank and Eurobank Cyprus.
Record €112 million support for road safety and priority transport investments
2021 also saw the largest ever EIB support for transport investments in Cyprus. The new funding agreed last year will accelerate the deployment of road safety cameras at accident black spots across the country and allow for road improvements in Nicosia, Limassol, Paphos and Vasilikos.
First venture debt financing supporting Hellas Direct innovation
Last year the EIB agreed to support research and development and business expansion investments by Hellas Direct through the first venture debt financing provided by the EIB to a Cypriot company.
The new financial technology (fintech) investment will expand the provision of technology-driven insurance services across the region and adapt financial services to the post-Covid era.
Future support for business investment, urban development and renewable energy
In the coming months, the EIB is expected to confirm new private financing initiatives together with Cypriot banking partners under the risk-sharing initiative of the Cyprus Entrepreneurship Fund.
The EIB is also currently finalising details of its support for investment in urban and renewable energy projects.
The EIB has provided more than €5 billion for private and public investment in Cyprus since the start of its operations in the country in 1981.
(BG/SX)
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