The European Investment Bank (EIB) is supporting €303 million in investments for pandemic economic resilience, road safety and financial technology in Cyprus for 2021:
- Support of €170 million in Cyprus. EUR 170 million from the EIB and the European Investment Fund (EIF) for Cypriot businesses in response to the pandemic
- Cyprus remains at the top of all EU countries in which the EIB operates in terms of GDP
- EIB confirms for future business investment, urban development and renewable energy
New EIB financing for priority investments in Cyprus last year amounted to EUR 303 million, an increase of 24% compared to 2020. This includes the EBRD's largest activity in Cyprus to boost financing for Cypriot companies and address pandemic-related business challenges.
2021 represents the fourth largest support for reform projects in the 40 years of EIB activity in Cyprus. The new financing included financial support for business investment, road safety improvements across the national road network and the EIB's largest support for financial services in Cyprus, through a €15 million loan to the insurance company Hellas Direct.
Cyprus remains the largest EIB beneficiary in terms of financing per capita than any other country in Europe, with outstanding EIB exposure totalling €2.7 billion, or 13% of national GDP.
The EIB's annual results for Cyprus were announced earlier today in Nicosia by Finance Minister Constantinos Petrides and Lilyana Pavlova, EIB Vice-President.
"The EIB is a key partner for Cyprus and the close cooperation between the EIB, the EBRD and Cyprus' public and private sector partners has once again enabled Cyprus to be the largest EIB beneficiary in terms of lending per capita than any other country in Europe. The EIB's new long-term and targeted financing ensures that Cypriot businesses can overcome the challenges posed by the pandemic and invest in innovation. Our aim, but also our obligation, is to make full use of all available development instruments, such as those provided by the EIB, and I am both optimistic and confident that this strong activity on the part of the Bank in Cyprus will continue in the coming years and I am confident that the EIB will continue to act as a reliable partner for beneficial projects across the EU." Constantinos Petrides, Minister of Finance of the Republic of Cyprus and EIB Governor.
"The EIB's strong activity in Cyprus in 2021, with EUR 303 million of new investment, road safety and financial technology financing, represents the largest support for public and private investment in 31 years of operation. The EIB is committed to supporting priority investments in Cyprus in close cooperation with Cypriot partners. Last year was a record year for EBRD support for targeted business financing, which enabled Cyprus to be the first country to join the Pan-European Guarantee Fund for purposes of responding to the effects of the COVID-19 pandemic. It is great to be here in Nicosia. During this visit I have seen how the EIB is helping to transform higher education in Cyprus and I want to assure you that the EIB's future engagement will unlock new opportunities for Cyprus in the coming years," said Ms Lilyana Pavlova, EIB Vice-President. EUR 170 million of support for business investment, including a record number of EBRD operations in Cyprus:[/B]
Last year the EIB and the EBRD provided EUR 170 million of new targeted business financing to support investments by Cypriot companies in difficult times.
This includes €100 million of EIB support for local Small and Medium Enterprises (SMEs) and mid-cap companies under the second phase of the Cyprus Entrepreneurship Fund (CEF) following the successful operation of the first phase of the CEF.
2021 was the largest ever activation by the EBRD in Cyprus. New investments by Cypriot companies will benefit from the new €70 million EBRD financing, which will be managed by Hellenic Bank and Eurobank Cyprus.
Record €112 million support for road safety and priority transport investments:
2021 also marked the largest ever EIB support for transport investments in Cyprus. The new funding agreed last year will accelerate the deployment of road safety cameras across the country and enable road improvements in Nicosia, Limassol, Paphos and Vasilikos.
First Debt Financing supporting innovative insurance company Hellas Direct:
Last year the EIB agreed to support research and development and business expansion investments by Hellas Direct through the first debt financing for a Cypriot company.
The new financial technology 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 expects to confirm new private financing initiatives with Cypriot banking partners under the Cyprus Entrepreneurship Fund.
The EIB is also in the process of finalising support for urban and renewable energy projects.
Since the start of its operations in Cyprus in 1981, the EIB has provided more than EUR 5 billion for private and public investment in Cyprus.
General information:
The EIB is a long-term lending institution of the European Union owned by its Member States. It provides long-term financing for sound investments to help achieve EU policy objectives.
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