- EUR 170m EIB and EIF backing to help for Cypriot business overcome pandemic, plus backing for road safety and fintech investment
- Cyprus remains leading beneficiary of EIB engagement in Europe relative to GDP
- EIB President meets President Anastasiades and key ministers, confirms future business, urban development and renewable energy investment
Werner Hoyer, President of the European Investment Bank (EIB), visited Cyprus to discuss recent and future investment in the country and see how the EIB is helping Cypriot companies overcome business challenges related to the COVID-19 pandemic, as well as improve road safety in the country.
“Last year was another important year for cooperation between the EIB and Cyprus, which is a key beneficiary of the bank’s financing. EIB support has helped the Cypriot economy 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 longstanding cooperation and maximising the opportunities offered by the transformational investment available”, said Constantinos Petrides, Minister of Finance of the Republic of Cyprus and Governor of the European Investment Bank.
“This visit provides a timely opportunity to discuss with President Anastasiades and Finance Minister Petrides the positive impact the European Investment Bank is having in Cyprus after another successful year of broad engagement in 2021. EIB Group financing has helped Cypriot SMEs create jobs and invest in research and development. Last year, the bank also provided significant support for transport investment in Cyprus. We look forward to working with the Cypriot authorities and businesses on future priority investment”, said Werner Hoyer, President of the European Investment Bank.
Cyprus leading beneficiary of EIB financing
Cyprus remains the largest beneficiary of EIB support, per capita, of any country in Europe with outstanding EIB exposure totalling EUR 2.7 billion, or 13% of national GDP.
New EIB Group financing for priority investment in Cyprus last year totalled EUR 303 million, a 24% increase from 2020. This includes the largest ever European Investment Fund (EIF) engagement in Cyprus to enhance financing for COVID economic resilience.
EIB support in Cyprus in 2021 also represented the fourth largest support for transformational projects in 40 years of EIB Group engagement in the country.
EUR 170 million EIB Group support for business investment, including EIF record
Last year the EIB and EIF provided EUR 170 million of new targeted business financing to support investment by Cypriot companies during challenging times.
This includes EUR 100 million EIB backing for local SME and midcap companies under the second Cyprus Entrepreneurship Scheme following successful roll-out of the first package.
2021 represented the largest ever engagement by the European Investment Fund in Cyprus. New investment by Cypriot companies will benefit from EUR 70 million of new European Investment Fund financing to be managed by Hellenic Bank and Eurobank Cyprus.
EUR 112 million record backing for road safety and priority transport investment
2021 also represented the largest ever EIB support for transport investment in Cyprus. New financing agreed last year will speed-up roll-out of road safety cameras at accident blackspots across the country and enable 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 investment by Hellas Direct through the first EIB venture debt financing for a Cypriot company.
The new fintech investment will expand provision of technology led insurance services across the region and adapt financial services to a post-Covid world.
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 risk-sharing initiative.
The EIB is also currently finalising backing for urban investment and renewable energy generation projects.
The EIB has provided more than EUR 5 billion for private and public investment in Cyprus since the start of operations in the country in 1981.
