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Cyprus to exhaust €1.1 bln defence loans via SAFE over 5 years, Minister says

The Defence Ministry’s intention is to exhaust the €1.1 billion from the SAFE program over a period of five years, Defence Minister Vasilis Palmas has said.

On 9 September, the European Commission approved the allocation of €1,181,503,924 from the €150 billion of SAFE for Cyprus, at a session of the College of Commissioners in Strasbourg.

In his statements after the 10 September Cabinet session, Palmas noted that this funding will be added to the Ministry's budget, increasing the possibilities for equipment programs, while also giving a further boost to the Cypriot defence industries.

Asked initially when a special Cypriot mission to the US is expected to be sent to inspect equipment programmes, Palmas said that this is a purely technical matter and that the schedules of the National Guard officers specializing in these issues are expected to be synchronized in consultation with the US Army so that the visit can take place and they can see on the spot the equipment programs that have been proposed as available for the Republic of Cyprus.

"They concern aircraft, certainly not fighter jets, but transport aircraft and search and rescue helicopters. At the same time, there are other equipment items that interest us, but we want to go on site to see what condition they are in and whether they are suitable for the National Guard, and we will act accordingly," he said.

Asked about the SAFE program and the approval of over €1 billion for the Republic of Cyprus, the Minister of Defence said that €1.1 billion has been approved for a five-year period.

"By November 30 of this year, we are required to submit a list to the European Commission detailing our needs and the equipment we are interested in, so that they can do a final check to see if what we suggest in the SAFE program is covered, i.e. the SAFE regulation, and from then on it is up to us whether we will exhaust this amount over a period of five years or whether we will take less money at a low interest rate and favourable lending terms," he explained.

He added that at the same time there is an important factor that should be taken very seriously into account, namely the fact that this money, because it is in the form of a loan, will be credited to the public debt of each Member State of the Union.

Asked if there is a specific plan for the use of this sum, Palmas said that the Ministry has a list of priorities. "We are not yet 100% ready to say that we will start with this equipment and end up with that, because conditions change every day and the facts vary. Therefore, we want to leave ourselves room for manoeuvre," he added.

"Our intention is to exhaust this amount over a five-year period. It is the percentage that corresponds to the Republic of Cyprus, based on the size of the state and its capabilities. I consider it to be a fairly satisfactory amount, taking into account the fact that the Ministry's budget will continue to exist and will provide funds for equipment programs every year," he noted.

Asked about possible collaborations with other countries to import know-how for the purpose of developing the domestic defence industry, the Minister of Defence said that one priority of the implementation of the SAFE Regulation is related to the boost that the European Union wants to give to defence equipment industries across Europe.

"The development of the Cypriot defence industry is a top priority for our government. There are several innovative defence industry companies in Cyprus, and I believe that with this loan from SAFE, we will also be able to give further impetus to these Cypriot defence industries," he stressed.

"Synergies can be created, either with defence industries in other European Union member states or, for example, when the National Guard orders an equipment program from a specific country, we now set a condition that, if a Cypriot defence industry is able and meets the requirements, it should also participate in the provision of this equipment program," he concluded.

Palmas announces new National Guard Chief

Palmas also said that the Council of Ministers proceeded on Wednesday to the appointment of Lieutenant General Emmanouil Theodorou as Chief of the General Staff of the National Guard, replacing Lieutenant General Georgios Tsitsikostas, whose term expires on October 8, 2025, following a proposal by the Ministry of Defence.

The new Chief's term will run from October 9, 2025, to October 8, 2027. He also thanked the current Chief, Lieutenant General Georgios Tsitsikostas, "for the impeccable and excellent cooperation we have had over the past two years," highlighting at the same time "the General's ethics, knowledge, and abilities."

Asked about the profile of the new Chief of the National Guard, the Minister of Defence said that he is a serving Lieutenant General. "The approach to issues concerning the Chief of the National Guard has changed slightly at the Greek Ministry of National Defence, having expressed its desire to appoint a serving Lieutenant General to the position of Chief of the National Guard, in the sense that he would have to retire in order to join the Cypriot Army, but he would be active," he went on to explain.

"The practice followed until now was that a Lieutenant General who had already retired was selected to become Chief of the National Guard in Cyprus. Today, an active Lieutenant General will be selected, who will be discharged to continue his service in the Cypriot Army. This is a policy that the Greek Ministry of National Defence has now chosen to adopt, and I would say it is a good practice," he noted.

(Source: CNA) 

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