The European Investment Fund (EIF) and Eurobank have signed Cyprus’ first InvestEU Guarantee agreement on unlocking €62.5 million in new financing for small and medium-sized enterprises (SMEs) and start-ups.
This landmark deal, backed by the EU’s InvestEU programme, aims to simplify access to credit and drive economic growth in Cyprus by reducing collateral requirements, extending repayment periods, and opening doors for start-ups.
The InvestEU programme, designed to make financing more accessible and efficient across Europe, aligns with Cyprus’ strategic priorities. Kyriakos Kakouris, EIB Vice-President, highlighted the broader impact of the agreement.
“With this first InvestEU transaction in Cyprus, we are making financing simpler, fairer, and more inclusive. Cypriot entrepreneurs will now have the resources they need to invest, expand, and create jobs, which will ultimately strengthen both the local economy and Europe’s competitiveness,” he noted.
Marjut Falkstedt, EIF Chief Executive, added that "the InvestEU programme gives us the tools to make financing more accessible across Europe. This agreement in Cyprus is a perfect example of how we can improve conditions for businesses, especially start-ups, and create a positive ripple effect throughout the economy.”
Andreas Petsas, Deputy CEO of Eurobank, emphasised the bank’s commitment to supporting SMEs, stating that “small and medium-sized enterprises are the backbone of our economy. By securing these funds, we are not only supporting businesses but also fostering job creation, innovation, and the overall resilience of Cyprus’ economy. This partnership with the EIB Group is a significant step toward strengthening our local market.”
This EIB Group, which includes the European Investment Fund, has invested over €5.5 billion in Cyprus since its first operation in 1981. This long-standing commitment underscores the EIB Group’s role as a key partner in supporting Cyprus’ sustainable growth, with a focus on energy security, affordable housing, SMEs, innovation, water, and climate resilience.
The agreement not only provides immediate financial relief but also sets the stage for future collaborations, reinforcing Cyprus’ economic potential and the EU’s commitment to fostering growth and innovation.
(Source: CNA)
