Cyprus has for decades benefited from a strong and long-lasting partnership with the EIB Group, said Minister of Finance Makis Keravnos, speaking to the members of the Boards of the European Investment Bank and the European Investment Fund.
He was making his address at a working dinner in Limassol on 29 September, also noting that the EIB has invested more than €5.7 billion to the country, making Cyprus the largest per capita beneficiary of EIB support among EU member states.
He pointed out that the EIB, as the EU’s long-term lending institution alongside the EIF as its dedicated arm for SMEs and innovation, has stood for more than four decades "as a trusted partner for Cyprus, consistently transforming European priorities into tangible investments on the ground".
Keravnos said that Cyprus' Presidency of the Council of the European Union in the first half of 2026 represents a "profound responsibility" to contribute actively to shaping the Union’s collective future, at a time "when clarity of vision and unity of action are more necessary than ever".
He assured that we remain fully committed to ensuring continuity and building on the agenda of previous presidencies, with priorities closely aligned to the Union’s strategic objectives. "We will work to strengthen Europe’s competitiveness by advancing the Capital Markets Union and the Savings and Investments Union, while also taking further steps towards the Digital Euro. Its adoption is of pivotal importance in ensuring that Europe remains at the forefront of the digital era, while also strengthening the Union’s autonomy and global competitiveness", he said.
Revising the EU securitisation framework
At the same time, he continued, we view positively the ongoing work on the revision of the EU securitization framework, recognizing its potential to channel more investments into the real economy. Emphasis should be placed on simplifying due diligence requirements and introducing proportionality, while safeguarding financial stability and supporting a safe and transparent securitization market, he noted.
Furthermore, Keravnos said that Cyprus' Presidency will contribute to reaching an agreement on the post-2027 Multiannual Financial Framework, ensuring that the EU budget responds effectively to emerging challenges while sustaining long-term growth and cohesion. "We will attach particular importance to strengthening Europe’s defense and security, reinforcing cohesion policy as a cornerstone of solidarity, and nurturing the Union’s strategic partnerships", he added.
Cyprus will engage closely with the European Commission and all Member States, determined to deliver tangible progress and to contribute to a stronger, more resilient, and more competitive Europe, he stressed.
The Minister of Finance highlighted that the EU faces a convergence of complex and deeply interrelated challenges, from rising geopolitical tensions and economic uncertainty to the urgent need for a green and digital transition. At the same time, this period offers immense opportunities, he said.
"With its unrivalled financial strength and strategic focus, the EIB Group is uniquely positioned to help all Member States, and especially smaller economies such as Cyprus, navigate these challenges and transform opportunity into meaningful, measurable, and lasting impact," he added.
Strong resilience and adaptability of the Cyprus economy
Briefing of the performance of the Cypriot economy, the Minister said that over the past two years, Cyprus has shown strong resilience and adaptability, achieving one of the highest growth rates in the Eurozone.
"This progress reflects prudent fiscal policies that have yielded tangible results, leading to conditions of full employment, a robust fiscal surplus, and a consistent decrease in public debt. During the first half of 2025, growth is estimated at 3.2%, at the same period the General Government budget balance reached a surplus of 2.4% of GDP, with a primary surplus of 3.2% of GDP," he noted.
He continued mentioning that the Dept-to-GDP ratio is expected to fall at 57% by the end of this year, from 68.2% in 2024, while unemployment in the 2nd quarter of 2025 was 4.3% and inflation is expected to average close to zero for the full year 2025.
"Cyprus has for decades benefited from a strong and long-lasting partnership with the EIB Group. During this period, the European Investment Bank has invested more than €5.7 billion in our country, making Cyprus the largest per capita beneficiary of EIB support among EU Member States", he highlighted,
He noted that the European Investment Fund (EIF) has supported Cypriot SMEs and mid-caps in accessing funding through various initiatives such as the Cyprus Entrepreneurship Fund (CYPEF), mobilizing up to €540 million to support innovation and entrepreneurship across the country.
Additionally, the EIF manages the Cyprus Equity Fund (CEF), a €30 million fund-of-funds aimed at providing early-stage venture capital to innovative startups, he added.
Loans, guarantees, and advisory services
At the same time, the Bank has supported projects across key sectors through loans, guarantees, and advisory services, from infrastructure and energy to innovation, and more recently to dual-use strategic investments, providing flexible financing terms, technical expertise, and high standards of governance. In particular, the EIB has contributed to improving project design and execution, with technical assistance exceeding €2.2 million over the past decade, reducing administrative burden and enhancing the quality and impact of investments, according to Keravnos.
He further noted that, as Europe’s climate bank, the EIB channels resources into renewable energy, water management, and the circular economy. It is also accelerating digitalization and innovation, supporting transformative technologies such as artificial intelligence and life sciences. At the same time, the EIB contributes to Europe’s security and defense, strengthens modern social infrastructure, and supports cohesion policy, while mobilizing high-impact investments beyond EU borders.
"These priorities provide a strong framework for Member States to advance sustainable growth, resilience, and strategic autonomy", Makis Keravnos mentioned, expressing his belief that the partnership between Cyprus and the EIB Group will continue to flourish.
The Minister made a special mention to Kyriakos Kakouris, whose mandate as VP of the EIB is completed. "I would like to express my sincere and profound appreciation for his consistent support and excellent cooperation over the past two years", he said, noting that he has played a key role in deepening the partnership between Cyprus and the EIB, paving the way for significant achievements that have advanced our shared goals.
"His efforts have driven forward important projects, upheld the highest standards of professionalism, and strengthened confidence and trust at every level. His vision and commitment have not only benefited Cyprus and its people but have also contributed meaningfully to the EIB’s mission and to the broader European project", the Minister concluded, thanking Kakouris for his service and vision.
(Sources: CNA, EIB)
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