The Directorate General of Growth of the Ministry of Finance remains committed to ensuring the full absorption of the €1.02 billion to which the Republic of Cyprus is entitled by the end of this year from the Recovery and Resilience Facility (RRF), despite the existing challenges, some of which are documented in a report by the Internal Audit Service regarding the design and implementation of the Recovery and Resilience Plan (RRP), the Ministry has said in a press release.
As noted, by December 2025 the Coordinating Authority had submitted payment requests for disbursement from the RRF for seven of the nine total grant installments, totaling €673 million gross (66% of the total financial support), while two grant installments remain for a gross amount of €347 million, which will be submitted in 2026, as provided for in the initial 2021 timeline.
It is added that, to date, a total of €589.5 million has been received by the RRF, representing the net amount of disbursed installments plus the advances provided (which are subsequently amortized/offset against installment payments). “Our goal and effort is the full absorption of the €1.02 billion to which Cyprus is entitled in grants by the end of 2026,” it is noted in this regard.
Regarding the Internal Audit Service’s indication of a risk of delayed implementation of the Plan, the Directorate General for Growth noted that the progress made to date, combined with the targeted amendments that have been implemented—as other member states have also done— ensures, subject to certain conditions, the full absorption of available funds by the RRF.
The entire budget of €1.02 billion in grants has been committed, either through the signing of public contracts or through contracts with Grant Scheme Beneficiaries, the press release said, adding that a large number of investment projects have already been completed, while the remainder are underway and will be completed by mid-2026.
It is further noted regarding reform measures that 95% of major reforms have been completed either through the submission and passage of relevant legislation by the parliament or through executive decisions, with the last two tranches to be submitted in 2026 covering 85 milestones and targets, of which 27 have already been completed.
“With the commitment, determination, consistency, and, to date, exceptional cooperation of all institutions and stakeholders in the RRP, the Directorate General for Growth considers it feasible to achieve the targets and milestones by next August, which is the deadline for the implementation of the RRP, provided that the decisions are adopted and the relevant bills regarding the pending reforms are passed,” the press release concluded.
(Source: CNA)
