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The European Investment Bank (EIB) renews its cooperation with the Bank of Cyprus and the Hellenic Bank and authorises new lines of credit, totalling up to EUR 125 million for SMEs.

In the presence of EIB President Werner Hoyer, two finance agreements of EUR 85 million were signed today in Nicosia in a public ceremony by the Minister of Finance Harris Georgiades, EIB Vice President Mihai Tanasescu, Director of Consumer & SME Charis Pouangare for Bank of Cyprus and Marinos Yannopoulos, CEO for Hellenic Bank. John Patrick Hourican, Bank Of Cyprus Group CEO also attended the ceremony.

On this occasion, EIB President Werner Hoyer stated: “We join forces with the major banks in Cyprus for boosting Cypriot SMEs, the engines for growth and jobs. With today’s signatures, we address youth unemployment again, one of the major challenges Europe and Cyprus are currently facing.  In a bid to support a whole generation of manpower, we signed in Cyprus the first operation this past April, and I am particularly proud to sign two additional agreements today, just four months later. Our partnership with Bank of Cyprus and Hellenic Bank will extend our successful cooperation and will support the creation of new professional opportunities for young people.”

The EUR 50 million agreement with Bank of Cyprus, as well as the one with Hellenic Bank for EUR 35 million, include financing windows under the “Jobs for Youth” programme, which offer even more favourable financial terms to eligible SMEs. This EIB product, developed under the dedicated Youth Employment programme launched by the EU Bank in July 2013, is part of a larger initiative of the Member States and the Commission to tackle youth unemployment, following the decision of the European Council in June 2013. This product targets in particular countries with high unemployment rates amongst young people.

In order to benefit from financing under the “Jobs for Youth” window, SMEs in the fields of industry, commercial services and tourism need to fulfil a limited number of conditions, including the employment or training of young people.