Cyprus: EUR 115 million to support EU-funded infrastructure projects, SMEs and MidCaps
- Nov 2, 2015
The EIB signed today a EUR 100 million loan for supporting key infrastructure investments in Cyprus, as well as an additional EUR 15 million loan for supporting local SMEs and MidCaps, helping to boost economic recovery and create new jobs.
The European Investment Bank (EIB) signed today a EUR 100 million loan for supporting key infrastructure investments in Cyprus, as well as an additional EUR 15 million loan for supporting local SMEs and MidCaps, helping to boost economic recovery and create new jobs.
“The EIB remains firmly committed to supporting the Cypriot economy and we have clearly shown this by our actions during the crisis and again today,” said EIB President Werner Hoyer. “The EU Bank has been a reliable partner for Cyprus over the last years, providing long term financial support for viable operations, as well as projects in the knowledge economy and innovation. We remain active and committed to supporting economic growth and the creation of new jobs, including in the SME sector which is the backbone of Cyprus’s economy,” President Hoyer added.
The EIB today signed a EUR 100 million Framework Loan supporting EU Co-Financing Funds for strategic infrastructure projects to be implemented during the 2014-2020 period. The EIB funding provides affordable long-term borrowing, which can be used as the Cyprus Government’s contribution to the implementation of investments in a variety of sectors and will help absorb grants from EU Structural Funds.
The EIB also signed today a second loan with Hellenic Bank for EUR 15 million. This follows a EUR 35 million EIB loan with Hellenic Bank that was signed in September 2014, bringing the total of approved loans to HB to EUR 50 million. The loans 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.
The two finance agreements totaling EUR 115 million were signed in Nicosia today in a public ceremony, in the presence of EIB President Werner Hoyer, by the Cyprus Minister of Finance Harris Georgiades, EIB Vice President Jonathan Taylor and Hellenic Bank Chairwoman Irena Georgiadou.